ARCHIVED - Year End Reporting Handbook: Funding Agreements covering 2012-2013

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Table of Contents


Important Notes

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1.0 Context and Background

The departments of Aboriginal Affairs and Northern Development Canada and (AANDC) and Health Canada (HC) receive and review financial information in conjunction with non-financial information and undertake compliance activities annually. These activities are undertaken to gather information on whether funds provided are expended for the purposes intended, the collected information depicts the Recipient's financial situation and allows AANDC and/or HC to assess whether the funding Recipient's financial situation is sufficiently stable to assure continued delivery of funded programs/services.

Reporting on the use of public funds to community members and to Canadians remains an essential element of the management control framework for transfer payments. All governing bodies are ultimately accountable to their stakeholders. As such, AANDC and/or HC must demonstrate to the Canadian public and Parliament, through their respective Ministers, that all funds, including those transferred to Aboriginal and other Recipients are spent in accordance with the terms of funding agreements.

The Year End Reporting Handbook (YERH) is a supporting document designed to help Recipients of AANDC and/or HC to comply with the terms and conditions of funding agreements pertaining to financial accountability, transparency and reporting. The handbook must be read in conjunction with the Recipient's funding agreement.

Other stakeholders may be part of the management of the funding agreement, for example the Recipient's auditor, accountants or agencies receiving part of the funding provided to a Recipient. Where this is the case, it is strongly recommended that Recipients provide the YERH to all those involved in managing the funding agreement. All involved must understand the Recipient's annual financial reporting requirements and that of their funded Agencies.


2.0 Scope of Handbook

This handbook applies to all AANDC and/or HC-FNIH Recipients who receive funding through a signed funding agreement with AANDC and/or HC-FNIH as defined in their funding agreement's terms and conditions, and who have the financial reporting requirements set-out in this handbook.


3.0 Accounting Standards

Financial statements are essential elements of accountability. They depict a Recipient's financial health and provide information on how much funding was spent and for what purposes. Financial statements also assist in future decision making.

Financial statements are prepared by the Recipient and audited by an independent and qualified auditor. The auditor's function is to determine the completeness and fairness of the financial statements in all material respects; this means an adequate review is done to provide a written professional opinion on the statements.

Financial statements provide important information to Recipients. The information is also important to federal government departments which fund transfer payment programs, and the financial institutions that do business with these entities.

Audited financial statements are required to be submitted in accordance with the Public Sector Accounting Board (PSAB) standards which is a consistent standard used by all governments in Canada.

Additionally, some special purpose detailed reporting may be required, for example Schedules of Salaries, Honoraria, Travel Expenses and Other Remuneration.

3.1 First Nations

Produced by the Canadian Institute of Chartered Accountants (CICA), the Public Sector Accounting Handbook (PSA Handbook) applies to all forms of governments in Canada, and First Nations are considered governments from an accounting perspective.

3.2 Tribal Councils and First Nations Political Organizations

Tribal Councils and First Nations Political Organizations must adhere to the PSA Handbook accounting recommendations of the Common Government Reporting Model unless Canadian Accounting Standards definitions and recommendations deem them to be profit-oriented enterprises, or not-for-profit organizations, or government not-for-profit organizations (if applicable). It is the Recipient's responsibility, with the help of their auditor, to determine which of the CICA recommendations are relevant to their organization.

3.3 Agencies

In some instances, AANDC and/or HC may provide transfer payments to a Recipient that in turn re-distributes a portion or all of these transfer payments to an agency for the delivery of programs and services funded under the terms and conditions of a funding agreement. The funding Recipient who signed the funding agreement with AANDC and/or HC remains accountable to AANDC and/or HC for the performance of its obligations as set out in the funding agreement.

Therefore, where the Recipient has transferred funding to an agency, the Recipient must require that agency to provide its financial statements to the Recipient in addition to the Recipient providing its own financial statements. Also, upon written request from AANDC and/or HC to the Recipient, a copy of the agency's financial statements must be made available to AANDC and/or HC.

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4.0 References


5.0 Definitions

For the purposes of this handbook see Appendix A of the Treasury Board of Canada Secretariat – Directive on Transfer Payments


6.0 Financial Reporting Requirements

This section details the components of the financial reports that Recipients must provide to AANDC and/or HC, as identified in the Recipient's funding agreement.

Where the word "audited" follows the description of the component, that component must be independently audited according to the requirement set out in the funding agreement.

6.1 First Nations, Tribal Councils and First Nation Political Organizations (using the Common Government Reporting Model)

F-0080 – Annual Audited Consolidated Financial Statements package, comprised of:

General Purpose Financial Statements:
Special Purpose Reporting:

Or

F-0081 – Annual Unaudited Schedule of Revenue and Expense package, comprised of:

6.2 Recipients Other than First Nations, Tribal Councils and First Nation Political Organizations (includes Non-For-Profit) (using the General Reporting Model)

The Recipient shall provide the financial reports package listed below that applies as indicated in the Recipients funding agreement.

F-0190 – Annual Audited Financial Statements package, comprised of:

General Purpose Financial Statements:
Special Purpose Reporting:

Or

F-0191 – Annual Audited Schedule of Revenue and Expense package, comprised of:

Or

F-0192 – Annual Unaudited Schedule of Revenue and Expenses, comprised of:

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7.0 Financial Reporting Description

7.1 Annual Audited Financial Statements

a) First Nations, Tribal Councils and First Nation Political Organizations (using the Common Government Reporting Model)

The Recipient shall provide Consolidated Audited Financial Statements in accordance with Canadian Accounting Standards, using the Common Government Reporting Model.

The Annual Audited Financial Statements must at least include the following:

b) Recipients using the General Reporting Model (other than First Nations)

The Recipient shall provide Consolidated Audited Financial Statements in accordance with Canadian Accounting Standards and CICA Handbook.

The Audited Financial Statement must at least include the following:

7.2 Funding Reconciliation – Needs to be included in the statements formats

AANDC and/or HC must be able to reconcile funding provided to the Recipient. The following reconciliation must be submitted as part of the Audited Financial Statement package:

AANDC and/or HCfunding per Financial Statement $ x

less: prior year deferred revenue - detailed by Program/Service/Activity ($X )

add: current year deferred revenue - detailed by Program/Service/Activity $X

AANDC and/or HC funding per funding confirmation $X

In addition, the following information must be included in the funding reconciliation:

7.3 Schedule of Revenue and Expenditures of Funded Recipient – Program/Service/Activity (Annex A)

Important information: These individual schedules are not required to be audited unless identified in section 6.

A separate Schedule of Revenue and Expenses must be provided for each Program/Service/Activity/Project for which funding is provided through a funding agreement.

More specifically, the Program/Service/Activity/Project Revenues and Expenses Schedules must:

7.4 Schedules of Salaries, Honoraria, Travel Expenses and Other Remuneration (Annexes B and C)

7.4.1 Auditor's Attestation

The schedules described in this section must be accompanied by one of the following auditor's attestations:

7.4.2 Requirement for Schedules of Salaries, Honoraria, Travel and Other Remuneration

At a minimum, the schedules must include the information described below in the Elected or Appointed Officials (Annex B) and Unelected Senior Officials (Annex C) sections.

7.4.3 Elected or Appointed Officials

A "Schedule of Salaries, Honoraria, Travel Expenses and Other Remuneration" must be prepared in accordance with Annex B.

The amounts to be disclosed must be from all sources within the Recipient's financial reporting entity including amounts from, but not limited to, economic development and other types of business corporations.

The amounts included in this schedule must have been paid on behalf of, earned or accrued by elected or appointed officials and could include amounts such as travel expenses, debt write-offs, salaries and benefits from other employment in the reporting entity, and dividends or other such amounts received from businesses included in the Recipient's reporting entity.

For the purposes of this section, the elected or appointed officials are:

7.5 Schedule of Federal Government Funding (Annex E)

Scope and Background

All Recipients that are First Nations, Tribal Councils and First Nation Political Organizations must provide AANDC and/or HC with a Schedule of Federal Government Funding and AANDC and/or HC will publicly disclose this information. This public disclosure will inform Canadians of the many programs and services delivered by the Recipient that are supported by federal funds.

The following funds are to be included in the Schedule:

The amounts transferred to Recipients for comprehensive, specific and other claims settlements are not to be included in the schedule.

7.6 Auditor's Management Letter

The CICA Handbook recommends that the auditor must present to the audit committee or a similar governing body, any identified internal control shortcomings during the financial statement audit (Ref. 5220.07 – CICA Handbook). This communication is either referred to as an "Auditor's Management Letter" or an "Internal Control Letter". These letters and the recommendations contained therein are valuable management tools to help build Recipient financial and administrative capacity.

It is strongly recommended that the "Auditor's Management Letter" or "Internal Control Letter" be provided to AANDC and/or HC in all instances. However, this becomes a mandatory reporting requirement in the following cases:

  1. Where, a recipient is already under default provisions of a funding agreement (a continuation of a previously imposed default; and
  2. When a Recipient is in default of its funding agreement and AANDC and/or HC has notified the Recipient that a default management action is required, AANDC and/or HC will request the "Auditor's Management Letter" or "Internal Control Letter".
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Annex A
Schedule of Revenue and Expenses

For the year ended March 31, 2013
Funded Recipient
Program/Service/Activity Name

  2013 Budget2013 Unaudited2012
(prior year)
(Unaudited)
 
Revenue (examples)  
Aboriginal Affairs and Northern Development ### ### ###
Other revenue ### ### ###
AANDC and/or HC Trust Fund interest revenue ### ### ###
Prior year unexpended funding (where applicable) ### ### ###
Total Revenue #,### #,### #,###
 
Expenses (examples)  
Advertising ### ### ###
Audit fees ### ### ###
Bad debts ### ### ###
Bank Charges ### ### ###
Cigarette quota ### ### ###
Emergency assistance ### ### ###
Honoraria ### ### ###
Insurance ### ### ###
Interest on long-term debt ### ### ###
Meeting ### ### ###
Miscellaneous ### ### ###
Office ### ### ###
Professional fees ### ### ###
Rent ### ### ###
Repairs and maintenance ### ### ###
Salaries and benefits ### ### ###
Subcontracts ### ### ###
Supplies ### ### ###
Telephone ### ### ###
Tradition and culture ### ### ###
Travel ### ### ###
Total Expenses #,### #,### #,###
 
Surplus (deficit) before transfers #,### #,### #,###
Transfers between programs #,### #,### #,###
Transfer to Education (example) #,### #,### #,###
Transfer from Casino (example) #,### #,### #,###
Surplus (deficit) #,### #,### #,###
 
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Annex B
Schedule of Salaries, Honoraria, Travel Expenses and Other Remuneration

Elected or Appointed Officials
Name of Funding Recipient
For the Year Ended March 31, 2013

Name of IndividualPosition TitleNumber of
Months *
Salary
[Note 1]
Honoraria
[Note 2]
Other Remuneration [Note 3]TotalTravel Expenses
* The number of months during the fiscal year that the individual was an elected or appointed official

Notes:

  1. Salary is a fixed amount of money agreed to every year as pay for an employee.
  2. Honoraria are ex gratia payments made to a person for their services in a volunteer capacity or for services for which fees are not traditionally required.
  3. Other remuneration represents any amount paid for remuneration that is a benefit but not part of a salary or an honorarium received from other organizations (for example First Nation, Tribal Council, company) due to having the political position such as bonuses, the personal use of a vehicle supplied by the Recipient, pension contributions, health benefits, etc.
               
               
               
               
               
               
               
               
               
               
               
               
               
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Annex C
Schedule of Salaries, Honoraria, Travel Expenses and Other Remuneration

Unelected Senior Officials
Name of Funding Recipient
For the Year Ended March 31, 2013

Name of Individual
(optional)
Position TitleNumber of
Months *
Actual Salary or
Approved Salary
Range [Note 1]
From/To
Honoraria
[Note 2]
Other
Remuneration
[Note 3]
TotalTravel Expenses
* The number of months during the fiscal year that the individual was on staff

Notes:

  1. Salary is a fixed amount of money agreed to every year as pay for an employee.
  2. Honoraria are ex gratia payments made to a person for their services in a volunteer capacity or for services for which fees are not traditionally required.
  3. Other remuneration represents any amount paid for remuneration that is a benefit but not part of a salary or an honorarium received from other organizations (for example First Nation, Tribal Council, company) due to having the political position such as bonuses, the personal use of a vehicle supplied by the Recipient, pension contributions, health benefits, etc.
               
               
               
               
               
               
               
               
               
               
               
               
               
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Annex D
Name of First Nation and Inuit Recipient

Statement of Moveable Assets Reserve for Health Canada First Nations and Inuit Health Funding
For the Year Ended March 31, 2013

Recipients of Flexible and Flexible Transfer funding agreements dated prior to April 2012 and Block Flexible and Block Flexible Transfer funding agreement shall also provide a Statement of Moveable Assets Reserve (MAR) for the Health Canada, First Nations and Inuit Health funding in accordance with the Health Canada, First Nations and Inuit Health Statement of Moveable Assets Reserve for Health Canada following this table.

  20132012
Balance at beginning of year $ xxx $ xxx
Amount provided in agreement for MAR $ xxx $ xxx
Total $ xxx $ xxx
 
Revenues Generated $ xxx $ xxx
Expenses (acquisitions and replacements) $ xxx $ xxx
Balance at end of year $ xxx $ xxx
 
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Annex E
Schedule of Federal Government Funding

Name of Funding Recipient
For the Year Ended March 31, 2013

(To be reported as per the Funding Agreement)

DepartmentFederally Funded Programs,
Projects and Services
Directly/Indirectly Funded
by the
Government of Canada
Federal Funding
Received (A)
Unexpended Federal
Funding Beginning
of Year (B)
Adjustments
or Transfers
(e.g. Block transfers)
(C)
Total Federal
Funding Available
A + B + C = D
Federal Funding
Expended (E)
(Option 1)
Unexpended Federal Funding
End of Year
D – E = F
(Option 1)
Total Expenses
from All Sources
(Option 2)
N/A
(Option 2)
Aboriginal Affairs and Northern Development Canada Claims and Indian Government
  • Researching of claims
  • Negotiation (Claims and Self-Government) process
  • Implementation of claim agreements
  • Other specific projects
               
Community Development
  • Infrastructure (includes Housing Support, Water Sewer and Other Facilities)
  • Education Facilities
  • Acquisition & Construction of Infrastructure (includes Housing Support, Water & Sewer and Other Capital)
  • First Nations Water Management Strategy
  • Gathering Strength (Infrastructure Facilities)
  • Implementing Immediate Investment in FN Housing on Reserve (Lot Servicing)
  • Safe Drinking Water
  • Acquisition & Construction of Education Capital - School Construction (only Alberta)
  • Off Reserve Housing
  • Community-Based (On-Reserve Housing)
  • Housing Service Delivery
  • Implementing Immediate Investment in FN Housing on Reserve (New Constructions / Renovations)
  • Gathering Strength (Housing)
  • Recreation Programs
  • Community Capital Facilities Service Delivery
  • Technical Services
  • Comprehensive Community Based Planning
  • Other specific projects
               
Economic Development
  • Community Economic Development Program
  • Community Economic Opportunities Program
  • Aboriginal Business Canada Programs
  • Other specific projects
               
Education
  • Elementary/Secondary Services (includes Band Operated Schools, Provincial Schools, Federal Schools, Special Education Program and Elementary/Secondary Student Support Services)
  • Post-Secondary Education (includes Post-Secondary Education - Indian Studies Support, Post Secondary Student Support Program and University and College Entrance Preparation Program)
  • Education Partnerships Program
  • All other Education Programs ( includes New Paths for Education Program, Strengthening Education Capacity, Improving School Effectiveness, Parental and Community Engagement, Teacher Recruitment and Retention, Information Communication Technology (for IT RMOs only), First Nations and Inuit Youth, Employment Strategy, First Nation Student Success Program, Special Education Program, Cultural Education Centers, National Aboriginal Achievement Foundation and Other specific projects)
               
Indian Government Support
  • Indian Government Support Alternative Funding Agreement
  • Band Support Funding
  • Band Employee Benefits
  • Tribal Councils Funding
  • Band Advisory Services
  • Other specific projects
               
Land Management
  • Land Management
  • Implementation of the First Nations Land Management Initiative Act
  • Other specific projects
               
Social Development
  • Assisted Living
  • Child & Family Services
  • Family Violence
  • Income Assistance
  • National child Benefit Reinvestment
  • Other Social Services (includes Early Childhood Development, Gathering Strength - Social Development and other specific projects)
               
Indian Registration
  • Registration and membership
  • Management of individual monies
  • Estate Management
  • Treaty annuities
               
Governance and Institutions of Government
  • Band Governance (Elections and By-Laws)
  • Professional and Institutional Development Program
  • Governance Activities: National Centre for First Nations, Consultation and Policy Development, Gathering Strength
  • Institutions: First Nations Tax Commission, First Nations Financial Management Board, First Nations Financial Authority
  • Other specific projects
               
Northern Affairs
  • Climate Change
  • Sustainable Development Northern Economic Development
  • Hospital and Physician Services
  • Northern Contaminants Program
  • Other Northern Affairs Programs / Services
               
Other

(All other programs and services that are not described in above categories)

               
Sub-total for AANDC                  
 
Health Canada (First Nations and Inuit Health Funding) Reporting for all Health Canada, First Nations and Inuit Health funding must be broken down into the individual program and services funded and listed under the Program Funding schedule (normally Schedule "2") in the Recipient's Health Funding Consolidated Contribution Agreement and any of its amendments.                
Sub-total for Health Canada (First Nations and Inuit Health Funding)                  
 
Canada Mortgage and Housing Corporation
  • Non-Profit On-Reserve Housing
  • Residential Rehabilitation Assistance Program (RRAP) Homeowner and Persons with Disabilities Programs
  • RRAP Rental (including Secondary and Garden Suites)
  • RRAP Conversions
  • Home Adaptations for Seniors Independence Program
  • Shelter Enhancement Program
  • Housing Internship Initiative for FN and Inuit Youth

See Supplementary Information

               
Sub-total for CMHC                  
 
Human Resources and Skills Development Canada                  
 
Fisheries and Oceans Canada                  
 
Canadian Heritage                  
 
Public Safety Canada                  
 
Industry Canada                  
 
Natural Resources Canada                  
 
Justice Canada                  
 
Privy Council Office                  
 
National Defence                  
 
Canada Revenue Agency                  
 
Other                  
 
Grand Total                  
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