Frequently Asked Questions - Consolidation of Transfer Payment Terms and Conditions


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Q1. Why is AANDC consolidating its transfer payment terms and conditions?

Aboriginal Affairs and Northern Development Canada (AANDC) is transforming its business practices by aligning and streamlining its processes and reducing the administrative burden for funding recipients.

As part of this transformation, AANDC is consolidating the transfer payment terms and conditions, and consequently reducing the number of grants and contributions listed for the Department in the Main Estimates.

At present, 80 per cent of the Department's budget, made available through the 2013-14 Main Estimates, is delivered through 69 authorities.

Through this initiative, AANDC is focused on consolidating 39 of its current compliment of 69 authorities into 14, with the balance being assessed for further consolidation.

The changes made to AANDC's transfer payment terms and conditions are solely administrative in nature and will not affect funding levels.

This initiative reflects recommendations made by the Blue Ribbon Panel on Grants and Contributions, and requirements under Treasury Board's Policy on Transfer Payments, both of which aim to provide clarity and consistency for all of government. This also addresses the June 2011 Office of the Auditor General of Canada Report, which called for changes to simplify and reduce administration on First Nation communities.

Q2. What kinds of programs are included in the proposed consolidation of transfer payment terms and conditions, and what will be the effect on these programs?

All programs were considered in the exercise to consolidate transfer payment program terms and conditions. A summary of the terms and conditions being consolidated is available on the AANDC website.

By modernizing the current structure, funding recipients will have increased opportunities for streamlined application and reporting processes, which will ultimately reduce their administrative burden and support a more effective structure over the longer-term. This will benefit both the Department, and more importantly funding recipients.

Generally speaking, the benefits of consolidating the Department's authorities are:

  • A more unified, predictable program environment;
  • The potential to decrease the administrative burden on funding recipients;
  • Standardization and refinement of program operations to increase efficiencies and improve functioning; and
  • Consolidation of funding recipient proposal and reporting processes.
Q3. How will the current transfer payment terms and conditions be consolidated?

Multiple, often duplicative, transfer payment terms and conditions will be consolidated into natural groupings based on program themes. This consolidation will enable the Department to further reduce the administrative burden on our funding recipients.

Q4. Will this consolidation result in cuts to AANDC programs and services?

There will be no changes to funding levels or any cuts resulting from the proposed consolidation. This initiative is purely administrative in nature and aimed at improving the way the Department does business.

Reviewing and consolidating transfer payment terms and conditions on a regular basis is sound practice and shared throughout government. Other departments have already taken similar steps. In 2007, Health Canada's First Nations Inuit Health Branch (FNIHB) consolidated its authorities, first from 32 authorities to 10, and then in 2011 to 3 authorities.

Q5. Will this consolidation change the Department's authority to administer programs, alter funding levels or impact funding agreements?

This consolidation does not change the Department's current authority to administer policies and programs, nor does it change funding levels. This initiative is solely administrative in nature and has no impact on funding agreements between the Department and its recipients.