Grant for Band Support Funding: Terms and Conditions

Table of contents

1. Introduction

The purpose of the Band Support Funding (BSF) grant is to assist band councils to meet the costs of local government and administration of departmentally funded services. This support is intended to provide a stable funding base to facilitate effective community governance and the efficient delivery of services. BSF allows First Nation communities the flexibility to allocate funds according to their individual needs and priorities and be responsive in an environment of growing complexity and as they move toward self-government.

BSF recipients under the block funding approach must continue to meet the terms and conditions of the BSF program authority. Also, even if there is usually no reporting requirement attached to a Grant authority, BSF recipients under block funding have to submit annually their Audited Financial Statement which covers all funding received through the block funding approach. The additional requirement is counterbalanced by the fact that block funded BSF recipients have access to multi-year funding.

These terms and conditions are specifically targeted to Aboriginal people.

2. Legal and Policy Authority

3. Purpose, Program Objectives and Expected Results

BSF is one of the key programming components of the departmental Program Activity Architecture (PAA) which ultimate goal aims at improving the quality of life and increasing self reliance of First Nations communities. As part of the PAA's Government pillar, BSF plays a key role in strengthening effective local governments which are essential to communities socio-economic development.

BSF is the cornerstone of First Nation governance and of continued devolution of federal services to First Nation communities' control. Thus, the main objective of BSF grant is to provide a stable funding base to First Nation governments to facilitate both effective community government, which includes the formulation, implementation and enforcement of policies and regulations, selection of representatives, and efficient delivery of services to citizens in a way that enhances social and economic well-being.

In securing financially viable First Nation governments able to operate with predictable and flexible transfers, BSF contributes to fostering First Nations governments that are reflective of and responsive to their communities' needs and values in an environment of growing complexity as they move toward self government. It also contributes to stable local governments, accountable and transparent to their citizens and to the government, and to empowered citizens.

In the Program Activity Architecture, this authority is listed under the Government/Governance and Institutions of Government.

4. Eligibility

Indian bands as defined by the Indian Act, RSC, 1985 are eligible recipients of the Grant for BSF. Band councils of bands, as defined in the Indian Act, RSC, 1985, can apply on behalf of the band for the grant.

The elected representatives of Indian communities that have not yet been declared to be bands by order of the Minister, but are generally recognized as a federal responsibility and have concluded an agreement in principle concerning reserves of land and the establishment of bands, may be eligible for this grant subject to specific Treasury Board approval.

BSF recipients are eligible for block funding approach. Although the block eligible recipients include Tribal councils, only Bands are eligible to receive BSF funding.

This authority is specific to Band Support Funding.

5. Type and Nature of Eligible Expenditures

This provision does not apply to grants paid to a class of recipients.

6. Total Canadian Government Funding and Stacking Limites

Band Support Funding is a grant towards the costs of local government of eligible Bands and therefore is not limited to specific expenditures.

7. Method for Determining the Amount of Funding

The Band Support Funding program formula is used to determine the amount of funding for Band Support Funding.

8. Maximum Amount Payable

The maximum amount payable is determined by the funding formula. The total amount of the grant may not exceed the sum of the amounts allocated to each of the seven components that comprises the formula. The maximum amount will not exceed the amount appropriated by Parliament for this purpose.

Band Support Funding recipients under the block funding approach:

Payments under the block funding approach shall not exceed the results given by the formula.

9. Basis on Which Payments will be Made

Grants are normally paid in instalments to correspond to the cash flow requirements of the recipient. Payments are made based on a cash flow forecast from the recipient and will not exceed the payment frequency as set out in the Cash Management Policy.

10. Application Requirements and Assessment Criteria

Potential recipients must complete an application form annually in the manner prescribed by the department, and must submit the form, duly filled out and signed, to the regional office.

The application form contains data used to establish the funding level and therefore must be reviewed for comparison with departmental records, including currently agreed to Person Year information, and approved by regional office.

The application form must be a document separate from the funding arrangement and must not be incorporated into the text of the arrangement.

Recipients must send an application in for each funding agreement renewal.

Recipients must submit a new application form to receive any increase in funding or if they are managing a new program.

Bands councils seeking grant funding must agree to make available to their members a budget for the expenditure for all funds to be received, and to maintain accounting and record systems consistent with their responsibility to account properly for the expenditure of public funds.

Recipients who are former public office holders must respect and comply with the Conflict of Interest and Post-Employment Code for Public Office Holders and the Conflict of Interest and Post-Employment Code for the Public Service (2003). Recipients who are former public servants must respect and comply with the Values and Ethics Code for the Public Service. Where an applicant employs or has a major shareholder who is either a current or former (in the last twelve months) public office holder or public servant in the federal government, compliance with the Code(s) must be demonstrated.

Band Support Funding recipients under the block funding approach:

Once a recipient has met specific block funding eligibility criteria, the application requirements of specific programs shall apply in order to establish the initial base budget for block funding and where block funding is to be re-established.

11. Due Diligence and Reporting

The department has procedures and resources that enable it to observe due diligence in approving grant payments, in verifying their eligibility and in managing and administering programs.

The evaluation process or criteria to be used to assess the effectiveness of the grant program may include, but is not limited to, program/initiative rationale, success, cost-effectiveness, and design and delivery, the results achieved and the nature of impacts and effects resulting from the implementation of programs.

Performance Measurement Strategies are being developed for all programs, consistent with the requirements in the Policy on Transfer Payments, as part of the phased-in approach to implement the renewed Policy on Transfer Payments.

12. Official Languages

Where a program supports activities that may be delivered to members of either official language community, access to services from the recipient will be provided in both official languages where there is significant demand and Part IV of the Official Languages Act is applicable. In addition, the Department will ensure that the design and the delivery of programs respect the obligations of the Government of Canada as set out in Part VII of the Official Languages Act.

13. Intellectual Property

Where a grant is provided for the development of material in which copyright subsists, conditions for shared rights will be set out in the funding agreement.

14. Other Terms and Conditions

None

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