Highly decentralized with 10 regions

South of 60°

About 80% of resources are used to fund programs delivered by First Nations community governments, Tribal Councils, etc.

• Most funds are for basic provincial/municipal type services to individuals on reserve.
  
  
• The federal government is committed to providing services on reserves comparable to those typically provided by the provinces.
  
  
• Provincial standards guide program delivery leading to variability across regions.

North of 60°

• The Minister has Federal lead on North, including the Northern Strategy.
  
  
• The Department has a province-like role in water and oil and gas management and a federal-like role in social and economic development.
  
  
• Indian and Northern Affairs Canada manages land and resources in Nunavut and the Northwest Territories (Yukon is devolved).

• According to the 2006 Census of Population, there are 1,172,785 Aboriginal individuals in Canada, representing 3.8% of the total Canadian population.
  
  
• Registered Indians account for over half of the Aboriginal population.
  
  
• In 2006, almost half (47.8%) of Aboriginal people were less than 25 years of age compared with almost one-third (30.7%) of non-Aboriginal people.
  
  
• Median age for Aboriginal people is 27 years, 13 years less than for non-Aboriginals (40 years).
  
  
• Total population of the territories approximately 101,000 and slightly over half are Aboriginal in 2006.

Distribution of the Aboriginal Population by
Registration Status and Identity, Canada, 2006

Other refers to individuals who reported more than one Aboriginal group, and those who reported being a Band member with no Aboriginal identity and no Registered Indian status. Source: 2006 Census of Population, INAC tabulations.

This is an image of a pie chart showing the distribution of the Aboriginal population by registration status and identity as of 2006. The chart indicates that there were: 53.2% were identified as registered Indians; 30.3% as Métis; 11.4% non-status Indians; 4.2% Inuit and: 0.9% as other ("other" refers to individuals who reported more that one Aboriginal group, and those who reported being a Band member with no Aboriginal identity and no registered Indian status. The sources for the data in the chart are the 2006 Census of Population with tabulations done by Indian and Northern Affairs Canada).

• According to the 2006 Census of Population, 75% of First Nations reserves have less than 500 inhabitants, the majority of which are located in British Columbia.
  
  
• First Nations reserves include legally defined Indian reserves, Indian settlements, other land types created by the ratification of Self-Government Agreements, and northern communities affiliated with First Nations.

First Nation Reserves by Population Size, 2006

Note: N=865 out of a possible 1,176 First Nation Reserves delineated by Statistics Canada in 2006. Not included are unpopulated reserves and reserves that have data quality issues for which population counts are not available.
Source: Statistics Canada, Geosuite 2006.

This image is of a bar chart showing the distribution of the 865 First Nation reserves by population size based on statistics Canada 2006 information. The chart indicates that 319 reserves have a population under 100 or less; 173 have populations of between 100 and 249; 150 between 250 and 499; 135 between 500 and 999; 67 between 1000 and 1999 and; 21 with populations of more than 2000.

• In 2009, 65% of Registered Indians on reserve live in Department defined rural, special access, or remote zones, while nearly 35% live in urban zones.

On - Reserve Population by Geographic Zones, 2009

Notes:
Urban: The First Nation is located within 50 km of the nearest service centre with a year-round road access.
Rural: The First Nation is located between 50 and 350 km from the nearest service centre with a year-round road access.
Remote: The First Nation is located over 350 km from the nearest service centre with year-round road access.
Special Access: The First Nation has no year-round road access to a service centre and, as a result, experiences a higher cost of transportation.
Source: Indian Registrar Population by Geographic Zone, 2009

This image is of a pie chart showing the population distribution by percentage of the on-reserve population by geographic zone. The population distribution is as follows: Rural, 44.6%; Urban, 34.5%; Special Access, 17.2% and; Remote, 3.7. The definitions for these categories are: Urban: the First Nation is located within 50 km of the nearest service centre with a year-round road access. Rural: the First Nation is located between 50 and 350 km from the nearest service centre with a year-round road access. Remote: the First Nation is located over 350 km from the nearest service centre with year-round road access. Special Access: The First Nation has no year-round road access to a service centre and, as a result, experiences a higher cost of transportation. Source: Indian Registrar Population by Geographic Zone, 2009

• There has been progress over the last 25 years in improving the socio-economic conditions in First Nations and Inuit communities.
  
  
• A significant gap still exists in the socio-economic conditions of First Nations and Inuit communities compared to those of other communities.

Community Well-Being Index (CWB)
Average CWB Scores, 1981-2006

Source: Statistics Canada,1981, 1991, 1996, 2001 and 2006 Census of Population.

This image is of a line graph showing the average Community Well-Being scores of First Nations, Inuit and other Canadian communities for the years 1981, 1991, 1996, 2001 and 2006. The Community Well-Being Index is a method of assessing general well-being of Canadians at the community level in terms of education, labour force activity, income and housing. The scores are plotted on an XY axis chart where the "X" axis are the years 1981 to 2006 and the "Y" is the Community Well-Being Index scores from 30 to 100. The chart shows that the scores for First Nations communities were: 47 (1981); 51 (1991); 55 (1996); 57 (2001); 57 (2006).

The scores for Inuit communities were: 48 (1981); 57 (1991); 60 (1996); 61 (2001); 57 (2006). The scores for other Canadian communities were: 67 (2001); 71 (1991); 72 (1996); 73 (2001); 77 (2006). The source for the data used in the line is Statistics Canada's Census of Population for 1981, 1991, 1996, 2001, 2006.

Source: 2010-11 Main Estimates
Figures may not add due to rounding.

This image is of a pie chart showing the breakdown of departmental expenditures for 2010-11. The breakdown is shown as follows: $6,104 million (83.6%) transfer payments; $1,113 million (15.2%) operating expenditures; $78 million (1.1%) loans; $6 million (0.1%) capital. The section of the chart referring to "operating expenses" is extracted to show that the $1,113 million of operating expenditures is broken down as follows: $311 million (4.3%) statutory/fiduciary obligations; $382 million (5.2%) program delivery; $139 million (1.9%) negotiation costs; $281 million (3.8%) administrative overhead. The source for the information for the chart is the 2010-11 Main Estimates. Figures may not add due to rounding.

Note 1: Comprised of $281.1 million for Administrative Overhead and $84.5 million for Litigation Support.
Source: 2010-11 Main Estimates; additional details at sub-activity level extracted from departmental budget allocations. Figures may not add due to rounding.

• The department's approved annual growth rate for Indian and Inuit programming services remains at two percent.
  
  
• The overall annual growth rate, however, is larger due to significant investments made in priority areas through successive budgets since 2006 (e.g. education, women, children and families, water, housing and economic development).
  
  
• The department's forecasted expenditures for 2010-11 are over $7 billion. Indian and Northern Affairs Canada, Health Canada and a number of other federal departments and agencies now spend more than $11 billion each year to fund programs directed to Aboriginal people.
  
  
• As part of effectively managing its budget (of over $7 billion), the department actively monitors resource pressures to ensure resources are aligned with priorities, including ensuring that demographic growth pressures and provincially set price increases in education and social development are met, as well as addressing pressures in other key areas.
  
  
• To address the pressures that arise from the two percent cap, the department will, when necessary, re-allocate funds from certain program areas to address pressures in other program areas particularly education and social development.

1996-97 to 2008-09 based on actual expenditures; 2009-10 and 2010-11 based on forecast and planned spending included in the 2010-11 Report on Plans and Priorities
** Adjusted using Final Domestic Demand Implicit Price Index

Overall departmental expenditures have grown by about 70%, in current dollars since 1996-97.

This image is of a line graph of the cumulative percentage change in departmental expenditures annually from fiscal years 1996-97 to 2010-11. The graphs plots the percentage changes for: total expenditures (current dollars); expenditures adjusted for residential schools, claims, northern, the Office of the Interlocutor and one-time limited initiatives; Indian and Inuit programming (constant dollars) and; Indian and Inuit programming per capita (constant dollars). The percentages are:

Total current dollars: (0%) 1996-97; (7%) 1997-98; (15%) 1998-99; (10%) 1999-2000; (20%) 2000-2001; (20%) 2001-02; (26%) 2002-03; (28%) 2003-04; (31%) 2004-05; (37%) 2005-06; (42%) 2006-07; (70%) 2007-08; (62%) 2008-09; (81%) 2009-10; (70%) 2010-11.

Actual adjusted for Northern Affairs/Claims/Residential Schools/One-time/Time limited: (0%) 1996-97; (2%) 1997-98; (5%) 1998-99; (10%) 1999-2000; (16%) 2000-2001; (18%) 2001-02; (20%) 2002-03; (24%) 2003-04; (28%) 2004-05; (34%) 2005-06; (39%) 2006-07; (43%) 2007-08; (47%) 2008-09; (60%) 2009-10; (61%) 2010-11.

Indian and Inuit Programming (constant dollars): (0%) 1996-97; (1%) 1997-98; (2%) 1998-99; (6%) 1999-2000; (9%) 2000-2001; (8%) 2001-02; (8%) 2002-03; (10%) 2003-04; (12%) 2004-05; (15%) 2005-06; (17%) 2006-07; (17%) 2007-08; (17%) 2008-09; (26%) 2009-10; (24%) 2010-11.

Includes projected amounts for Supplementary Estimates A only.

This is an image of a bar graph showing the dollar amounts in the annual estimates cycle for the department including the dollar amounts for the Main Estimates, Report on Plans and Priorities, Main and Supplementary Estimates and the actual expenditures for the fiscal years of 2007-08, 2008-09, 2009-10, 2010-11. The dollar amounts for the actual expenses for fiscal years 2009-10 and 2010-11 are not included.

For 2007-2008 the figures are: $6.3 billion, Main Estimates: $6.8 billion, Report on Plans and Priorities; $7.4 billion, Main and Supplementary Estimates; $7.3 actual expenses.

For 2008-2009 the figures are: $6.3 billion, Main Estimates: $6.9 billion, Report on Plans and Priorities; $7.3 billion, Main and Supplementary Estimates; $7.0 actual expenses.

For 2009-2010 the figures are: $6.9 billion, Main Estimates: $7.3 billion, Report on Plans and Priorities; $7.8 billion, Main and Supplementary Estimates.

For 2010-2011 the figures are: $7.3 billion, Main Estimates: $7.3 billion, Report on Plans and Priorities; $7.5 billion includes projected amounts for Supplementary Estimates A only).

Existing Federal Obligations

• Federal obligations in treaties and law (e.g. Constitution Act, 1867 and Indian Act); and major court interpretations (e.g. Guérin, Sparrow, Marshall, McIvor).
  
  
• Settlement of outstanding litigation (e.g. residential schools).

Demographic and Inflationary Pressures

• Young, growing and highly dispersed population.
  
  
• Price and population have grown by about four percent annually versus 2 percent growth cap.

Policy Commitments

• To resolve and accelerate claims settlements; to provide comparable services to First Nations; to foster independence (e.g. Self-Government, Gathering Strength); education; economic development.
  
  
• Environmental and resource management requirements - particularly in the North.
  
  
• Economic growth and stability.

Claims, Treaties and Rights

• Growing awareness and recognition of Aboriginal and treaty rights.

Devolution Issues

• Diseconomies of scale - community size and remoteness will impact cost of program delivery.
  
  
• Capacity at the community level to deliver programs effectively and efficiently.

The department has undertaken a number of initiatives to support stronger financial and performance management including:

• Extensive work on its Performance Measurement Framework;
  
  
• Performance measurement strategies for renewal of program authorities;
  
  
• The ongoing work of its Audit and Evaluation Committees;
  
  
• The work taking place through the implementation of the Policy on Transfer Payments to ensure funds transferred are managed with integrity, transparency and accountability;
  
  
• Implementation of the Chief Financial Officer Model embedding financial management advisors within sectors;
  
  
• Implementation of sectoral and regional resource plans;
  
  
• Rigorous oversight and review of ongoing resource utilization through monthly financial status reports;
  
  
• Priorizing pressures through means of re-profiling, carry-forwards, and vote transfers.

• There is significant horizontal activity in Aboriginal and Northern programs and services across the federal government.
  
  
• The department's overall funding is increasing due to significant investments made in priority areas through successive budgets since 2006.
  
  
• Spending is impacted by deeply embedded cost drivers such as demographics, inflation, comparability, devolution/self-government, etc.
  
  
• The department has a number of measures in place to strengthen financial and performance management.