Mandate, Roles and Responsibilities

Aboriginal Affairs and Northern Development Canada (AANDC) supports Aboriginal peoples (First Nations, Inuit and Métis) and Northerners in their efforts to:

• improve their social well–being and economic prosperity;
• develop healthier, more sustainable communities; and
• participate more fully in Canada's political, social and economic development — to the benefit of all Canadians.

AANDC is the federal department primarily responsible for meeting the Government of Canada's obligations and commitments to First Nations, Inuit and Métis, and for fulfilling the federal government's constitutional responsibilities in the North. AANDC's overall mandate and wide–ranging responsibilities are shaped by centuries of history and unique demographic and geographic challenges. The mandate is derived from from the Constitution Act 1982, the Indian Act, the Department of Indian Affairs and Northern Development Act, territorial Acts, treaties, comprehensive claims and self–government agreements, as well as various other statutes affecting Aboriginal people and the North.

Most of the department's programs, representing a majority of its spending, are delivered through partnerships with First Nation and Aboriginal communities and federal–provincial or federal–territorial agreements. AANDC also works with urban Aboriginal people, Métis and non–status Indians (many of whom live in rural areas) through the Office of the Federal Interlocutor. AANDC is one of 34 federal departments and agencies delivering Aboriginal and northern programs and services.

Indian and Inuit Affairs

AANDC's responsibilities for Indian and Inuit Affairs include:

• promoting improved education for Aboriginal people;
• negotiating claims and self–government agreements with Aboriginal communities, and overseeing the implementation of settled claims on behalf of the federal government;
• facilitating economic development opportunities for Aboriginal individuals, communities and businesses;
• funding the delivery of provincial–type services such as education, housing, community infrastructure and social support to Status Indians on reserves;
• addressing and resolving issues that arise from the legacy of Indian residential schools;
• liaising effectively between the Government of Canada and Inuit governments and organizations in the implementation of policies and delivery of services; and
• fulfilling duties set out in the Indian Act, including managing Indian reserve lands and financial resources belonging to First Nation communities, and approving or rejecting bylaws in First Nation communities.

Office of the Federal Interlocutor

The mandate of the Office of the Federal Interlocutor (OFI) derives from an Order in Council providing authority to the Minister to act as the federal government's primary interlocutor for Métis, non–status Indians and urban Aboriginal people. The Office of the Federal Interlocutor maintains and strengthens the Government of Canada's relations with organizations representing these groups.

Northern Development

The Northern Development mandate derives from statutes enacted in the late 1960s and early 1970s, including the Department of Indian Affairs and Northern Development Act, 1970; from statutes enacting modern treaties north of 60°, such as the Nunavut Land Claims Agreement Act, or self–government agreements, such as the Yukon First Nations Self–Government Act; and from statutes dealing with environmental or resource management. Statutes that enact the devolution of services and responsibilities from AANDC to territorial governments, such as the Canada–Yukon Oil and Gas Accord Implementation Act, also impact the role of the department.

This makes AANDC the lead federal department for two–fifths of Canada's land mass, with a direct role in the political and economic development of the territories, and significant responsibilities for resource, land and environmental management. In the North, the territorial governments generally provide the majority of programs and services to all Northerners, including Aboriginal people.

AANDC's responsibilities for Northern Development include:

• promoting political and economic development in Yukon, the Northwest Territories and Nunavut;
• negotiating the transfer of federal responsibilities for land and resource management to the territorial governments;
• managing the resources, land and environment of the North in places where federal responsibilities have not been transferred to territorial governments;
• co–ordinating initiatives, such as managing contaminated sites and subsidizing the cost of nutritious perishable food;
• advancing circumpolar interests, such as Canada's Arctic sovereignty, climate change adaptation and environmental protection, Canadian representation at circumpolar forums, and scientific research related to the North; and
• implementing AANDC's legal obligations arising from treaties and land claim agreements.

AANDC will continue to lead and co–ordinate federal efforts and partnerships under the federal government's integrated Northern Strategy, as well as to implement its related initiatives, such as the Canadian High Arctic Research Station. Sustainable economic development, an improved regulatory system, environmental protection, and making the most of the tremendous potential of the land and people of the North will contribute to increased employment and prosperity among Northerners. The Canadian Northern Economic Development Agency  , which provides integrated business services north of 60°, is a key contributor to achieving the goals of the Northern Strategy  .

AANDC's Contribution to the Federal Sustainable Development Strategy

AANDC is a participant in the Federal Sustainable Development Strategy (FSDS). The FSDS represents a major step forward for the Government of Canada as it links environmental sustainability and strategic environmental assessment with decision–making processes. AANDC's contributions are explained in sections II, III and IV and are tagged according to the theme they are associated with by the icons in the legend below the Program Activity Architecture.

For additional details on AANDC's activities that support sustainable development, please see AANDC's website at Sustainable Development. For complete details on the FSDS, please see The Federal Sustainable Development Strategy  .

AANDC Strategic Outcomes and Program Activity Architecture (PAA) 2011-2012

1. The Government
2. The People
3. The Land and Economy
4. The North
5. Office of the Federal Interlocutor

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Operating Context

AANDC faces many challenges and opportunities as it works to deliver on its mandate and contribute to the achievement of the Government of Canada's outcomes. The department's legal and operating environments are complex and continually evolving. AANDC delivers or funds programs and services to diverse groups of people (First Nations, Inuit, Métis and Northerners) who have varied and distinct priorities and needs, and who live in a vast range of communities throughout the country — from remote settlements with extreme climates to metropolitan urban areas. Most of AANDC's services are delivered through partnerships with Aboriginal communities, the provinces and territories, Aboriginal organizations, and organizations in the North. AANDC's success is therefore highly dependent on strong and productive relationships and partnerships.

On behalf of the Government of Canada, AANDC is also the lead department responsible for the negotiation and implementation of self–government and land claims agreements. The significance of comprehensive land claims agreements (CLCAs) and self–government agreements (SGAs) to Canada's political, cultural, social, and economic landscape cannot be overstated. CLCAs and SGAs are legally binding agreements. As a result, the rights and obligations of the signatories – Canada, Aboriginal signatories, and provincial–territorial governments — contained in the agreements are given important legislative recognition and are legally enforceable. The agreements are given further legal effect through implementing legislation, and many are also constitutionally protected under section 35 of the Constitution Act, 1982.

The North is particularly rich in both challenges and opportunities. For instance, the Arctic regions' natural resources are becoming better known, more accessible and more economically feasible to develop. At the same time, this development is raising considerable concern, at home and abroad, about potential negative environmental damage and impacts to traditional lifestyles. Another example is climate change – Northerners are already experiencing some negative impacts such as infrastructure damage and changes in species' behaviour. At the same time, changing ice conditions may lead to an increase in marine traffic and generate new opportunities for Northerners.

AANDC's responsibilities are shaped by unique demographic and geographic challenges, as well as centuries of Canadian history. At the same time, the nation's changing social, economic and political landscape strongly influences AANDC's priorities, performance and delivery of services. A key factor in Canada's changing demographic landscape is the increasing Aboriginal population, which is young and growing at twice the rate of the Canadian population overall. While this growth brings the challenge of ever–increasing demands for services – Aboriginal people in Canada continue to have lower levels of education, poorer health and quality of life, and higher levels of unemployment than Canadians overall – it also presents an unprecedented opportunity to harness the potential of capable educated Aboriginal youth to fill crucial labour shortages now and in the future. In addition, the department requires an integrated set of plans, policies and programs to foster and build on the economic advancements resulting from the increasing employment opportunities and wealth that is being created by Aboriginal businesses and communities.

Supreme Court and other court rulings on Aboriginal and treaty rights also continue to have a major impact on AANDC's mandate and the way the department works to fulfill the Crown's legal obligations. Canada's historic relationship with Aboriginal peoples and the ongoing refinement of constitutional concepts and questions add to the complexity of litigation, as well as expose the Government of Canada to landmark court decisions and significant financial liabilities.

Risk Analysis

AANDC's operating environment includes a range of risks and challenges. The greatest risk that affects Canada as a whole is that Aboriginal people and Northerners will not benefit from the same quality of life as other Canadians. With this in mind, AANDC uses risk management practices to guide priority setting and planning, policy development, and program design and delivery.

AANDC manages strategic risks at a corporate level and within each strategic outcome. At a corporate level, one of AANDC's risk mitigation strategies is to be more responsive to the diversity of circumstances among Aboriginal groups and regions. This includes, for example, using more three-party or tripartite–based approaches that strengthen Aboriginal and government relationships. Another strategy is the creation of a community development approach that takes into account the varying sizes, resources and levels of political evolution of First Nations.

AANDC's corporate risks are listed in the adjacent table. These corporate risks were assessed by senior management for their likelihood of occurrence and their potential impact relative to the mandate if they were to occur. The results of this risk assessment are plotted on the Risk Heat Map. Risks for program activities are identified in the PA planning tables in Section II.

2010 Risk Assessment

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Expenditure Profile

Planned Spending Breakdown

The department's 2011–2012 planned spending is $7.4 billion, of which $7.0 billion is captured by five strategic outcomes (covering 16 program activities), with the remaining $0.4 billion for the Internal Services program activity which supports all the strategic outcomes. It should be noted that The People strategic outcome makes up the largest portion of the funding ($3.6 billion or 49%) and includes the two largest program activities, Education and Social Development with funding at $1.7 billion and $1.6 billion, respectively. The Government strategic outcome accounts for a further 22% (or $1.6 billion) while The Land and Economy strategic outcome accounts for another 20% (or $1.5 billion). The remaining funding is allocated to The North and the Office of the Federal Interlocutor strategic outcomes ($223 million and $42 million, respectively). Refer to the pie chart for the departmental 2011–2012 planned spending by strategic outcome and program activity.

2011–2012 Planned Spending ($ millions)

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Over the period 2007–2008 to 2011–2012, planned spending will increase from about $6.2 billion (excluding the one time payment of $1.1 billion made to the Cree of Quebec in 2007–2008 to settle implementation issues for the James Bay and Northern Quebec Agreement) to $7.4 billion. This means that program spending has increased by about $1.2 billion over this period, reflecting the following:

• an increase in funding associated with the transfer to AANDC of responsibility for the Office of Indian Residential Schools Resolution of Canada;
• an increase in funding provided to meet the demand for ongoing First Nation and Inuit programs and services;
• an increase in funding for accelerating the resolution of specific claims;
• an increase in funding provided in Budget 2008 for a new framework for economic development, enhancing education outcomes, and expanding First Nation child and family services;
• an increase in funding for the First Nation Infrastructure Fund to improve the quality of life and the environment for First Nations; and
• a reduction related to the sunset of funding provided for the Federal Contaminated Sites Action Plan.

Planned spending over the period from 2011–2012 to 2013–2014 diminishes primarily because of reductions related to the sunset of targeted funding. This includes the sunsetting of the First Nation Infrastructure Fund and the First Nations Water and Wastewater Action Plan. Planned spending also reflects the target completion of the implementation of the Indian Residential Schools Settlement Agreement. Spending decreases also reflect changes in the approved funding profile for the negotiation, settlement and implementation of specific and comprehensive claims.

Spending Trend ($B)

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Note: Future settlements of claims and litigation will be added to planned spending levels through subsequent appropriations, typically through Supplementary Estimates. Similarly, decisions in future federal budgets may lead to additional appropriations.

2011–2012 Main Estimates and Planned Spending

The 2011–2012 Main Estimates for the department are approximately $7,368 million. In addition, it is expected that adjustments of at least $50 million will be included in the first round of 2011–2012 Supplementary Estimates, resulting in total planned spending of approximately $7,418 million.

* Major items include funding for a series of Yukon comprehensive land claim and self–government implementation initiatives, for improving the regulatory regime and environmental monitoring in the North, for the registration of applicants under the Gender Equity in Indian Registration Act, and for implementation of the Beaufort Regional Environmental Assessment.

Budget Restraint Measures

AANDC will implement budget restraint measures through very close monitoring of expenditures, adjusting expenditures as necessary. This includes: (i) rigorous control over staffing, (ii) reduced travel by taking advantage of technology such as video conferencing as much as possible; and (iii) reduction of expenditures on discretionary professional services.