Frequently Asked Questions - Implementing the TBS Policy and Directive on Transfer Payments at AANDC

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When did the TBS Policy and Directive on Transfer Payments take effect?

The Policy and Directive on Transfer Payments took effect on October 1st, 2008.

What are the objectives of this Policy and Directive on Transfer Payments?

The Policy and Directive seek to ensure that transfer payment programs are managed with integrity, transparency and accountability; delivered in a manner that is sensitive to risks; are citizen and recipient-focused; and are designed to address government priorities in achieving results for Canadians.

How will implementation of the Policy and Directive change the administration of AANDC’s grants and contributions?

The Policy and Directive will ensure that:

  • Administrative requirements for applicants and recipients are balanced with the level of risk specific to the program, the level of funding, and the risk profile of applicants and recipients;
  • Programs are accessible, understandable and useable for applicants and recipients;
  • There is increased collaboration among departments that fund the same recipients;
  • There are cost-effective oversight and control systems in place at both departmental and government-wide levels.

When did AANDC implement the Policy and Directive on Transfer Payments?

Initial implementation of the Policy and Directive took place on March 31, 2011. AANDC will continue to pursue opportunities for efficiencies and continuous improvements in achieving the objectives of the Policy and Directive.

How does the Policy and Directive on Transfer Payments affect funding agreements?

The Directive   outlines requirements for the standard grant and contribution approaches, as well as three additional contribution funding approaches (fixed, flexible and block approaches) that departments can use for programs for Aboriginal people.

As part of the implementation of the Policy and Directive, AANDC modified and standardized funding agreement models.

Are multi-year agreements possible? 

Yes, multi-year agreements are possible depending on the results of the General Assessment. The flexible and block contribution funding approaches for Aboriginal recipients involve multi-year agreements that may last up to ten years.

What is meant by a risk-based approach?

A risk-based approach differs from a “one-size-fits all” approach, in that transfer payments to recipients are adjusted in accordance with the risk involved in making a particular payment to a recipient. Refer to the General Assessment for more information.

Were there opportunities for Aboriginal recipients to comment on or participate in AANDC’s implementation of the Policy and Directive?

Yes. Formal and informal engagement sessions with recipients were organized by the Aboriginal Financial Officers Association, as well as by AANDC’s regional offices and headquarters. The findings from these sessions helped to shape the various approaches and tools utilized in AANDC’s implementation of the Policy and Directive.

What should recipients be doing to stay informed about the implementation process?

For more information about the implementation of the Policy and Directive on Transfer Payments, visit AANDC’s Transfer Payments website or contact your Funding Services Officer.