Default Prevention and Management

Aboriginal Affairs and Northern Development Canada’s (AANDC) Default Prevention and Management Policy helps maintain continuity in the delivery of departmentally funded programs and services to Aboriginal communities.

• Backgrounder – Default Prevention and Management
• Frequently Asked Questions – Default Prevention and Management
• Recipients with Intervention Under Way

Directive 205: Default Prevention and Management

This directive applies to Aboriginal Affairs and Northern Development Canada officials managing transfer payments. This directive does not apply to funding provided under legislated self-government agreements and Funding Agreements resulting from federal-provincial accords.

The objective of this directive is to aid in the implementation of the Default Prevention and Management Policy (DPMP) through departmental processes which identify defaults. The DPMP mandates a risk based approach, which emphasizes Recipient responsibility and capacity, default prevention and the management of defaults to ensure programs, projects and services are delivered and funds expended are in compliance with Treasury Board Authorities and the Financial Administration Act.

Directive 210: Third Party Funding Agreement Management

This directive applies to Aboriginal Affairs and Northern Development Canada officials managing transfer payments with the exception of funding provided under legislated self-government agreements and funding agreements resulting from federal-provincial accords.

This objective of this directive is to aid in the implementation of the Default Prevention and Management Policy (2011) through departmental processes which identify defaults. Recipients will be required to remedy their default(s) in an appropriate, timely and cost effective manner, Programs, services, activities and projects are to be delivered with funds being expended as required in the funding agreement.

• Backgrounder - Third-Party Management