Contributions to Support Service Transfer and Transformation, terms and conditions

1. Introduction

In collaboration with First Nations, Inuit and Métis partners, Indigenous Services Canada (ISC) works to provide effective, sustainable and culturally appropriate programs and services to address longstanding health and socio-economic gaps between Indigenous individuals and other Canadians.

The department’s objectives are to support the distinct needs of First Nations, Inuit and Métis by ensuring the availability of, and equitable access to, high-quality and distinctions-based services while enabling Indigenous peoples to independently deliver services and address the socio-economic conditions in their communities. This is supported by the legislated duties and powers of the Minister to take the appropriate measures to give effect to the gradual transfer to Indigenous organizations of departmental responsibilities with respect to the development and provision of those services, as outlined in the Department of Indigenous Services Act.

Indigenous control over service design and delivery has been shown to be essential to ensuring high-quality, culturally relevant services, which will ultimately lead to improved socio-economic outcomes for First Nations, Inuit and Métis individuals, families and communities. These terms and conditions are intended to advance research, evaluation and engagement supporting policy development and transformation and facilitate pilot projects and start-ups in preparation for the subsequent transfer of departmental responsibility for services to Indigenous partners.

2. Legal authority

3. Purpose, program objectives and expected results

The purpose of Contributions to support service transfer and transformation is to:

• advance broad level engagement, research and policy development with Indigenous partners for a more holistic approach to service delivery and transformation
• undertake preparatory work, including pilot projects in service design and delivery, to prepare for a subsequent transfer of responsibility for services from Indigenous Services Canada to an Indigenous partner

Through funding under this authority, First Nations, Inuit and Métis governments and organizations, including non-status, off reserve and other Indigenous groups will be engaged on key program and policy developments to support Indigenous capacity building and self-determination.

Funding also supports research, evaluation and analysis, including pilot or proof-of-concept projects that enable Indigenous-centered evidence for decision making and serve as the basis for long-term approaches to service transfer. As an enabling support mechanism, this authority will work in conjunction with funding approved through separate program authorities with pre-determined indicators and performance measurement strategies.

It is intended that contributions to support service delivery will achieve the following outcomes:

• Indigenous partners are able to engage with the department in a manner consistent with the department's service delivery and transfer mandate and respectful of partners' priorities, as measured by the number of agreements in place with First Nations, Inuit and Métis partners and dollar value
• Indigenous partners are able to facilitate innovative approaches to service design, development and delivery, as measured by the number of pilot projects or start-ups completed through this authority
• Indigenous partners have the plans and governance required to co-develop service transfer agreements and move forward with an eventual transfer, as measured by the percentage of total First Nations, Inuit and Métis communities who have accessed this authority and have completed plans for proposed service delivery organizations

In the Departmental Results Framework, this authority is listed under New Fiscal Relationship.

4. Eligible recipients

The following recipients are eligible to receive contributions:

• First Nations, Inuit and Métis governments or organizations, including non-status, off reserve and other Indigenous groups
• Third parties, for example, non-profits, universities and research institutions
  • As the purpose of this funding authority is to benefit Indigenous Canadians, third parties must undertake their best efforts to meaningfully engage Indigenous partners, including First Nations, Inuit and Métis governments or organizations and other Indigenous groups whenever possible and appropriate in keeping with the spirit and intent of the United Nations Declaration on the Rights of Indigenous Peoples

5. Eligible activities

There are 2 categories of initiatives and projects that will be funded under this authority with all proposals subject to the department’s review and approval.

6. Total Canadian government funding and stacking limits

Proposals for funding from each recipient will address the requirement for the recipient to declare any and all prospective sources of funding for the program or project, inclusive of all federal, provincial, territorial or municipal governments, total government assistance and other sources that are expected to be received. Annual financial reporting would show all sources of funding received. Maximum funding by Indigenous Services Canada and total maximum government assistance is 100% for eligible programs and projects.

The stacking limit must be respected when assistance is provided, see Treasury Board Secretariat Directive on Transfer Payments,  appendix C: Total Canadian Government Funding and Stacking Limits. Recipients of contribution agreements are required to disclose any other government funding received for the same activity, initiative or project

7. Method for determining the amount of funding

The method for determining the amount of funding is based on proposals received. ISC’s Strategic Policy and Partnerships sector will conduct a comprehensive joint review of the project needs and funding recipients with the implicated program area or region and existing risk assessments will be considered.

8. Maximum amount payable

These amounts are based on a single recipient. If the recipient is a multi-partner First Nations, Inuit, Métis or other Indigenous group or organization that is funded by ISC through a single contribution agreement, these amounts will be multiplied by the number of individual partner organizations involved.

Category 1: The maximum amount payable annually for any 1 project will not exceed $10,000,000.

Category 2: The maximum amount payable annually for any 1 project will not exceed $50,000,000.

9. Basis on which payments will be made

Payments will be made based on achievement or pre-determined performance objectives or milestones, as identified in the funding agreement or reimbursement of eligible expenditures. When advance payments are to be made, they will be made in accordance with the recipient's cash flow requirements, based on a cash flow forecast from the recipient. When utilizing progress payments, as defined by Treasury Board's Directive on Transfer Payments, a claim for reimbursement must be submitted identifying sources of project revenue and project actual expenditure, as per the funding agreement.

Where it is advantageous to the success of the activities, the department would offer fixed, flexible or block funding approaches for contributions to Indigenous recipients, in accordance with Appendix K: Transfer Payments to Aboriginal Recipients of the Directive on Transfer Payments. Please refer to: Directive on Transfer Payments for more information.

10. Application requirements and assessment criteria

In order for the department to consider entering into an agreement with a prospective recipient, the recipient will be required to:

• present a plan to, and reach agreement with, the department respecting the activities to be carried out, the objectives as they relate to the department's mandate, the total cost of the project and the results to be achieved
• disclose or declare, in the proposal for funding, any and all prospective sources of funding for the program or project, inclusive of all federal, provincial or other government sources that is expected to be received
• provide annual financial reporting, which show all sources of funding received
• disclose the involvement of any former public servants and whether the Treasury Board post-employment guidelines apply

Recipients who are former public office holders must respect and comply with the Conflict of Interest and Post-Employment Code for Public Office Holders and the Conflict of Interest and Post-Employment Code for the Public Service, 2003. Recipients who are former public servants must respect and comply with the Values and Ethics Code for the Public Service. Where an applicant employs or has a major shareholder who is either a current or former, in the last 12 months, public office holder or public servant in the federal government, compliance with the codes must be demonstrated.

The departmental review procedures for verifying eligibility, entitlement and application approval, including risk assessments, are detailed in relevant departmental program directives and procedures. Third parties involved in the application process are required to meaningfully engage First Nations, Inuit and Métis governments or organizations and other Indigenous groups whenever possible and appropriate to address Indigenous Canadians’ diverse needs and priorities.

11. Due diligence and reporting

Performance measurement strategy

Recipient performance reporting requirements will be outlined in the projects' statement of work in the Contribution Agreement or related amendments. Project completion reports will be provided by recipients and may include, but is not limited to, program or initiative rationale, success, cost-effectiveness, ongoing monitoring of the initiative and design and delivery, the results achieved and the nature of impacts and effects resulting from the implementation of programs.

Financial accountability

Financial reporting requirements will be set out in the funding agreements and the frequency of reporting will be based on the recipient risk. At a minimum, contribution recipients are required to submit annual financial reports or financial audits that account for the use of funding in accordance with the terms of the funding agreements. The frequency of reporting will be based on the recipient risk and departmental directives.

12. Official languages

The department will ensure that the resources developed respect the obligations of the Government of Canada as set out in the Official Languages Act. Where a program supports activities that are delivered on behalf of the Government of Canada within the meaning of section 25 of the Official Languages Act, requirements will be included in funding agreements so as to ensure that Canada’s obligations are met. Where a program supports activities that, while not delivered on behalf of the Government of Canada, may be delivered to members of either official language community, which means where there is significant demand, the recipient is required to provide access to services in both official languages.

13. Intellectual property

Where a contribution is provided for the development of material in which intellectual property subsists, conditions for rights will be set out in the funding agreement.

14. Repayable contributions

Provisions for repayable contributions do not apply. Any contributions made to private firms under these programs are not intended to generate profits or to increase the value of a business.

15. Redistribution of contributions

Where a recipient delegates authority or further distributes contribution funding to an agency or a third party, such as an authority, board, committee or other entity authorized to act on behalf of the recipient, the recipient shall remain liable to the department for the performance of its obligations under the funding agreement. Neither the objectives of the programs and services nor the expectations of transparent, fair and equitable services shall be compromised by any delegation or redistribution of contribution funding.

Recipients have full independence in the selection of such third parties and will not be acting as an agent of the government in making distributions.

16. Other terms and conditions

Terms and conditions effective date

These terms and conditions come into effect on June 16, 2022.