Presentation by Anna Fontaine,
RDG Manitoba Region
to the
Aboriginal Financial Officers Association of
Manitoba, Saskatchewan, & Ontario
October 11, 2011
Victoria Inn & Convention Centre,
Winnipeg, Manitoba
1
Overview
 The Big Picture
 Status of implementing the Policy on Transfer
Payments
 Changes to PID
 Opportunities for collaboration
2
The Big Picture
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
Majority Government
Speech from the Throne priorities
Deficit Reduction Action Plan
Auditor General’s June 2011 Report
Canada-First Nation Joint Action
Plan
3
Risk Based Approach –
Recipient General Assessment
Risk Tool
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Assess all recipients and new applicants
Categorize recipient risk level –High, Medium, Low
2 versions – Part A and Part B
Results could impact:
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Duration of agreements
Recipient reporting, monitoring and auditing
Cash management (including advances and holdbacks)
Availability of certain funding approaches
 Identify areas that require additional attention or
investment
4
Funding Agreement Models
 The new National Agreement Models/Versions have been
developed to be either annual or multi-year
Non Aboriginal
Recipient Funding
Model
Aboriginal Recipient
(other than FNs and
TCs) Funding Model
First Nations/Tribal
Councils Version
Project Based version
Provincial/ Territorial
Model
Project Based Version
Grant Model *
* Under development
5
Funding Approaches Directive
 Primary changes at AANDC

Aboriginal Contribution Funding Approaches
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AFA renamed to “Block” contribution funding
FTP renamed to “Fixed” contribution funding
New contribution funding – “Flexible”
New Approaches available widely
Surplus or Unexpended Funding now requires approval
from AANDC to be retained by recipient
All recipients

Basic contribution renamed to “Set Contribution”
6
Default Prevention and
Management
Comparison of INAC’s Existing Intervention Policy and
New Default Prevention and Management Process
Intervention Policy (2007)
Default Prevention & Management Policy
Reactive approach to default
Tools to identify and mitigate risk of
default before a default occurs
Focus on financial issues and audit
review
Broader range of focus
8% of cumulative deficient
More holistic approach that assesses
the financial position
Three distinct levels of intervention
More flexible continuum of
mechanisms
7
A continuum of prevention, default management
and sustainability
ve
nti
on
”
Ongoing Monitoring
“P
re
“Prevention”
Default
Default
Management
Management
General Assessment
pm
lo
e
ev
(Leads to a Risk Continuum)
Readiness
Assessment
pm
lo
e
ev
“C
ty
ci
a
p
t”
en
“Sustainability”
“C
ity
ac
p
a
t”
en
D
D
a
Capacity Development
8
Horizontal Collaboration
Initiatives
 Support communities through pilot initiatives among
federal departments to:
 Streamline application and administrative
requirements
 Develop a single funding agreement for transfer
payments from multiple departments
 Facilitated by the TBS Centre of Expertise
 Will inform opportunities for recipients and future
relations with other federal departments
 AANDC/HC consolidated work plan 2011 to 2013
pursuing joint initiatives:
•
•
•
Standardized Financial Reporting
Standardized agreement models and templates
Joint Recipient audits and common default approach
9
Three part approach to the Default
Prevention and Management Policy
Continuity
and sustainability
in the delivery of INAC funded
programs and services to Aboriginal communities
Default Prevention
Relationships
General
Assessment
Reporting
Monitoring
Audits
Default Management
Sustainability
Relationships
Relationships
Default
Assessment
Tool
Monitoring
Management
Action Plan
General
Assessment
Readiness
Assessment
Expert
Expert Resource
Resource Pools
Pools and
and Capacity
Capacity Development
Development Programming
Programming
Default Prevention and Management Policy, Directives and Guidelines
10
Professional and Institutional Development
Program
 By 2012-13, PID will focus on community capacitydevelopment plans in the area of core governance.
 2011-12 program focuses on:
 Priority 1 - Management Action Plans Targeting
Governance.
 Priority 2 - Risk Factors Targeting Governance.
 Priority 3 – Existing Capacity Development Plans for
Governance.
 Priority 4 – Future Planning Capacity.
11
Professional and Institutional
Development
Program
 Priority 1 – Management Action Plans Targeting
Governance
 Governance activities related to the 10 functions of
Government
 Typically, for communities with high General
Assessment risk scores.
 Priority 2 – Risk Factors Targeting Governance
 Capacity development plans which propose
investments in governance for First Nations which
receive medium or high risk scores for Governance,
Planning or Financial Management.
 Typically, for communities with total risk scores which
are medium or low.
12
Professional and Institutional
Development
Program
 Priority 3 – Existing Capacity Development Plans
for Governance
 Governance activities proposed in existing
capacity development plans.
 Typically, for communities with a low total risk
score.
 Priority 4 – Future Planning Capacity
 Proposals which seek as a one-time step to
invest in the ability of a community to create a
capacity development plan.
 May include AFOA workshops and
community meetings on strategic planning
13
Conclusion
 How can AANDC and AFOA collaborate?


Workshops
Training
 Other areas?
14