Default Prevention and Management
INAC is currently seeking feedback on transfer payment policies and tools, including the Default Prevention and Management Policy. To learn more about how you can participate, visit our engagement page. Feedback received through this engagement will contribute to a review of these policies and tools.
Aboriginal Affairs and Northern Development Canada's (AANDC) Default Prevention and Management Policy (DPMP) helps maintain continuity in the delivery of departmentally funded programs and services to Aboriginal communities.
Directive 205: Default Prevention and Management
Directive 205 applies to AANDC officials managing transfer payments. This directive does not apply to funding provided under legislated self-government agreements and Funding Agreements resulting from federal-provincial accords.
The objective of this directive is to aid in the implementation of the Default Prevention and Management Policy (DPMP) through Departmental processes which identify defaults. The DPMP mandates a risk-based approach, which emphasizes:
- recipient responsibility and capacity
- default prevention and the management of defaults
- assurance that programs/projects/services are delivered and that the funds provided for these activities are in compliance with Treasury Board Authorities and the Financial Administration Act.
Addenda to Directive 205
Directive 210: Third Party Funding Agreement Management
Directive 210 applies to AANDC officials managing transfer payments with the exception of funding provided under legislated self-government agreements and funding agreements resulting from federal-provincial accords.
The objective of this directive is to provide for the timely and effective remedy of high risk defaults. Where the recipient is assessed by the Department as being unwilling and/or unable to rectify its default situation and only when deemed by the Department to be necessary, a third party funding agreement manager is contracted to administer the terms and conditions of the funding agreement signed by the Department. The appointment of a third party funding agreement manager is for a period of time during which the recipient works to remedy the underlying causes of the default(s) and then reassumes the administration of funding.
Management Action Plan Workbook
The Management Action Plan (MAP) Workbook was developed to assist recipients who are required to prepare a MAP. The MAP reflects the measures to be taken to address a default and aims to prevent its recurrence. The MAP is also used to identify funding agreement management gaps and target available resources to ensure successful implementation. Departmental staff responsible for reviewing a MAP submitted by a recipient should refer to this workbook for guidance.
Guide on How to Select a Recipient-Appointed-Advisor
This guide is for recipients of Departmental funding who need and/or are required to seek advisory support in addressing individual program areas (e.g. educational services, social assistance services, financial management, etc.), and recipients who are in default or in risk of defaulting on the terms and conditions of their funding agreement with AANDC.
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