OTTAWA, ON, May 4, 2026 /CNW/ - The Minister of Indigenous Services, Mandy Gull-Masty, issued the following statement today:
"The Government of Canada welcomes the Auditor General's report on the New Fiscal Relationship with First Nations and is taking action on its recommendations.
We are strengthening how the New Fiscal Relationship is implemented, monitored, and measured, including enhancing governance capacity and improving how progress is assessed and reported.
Advancing a new fiscal relationship with First Nations remains a key priority, grounded in co-development with First Nations partners, including the Assembly of First Nations and First Nations-led institutions, to move toward predictable and flexible funding that supports self-determination.
A central component of this work is the 10-year New Fiscal Relationship Grant. Today, over 200 First Nations-led governments and organizations receive more than $2 billion annually through this grant to support core program delivery, enabling long-term planning and community-driven decision-making. The Auditor General found that the grant's eligibility criteria were well-defined and consistently applied.
At the same time, we recognize that further action is needed. The report found that Indigenous Services Canada (ISC) did not fully meet two commitments: replacing the Default Prevention and Management Policy and creating a mutual accountability framework. We have achieved significant progress since making these commitments.
For instance, ISC removed the first two levels of the Default Prevention and Management Policy because they are inconsistent with First Nations self-determination. The third level of intervention, third-party management, has been retained to ensure the continuity of critical program and service delivery when critical programs and services are at risk. As of April 1, 2026, the Department has no active case of third-party management.
On the mutual accountability framework, engagement with First Nations showed that partners do not support a single, static framework but instead support an adaptable, First Nations-led approach that evolves over time.
We are continuing to work with First Nations partners to advance a renewed approach to accountability that reflects their priorities and realities, while also strengthening governance and financial capacity supports needed to support its implementation.
We are also taking steps to address challenges identified in the report, including supporting First Nations in meeting financial reporting requirements and improving the use of available data to better measure results."
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SOURCE Indigenous Services Canada
For more information, media may contact: Livi McElrea, Press Secretary, Office of the Honourable Mandy Gull-Masty, Minister of Indigenous Services, [email protected]; Media Relations, Indigenous Services Canada, [email protected]
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