Band Support Funding Program Policy

Table of contents

1. Summary

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.

Effective on April 1, 2011, programs will use the additional fixed, flexible and block funding approaches for transfer payments to Aboriginal recipients, as described in the Directive on Transfer Payments (Appendix K: Transfer Payments to Aboriginal Recipients) and according to departmental guidelines for the management of transfer payments.

These terms and conditions are specifically targeted to Aboriginal people.

2. Legal and Policy Authority

Indian Act, RSC, 1985, c. I-5, ss. 74 to 90 on elections and the powers of the Council.

Department of Indian Affairs and Northern Development Act, RSC, 1985, c. I-6, s. 4

3. Purpose, Objectives and 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. Eligible Recipients

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.

5. Eligible Initiatives and Projects

This authority is specific to Band Support Funding.

6. Type and Nature of Eligible Expenditures

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

7. Stacking Provisions

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

8. 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.

9. 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.

10. 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.

11. Application 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 (2012). 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.

12. Monitoring and Reporting Mechanisms

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.

13. Official Languages

DIAND will respect the requirements stipulated in the Official Languages Act, related regulations, and federal government policies. Compliance will be achieved by ensuring that all external communications and public consultations, programs, and associated documents will be in both official languages. In addition, employees will be encouraged to participate in interdepartmental meetings and working sessions in the official language of their choice. Services to the public will be available in both official languages. This will include services delivered by federal employees and contractors delivering services on behalf of departments and organizations.

14. Other Terms and Conditions

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.

Third Party Delivery: Where the recipient delegates authority or transfers program funding to an agency (e.g., a board, council, committee or other entity authorized to act on behalf of the recipient), the recipient shall remain liable to the Minister and to its members for the performance of its obligations under the funding agreement. Neither the objectives of the programs nor the expectations of transparent, fair and equitable service shall be compromised by this delegation or transfer of funds.

Appendix 1: Indian Government Support Program

1. Summary

As bands and Inuit communities have assumed primary responsibility for the provision of programs and services to their members over the past two decades, five distinct but related programs have evolved as sources of support to their governments and public institutions. Referred to as the Indian Government Support programs, they include: Band Support Funding, Band Employee Benefits, Tribal Council Funding, Band Advisory Services and Professional and Institutional Development. These programs constitute the foundation for the development and maintenance of community governments, institutions and regional delivery organizations. Band governments, through an array of institutions and organizations, now directly administer 85% of AANDC-funded programs and services including education, social assistance and social support services, housing and community infrastructure (source: Basic Departmental Data, 2003, p.69).

2. Objectives

The goal of Indian Government Support programming is to provide bands with assistance for the establishment and maintenance of effective local governance and administrative systems and the provision of programs and services to their members. Indian Government Support is provided for a variety of functions, including: pension and benefit regimes for eligible band employees; capacity development and training; and, where feasible and desirable, the regional administration of programs and services through tribal councils.

Appendix 2: Definitions

Additional Cost (band service employees): Is the factor in the formula intended to be applied to the cost of providing office space, basic telephone and supervision within the band office for those specialist personnel necessary to deliver continuing services for which the Department provides funds. All other costs (salary, benefits, training, travel, long distance calls, purchase of furniture and equipment, etc.) may be provided to the band by contribution from other departmental budgets.

Agreements with Federal / Provincial / Territorial governments or organizations: For the purpose of Band Support Funding, these agreements are defined as agreements between the federal government and a provincial/territorial organization; or agreements between three parties: the federal government, the band and a provincial/territorial organization; or agreements between the band and a provincial/territorial organization; e.g. a provincial school board, for the delivery of services to band members where the board or authority performs the detailed administration of the program. The number of agreements and amounts are to be certified by departmental program managers and recorded under major services. Agreements with the same board are not to be split into a number of component agreements solely for the purpose of securing additional funding for the band. Addenda to such agreements with a provincial/territorial organization will be considered an integral part of the agreement.

Audit and Professional Costs: An amount to offset the costs associated with the preparation of the annual band audit and with other occasional professional services (e.g. contracted professional evaluators, contracts for management development planning, comprehensive community planning, communications plans, etc.). It is based on the sum of all other components, a multiplication factor, the band's total population and the geographical index. Accounting costs are not included.

Band Support Funding Grant Application: Is the form to be completed by the applicant as prescribed by the Department.

Band Administrative Staff for the Purposes of Band Support Funding: Are those staff necessary to provide central support services to the band council and band delivered services, including the maintenance of accounts (Band Manager, Band Clerk, etc.) and whose direct personnel costs are not related to program delivery. (See Band Service Staff).

Band Council or First Nation refers to the council of a band as defined in the Indian Act.

Band Membership Data: Band membership and community residence information will be supplied by the band on application form. Regions may, in some cases, wish to verify this information.

Band Profile: Is the term that describes the band demographic and other program information reported by the applicant on the "Application for Grant".

Band Service Staff: Are those staff who are necessary for the effective delivery of departmentally funded programs and services, and whose salary and other direct personnel costs are provided to the band by way of contribution from a departmental program budget.

Basic Overhead: Is the factor in the formula intended to be applied to the cost of maintaining an administrative and accounting capacity to accommodate the general business of the band and the overhead costs of delivering basic services funded by the Department (see definition of basic services). This includes the cost of staff to maintain the accounts of the band and perform normal clerical and supervisory functions which provide support and direction to the delivery of services. The cost of the operation of a band office including heat, light, utilities, general office supplies, postage, bank charges and communications for the purpose of general administration and accounting services is considered in arriving at this component.

Basic Services: Are those services funded by the Department and delivered by band councils on an ongoing basis. They have common characteristics related to the need for personnel management, payroll accounting, purchasing and general management support services.

Block Contribution: Block contribution funding is an option which allows funds to be reallocated within the block of programs during the agreement, as long as progress towards program objectives is being achieved. It is possible under this approach to allow recipients to keep any unspent funding provided that program delivery standards have been met and the recipient agrees to use the unspent funding for purposes consistent with the block program objectives or any other purpose agreed to by the department. The block contribution approach can be used where the recipient has met certain readiness assessment criteria (including results from the General Assessment.) This approach is based on AANDC's previous Alternative Funding Arrangement (AFA) authority and will be managed in a similar fashion.

Calculation Date: Is the predetermined calendar date (e.g. March 31) at which time each band's eligibility for Band Support Funding is calculated according to the approved formula.

Cost sensitive and non-cost sensitive: The purpose of this division is to facilitate the application of comparative cost indices which, for every First Nation, provide some adjustment for additional costs which are necessarily incurred as a result of location (see Location Costs) whether it is due to their mode of access to and distance from the nearest service centre (car, air) or the length and severity of the heating season (fall, winter and spring).

Council Allowance: An amount intended to compensate members of council or other individuals at the discretion of council for time and effort spent in promoting the development of the band as a whole, and coordinating band activities. It is based on total band population, which refers to a number in a calculation table that differentiates between cost-sensitive (travel, utilities, postage, telephone and supplies) and non-cost sensitive expenses which are not directly affected by the geographical location of the community (salaries, allowances, bank charges, etc.). This component includes chief and councilor salaries, travel costs and honoraria.

Departmentally Funded Programs and Services: Are the salary-based programs funded by the Department of Indian Affairs and Northern Development.

Eligibility Criteria: Are the conditions to be met by an applicant before funding can be issued.

Fixed Contribution: Fixed contribution funding is an option where annual funding amounts are established on a formula basis or where the total expenditure is based on a fixed-cost approach. Fixed funding is distributed on a program basis. It is possible under this approach to allow recipients to keep any unspent funding provided that program requirements set out in the funding agreement have been met and the recipient agrees to use the unspent funding for purposes consistent with the program objectives or any other purpose agreed to by the department. This approach is based on AANDC's previous Flexible Transfer Payment (FTP).

Flexible Contribution: Flexible contribution funding is an option which allows funds to be moved within cost categories of a single program during the life of the project/agreement. However, unspent funds must be returned to the department at the end of the project, program or agreement. The flexible contribution approach is used when:

Funding Formula: Means the method used to determine the maximum funding level to be provided to a recipient.

Grant: A grant is a transfer payment that is subject to pre-established eligibility and other entitlement criteria. Recipients are not required to account for the grant, but they may be required to report on results. The grant funding approach can be used for any duration of time necessary to achieve program results. Grants are not normally subject to departmental audits but require specific Cabinet policy and Treasury Board of Canada Secretariat program spending authorities.

Income support funding per case month: An amount to cover certain administrative costs associated with the activities of the income support program, the calculation of which is based on the number of program recipients. It is based on the number of cases per month for which the band receives a fixed amount. This factor distinguishes between bands which issue welfare cheques monthly and those that issue cheques twice a month, the latter requiring increased staff time. The support provided for monthly issuance is $35 per case month; $69 per case month is provided for semimonthly cheque issuance. This factor in the formula includes the cost of writing cheques and maintaining accounts related to the program but does not include the cost of salary, benefits and travel for specialist personnel necessary to deliver the service. Office space for such personnel, or specialized materials, supplies or equipment which may be necessary to the effective discharge of the program service are also not included. (See Appendix 4, Table 3).

Indian Government Support System: the authoritative source for Indian Government Support program data.

Location Costs: Is the factor in the formula intended to be applied to those extra costs which individual bands may incur by virtue of their location and means of access and are applied on the basis of a comparative cost index to those items particularly susceptible to differences in freight, travel and utility costs.

Major Capital: Capital projects with a value in excess of $1.5 million.

Major Services: Major services for most bands are restricted to income support, non-federal tuition, and major capital. Due to their high dollar value and readily defined overhead requirements, funds for support are allocated on a unit cost basis or, in the case of major capital projects, included as part of the overall project budget.

Operational Procedures: Are instructions that describe the necessary steps to follow in the provision and administration of the Band Support Funding program.

Remoteness and Environmental Indices: Factors used in the Band Support Funding formula to generate an amount intended as an offset against the additional expenditures attributable to the geographic location of a band. The factors are based on a remoteness index and on an environmental index. Both indexes refer to factors in a table that are used to adjust the cost-sensitive costs for Council Allowance and Basic Overhead components (remoteness) and for Service Staff (environmental). The remoteness factor addresses such things as increased transportation and shipping costs of remote bands (e.g. distance from service centres or where is no year-round road access and air planes or ice-roads are needed); the environmental factor relates the geographic location of the band to the local climate and addresses such things as the increased costs (e.g. light, heating) of service delivery for staff to provide services to band members.

Service Staff: An amount to partially cover the cost associated with providing space and facilities for the specialists responsible for delivering the services funded by the department. It is based on the number of specialists that the department recognizes as necessary for delivering the services funded by the department. An amount per employee differentiates cost-sensitive and non-cost sensitive expenses. This factor in the formula is intended to be applied to the cost of providing office space, basic telephone and supervision within the band office for those specialist personnel. All other costs (salary, benefits, training, travel, long distance calls, purchase of furniture and equipment, etc.) may be provided to the band by contribution from other departmental budgets.

Table of Calculation: Contains the rates and levels that are used to determine band entitlements.

Travel Expenses for Council Members and Administrative Staff: Are those expenses incurred when authorized to travel on business related to the band.

Unit Cost (major services): Is the overhead cost incurred in the delivery of certain major services for which AANDC provides funds. It includes the cost of writing cheques and maintaining accounts related to the service but does not include the cost of salary, benefits and travel for specialist personnel necessary to deliver the service. Office space for such personnel, or specialized materials, supplies or equipment which may be necessary to the effective discharge of the program service are also not included.

Appendix 3: Responsibilities and Procedures

1. Responsibilities

The band council is responsible for the provision of accurate information on the "Band Support Funding Grant Application".

The Regional Director General, Regional Director or his/her delegate is responsible for the delivery, maintenance, monitoring and support functions associated with the timely and efficient provision of resources.

District/regional finance officers are responsible for confirming that the amount of departmental contributions indicated on the Band profile refers to signed agreements with the Band as of March 31st, unless otherwise directed by the Headquarters program director.

It is the responsibility of other departmental program managers to advise the region at least six months in advance whenever changes in band services are proposed.

Director General, Governance, is responsible for the overall administration of the Band Support Funding program. The Director General, Governance, or his/her delegate, develops, prepares and circulates all policy directives and operational procedures related to the activity.

The Director, Corporate Information and Management Directorate (CIMD) in Headquarters is responsible for the overall administration of the National Indian Government Support System (IGSS) which is used to determine eligible funding levels and performance reporting. The Director, CIMD, or his/her delegate, provides regional database support and training. The regions are responsible for gathering the relevant data and entering it in the system.

Headquarters Finance is responsible for managing the allocation process for the program and will ensure that the total departmental Band Support Funding grant level is not exceeded.

2. Procedures

Recipients must submit their application for the grant to the region prior to the new fiscal year. The data on their application form will be reviewed and approved by the region to determine their maximum eligible funding level for the new fiscal year. The recipient may be funded up to the maximum level, as defined under the Band Support Funding formula. Regions will input the application data into their IGSS databases and submit the electronic data to Headquarters, Corporate Information and Management Directorate, for national analysis, roll-up and reporting.

Regions will be responsible for ensuring that individual recipients do not exceed their maximum grant funding level as defined under the Band Support Funding formula. Any adjustments to the grant amount due to unexpected circumstances throughout the year (for example to adjust upward or downward due to changes in programming), will be sourced from within existing regional budgets. Headquarters (Finance) will ensure that the total departmental Band Support Funding grant level is not exceeded.

Funding

The amount of funds which bands may be eligible to receive is determined by application of a formula which takes into account:

  1. total status band membership on and off reserve;
  2. status population on reserve;
  3. type and value of program services delivered; and
  4. number of program specialists necessary to deliver departmentally funded services, whose salary are derived from AANDC's contributions, and who require space in the band office to discharge their duties.

Due to variations in the particular circumstances of each band, it is not possible to provide a definitive list, by position, of such employees. For your guidance, the following program employees will not be considered when calculating Band Support Funding:

  1. teachers and other education staff who are provided with facilities in education buildings, including band-operated schools;
  2. employees whose main duties do not include a substantial amount of office work or record keeping;
  3. employees on staff only for the duration of a project; and
  4. entire detachments of band police forces (although consideration may be given to providing space for one employee if it is not otherwise available within other facilities).

Calculation of funding to cover the cost of office space for such employees requires that the appropriate departmental manager certify the need, the number of employees necessary to deliver the service effectively, that they occupy space in band office facilities, that salary, travel and other costs directly related to the service are being provided to the band.

Subject to the availability of funds, each band is to be granted up to the maximum eligible funding amount of Band Support Funding to which it is eligible on the prescribed "calculation date".

Third Party Manager Policy

Third Party Manager PolicyFootnote 1 indicates that, in a situation where a third party manager is required, the additional costs incurred related to the administration of programs and services by this individual shall normally be drawn from the Band Support Funding provided to that band.Footnote 2 Section 13.1 further states that: according to the Third Party Manager Agreement, the third party manager is required to retain necessary personnel to continue to deliver programs and services, and any resulting costs should be drawn either from Band Support Funding or from the appropriate program funding provided to that band.

Third Party Manager Remuneration

When a Third Party Manager is in place, because the band government is no longer administrating departmental-funded services, Band Support Funding is redirected to cover the Third Party Manager's fees for managing the delivery of these programs and services in the community. These payments are managed as a contribution because the Third Party Manager's remuneration is paid on the basis of the receipt of invoices, not on the basis of an application.Footnote 3 To simplify the payment of Third Party Manager remuneration, specific financial coding titled "Band Support Funding for Third Party Manager Services" under the Comprehensive Funding Arrangement – Contribution authority, under Budget Activity G4102 and Transaction Activity 01012 should be used. Payments will be made as a contribution.

Dispute Resolution

Disputes regarding the accuracy of stated populations and programs administered will be adjudicated by the Regional Director General.

Disputes regarding the application of policy or formulae will be adjudicated by, in the first instance, the Regional Director General. If a satisfactory resolution is not achieved, the matter must be referred to the Director General, Governance, at Headquarters.

Appendix 4: Funding Formula

Band Support Funding is based on a nationally applied formula intended to ensure relative equity in the resourcing of bands. The funding formula, developed in 1983 and last revised in 2005 takes into account the following factors:

The formula originally was based on the premise that bands required adequate levels of administrative support to properly discharge local government responsibilities. Such support was seen to be essential to the success of AANDC's devolution policy to encourage the transfer of direct program administration from the department to Indian bands. The formula took into account: total band membership; on-reserve band population; band location; and the type and value of federally-funded services administered by the band. The formula was updated in 1989 to: increase the minimum level of funding available to very small bands to enable them to recruit and retain essential program staff; increase the maximum level of funding for bands managing very large programs to enable them to hire adequate numbers of program staff; and increase funding to extremely isolated bands to take into account unique cost factors related to program delivery. The formula was updated in 2005 to reflect changes in the Final Domestic Demand Implicit Price Index (FDDIPI).

The funding formula is comprised of seven components. Each component refers to an activity performed by the band council for which costs are determined. The band councils of bands, as defined in the Indian Act, are eligible to apply for a grant for administrative support. The formula is intended to ensure relative equity in the resourcing of bands. It is not possible for the funding formula to fully account for each band's actual administrative costs of delivering federally-funded programs; certain costs are discretionary and the efficiency and effectiveness of program delivery will vary from band-to-band. For some components, the factors refer to numbers in calculation tables. The sum of all seven components represent the maximum Band Support Funding level for each band.

These components are used to determine the funding level and not intended to specify the nature of the permitted expenditure under the grant.

To establish funding in situations where bands have sub-offices in other communities administered by the band, three criteria must be met:

  1. "subsidiary" communities must be recognized Indian communities in which the department, and therefore the band, has the responsibility to deliver services;
  2. they must be located on-reserve or be authorized to locate on Crown land; and
  3. there must be a demonstrable need for the presence of a band administrative capacity in the community which cannot be provided by the home office of the band. In cases where these three conditions are met, Band Support Funding will be provided to the band for sub-office(s) for: basic administration according to the resident population of the sub-community; program staff supplements according to the number of staff requiring office space; and isolation factors according to the existing situation.

The Band Support Funding formula is complementary to the other Indian Government Support programs. For example, as tribal councils assume management and delivery of AANDC funded programs and services (e.g. education or social development) on behalf of member First Nations, administration cost elements in the formula such as person year costs and income support administration increase to reflect the additional responsibilities and workload. Since the First Nations no longer directly administer the programs, their support through the Band Support Funding formula (e.g. basic overhead, service staff, and income support administration) is reduced accordingly. The Tribal Council and Band Support Funding funding formulas are complementary to ensure that no duplication or overlap occurs.

Calculation Tables

Table 1 – Council Allowance
Status Members Total Band Population Cost Sensitive ($) Non-Cost Sensitive ($) Total Funding ($)
Lower Upper
0 99 $6,079 + $360 per person (Cost Sensitive fraction 0.26)
100 199 11,987 32,569 44,556
200 299 13,709 40,395 54,103
300 399 16,239 47,412 63,651
400 499 17,196 50,200 67,395
500 599 18,152 52,998 71,151
600 699 19,108 55,792 74,900
700 799 20,064 58,586 78,649
800 899 21,020 61,378 82,399
900 999 21,976 64,172 86,148
1,000 1,099 22,933 66,966 89,899
1,100 1,199 23,888 69,757 93,646
1,200 and over 24,845 72,551 97,396
Table 2.1 – Basic Overhead – Program range: Cost of basic services up to $67,158
Status Members: On-Reserve Population Cost Sensitive ($) Non-Cost Sensitive ($) Total Funding ($)
Lower Upper
0 99 $12,157 + (0.35 x Basic Services (Cost Sensitive fraction 0.36667) = Maximum $38,904
100 199
200 299
300 399 14,976 27,636 42,612
400 499 15,396 28,415 43,811
500 599 15,818 29,191 45,009
600 699 16,239 29,968 46,270
700 799 16,661 30,748 47,408
800 899 17,081 31,524 48,606
900 999 17,502 32,301 49,803
1,000 1,099 17,924 33,078 51,002
1,100 1,199 18,346 33,857 52,203
1,200 1,299 18,766 34,634 53,401
1,300 1,399 19,188 35,411 54,599
1,400 1,499 19,610 36,188 55,798
1,500 1,599 20,031 36,967 56,998
1,600 1,699 20,453 37,744 58,197
1,700 1,799 20,873 38,521 59,394
1,800 1,899 21,294 39,298 60,592
1,900 1,999 21,716 40,077 61,793
2,000 2,099 22,136 40,854 62,990
2,100 2,199 22,558 41,631 64,189
2,200 and over: Increment for every additional 100 422 777 1,199
Table 2.2 – Program range: Cost of basic services between $67,159 and $269,698
Status Members: On-Reserve Population Cost Sensitive ($) Non-Cost Sensitive ($) Total Funding ($)
Lower Upper
0 99 12,294 32,389 44,682
100 199 14,199 37,407 51,606
200 299 16,092 42,394 58,486
300 399 19,543 49,265 68,808
400 499 20,536 51,763 72,299
500 599 21,528 54,264 75,792
600 699 22,519 56,763 79,283
700 799 23,513 59,263 82,776
800 899 24,505 61,763 86,267
900 999 25,495 64,262 89,758
1,000 1,099 26,488 66,762 93,249
1,100 1,199 27,480 69,262 96,742
1,200 1,299 28,472 71,761 100,232
1,300 1,399 29,464 74,260 103,724
1,400 1,499 30,456 76,761 107,217
1,500 1,599 31,448 79,261 110,709
1,600 1,699 32,439 81,759 114,198
1,700 1,799 33,432 84,260 117,692
1,800 1,899 34,424 86,760 121,184
1,900 1,999 35,415 89,259 124,674
2,000 2,099 36,408 91,759 128,167
2,100 2,199 37,399 94,258 131,657
2,200 and over: Increment for every additional 100 992 2,500 3,492
Table 2.3 – Basic Overhead – Program range: Cost of basic services between $269,699 and $675,844
Status Members: On-Reserve Population Cost Sensitive ($) Non-Cost Sensitive ($) Total Funding ($)
Lower Upper
0 99 11,027 33,654 44,681
100 199 15,514 47,346 62,860
200 299 19,053 58,093 77,147
300 399 23,521 71,721 95,242
400 499 24,383 74,349 98,732
500 599 25,244 76,976 102,220
600 699 26,106 79,604 105,709
700 799 26,968 82,231 109,199
800 899 27,830 84,858 112,688
900 999 28,690 87,485 116,176
1,000 1,099 29,552 90,114 119,666
1,100 1,199 30,416 92,740 123,155
1,200 1,299 31,276 95,367 126,643
1,300 1,399 32,138 97,996 130,134
1,400 1,499 32,999 100,623 133,622
1,500 1,599 33,862 103,249 137,111
1,600 1,699 34,723 105,877 140,600
1,700 1,799 35,585 108,504 144,089
1,800 1,899 36,446 111,132 147,577
1,900 1,999 37,309 113,759 151,068
2,000 2,099 38,171 116,386 154,557
2,100 2,199 39,032 119,013 158,045
2,200 and over: Increment for every additional 100 862 2,627 3,489
Table 2.4 – Program Range: Cost of basic services between $675,845 and $1,350,622
Status Members: On-Reserve Population Cost Sensitive ($) Non-Cost Sensitive ($) Total Funding ($)
Lower Upper
0 99 11,035 33,647 44,682
100 199 16,635 50,550 67,185
200 299 22,371 67,982 90,353
300 399 28,681 87,155 115,835
400 499 29,469 89,857 119,326
500 599 30,331 92,483 122,814
600 699 31,192 95,111 126,303
700 799 32,053 97,739 129,792
800 899 32,915 100,366 133,281
900 999 33,777 102,992 136,769
1,000 1,099 34,639 105,621 140,260
1,100 1,199 35,501 108,248 143,749
1,200 1,299 36,362 110,874 147,236
1,300 1,399 37,225 113,502 150,727
1,400 1,499 38,086 116,130 154,215
1,500 1,599 38,948 118,757 157,705
1,600 1,699 39,809 121,384 161,193
1,700 1,799 40,672 124,011 164,683
1,800 1,899 41,532 126,639 168,171
1,900 1,999 42,394 129,267 171,661
2,000 2,099 43,256 131,893 175,149
2,100 2,199 44,118 134,520 178,639
2,200 and over: Increment for every additional 100 862 2,627 3,489
Table 2.5 – Program Range: Cost of basic services between $1,350,623 and $2,701,244
Status Members: On-Reserve Population Cost Sensitive ($) Non-Cost Sensitive ($) Total Funding ($)
Lower Upper
0 99 11,035 33,647 44,682
100 199 19,499 62,118 81,617
200 299 29,250 93,175 122,425
300 399 38,999 124,234 163,233
400 499 39,829 126,878 166,707
500 599 40,658 129,522 170,181
600 699 41,489 132,165 173,654
700 799 42,318 134,810 177,127
800 899 43,148 137,454 180,602
900 999 43,977 140,097 184,074
1,000 1,099 44,808 142,741 187,549
1,100 1,199 45,637 145,384 191,021
1,200 1,299 46,467 148,030 194,497
1,300 1,399 47,296 150,673 197,969
1,400 1,499 48,127 153,317 201,444
1,500 1,599 48,956 155,961 204,917
1,600 1,699 49,786 158,604 208,390
1,700 1,799 50,615 161,249 211,864
1,800 1,899 51,446 163,892 215,337
1,900 1,999 52,275 166,536 218,811
2,000 2,099 53,105 169,181 222,286
2,100 2,199 53,936 171,824 225,760
2,200 and over: Increment for every additional 100 829 2,643 3,472
Table 2.6 – Cost of basic services equal or greater than $2,701,245
Status Members: On-Reserve Population Logarithmic Population
Lower Upper Factor Exponent Factor Adjustment ($)
0 99 0.0010300519 7.00 1.00 0
100 199 0.0010300519 7.00 0.50 0
200 299 0.0010300519 7.00 0.75 0
300 399 0.0010300519 7.00 1.00 0
400 499 0.0010300519 7.00 1.00 3,263
500 599 0.0010300519 7.00 1.00 6,526
600 699 0.0010300519 7.00 1.00 9,789
700 799 0.0010300519 7.00 1.00 13 05
800 899 0.0010300519 7.00 1.00 16,315
900 999 0.0010300519 7.00 1 19,578
1,000 1,099 0.0010300519 7.00 1.00 22,842
1,100 1,199 0.0010300519 7.00 1.00 26,105
1,200 1,299 0.0010300519 7.00 1 29,368
1,300 and over 0.001030052 7 1 32,631
Cost Sensitive Fraction = 0.2389
Table 3 – Income Support Funding Per Case Month
Monthly Support Funding per Case Month ($) Semi-Monthly Support Funding per Case Month ($)
35 69
Table 4 – Federal/Provincial Agreements Funding Variables
Value of agreement ($) Funding per Agreement ($)
Up to 10,000 277
10,000 to 50,000 697
Over 50,000 1,396
Table 5 – Service Staff
Cost Sensitive (per employee) ($) Non-Cost Sensitive (per employee) ($)
4,440 1,480
Table 6 – Audit and Professional Funding Variables
Geographic Zone Base Amount ($) Factor Offset ($) Approved Funding Adjustment ($)
1 2,431 0,005 0 2,431
2 2,431 0,005 0 2,431
3 3,647 0,005 1,216 2,431
4 3,647 0,005 1,216 2,431
Table 7 – Remoteness and Environmental Indices
Band Classification Table
Remoteness Index Environmental Index
  A B C D E F A B C D E F
Zone 1 0.00 0.08 0.12 0.20 0.25 0.29 0.00 0.40 0.60 1.00 1.30 1.60
Zone 2 0.10 0.18 0.22 0.30 0.35 0.40 0.00 0.40 0.60 1.00 1.30 1.60
Zone 3 0.40 0.48 0.52 0.60 0.66 0.72 0.05 0.47 0.68 1.10 1.42 1.73
Zone 4   Special Access (S.A.) Sub-zones
Remoteness Index Environmental Index
  A B C D E F A B C D E F
0 0.10 0.18 0.22 0.30 0.44 0.59 0.00 0.40 0.60 1.00 1.30 1.60
1 0.35 0.45 0.50 0.60 0.66 0.72 0.20 0.68 0.92 1.40 1.76 2.12
2 0.45 0.55 0.63 0.74 0.81 0.87 0.40 0.96 1.24 1.80 2.22 2.63
3 0.65 0.75 0.82 0.95 1.03 1.10 0.60 1.24 1.56 2.20 2.68 3.16
4 0.80 0.92 1.00 1.04 1.23 1.30 0.80 1.52 1.88 2.60 3.15 3.68
5 0.95 1.10 1.18 1.35 1.44 1.53 1.00 1.80 2.20 3.00 3.60 4.20
6 1.10 1.25 1.35 1.65 1.75 1.85 1.20 2.08 2.52 3.40 4.06 4.72

Note: A remoteness index and an environmental index are required for calculating the level of funding for Indian Government Support, Education and Social Development. Both indices are derived based on a combination of the remoteness classification and the environmental classification of a First Nation. Table 7 lists the remoteness and environmental indices for all possible combinations of remoteness and environmental classifications. Definitions are provided below.

Remoteness Classification

Zone 1: same definition as Geographic Zone 1 (First Nations located within 50 km of a service centre).

Zone 2: same definition as Geographic Zone 2 (First Nations located between 50-350 km of a service centre).

Zone 3: same definition as Geographic Zone 3 (First Nations located over 350 km from a service centre).

Zone 4: same definition as Geographic Zone 4 (First Nations with either air, rail or boat access to the service centre). This geographic zone is divided into the following sub-zones, according to their distance directly measured from the service centre: Sub-Zones of Zone 4: 0: distance < 50 km (classified as Zone 2)

  • 1: 50 < distance < 160 km
  • 2: 160 < distance < 240 km
  • 3: 240 < distance < 320 km
  • 4: 320 < distance < 400 km
  • 5: 400  < distance < 480 km
  • 6: distance < 480 km

Environmental Classification: relates the geographic location of a First Nation to the local climate.

  • A: geographic location < 45° latitude
  • B: 45° latitude < geographic location < 50° latitude
  • C: 50° latitude < geographic location < 55° latitude
  • D: 55° latitude < geographic location < 60° latitude
  • E: 60° latitude < geographic location < 65° latitude
  • F: geographic location < 65° latitude

Appendix 5: Frequently Asked Questions

Does Band Support Funding contribute towards salaries?

Yes. For example, it can be used to support the salary costs of administrative staff.

Can Band Support Funding be used to cover election costs?

Yes. Band Support Funding, as a grant, affords bands the flexibility to allocate funds according to their individual needs and priorities in meeting the cost of local government and the administration of AANDC-funded services. Elections are considered to be a key element of effective local governments.

Are there any overlaps in funding between Band Support Funding and the Tribal Council Funding program?

No, the funding formulas for the two programs are designed to complement each other. Tribal council administration or "overhead" funding increases as the level and range of programming managed on behalf of member bands grows and as bands relinquish program management responsibilities to tribal councils, their levels of Band Support Funding are reduced accordingly, particularly in the basic overhead and service staff components of the formula. Therefore, the Tribal Council Funding and Band Support Funding formulas are complementary to ensure that no duplication or overlaps occur.

When are Band Support Funding application forms due into the regional office?

For each funding agreement renewal, applicants must submit an application before the end of the previous fiscal year in accordance with the Band Support Funding program application requirements. The deadline date will vary from region to region as determined by each regional office's funding management cycle.

What are some examples of activities that might be supported by Band Support Funding?

The Band Support Funding grant is intended to provide a financial base for the conduct of band government. Councils may utilize funds provided to defray expenses incurred such as: allowance for Chief and elected members of council; travel expenses for chief and elected members; salaries and travel for administrative staff; office supplies, utilities, rent and equipment; basic telephone rental and installation; long distance telephone costs for council and administrative purposes; postage and bank charges; band office janitorial and maintenance services; or annual audit and other professional fees.

Is the Band Advisory Services program related to the Band Support Funding and Tribal Council Funding programs?

Yes, the determination of the funding level of the Band Advisory Services program is associated with the funding formulas of both the Band Support Funding and the Tribal Council Funding programs.

The overhead costs associated with Band Advisory Services are provided through the Band Support Funding program. This is accomplished by including the amount of Band Advisory Services funding and the associated "advisory units," as determined by the Band Advisory Services funding formula, in the Band Support Funding formula calculation. These amounts are added to the Basic Services section of the Band Support Funding Service Profile, thus increasing the Total Basic Services funding and Person-Year totals which are elements of the Band Support Funding formula.

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