Contributions to Support the Construction and Maintenance of Community Infrastructure

Terms and Conditions

1.0 Introduction

The provision of community infrastructure funding to First Nations is based on the Government of Canada's spending power as a matter of social policy. The Department of Indian Affairs and Northern Development's (DIAND) allocates funding for the construction and the maintenance of community infrastructure to First Nations at regional level through formula, proposal based project funding or as a combination of both.

Capital Facilities and Maintenance Program

Contributions to eligible recipients under the Capital Facilities and Maintenance Program (CFMP) provide financial assistance to plan, construct and/or acquire and operate and maintain community capital facilities and services (infrastructure, including schools) and housing (residential) consistent with approved policies and standards. This assistance is provided to First Nations on reserves, as well as First Nations and other eligible recipients on Crown land or recognized Indian land.

The Department's Regional Offices work in collaboration with First Nations to establish and prioritize five-year capital plans according to the CFMP's National Priority Ranking Framework. The highest priority is assigned to those projects which mitigate the most urgent health and safety risks. Protection of assets through adequate operation and maintenance is also key to mitigating health and safety concerns and ensuring that existing and new assets reach their full life cycle.

DIAND's policies and procedures relating to the CFMP are set out in a number of frameworks, mainly the department's Level of Service Standards (LOSS), in addition to the protocols for water and wastewater, and the school space accommodation standards. The Department's policy, as stated in LOSS, is to support and assist First Nations in providing basic community services comparable to the levels of services that would generally be available in non-First Nations communities of similar size and circumstances.

In managing the CFMP, the Department is in conformance with the Indian and Inuit Affairs Program (IIAP) Environment Policy and associated guidelines. In the absence of applicable federal, provincial or territorial environmental legislative requirements, DIAND will adopt best environmental practices and principles. The CFMP must also comply with the Department's Sustainable Development Strategy and support national efforts toward climate change.

For the purpose of this program, different funding arrangements with Aboriginal recipients are used, depending on the demonstrated capacity of the recipient to manage transfer payments. In addition to standard contributions funding arrangements, these flexible funding arrangements are defined as fixed, flexible or block contribution funding arrangements.

First Nation Infrastructure Fund

The First Nations Infrastructure Fund (FNIF) supports this mandate and improves the quality of life and the environment for First Nations by assisting First Nation communities on-reserve, Crown Land or land set aside for the use and benefit of a First Nation within the provinces of Canada to improve and increase public infrastructure. Building on current financial support through existing DIAND-administered infrastructure programs, the FNIF provides funding to First Nation communities on an application basis. The program also provides flexibility in project categories, in recognition of the range of infrastructure pressures in First Nations communities.

Fire Protection Awareness Program

An important part of the departmental fire protection policy has been to find ways to address the need to lower fire losses. One method of achieving this is by increasing fire awareness on First Nation reserves. In light of this, DIAND funds a fire poster competition for First Nation and Inuit students in band or federal operated schools. Monetary prizes and the reimbursement of travel expenses for the winners are made through the Aboriginal Firefighters Association of Canada via its contribution agreement with DIAND.

  Grant Payments Contribution Payments
Set Fixed Flexible Block
*** Aboriginal Recipients Only ***
Capital Facilites Maintenance Program (CFMP)   Yes Yes Yes Yes
First Nations Infrastructure Funds (FNIF) Program   Yes Yes Yes Yes
Fire Protection Awareness Program (FPAP)   Yes      

In the Department's Program Alignment Architecture, Construction and Maintenance of Community Infrastructure is listed under the Land and Economy / Community Infrastructure.

2.0 Legal and Policy Authority

  • Department of Indian Affairs and Northern Development Act, R.S.C. 1985, c.I.
  • Budget 2003 - Infrastructure Funds
  • Budget 2006 - Infrastructure Funding to Top Up the Canada Strategic Infrastructure Fund
  • Budget 2007 – Fiscal Framework.
  • Budget 2007: Funding allocations for First Nations infrastructure programs under the Building Canada Fund and the Gas Tax Fund extension.
  • Budget 2009 - Accelerating Infrastructure Investments.
  • Budget 2012 – FNWWAP and Investments to Improve First Nations Education

3.0 Purpose, Program Objectives and Expected Results

Each component of the Contributions to Support Construction and Maintenance of Community Infrastructure program has a specific objective and expected results as outlined:

  Objectives Expected Results
Capital Facilites Maintenance Program (CFMP) The objective of the CFMP is to provide financial support to First Nations and other eligible recipients to: invest in physical assets (or services) that mitigate health and safety risks in their communities; ensure that assets meet established codes and standards; and ensure that assets are managed in a cost-effective and efficient manner that protects, maintains and maximizes asset life cycle; and ensure that the above activities are undertaken in an environmentally sound and sustainable manner. The expected result of the CFMP is that First Nations communities have a base of infrastructure that protects health and safety and enables engagement in the economy.
First Nations Infrastructure Funds (FNIF) Program The objective of the FNIF is to improve the quality of life and the environment for First Nation communities by assisting First Nations in the provinces to improve and increase public infrastructure on reserves, Crown Land, land set aside for the use and benefit of a First Nation, or off-reserve in the case of cost-shared project with non-First Nation partners such as neighbouring municipalities. The expected result of the FNIF include:

improving health and safety of First Nation communities; contributing to a cleaner and healthier environment for First Nation communities; enhancing collaboration between the Government of Canada, First Nation communities, municipalities, provinces, and the private sector; and, leveraging other sources of funds for infrastructure projects in First Nation communities.

Fire Protection Awareness Program (FPAP) The objective of this contribution is to promote fire protection awareness in band or federally operated schools The expected result is to raise the level of fire protection awareness and knowledge at the community level.

4.0 Eligibility

4.1 Eligible Recipients

  CFMP FNIF FPAP
Indian/Innu/Inuit Class of Eligible Recipients
Bands/Settlements (land, reserves, trusts) Yes Yes No
First Nations/Innu/Inuit governments referred to in a Self Government or land claims Agreement Yes Yes No
District Councils/Chief Councils Yes Yes No
Tribal Councils Yes Yes No
First Nation Students attending band or federally operated schools and their chaperon No No Yes
Organizations
Societies (e.g., First Nation Emergency Services Society) Yes Yes No
Associations Yes Yes Yes *
Institutions (e.g., Saskatchewan Indian Institute of Technology) Yes Yes No
Corporations (major shareholder is Indian/Innu/Inuit e.g., the Ontario First Nations Technical Services Corporation; the Little Red River Education Authority) Yes Yes No
Partnerships Yes Yes No
Private and Public Class of Eligible Recipients
Private
Associations (e.g., B.C. Water and Wastewater Association) Yes Yes No
Corporations (construction, general contractor, partnerships with First Nations) Yes Yes No
Colleges and other training institutions (in the area of training, DIAND may enter into arrangements with a private entity) Yes Yes No
Societies Yes Yes No
Financial Institutions (if bridge financing) Yes Yes No
Public No Yes No
Training Institutions (e.g., Saskatchewan Institute of Applied Science and Technology) Yes Yes No
Provincial-Territorial Governments (e.g., provincial winter roads, joint school agreements) Yes Yes No
Provincial-Territorial Agencies including Provincial School Boards (e.g., SaskWater Corporation) Yes Yes No
Municipalities (various municipal-type agreements for provision of services such as water, wastewater, fire protection) Yes Yes No
Local Authorities (e.g., Fraser Basin Authority/other authorities established by provincial governments to divest responsibilities) Yes Yes No
Boards and Commissions (same as Local Authorities) Yes Yes No
Universities and Colleges (e.g., agreements to provide training and certification for water and wastewater operators) Yes Yes No
* Monetary prizes and the reimbursement of travel expenses for the winners are made through an Aboriginal association

4.2 Eligible Initiatives and Projects

Eligible initiatives and projects are those that assist First Nations in acquiring, constructing and operating and maintaining housing and community infrastructure including water and wastewater systems, schools, roads and bridges, electrification, and community buildings; or to hold activities to raise the level of fire protection awareness.

The support to the eligible initiatives and projects is provided through three streams to eligible recipients:

  1. Operations and Maintenance: funding provided to First Nations for the maintenance and operation of existing assets;
  2. Minor Capital: funding provided to First Nations for housing and for construction, acquisition, renovation, or significant repair projects with value below $1.5 million; and
  3. Major Capital: funding provided to First Nations for specific, proposal-driven construction, acquisition, renovation, or significant repair projects with value exceeding $1.5 million.

The FNIF is a proposal based program that requires First Nations to identify all eligible infrastructure projects through their First Nation Infrastructure Investment Plan (FNIIP). Annual FNIIPs and supporting documents are then submitted to DIAND.

There are eight categories of projects eligible for funding:

  • planning and skills development
  • solid waste management
  • roads and bridges
  • energy systems
  • connectivity
  • structural mitigation
  • cultural and recreational facilities
  • fire protection

More details on the list of the eligible initiatives and projects to sustain community infrastructure is available on DIAND' website in the program guide.

*For the Fire Prevention Awareness Program eligible initiatives and projects allow for the provision of prizes for a national fire protection competition in band or federally operated schools.

5.0 Type and Nature of Eligible Expenditures

5.1 Capital Facilities and Maintenance Program (CFMP): Eligible Projects and/or Activities

A. Project Costs
I. Community Infrastructure

Community Infrastructure expenditures apply to First Nations and other eligible recipients and off-reserve in cases of cost-shared projects with municipalities or provinces (e.g., off-reserve access roads to link a reserve community to a main provincial road, water, sever or electrical grid services).

  1. Planning, design, identification and acquisition of necessary land rights, water rights, rights-of-way, construction, acquisition, renovation, expansion, repair, replacement, operation and maintenance of:
    • Community water supply, treatment and distribution systems (e.g., wells, cisterns, supply lines, intakes, pumping stations, treatment plants, distribution system piping, house service connections, fire hydrants, tank trucks, storage reservoirs);
    • Community wastewater collection, treatment and disposal systems (e.g., septic tanks, lift stations or lagoons, force mains, sewage collection piping, manholes, house services, treatment plants, outfall sewers, storage tanks, collection vehicles, storm sewers);
    • Community solid waste collection and disposal systems (e.g., collection vehicles, disposal sites, incinerators);
    • Electrical and energy systems – electrical power supply and distribution systems (e.g., poles, wires, cables, transformers, street lighting, power generation plants, grid extensions);
    • Connectivity – terrestrial transport infrastructure (e.g., fiber or copper-based pole lines that run from an external regional telecommunications grid to a community Point-of-Presence base station); large capacity satellite dish infrastructure to receive signals from a satellite transponder coupled with a community Point-of-Presence base station; last mile infrastructure and specialized switching equipment (wire or wireless) and software that connect the Point-of-Presence base station to community buildings and facilities. This does not include the connectivity equipment required within individual institutions, homes or business use (e.g., computers, software, routers, internal cabling and individual receivers);
    • Bulk fuel storage and distribution systems (e.g., heating, oil, natural gas) for community, non-commercial use;
    • Roads including: community roads, access roads (i.e., off-reserve access roads outside the boundary of a reserve which permit access to the reserve from a provincial, territorial, regional or municipal transportation system), sidewalks, curbs, culverts, ditches and signs;
    • Bridges including any structure that spans an obstruction (e.g., deep gully, roadway, railway, waterway) so enabling the continuation of either a roadway, railway or pedestrian way over the obstruction (also includes underpasses and tunnels);
    • Other transportation and access, where no other access is available, including such services as ferry transportation, marinas, buses, boats, floats, airstrips and wharves/docks);
    • Fire fighting facilities and fire detection systems including such items as fire halls, vehicles and equipment, related facility services (e.g., service connections, parking areas, water supply and landscaping), and early-warning systems (e.g., alarms, sirens, detectors); acquisition, servicing and testing of fire warning systems and firefighting equipment;
    • Community buildings (band administration buildings, recreational facilities, community halls, warehouses, maintenance shops, garages, community freezers, community washhouses), facilities and equipment including construction/maintenance equipment (e.g., rolling stock used for maintenance of community assets), furniture and office equipment; this includes any related facility services such as service connections, parking areas and landscaping;
    • Special CFMP services which are deemed necessary to meet the health and safety needs of Indian and Innu communities that do not fall clearly within one of the above specific categories, and are not related to economic or commercial endeavours; and
    • Flood and erosion control practices (e.g., slope protection, sheet piling, gabions, rip-rap, river diversion, dykes, dredging, dams, spillway, impoundment areas, drainage ditches, berms and embankments for foundation and buildings).
  2. Administrative costs associated with the planning, construction and operation and maintenance of community infrastructure assets such as:
    • Salaries and benefits;
    • Insurance;
    • Professional / consultant fees;
    • Legal expenses (i.e. legal expenses relating to acquisition of land, contracts, surveys, etc.), but no legal expenses associated with injury and damage claims during construction;
    • Internal audit fees;
    • Project office expenses;
    • Training;
    • Transportation; and
    • Information technology.
  3. Coordination, training and capacity building for the activities related to community infrastructure such as:
    • The operations and maintenance of potable water and wastewater treatment facilities;
    • Coordination with the Emergency Management Program as well as input to the local emergency plans and follow-up on emergency remediation measures;
    • The establishment and operation of a construction safety program; and
    • Fire protection and prevention programs (covering such things as, the negotiation of fire protection agreements, development and enforcement of fire and safety guidelines and building codes, the operation of community awareness programs, training of community fire fighting/prevention staff and other community members, investigating/reporting of fires in First Nations communities, review of First Nation Infrastructure Investment Plans, and inspections of buildings and other facilities to ensure compliance with fire and safety regulations).
  4. Community Infrastructure Planning and Management – Costs associated with the identification of on-reserve infrastructure needs, the development of First Nation Infrastructure Investment Plans (Capital Plans) (e.g., needs analyses, feasibility studies, cost/benefit analyses) and the design, and ongoing implementation of maintenance management practices. This could include those activities usually associated with input to the development of a First Nation Infrastructure Investment Plan.
  5. Special Initiatives – Funding is also provided to create sustainable capital to meet on-reserve infrastructure needs. These include measures:
    • to create interest bearing debt services (e.g., revolving loan funds, loan pools, and loan circle mechanisms);
    • to permit the leverage of First Nation funding and private sector capital in the establishment of capital pools; and
    • to support private market investment measures for on-reserve assets.
II. Education Assets and Facilities
  1. Federal and Band School Facilities – Planning, design, construction/acquisition, renovation, repair, replacement, operations and maintenance (and related training and capacity building (e.g., maintenance of water, heating and safety systems)) of federally- or band-operated elementary/secondary education facilities (including schools buildings, teacherages and school residences), and any related facility services (e.g., service connections, parking areas, landscaping). This includes the identification and acquisition of necessary land rights.
  2. Provincial School Facilities (including Joint Schools) - Costs covered in agreements with provincial school boards for the planning, design, construction and acquisition of facilities, for the elementary/secondary education of Indian children ordinarily resident on reserves (including school buildings, teacherages and student residences). This includes the purchase of furniture equipment and facility services.
  3. Educational Furniture, Equipment and Furnishing - Acquisition, replacement and repair of furniture, equipment and furnishing for federally- and band-operated schools, teacherages and student residences (e.g., desks, chairs, office equipment, instructional equipment (including computer hardware and software), electronic data equipment for office and instructional furniture, furnishings such as drapes and curtains, playground and institutional equipment including major appliances and maintenance equipment).
  4. Administrative costs associated with the planning, construction and operation and maintenance of education facilities such as:
    • Salaries and benefits;
    • Insurance;
    • Professional / consultant fees;
    • Legal expenses (i.e. legal expenses relating to acquisition of land, contracts, surveys, etc.), but no legal expenses associated with injury and damage claims during construction;
    • Internal audit fees;
    • Project office expenses;
    • Training;
    • Transportation; and
    • Information technology.
  5. Education Facilities Planning and Management - Identification of education facility needs and the development of education facility plans (e.g., needs analyses, feasibility studies, cost/benefit analyses) and the design and ongoing implementation of maintenance management practices. This could include activities normally associated with input to the development of a First Nation Infrastructure Investment Plan.
  6. Special Initiatives – Funding is also provided to create sustainable capital to meet on-reserve educational facilities needs while respecting any treaty obligations. These include measures:
    • to create interest bearing debt services (e.g., revolving loan funds, loan pools, and loan circle mechanisms);
    • to permit the leverage of First Nation funding and private sector capital in the establishment of capital pools; and
    • to support private market investment measures for on-reserve assets.
III. Housing

Eligible expenditures for the construction of housing may be made in respect of:

(a) federal Crown land, reserve land, and settlement land; and

(b) provincial Crown land, provided that the province which owns the land has signed an agreement with the Government of Canada indicating that it will transfer the land to the Government of Canada and provided that the Government of Canada has initiated a process to set aside the land as reserve land.

  1. Housing - New Construction – Planning, design, construction and acquisition of new housing units. Housing units include single units, multi-units, mobile homes, as well as "special needs" housing such as homes for the elderly, group homes, and homes for people who require assisted living but not medical care. Funding is also provided to cover the identification and acquisition of required land rights.
  2. Housing - Renovations - Renovations of existing housing units. The types of housing units covered are described under the "Housing ~ New Construction".
  3. Other Housing Related Activities – All housing related activities including the day-to-day operation and maintenance, insurance, the administration and management of the housing portfolio and debt servicing.
  4. Management Support - Management and administration support for housing programs and projects including the provision of management expertise, advisory services, multi-year housing program planning, and the formation/operations of housing councils. This could include activities normally associated with input to the development of a First Nation Infrastructure Investment Plan.
  5. Technical Support - Inspection of on-reserve housing to ensure compliance with the relevant code, the general improvement in technical expertise regarding the housing program.
  6. Special Initiatives - Funding is provided to explore different ways to support on-reserve housing needs. These include new ways to administer housing (e.g., through the establishment of a housing authority) and measures to create sustainable capital to meet on-reserve housing needs including:
    • permitting the creation of interest bearing debt services (e.g., revolving loan funds, loan pools, and loan circle mechanisms);
    • permitting the leveraging of First Nation funding and private sector capital in the establishment of capital pools; and
    • supporting private market investment measures for on-reserve assets.
  7. Housing Related Training - Funding is provided for training in the delivery of the housing program, training for community housing inspectors, and life-skills training for residents related to housing for residents.
B. Ineligible Costs:

Taxes for which the recipient is eligible for a tax rebate and all other costs eligible for rebates are deemed to be ineligible costs.

5.2 First Nation Infrastructure Fund (FNIF): Eligible Projects and/or Activities

A. Project Costs
  1. the capital costs of acquiring, constructing or renovating a tangible capital asset;
  2. the fees paid to qualified professionals, technical personnel, consultants and contractors specifically engaged to undertake the surveying, design, engineering, manufacturing or construction of a project infrastructure asset and related facilities and structures;
  3. the costs of environmental assessments, monitoring, and follow-up programs as required by Canadian Environmental Assessment Act for an Eligible Project;
  4. incremental costs related to strengthening the ability of First Nation communities to develop their infrastructure maintenance capacity, develop their planning capacity and First Nation Infrastructure Investment Plans ("planning and skills development") ;
  5. eligible project costs incurred after conditional project approval;
  6. for projects related to acquiring, constructing or renovating a tangible capital asset, up to 10% of such costs can include training for the construction, renovation, operations and maintenance of the asset; and
  7. other costs that are considered to be direct and necessary for the successful implementation of a project and that have been approved in advance, and in writing, by the Regional Committee in consultation with the secretariat of the National Oversight Committee.
Employee and Equipment Costs

The incremental costs of the First Nation community's employees or equipment may be included in its eligible costs if all of the following conditions are met:

  1. the First Nation community has determined, and the DIAND regional office agrees, that it is not economically feasible to tender a contract;
  2. employee or equipment are employed directly in respect of the work that would have been the subject of the contract; and
  3. the arrangement is approved in advance and is outlined in writing by the DIAND regional office.

Salary costs to support skills development projects are also permitted under the following conditions:

  1. the salary is incremental to existing funded positions;
  2. the tasks to be performed by the position are well-defined and related to the project; and
  3. the arrangement is approved in advance and is outlined in writing by the DIAND regional office.
B. Ineligible Costs:
  1. project costs incurred before conditional approval of a project;
  2. services or works that, in the opinion of DIAND, are normally provided by the First Nation community, a federal department or a related party;
  3. salaries and other employment benefits of any employees of the First Nation community;
  4. a recipient's overhead costs, its direct or indirect operating or administrative costs, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by its staff;
  5. costs of feasibility studies for individual projects;
  6. taxes for which the recipient is eligible for a tax rebate and all other costs eligible for rebates;
  7. costs of land, including its acquisition, or any interest therein, and related costs;
  8. cost of leasing of equipment by the recipient except for as indicated in section 13.1.1 above;
  9. legal fees;
  10. routine repair and maintenance costs; and
  11. audit and evaluation costs.

5.3 Fire Prevention Awareness Program (FPAP): Eligible Projects and/or Activities

The following costs are eligible

  1. School / regional student prize amount
  2. For the national awards : costs for first prize winners in each category and their chaperons (this includes travel, accommodation and meal allowances) and other categories
  3. The administration costs associated with this program must not exceed 10% of the overall program's funding.

6.0 Total Canadian Government Funding and Stacking Limits

Total maximum government assistance is 100% of eligible costs.

Recipients (excluding the winners of the fire protection awareness competition) are required to declare any and all prospective sources of funding for the program or project, inclusive of all federal, provincial, territorial or municipal governments (total government assistance) and other sources that are expected to be received. Annual financial reporting shall show all sources of funding received by the recipient. Provisions for repayment shall be included in the funding arrangements. Recipient records relating to adjustments and overpayments may be subject to periodic review.

7.0 Method for Determining the Amount of Funding

Capital Facilities and Maintenance Program

Contribution amounts for capital projects are based on actual project costs. Contribution amounts are determined by regional offices on the basis of proposals submitted by recipients, First Nations assets inventories, and regional funding formulae. All projects will be identified through the First Nation Infrastructure Investment Plans, although the eligible categories for CFMP funding and FNIF funding will be distinct. As well, FNIF projects will be assessed separately from CFMP given FNIF funding is separate and distinct from CFMP funding. 

The determination of operations and maintenance contributions varies from region to region. However, all regions start with DIAND's Cost Reference Manual, and the Management Control Framework which outlines the following information:

The gross funding requirement (GFR) is that amount required to operate and maintain a facility to generally accepted standards. The net funding requirement (NFR) is theGFR less any amount the operator or administrator received as a result of user fees or other income.

Operations and maintenance costs are determined in the following manner:

Operations and maintenance costs (GFR) = Base Unit Cost x City Centre Index x Zone (Remoteness) Index x Asset Count.

Fire Prevention Awareness

The method for determining the amount of funding is described within these terms and conditions under the headings of Application Requirements and Amount Payable.

8.0 Maximum Amount Payable

Program Maximum per Year Exception
Capital Facilities Maintenance Program (CFMP) $125,000,000 per recipient per year Treasury Board approval for contribution in excess of the maximum
First Nations Infrastructure Funds (FNIF) Program $10,000,000 per recipient per year  
Fire Protection Awareness Program (FPAP) $500 Prize amount at both the schools and regional competition
$ 4,333 (includes travel, accommodation and meal allowances) for the national awards
$ 1,450 for other categories
$ 3,000 per region for travel, accommodation and meal allowances
$ 12,000 prizes costs per region
 

9.0 Basis on Which Payments will be Made

Contribution progress payments and final payments will be made on the basis of one or a combination of the following:

  1. Reimbursement of Eligible Expenditures: Payments to contribution recipients are made via regular progress payments based on reimbursement of eligible expenditures or via advance payments based on a cash-flow forecast; and/or
  2. Achievement of Pre-determined Performance Expectations: Certain progress payments and final payments are tied to the achievement of pre-determined performance expectations. The exact amount paid for each performance expectation achieved will be based on a pre-determined rate or percentage of total contribution amount to be negotiated prior to the development of said contribution agreement.;
  3. Advance payment may be provided by DIAND for FNIF and FPAP as per procedures consistent with the cash management provisions of the Treasury Board's Directive on Transfer Payments Section 6.4, as well as DIAND's Corporate Financial Policies and Procedures.

Hold Back

With the exception of First Nation or Tribal Council, DIAND may hold back up to 20 percent of the funding allocated for this service, until the recipient submits final and acceptable financial and other reports according to the requirements set out in the funding arrangement.

10. Application Requirements and Assessment Criteria

Capital Facilities and Maintenance Program

  1. Before entering into a funding arrangement, DIAND must confirm its authorities to enter into an agreement with the recipient and to fund the activities. In most cases, capital facilities (infrastructure) services, operation and maintenance, and housing would be one of several services to be funded by DIAND for a particular recipient. The potential recipient, therefore, shall be required to provide a complete review of its accountability and management processes and systems. This review shall be based on appropriate accountability and management control frameworks.
  2. Following an assessment of the potential recipient's accountability and management processes, DIAND may also work with that recipient to prepare a management development plan. This plan must address any gaps identified by the assessment and must be part of all funding agreements with the recipient until all recommended actions in the management development plan have been implemented.
  3. The departmental review procedures for verifying eligibility, entitlement and application approval (including risk assessment) are detailed in relevant departmental program directives and procedures.
Minimum Program Requirements

Construction of physical assets, including housing – will be planned and implemented according to the following management principles:

  1. the project will have a well defined and formally approved scope of work, schedule and budget;
  2. a qualified project manager acceptable to the band or tribal council (Council) will be appointed to manage the implementation of the project;
  3. a feasibility study will be carried out in advance of construction of the project commencing when deemed necessary by the Council;
  4. the project will be designed to meet all the applicable federal, provincial and territorial codes and standards for the design, construction and operation of similar physical assets, and in accordance with departmental level of service standards, as may be amended from time to time;
  5. where the total estimate cost of the project exceeds $50,000 or is not within the competence of a technician/technologist, the design of the project will be approved and so certified by a professional engineer or architect licensed to practice as such in the province/territory where the facility is to be constructed;
  6. the project will be inspected and certified for compliance with applicable regulatory requirements by qualified inspectors at the various stages; and
  7. the Council will have a policy on the use of the competitive tendering process to ensure best value, prudence, probity and sound contract management.

In addition, recipients are required to use capital surplus amounts for projects that are included on DIAND's approval First Nations Infrastructure Investment Plan.

Where the Council has opted into the community-based on-reserve housing program, the recipient must have in place a multi-year community-based housing plan that addresses the following:

  1. maximizing the life expectancy of housing (through sound maintenance repair and insurance practices);
  2. the rehabilitation of existing housing to an acceptable standard, such as the Canada Mortgage and Housing Corporation Residential Rehabilitation Assistance Program standards;
  3. additions to existing houses and new construction to an acceptable standard, but not less than the National Building Code;
  4. linkages to job creation, training/skills development and economic and business development; and
  5. a resource plan.

The recipient will provide annual updates to the community-based housing plan.

For the operation and maintenance of physical assets, the recipient will at all times provide for the preservation of public health and safety and the environment, and the protection of the investment in the physical assets under its care and control. The recipient will operate and maintain capital assets by:

  1. developing and maintaining a current inventory of all capital assets;
  2. developing and maintaining a written, up-to-date Maintenance Management Plan and budget consistent with service standards for each capital asset that:
    1. identify minimum performance standards for that capital asset;
    2. identify all maintenance activities to be conducted for that capital asset;
    3. assign responsibility and identify a schedule and a budget for those maintenance activities; and
    4. maintain a record of those maintenance activities and associated expenditures.
  3. ensuring that satisfactorily trained personnel are available at all times to operate and maintain technical systems (e.g., water and wastewater treatment plants and other technical systems) according to the design standards of the specific plant or equipment; and
  4. making arrangements for the provision of fire protection services for the community.

First Nation Infrastructure Fund

First Nations are to identify all eligible infrastructure projects through their First Nation Infrastructure Investment Plan and submit it to AANDC.

The Program Guide, available on the DIAND' website, outlines the program and all application requirements.

Fire Prevention Awareness

The fire poster competitions will be initiated by the Aboriginal Firefighter Association of Canada, which will send a promotional package to all prospective school principals inviting them to participate. To ensure consistency, all participating schools and regions will be subject to the same set of guidelines for the competition. The poster competition will include the following four categories of contestants: kindergarten to grade 2; grades 3 to 6; grades 7 to 8; and grades 9 to 12. Students in the grades 9 to 12 category will be eligible to submit multimedia projects in addition to traditional poster entries. Separate judging and prizes will be awarded in each category. Category winners advance progressively through three levels of the competition. The first level will involve individual schools. The principal will direct the organization and judging process needed to select one winner from each category. The second level of the competition will be at the regional level. Officials from the provincial First Nations fire fighting association will direct the competition and judging which will result in one winner per category being selected. The third level will be managed by the Aboriginal Firefighters Association of Canada's National Board where regional winners will each compete for the National prizes in one of the four categories.

A maximum total of eight national prizes (first, second, third and five honorable mention) for each category ensures winners from each participating region win a prize thereby maximizing the fire protection promotional value of the competition.

For the travel costs, travel claims for students and chaperons are submitted to Aboriginal Firefighters Association of Canada for reimbursement.

11.0 Due Diligence and Reporting

Departmental systems, procedures and resources are in place to ensure due diligence in approving transfer payments, verifying recipient eligibility as well as managing and administering grants and contributions programs. They include the Infrastructure Performance Measurement Strategy, which identifies performance targets, measures and data used for program management and decision making; Data Collection Instruments (DCIs), which allows for the systematic capture of recipient reporting data; and which serves, inter alia, as a repository for DCI information, allowing monitoring, analysis and reporting of program data and decision support in concert with DIAND's Grants and Contributions Information Management System (GCIMS). Additionally, the Construction and Maintenance of Community Infrastructure Program conducts two different types of inspections to assist with the monitoring of assets on reserve, the Asset Condition Reporting System Inspections (ACRS) and Annual Performance Inspections (API).

To determine the performance of the Construction and Maintenance of Community Infrastructure program, the Key Performance Indicators include:

Housing

  • Positive change in rating in the Community Well-Being Index (employment, income, education and housing sub-indices);
  • % of First Nations housing is "adequate" as assessed and reported annually by First Nations ["Adequate" is defined in the Year-end Reporting Handbook for the Housing Data Collection Instrument (DCI); and
  • % of First Nations that adhere to the 1996 Housing Policy having valid Housing Plans.

Schools

  • % of First Nations communities implementing Maintenance Management Plans for schools; and
  • % of First Nations schools with a greater than "fair" condition rating (based on physical/structural conditions) as assessed through Asset Condition Report (ACRS) inspections.

Water

  • % of First Nations drinking water systems with treated water that meets prescribed standards in the Guidelines for Canadian Drinking Water Quality;
  • % of First Nations drinking water systems that have LOW risk ratings; and
  • % of First Nations systems that have primary operators certified to the level of the drinking water systems.

Wastewater

  • % of First Nations wastewater systems that have LOW risk ratings;
  • % of First Nations systems that have primary operators certified to the level of the wastewater systems; and
  • % of First Nations wastewater systems producing treated water that meet effluent quality regulations and guidelines 

Roads & Bridges

  • % of bridges with greater than "fair" condition rating; and
  • % of roads with greater than "fair" condition rating.

Other

  • % of First Nations communities implementing Maintenance Management Plans for drinking water and wastewater systems; and
  • % of First Nations communities implementing annually-updated  Emergency Management Plans for each of the following assets: water systems, wastewater systems, schools, and fire halls.

The Department has systems, procedures and resources in place to ensure due diligence for financial reporting. Each project is subject to different financial reports based on the recipient, project risk, and the cost of each project. The charts below outlines the different types of financial reports required.

Reporting Requirements of First Nations, Tribal Councils and First Nation Political Organizations

Financial Reporting Requirements – Chart 1
Risk Score Types of Financial Reports Package
F-0080 Annual Audited Financial Statements Package F-0081 Annual Unaudited Schedule of Revenue and Expenditure Package
Low Yes (>= $150k) Yes (< $150k)
Medium Yes (>= $100k) Yes (< $100k)
High Yes (>= $75k) Yes (< $75k)

Reporting Requirements for all Organizations (other than First Nations, Tribal Councils and First Nation Political Organizations)

Financial Reporting Requirements – Chart 2
  Types of Financial Reports Package
Risk Score Recipient Funding Group Type & Purpose of funding No Additional Reports F-0190 Annual Audited Financial Statements Package F-0191 Annual Audited Schedule of Revenue and Expenditure Package F-0192 Annual Unaudited Schedule of Revenue and Expenditure Package
Low Provincial / Territorial Organization or Other Legislated Organization Contributions: Invoice based Reimbursement Yes      
Advance       Yes
All others Contributions: Invoice based Reimbursement Yes      
Advance for Programs & Services   Yes(> = $150k)   Yes(< $150k)
Other advance including projects based     Yes(> = $150k) Yes(< $150k)
Medium Provincial / Territorial Organization or Other Legislated Organization Contributions: Invoice based Reimbursement Yes      
Advance       Yes
All others Contributions: Invoice based Reimbursement Yes      
Advance for Programs & Services   Yes(> = $100k)   Yes(< $100k)
Other advance including projects based     Yes(> = $100k) Yes(< $100k)
High Provincial / Territorial Organization or Other Legislated Organization Contributions: Invoice based Reimbursement Yes      
Advance       Yes
All others Contributions: Invoice based Reimbursement Yes      
Advance for Programs & Services   Yes(> = $75k)   Yes(< $75k)
Other advance including projects based     Yes(> = $75k) Yes(< $75k)

12.0 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.

13.0 Intellectual Property

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

14.0 Repayable Contributions

First Nation Infrastructure Fund

Repayment of contributions is not required where contributions are paid to enterprises controlled by a First Nation, and the articles of incorporation do no permit dividends to be paid or distributed to shareholders or there is no intent to distribute dividends. In case of sale or other disposition of the project assets, DIAND may reserve the right to a repayment proportional to the contribution made to the project. In instances where a First Nation community receives funds resulting from the disposal of project assets, DIAND will recover the cost from the First Nation or Tribal Council.

Where asset is sold, leased, encumbered or disposed of within: Return of contribution (in current dollars)
2 Years after Project completion 100%
Between 2 and 5 Years after Project completion 55%
Between 5 and 10 Years after Project completion 10%

15.0 Redistribution of Contributions

Where a recipient delegates authority or further distributes contribution funding to an agency or a third party (such as an authority, board, committee, or other entity authorized to act on behalf of the recipient), the recipient shall remain liable to the department for the performance of its obligations under the funding agreement. Neither the objectives of the programs and services nor the expectations of transparent, fair and equitable services shall be compromised by any delegation or redistribution of contribution funding.

Recipients have full independence in the selection of such third parties and will not be acting as an agent of the government in making distributions.

16.0 Other Terms and Conditions

16.1 Program Guide

The Program Guide for FNIF is available on the DIAND website.

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