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2013–14 Financial Overview – July 2013
PowerPoint Version (1.57 Mb, 21 Pages)
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Table of contents
- Major Cost Drivers
- Fiscal Cycle
- Minister's Portfolio
- Expenditures by Category
- Expenditures by Sub-Programs
- Expenditure Trend – Education
- Expenditure Trend – Social Development
- Expenditure Trend – Community Infrastructure
- Expenditure Trend – Claims
- Program Delivery at AANDC
- Program Delivery – Demographic Realities
- Program Delivery – Geographic Realities (Small Communities)
- Program Delivery – Geographic Realities (Dispersed Communities)
- Program Delivery – Socio-Economic Realities
- Operating Environment – Departmental Accountability for Spending
- Operating Environment – Accountability of Funding Recipients
- Operating Environment – Economic Action Plan
- In Summary
Major Cost Drivers
Existing Federal Obligations
- Federal obligations in treaties and law (e.g. Constitution Act, 1867 and Indian Act); and major court interpretations (e.g. Guérin, Sparrow, Marshall, McIvor).
- Settlement of outstanding litigation (e.g. residential schools).
Demographic and Inflationary Pressures
- Young, growing and highly dispersed Aboriginal population.
- Price and population have grown by about four per cent annually versus two per cent escalator.
Policy Commitments
- To resolve and accelerate claims settlements; to provide comparable services to First Nations; to foster independence (e.g. self-government, self-sufficiency); to improve education outcomes; to facilitate opportunities for economic development.
- Environmental and resource management requirements – particularly in the North.
- Economic growth and stability.
Claims, Treaties and Rights
- Growing awareness and recognition of Aboriginal and treaty rights.
Devolution Issues
- Diseconomies of scale – community size and remoteness will impact cost of program delivery.
- Capacity at the community level to deliver programs effectively and efficiently.
Fiscal Cycle
Text description for Fiscal Cycle
This is an image of a bar graph showing the dollar amounts in the annual estimates cycle for the department including the dollar amounts for the Main Estimates, Report on Plans and Priorities, Main and Supplementary Estimates and the actual expenditures for the fiscal years of 2009–10, 2010–11, 2011–12, 2012–13 and 2013–14. The dollar amount for the actual expenses for fiscal year 2013–14 is not included.
For 2009–2010 the figures are: $6.9 billion, Main Estimates; $7.3 billion, Report on Plans and Priorities; $7.8 billion, Main and Supplementary Estimates; $7.4 billion, Actual Expenses.
For 2010–2011 the figures are: $7.3 billion, Main Estimates; $7.3 billion, Report on Plans and Priorities; $8.3 billion, Main and Supplementary Estimates; $8.2 billion, Actual Expenses.
For 2011–2012 the figures are: $7.4 billion, Main Estimates; $7.4 billion, Report on Plans and Priorities; $8.0 billion, Main and Supplementary Estimates; $7.9 billion, Actual Expenses.
For 2012–2013 the figures are: $7.8 billion, Main Estimates; $7.8 billion, Report on Plans and Priorities; $8.5 billion, Main and Supplementary Estimates; $8.1 billion, Actual Expenses.
For 2013–2014 the figures are: $8.0 billion, Main Estimates; $8.0 billion, Report on Plans and Priorities; $8.1 billion, Main and Supplementary Estimates; 8.2 billion, Impact of Economic Action Plan 2013.
* Actual expenditure figures for 2012-13 reflect current forecast and expenditures for 2013-14 are not yet available.
** Includes Supplementary Estimates (A).
Minister's Portfolio ($8.0 billion* in the 2013–14 Main Estimates)
Aboriginal Affairs and Northern Development Canada ($7,975.3M):
Supports Aboriginal peoples (First Nations, Inuit and Métis) and Northerners in their efforts to improve social well-being and economic prosperity; develop healthier, more sustainable communities; and participate more fully in Canada's political, social and economic development to the benefit of all Canadians.
Canadian Polar Commission ($2.6M):
Monitors polar knowledge in Canada and around the world; works with Canadian and international institutions to determine scientific and other priorities; encourages support for Canadian polar research information to Canadians and fosters international co-operation in the advancement of polar knowledge.
Registry of the Specific Claims Tribunal ($1.0M):
Facilitates timely access to the Specific Claims Tribunal through client service, quality of advice, efficient and timely processing and unbiased service delivery; ensures the smooth and efficient functioning of hearings; promotes awareness and understanding of the Specific Claims Tribunal Act and related rules and procedures; safeguards the independence of the Specific Claims Tribunal by placing them at arm's length from the Government of Canada.
Indian Residential Schools Truth and Reconciliation Commission ($9.7M):
The Commission has a mandate to learn the truth about what happened in the residential schools and to inform all Canadians about what happened in the schools.
* Figures reflect Budgetary and Non-budgetary amounts.
Expenditures by Category
Expenditures by Category
This image is of a pie chart showing the breakdown of departmental expenditures for 2013–14. The breakdown is shown as follows: $6,401 million (80%) transfer payments; $70 million (1%) loans; $14 million (0%) capital; $807 million (10%) statutory/fiduciary obligations; $444 million (6%) program delivery; $53 million (1%) negotiation costs; $186 million (2%) administrative overhead.
This image also contains two tables; the first demonstrates the breakdown of forecasted operating expenses – which total $1,491 million – as follows: $1,416 million for operating expenditures (Vote 1); and the following statutory expenses: $70 million for employee benefit plans; $3 million for resource royalties and $2 million for loan guarantees. The second table demonstrates the breakdown of transfer payments – which total $6,401 million – as follows: $6,317 million for grants and contributions (Vote 10); and the following statutory expenses: $74 million for land claims settlement acts, $9 million for the Labrador Inuit Claims Agreement and $1 million for Indian annuities.
The source for the information for the chart is page 177 of the 2013–14 Main Estimates. Figures may not add due to rounding.
* The major item in the $807M is $696M for obligations stemming from the Indian Residential Schools Settlement Agreement. Furthermore, of the $807M, about $594M is for direct payments to recipients including obligations pursuant to the Indian Residential Schools Settlement Agreement, claims related obligations, Department of Justice costs, out-of-court settlements, etc.
** Program delivery costs directly benefit First Nation and northern communities and include costs associated with education, social development, capital/ infrastructure, economic development, Indian government support, environmental initiatives and northern programming. Of the $444M, about $169M is for direct payments to recipients, primarily related to the assessment, management and remediation of federal contaminated sites.
Figures may not add due to rounding.
Expenditures by Sub-Programs
Description of figure: Expenditures by Sub-Programs
This image of the 2013–2014 Program Alignment Architecture breaks down the departmental 2013–2014 planned spending of $7,975 million (includes $70 million in non-budgetary expenditures or loans) by strategic outcome, program and sub-program as follows:
- The Government strategic outcome: $1,637.1 million
- The program Governance and Institutions of Government: $456.7 million
- The sub-program First Nation Governments: $424.5 million
- The sub-program Institutions and Organizations: $32.1 million
- The program Co-operative Relationships: $466.8 million
- The sub-program Negotiations of Claims and Self-Government: $170.2 million
- The sub-program Specific Claims: $267.1 million
- The sub-program Inuit Relations: $2.6 million
- The sub-program Consultation and Engagement: $7.9 million
- The sub-program Métis and Non-Status Indian Relations and Métis Rights Management: $19.1 million
- The program Treaty Management: $713.6 million
- The sub-program Implementation of Modern Treaty Obligations: $401.3 million
- The sub-program Management of Treaty Relationships: $311.4 million
- The sub-program Management of Other Negotiated Settlements: $0.9 million
- The program Governance and Institutions of Government: $456.7 million
- The People strategic outcome: $4,101.0 million
- The program Education: $1,761.1 million
- The sub-program Elementary and Secondary Education: $1,426.0 million
- The sub-program Post-Secondary Education: $335.2 million
-
The program Social Development: $1,615.0 million
- The sub-program Income Assistance: $866.4 million
- The sub-program National Child Benefit Reinvestment: $1.9 million
- The sub-program Assisted Living: $84.0 million
- The sub-program First Nations Child and Family Services: $643.6 million
- The sub-program Family Violence Prevention: $19.1 million
- The program Managing Individual Affairs: $28.8 million
- The sub-program Registration and Membership: $22.3 million
- The sub-program Management of Moneys: $1.6 million
- The sub-program Estate Management: $2.7 million
- The sub-program Treaty Annuities: $2.3 million
- The program Residential Schools Resolution: $696.0 million
- The sub-program Common Experience Payments: $0.0 million
- The sub-program Independent Assessment Process: $692.3 million
- The sub-program Commemoration: $3.8 million
-
The sub-program Support to the Truth and Reconciliation Commission: $0.0 million
- The program Education: $1,761.1 million
- The Land and Economy strategic outcome: $1,569.0 million
-
The program Aboriginal Economic Development: $254.1 million
- The sub-program Aboriginal Entrepreneurship: $50.2 million
- The sub-program Activation of Community Assets: $178.7 million
- The sub-program Strategic Federal Investments and Partnerships: $25.2 million
-
The program Federal Administration of Reserve Land: $52.6 million
- The sub-program Additions to Reserve: $14.1 million
- The sub-program Registration of Rights and Interests in Reserve Lands: $0.0 million
- The sub-program Clarity of Reserve Boundaries: $0.0 million
- The sub-program Environmental Management: $38.4 million
-
The program Community Infrastructure: $1,221.3 million
- The sub-program Water and Wastewater Infrastructure: $328.6 million
- The sub-program Education Facilities: $300.5 million
- The sub-program Housing: $145.5 million
- The sub-program Community Infrastructure Assets and Facilities: $442.9 million
- The sub-program Renewable Energy and Energy Efficiency: $3.9 million
- The program Urban Aboriginal Participation: $41.0 million
-
The program Aboriginal Economic Development: $254.1 million
- The North strategic outcome: $409.8 million
- The program Northern Governance and People: $136.9 million
- The sub-program Political Development and Intergovernmental Relations: $75.0 million
- The sub-program Nutrition North: $57.2 million
- The sub-program Climate Change Adaptation: $4.8 million
- The program Northern Science and Technology: $12.9 million
- The sub-program Northern Contaminants Program: $4.9 million
- The sub-program Science Initiatives: $8.0 million
- The program Northern Land, Resources and Environmental Management: $260.0 million
- The sub-program Oil and Gas: $8.1 million
- The sub-program Mines and Minerals: $12.6 million
- The sub-program Contaminated Sites: $199.1 million
- The sub-program Land and Water Management: $31.6 million
-
The sub-program Environmental Management: $8.6 million
- The program Northern Governance and People: $136.9 million
- The program Internal Services (Note 1): $258.4 million
- The sub-program Governance and Management Support: $159.5 million
- The sub-program Resource Management Services: $94.2 million
- The sub-program Asset Management Services: $4.7 million
Note 1: Internal Services are comprised of $186.3 million for Administrative Overhead and $72.1 million for Litigation Support.
Note 1: Comprised of $186.3 million for Administrative Overhead and $72.1 million for Litigation Support/Out-of-Court Settlements.
Source: 2013–14 Main Estimates; additional details at sub-activity level extracted from departmental budget allocations.
Figures may not add due to rounding.
* Includes $70 million in non-budgetary expenditures (i.e. loans)
Expenditure Trend – Education
Overall, actual expenditures for education have increased by about 22% over the period 2004–05 to 2011–12 (or by about 2.9% annually)
Text description for Expenditure Trend – Education
This is an image of a bar graph showing the expenditures made annually by the department for education, broken down for each year into expenditures for elementary and secondary education, and for post-secondary education, from fiscal years 2004–05 to 2013–14. These amounts are based on actual budgetary expenditures (2004–05 to 2011–12) and Main Estimates (2012–13 and 2013–14).
For 2004–05 a total of $1,368 million was spent on education, with $1,071 million spent for elementary and secondary education and $298 million for post-secondary education.
For 2005–06 a total of $1,406 million was spent on education, with $1,105 million spent for elementary and secondary education and $300 million for post-secondary education.
For 2006–07 a total of $1,451 million was spent on education, with $1,148 million spent for elementary and secondary education and $303 million for post-secondary education.
For 2007–08 a total of $1,490 million was spent on education, with $1,180 million spent for elementary and secondary education and $309 million for post-secondary education.
For 2008–09 a total of $1,523 million was spent on education, with $1,213 million spent for elementary and secondary education and $310 million for post-secondary education.
For 2009–10 a total of $1,592 million was spent on education, with $1,279 million spent for elementary and secondary education and $313 million for post-secondary education.
For 2010–11 a total of $1,628 million was spent on education, with $1,312 million spent for elementary and secondary education and $316 million for post-secondary education.
For 2011–12, a total of $1,675 million was spent on education, with $1,353 million spent for elementary and secondary education and $322 million for post-secondary education.
For 2012–13, the Main Estimates indicate a total of $1,705 million will be spent on education, with $1,376 million spent for elementary and secondary education and $329 million for post-secondary education.
For 2013–14, the Main Estimates indicate a total of $1,761 million will be spent on education, with $1,426 million spent for elementary and secondary education and $335 million for post-secondary education.
Source: 2004–05 to 2011–12 as per Departmental Performance Reports (2004–05 to 2010–11 restated); 2012–13 and 2013–14 as per Main Estimates.
Note – to be consistent with figures displayed for 2011–12 and future years, figures originally reflected in DPRs for the period 2004–05 to 2010–11 have been restated to reflect the transfer of funding for Education Agreements to the Treaty Management program (as per the revised Program Alignment Architecture for 2011–12) and the consolidation of Cultural Education Centres and First Nations and Inuit Youth Employment Strategy in Elementary and Secondary Education (as per the revised Program Alignment Architecture for 2012–13). In addition, an adjustment has also been made to the DPR figures for the period 2004–05 through 2008–09 to provide consistency with the display of Internal Services as a separate program beginning in 2009–10 (ie. Internal Services was previously attributed across all programs).
Figures may not add due to rounding.
Expenditure Trend – Social Development
Overall, actual expenditures for social development have increased by about 37% over the period 2004–05 to 2011–12 (or by about 4.6% annually)
Description of figure Expenditure Trend – Social Development
This is an image of a bar graph showing the expenditures made annually by the department for social development, broken down for each year into expenditures for income assistance, child and family services, and other, from fiscal years 2004–05 to 2013–14. These amounts are based on actual budgetary expenditures (2004–05 to 2011–12) and Main Estimates (2012–13 and 2013–14).
For 2004–05 a total of $1,222 million was spent on social development, with $655 million spent on income assistance, $385 million for child and family services, and $181 million for other social development programs and initiatives.
For 2005–06 a total of $1,278 million was spent on social development, with $683 million spent on income assistance, $417 million for child and family services, and $179 million for other social development programs and initiatives.
For 2006–07 a total of $1,342 million was spent on social development, with $704 million spent on income assistance, $450 million for child and family services, and $188 million for other social development programs and initiatives.
For 2007–08 a total of $1,426 million was spent on social development, with $742 million spent on income assistance, $490 million for child and family services, and $194 million for other social development programs and initiatives.
For 2008–09 a total of $1,484 million was spent on social development, with $764 million spent on income assistance, $524 million for child and family services, and $196 million for other social development programs and initiatives.
For 2009–10 a total of $1,557 million was spent on social development, with $806 million spent on income assistance, $553 million for child and family services, and $198 million for other social development programs and initiatives.
For 2010–11 a total of $1,611 million was spent on social development, with $824 million spent on income assistance, $585 million for child and family services, and $202 million for other social development programs and initiatives.
For 2011–12, a total of $1,678 million was spent on social development, with $843 million spent on income assistance, $655 million for child and family services, and $180 million for other social development programs and initiatives.
For 2012–13, the Main Estimates indicate a total of $1,605 million will be spent on social development, with $861 million spent on income assistance, $640 million for child and family services, and $104 million for other social development programs and initiatives.
For 2013–14, the Main Estimates indicate a total of $1,615 million will be spent on social development, with $866 million spent on income assistance, $644 million for child and family services, and $105 million for other social development programs and initiatives.
* For the period 2004–05 to 2010–11, Other includes Assisted Living, Family Violence Prevention, National Child Benefit Re-investment and Family Capacity Initiatives; beginning in 2011–12, Family Capacity Initiatives are included in the Child and Family Services sub-program, pursuant to the revised Program Alignment Architecture.
Source: 2004–05 to 2011–12 totals as per Departmental Performance Reports (2004–05 to 2008–09 restated); 2012–13 and 2013–14 as per Main Estimates.
Note – to be consistent with figures displayed for 2009–10 and future years, figures originally included in DPRs for the period 2004–05 to 2008–09 have been restated to reflect the display of Internal Services as a separate program beginning in 2009–10 (ie. Internal Services was previously attributed across all programs).
Figures may not add due to rounding.
Expenditure Trend – Community Infrastructure
Overall, actual expenditures for community infrastructure have averaged about $1.1 billion annually over the period 2004–05 to 2011–12.
Description of Expenditure Trend – Community Infrastructure
This is an image of a bar graph showing the expenditures made annually by the department for community infrastructure, broken down for each year into expenditures for water and sewage, infrastructure, education, and housing, from fiscal years 2004–05 to 2013–14. These amounts are based on actual budgetary expenditures (2004–05 to 2011–12) and Main Estimates (2012–13 and 2013–14).
For 2004–05 a total of $958 million was spent on community infrastructure, with $316 million spent on water and sewage infrastructure, $292 million for infrastructure, $213 million for education infrastructure, and $136 million for housing infrastructure.
For 2005–06 a total of $974 million was spent on community infrastructure, with $316 million spent on water and sewage infrastructure, $304 million for infrastructure, $189 million for education infrastructure, and $165 million for housing infrastructure.
For 2006–07 a total of $1,099 million was spent on community infrastructure, with $350 million spent on water and sewage infrastructure, $300 million for infrastructure, $195 million for education infrastructure, and $255 million for housing infrastructure.
For 2007–08 a total of $1,053 million was spent on community infrastructure, with $370 million spent on water and sewage infrastructure, $277 million for infrastructure, $250 million for education infrastructure, and $155 million for housing infrastructure.
For 2008–09 a total of $1,088 million was spent on community infrastructure, with $308 million spent on water and sewage infrastructure, $454 million for infrastructure, $208 million for education infrastructure, and $117 million for housing infrastructure.
For 2009–10 a total of $1,295 million was spent on community infrastructure, with $380 million spent on water and sewage infrastructure, $437 million for infrastructure, $277 million for education infrastructure, and $200 million for housing infrastructure.
For 2010–11 a total of $1,300 million was spent on community infrastructure, with $395 million spent on water and sewage infrastructure, $410 million for infrastructure, $304 million for education infrastructure, and $191 million for housing infrastructure.
For 2011–12, a total of $1,097 million was spent on community infrastructure, with $311 million spent on water and sewage infrastructure, $452 million for infrastructure, $201 million for education infrastructure, and $132 million for housing infrastructure.
For 2012–13, the Main Estimates indicate a total of $1,045 million will be spent on community infrastructure, with $194 million spent on water and sewage infrastructure, $481 million for infrastructure, $225 million for education infrastructure, and $146 million for housing infrastructure.
For 2013–14, the Main Estimates indicate a total of $1,221 million will be spent on community infrastructure, with $329 million spent on water and sewage infrastructure, $447 million for infrastructure, $300 million for education infrastructure, and $146 million for housing infrastructure.
Source: 2004–05 to 2011–12 totals as per Departmental Performance Reports (2004–05 to 2008–09 restated); 2012–13 and 2013–14 as per Main Estimates; additional detailed information extracted from the Long-Term Capital Plan.
Note – to be consistent with figures displayed for 2009–10 and future years, figures originally reflected in DPRs for the period 2004–05 to 2007–08 have been restated to reflect the transfer of capital and O&M funding for the James Bay Crees, the Oujé-Bougoumou Crees and the Naskapi bands of Quebec to the Treaty Management program (as per the revised Program Alignment Architecture for 2011–12). In addition, an adjustment has also been made to the DPR figures for the period 2004–05 through 2008–09 to provide consistency with the display of Internal Services as a separate program beginning in 2009–10 (ie. Internal Services was previously attributed across all programs).
Figures may not add due to rounding.
Expenditure Trend – Claims*
Description of Expenditure Trend – Claims
This is an image of a bar graph showing the expenditures made annually by the department for the negotiation, settlement and implementation of claims, from fiscal years 2004–05 to 2013–14. The amounts in this bar graph are based on actual budgetary expenditures (2004–05 to 2011–12) and Main Estimates (2012–2013 and 2013–14).
The figures are as follows: $532 million (2004–05), $539 million (2005–06); $460 million (2006–07); $1,558 million (2007–08) which reflects a $1.1 billion one-time payment to the Cree of Quebec for matters arising from the implementation of the James Bay and Northern Quebec Agreement; $579 million (2008–09); $496 million (2009–10); $1,013 million (2010–11); $751 million (2011–12); $984 million (2012–13); $648 million (2013–14).
* Includes funding for negotiation, settlement and implementation of claims; excludes non-budgetary (loan) funding.
** Reflects $1.1 billion one-time payment to the Cree of Quebec for matters arising from the implementation of the James Bay and Northern Quebec Agreement.
Program Delivery at AANDC
Highly decentralized with 10 regions
South of 60°
- About 80 per cent of resources are used to fund programs delivered by First Nations community governments, Tribal Councils, etc.
- Most funds are for basic provincial/municipal type services to individuals on reserve.
- The federal government is committed to providing services on reserves comparable to those typically provided by the provinces.
- Provincial standards guide program delivery leading to variability across regions.
North of 60°
- Within the federal government, the Minister has the lead responsibility for the North, including the Northern Strategy.
- The department has a province-like role in water and oil and gas management.
- AANDC manages land and resources in Nunavut and the Northwest Territories (Yukon is devolved).
Program Delivery – Demographic Realities
- According to the 2011 National Household Survey, there are 1,400,685 Aboriginal individuals in Canada, representing 4.3% of the total Canadian population.
- Registered Indians account for just under half of the Aboriginal population.
- In 2011, almost half (46%) of Aboriginal people were less than 25 years of age compared with almost one-third (29%) of non-Aboriginal people.
- The median age for Aboriginal people is 28 years, 13 years less than for non-Aboriginals (41 years).
- The total population of the territories is approximately 105,820 - slightly over half are Aboriginal.
Text description for Program Delivery - Demographic Realities
This is an image of a pie chart showing the distribution of the Aboriginal population by registration status and identity as of 2006. The chart indicates that: 53.2% as self-identified as registered Indians; 30.3% as Métis; 11.4% as non-status Indians; 4.2% as Inuit and 0.9% as other.
* Other refers to respondents who reported more than one identity group, and those who reported being a Band member with no Aboriginal identity and no Registered Indian status.
Source: Statistics Canada, 2011 National Household Survey, AANDC tabulations.
Program Delivery – Geographic Realities (Small Communities)
- According to the 2011 Census of Population, 70% of First Nation communities have less than 500 inhabitants; the majority are located in British Columbia.
- First Nation communities include legally-defined Indian reserves, Indian settlements and other land types created by the ratification of self-government agreements.
Text description for Program Delivery - Geographic Realities (Small Communities)
This image is of a bar chart showing the distribution of the 793 First Nation communities by population size based on Statistics Canada 2011 information. The chart indicates that 285 reserves have a population of 100 or less; 147 have populations of between 100 and 249; 125 between 250 and 499; 136 between 500 and 999; 70 between 1000 and 1999 and; 30 with populations of more than 2000. There are 557 reserves with less than 500 inhabitants.
Note: N=793 out of a possible 997 First Nation communities delineated by Statistics Canada in 2011. Not included are unpopulated reserves and 31 incompletely enumerated reserves that did not participate in the Census.
Source: AANDC derived from 2011 Geosuite, Statistics Canada.
Program Delivery – Geographic Realities (Dispersed Communities)
As of 2012, 66% of Registered Indians on reserve lived in rural, special access, or remote zones; 34% lived in urban zones.
Text description for Program Delivery - Geographic Realities (Dispersed Communities)
This image is of a pie chart showing the population distribution by percentage of the on-reserve population by geographic zone. The population distribution is as follows: Rural, 44.7%; Urban, 34.2%; Special Access, 17.4% and; Remote, 3.7%.
Note:
- Urban: The First Nation is located within 50 km of the nearest service centre with a year-round road access.
- Rural: The First Nation is located between 50 and 350 km from the nearest service centre with a year-round road access.
- Remote: The First Nation is located over 350 km from the nearest service centre with year-round road access.
- Special Access: The First Nation has no year-round road access to a service centre and, as a result, experiences a higher cost of transportation.
Source: Indian Register Population by Geographic Zone, 2012.
Program Delivery – Socio-Economic Realities
- There has been progress over the last 25 years in improving the socio-economic conditions in First Nation and Inuit communities.
- A significant gap still exists in the socio-economic conditions of First Nation and Inuit communities compared to those of other communities.
Average CWB Scores, 1981-2006
Text description for Program Delivery - Socio-Economic Realities
This image is of a line graph showing the average Community Well-Being scores of First Nation, Inuit and other Canadian communities for the years 1981, 1991, 1996, 2001 and 2006. The Community Well-Being Index is a method of assessing general well-being of Canadians at the community level in terms of education, labour force activity, income and housing. The scores are plotted on an XY axis chart where the "X" axis are the years 1981 to 2006 and the "Y" is the Community Well-Being Index scores from 30 to 100. The chart shows that the scores for First Nation communities were: 47 (1981); 51 (1991); 55 (1996); 57 (2001); 57 (2006). The scores for Inuit communities were: 48 (1981); 57 (1991); 60 (1996); 61 (2001); 62 (2006). The scores for other Canadian communities were: 67 (1981); 71 (1991); 72 (1996); 73 (2001); 77 (2006).
Source: Statistics Canada, 1981, 1991, 1996, 2001 and 2006 Census of Population. Socio-economic indicators from the 2011 National Household Survey will be available by August, 2013.
Operating Environment – Departmental Accountability for Spending
- Each year the department produces a spending plan (the Report on Plans and Priorities) and a performance report (the Departmental Performance Report) as part of the government-wide Estimates and Public Accounts.
- Quarterly financial reports and annual financial statements are published on the department's website.
- All auditable units are audited using a risk-based audit plan. The plan and all audits are posted on the department's website following review by the department's Audit Committee, which is composed of five external experts.
- All spending programs are evaluated for effectiveness and the reports are published on the department's website.
- Mandatory publication on the department's website of travel and hospitality expenses for selected government officials, contracts over $10,000, the reclassification of positions, and grants and contributions awards.
- External reviews are conducted by the Auditor General and other Officers of Parliament.
Operating Environment – Accountability of Funding Recipients
- The Government of Canada is committed to ensuring the effective, efficient and appropriate use of taxpayers' dollars.
- AANDC takes a risk-based approach to managing its funding agreements. Tools have been developed (i.e. General Assessment) to determine recipient risk, and risk is assessed annually for all recipients.
- Public funds are transferred from AANDC to recipients through funding agreements containing specific objectives and clear terms and conditions with which all parties must comply with.
- Funding agreements describe the requirements needed to maintain the accountability relationship between the department and funding recipients, and between recipients and their membership. Funding agreements contain:
- Minimum program requirements;
- Accountability requirements for managing funds, including reporting requirements; and
- Default management provisions.
- If terms and conditions of the funding agreement are not met, there is a flexible range of strategies AANDC can take to assist the recipient to remedy the situation.
- In 2011, following an internal audit and discussions with First Nation governments and financial experts, AANDC implemented the Default Prevention and Management Policy (DPMP).
- The goal of the Default Prevention and Management Policy (DPMP) is to help First Nations improve their financial management and reporting practices, and develop their capacity to be self-managing.
- Financial reporting is integral to the accountability relationship. Annual audited consolidated financial statements must be submitted to AANDC by recipients. They are reviewed along with other information to ensure that the terms and conditions of the funding agreement are being met.
- As outlined in funding agreements, financial statements must be disclosed to the membership of the funding recipient. Bill C-27, the First Nations Financial Transparency Act, which has been tabled in Parliament, strengthens the accountability requirements already contained in funding agreements by imposing a legal obligation on recipients to disclose information publicly.
- Funding agreements also include a "right to audit" clause, to allow AANDC to assess a recipient's compliance with the funding agreement, and is to ensure that funds are used for intended purposes.
- The department is committed to ensuring that funds are managed with integrity, transparency and accountability while reducing recipients' reporting burden.
Operating Environment – Economic Action Plan
Economic Action Plan 2013 announced $872 million in total investments for Aboriginal and Northern communities, which will allow them to participate more fully in Canada's economy and benefit from its growth. Of the total investment, about $618 million is directed toward Aboriginal Peoples and their communities. The remaining $254 million provides investments for Northerners. The majority of the investments ($545 million) will be spent within the first two years.
| $ Millions | Total | AANDC | Other Government Departments | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2013-14 | 2014-15 | Future Years | Total | 2013-14 | 2014-15 | Future Years | Total | 2013-14 | 2014-15 | Future Years | Total | |
| Aboriginal Peoples | ||||||||||||
| Investing in Training for On-ReserveIncome Assistance Recipients ($241 million over 5 years) | 32 | 51 | 158 | 241 | 19 | 24 | 89 | 133 | 13 | 27 | 69 | 109 |
| First Nations Land Management Regime | 2 | 7 | - | 9 | 2 | 7 | - | 9 | - | - | - | - |
| Renewal of the Family Violence Prevention Program | 12 | 12 | - | 24 | 12 | 12 | - | 24 | - | - | - | - |
| Introducing a First Nation Education Act (commitment) | - | - | - | - | - | - | - | - | - | - | - | - |
| Supporting Post-Secondary Education for First Nations and Inuit Students | 5 | 5 | - | 10 | 5 | 5 | - | 10 | - | - | - | - |
| Promoting Business Studies Among Aboriginal Students ($5 million over 5 years) | 1 | 1 | 3 | 5 | 1 | 1 | 3 | 5 | - | - | - | - |
| Support for Pathways to Education Canada - Winnipeg (commitment) | - | - | - | - | - | - | - | - | - | - | - | |
| Supporting First Nations Fishing Enterprises | 33 | - | - | 33 | - | - | - | 33 | - | - | 33 | |
| Support for First Nations Infrastructure ($155 million over 10 years - notion annual allocation) | - | 16 | 140 | 155 | - | 16 | 140 | 155 | - | - | - | - |
| Continued Support Under the Capital Facilities and Maintenance Program (commitment) | - | - | - | - | - | - | - | - | - | - | - | |
| Resolving Specific Claims | 27 | 27 | - | 54 | 23 | - | 46 | - | 4 | 4 | - | 8 |
| First Nation Policing Program | 18 | 18 | - | 36 | - | - | - | - | 18 | 18 | - | 36 |
| Aboriginal Justice Strategy | 11 | - | - | 11 | - | - | 11 | - | - | 11 | ||
| Improving Health Services to First Nations Communities | 24 | 24 | - | 48 | - | - | - | - | 24 | 24 | - | 48 |
| Enhancing Mental Health Services in First Nation Communities | 2 | 2 | - | 4 | - | - | - | - | 2 | 2 | - | 4 |
| Sub-Total | 167 | 162 | 301 | 630 | 62 | 87 | 232 | 381 | 105 | 75 | 69 | 249 |
| Less: funds sourced from internal reallocations | (1) | (11) | - | (12) | - | - | - | - | (1) | (11) | - | (12) |
| Sub-Total (Aboriginal Peoples) | 166 | 151 | 301 | 618 | 62 | 87 | 232 | 381 | 104 | 64 | 69 | 237 |
| Aboriginal and Northern Communities | ||||||||||||
| Supporting Yukon College's Centre for Northern Innovation in Mining (commitment to match funding from the Yukon government and the private sector) | - | - | - | - | - | - | - | - | - | - | - | |
| Supporting Junior Mineral Exploration | 135 | (35) | - | 100 | - | - | - | - | - | - | - | 100 |
| Increased Investment for construction of an all-season gravel road from Inuvik to Tuktoyaktuk in the Northwest Territories ($150 million previously announced in Economic Action Plan 2011 - incremental investment of $50 million in Economic Action Plan 2013 is notionally allocated over 4 years) | 13 | 13 | 25 | 50 | - | - | - | - | 135 | (35) | - | 50 |
| Investment in Nunavut Housing | 30 | 70 | - | 100 | - | - | 30 | 70 | - | 100 | ||
| Protecting Against Invasive Species ($4 million over 3 years) | 2 | 2 | 1 | 4 | - | - | - | - | 2 | 2 | 1 | 4 |
| Sub-Total (Aboriginal and Northern Communities) | 179 | 49 | 26 | 254 | - | - | - | - | 179 | 49 | 26 | 254 |
| Total Investments | 345 | 200 | 327 | 872 | 62 | 87 | 232 | 381 | 283 | 113 | 95 | 491 |
| Figures may not add due to rounding. | ||||||||||||
Economic Action Plan 2012 invests $707.7 million government-wide over three years for Aboriginal peoples and Northern communities which will allow them to participate more fully in Canada's economy and benefit from its growth.
| 2012–13 | 2013–14 | Sub-Total (2 years) | 2014–15 | Total | |
|---|---|---|---|---|---|
| Aboriginal Peoples | |||||
| Investments to Improve First Nations Water Infrastructure | 165.4 | 165.4 | 330.8 | 0.0 | 330.8 |
| Investments to Improve First Nations Education | 45.0 | 115.0 | 160.0 | 115.0 | 275.0 |
| Supporting First Nations Fishing Enterprises | 33.5 | 0.0 | 33.5 | 0.0 | 33.5 |
| Urban Aboriginal Strategy | 13.5 | 13.5 | 27.0 | 0.0 | 27.0 |
| Consultation Under the Canadian Environmental Assessment Act | 6.8 | 6.8 | 13.6 | 0.0 | 13.6 |
| Addressing Family Violence on Reserve | 11.9 | 0.0 | 11.9 | 0.0 | 11.9 |
| Sub-Total (Aboriginal Peoples) | 276.1 | 300.7 | 576.8 | 115.0 | 691.8 |
| Aboriginal and Northern Communities | |||||
| Assessing Diamonds in the North | 6.1 | 6.1 | 12.3 | 0.0 | 12.3 |
| Major Projects Management Office Initiative (included in the $54 million announced in Budget 2012) | 1.8 | 1.8 | 3.6 | 0.0 | 3.6 |
| Sub-Total (Aboriginal and Northern Communities) | 7.9 | 7.9 | 15.9 | 0.0 | 15.9 |
| Total Investments | 284.0 | 308.6 | 592.7 | 115.0 | 707.7 |
| Figures may not add due to rounding. | |||||
Text description for Operating Environment - Budget 2012
This is an image of a bar graph showing the savings the department will achieve as part of measures announced in Budget 2012 broken down into savings from Vote 1 and Vote 10 from fiscal years 2012–13 to 2014–15 and ongoing.
For 2012–13, savings are $24.4 million ($20.0 million in Vote 1 and $4.4 million in Vote 10).
For 2013–14, savings are $55.1 million in 2013–14 ($31.1 million in Vote 1 and $24.0 million in Vote 10).
For 2014–15 and ongoing, savings are $160.6 million ($66.9 million in Vote 1 and $93.8 million in Vote 10).
Economic Action Plan 2012 announced ongoing savings of $160.6 million by 2014-15
- Aboriginal Affairs and Northern Development Canada, like every other department, is contributing to the effort to eliminate the deficit. As part of measures announced in Budget 2012, the department will achieve savings of $24.4 million in the first year, followed by $55.1 million in 2013–14 and will result in ongoing savings of $160.6 million by 2014–15.
- In order to minimize the impact on Aboriginal peoples and Northerners, essential services, such as education, water and housing, child and family services, economic development programming and core programs in the North were not impacted by savings measures.
- Much of the savings will be achieved through changes in the department's internal operations and streamlining program management and business processes, including the elimination of approximately 480 Full-Time Equivalents across the department by April 1, 2014. Savings will also be achieved over the next three years through other measures such as internal restructuring and reducing discretionary spending (e.g. travel, hospitality, temporary help).
- For more information, visit Savings Identified as part of Budget 2012 Spending Review.
In Summary
- AANDC is one of numerous federal departments delivering programs and services to Aboriginal peoples and Northerners.
- The department's overall funding is increasing due to significant investments made in priority areas and through successive budgets since 2006.
- Spending is affected by deeply embedded cost drivers such as demographics, inflation, comparability, devolution/self-government, etc.
- Investments are primarily directed at basic services – Education, Social Development, Community Infrastructure.
- As the department implements the Budget 2012 savings over this fiscal year, it will protect the delivery of core services, while it focuses on improving how we achieve progress and results for Aboriginal people and economies.
- The department has a number of measures in place to strengthen financial and performance management.
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