Table Summary of Changes 2016-2017: National Funding Agreement Model for First Nations and Tribal Councils

PROPOSED MODIFICATIONS — WHAT HAS CHANGED FOR 2016–2017 ADJUSTED OR NEW SECTION NEW TEXT (if applicable) TEXT FROM 2015–2016 MODEL (if applicable)
Adjustments made in response to comments/feedback received from some First Nations on funding agreement models To highlight the historical fact Optional Whereas provisions that can be used where Council wishes to include a reference to Treaties D. Her Majesty the Queen in Right of Canada entered into Treaty No. [/:TreatyNo] with certain First Nations within the Province of ______.

E. The parties acknowledge the historical and contemporary importance of the treaties to the relationship between Her Majesty the Queen in Right of Canada and the First Nation(s) of _________.
D. Canada entered into Treaty No. [/:TreatyNo] with certain First Nations within the Province of _________.

E. The parties acknowledge the historical and contemporary importance of the treaties to the relationship between Canada and the First Nation(s) of _________.
Clarification on Personal Interest Revised section 6.1.1 (a) (ii) For First Nation
6.1.1 The Council shall maintain a system of accountability to Members which provides for:

(a) transparency and openness in the Council's decision making process including drafting and maintaining at all times a written conflict of interest policy available to every Member which must, at a minimum, provide that:
(ii) where an elected official or employee of the Council is in a conflict of interest relating to a decision to be made by the Council, that conflict of interest will be disclosed to the Council and the Council will determine whether that individual will take part in that decision; and

For Tribal Council
6.1.1 The Council shall maintain a system of accountability to Member First Nations and Members which provides for:
(a) transparency and openness in the Council's decision making process including drafting and maintaining at all times a written conflict of interest policy available to Member First Nations and Members which must, at a minimum, provide that:
(ii) where an elected official or employee of the Council is in a conflict of interest relating to a decision to be made by Council, that conflict of interest will be disclosed to the Council and the Council will determine whether that individual will take part in that decision; and
For First Nation
6.1.1 The Council shall maintain a system of accountability to Members which provides for: (a) transparency and openness in the Council's decision making process including drafting and maintaining at all times a written conflict of interest policy available to every Member which must, at a minimum, provide that:
(ii) where an elected official or employee of the Council has a personal interest in the outcome of any decision to be made by the Council, and that interest gives rise to a conflict of interest, that conflict and the extent of the interest will be disclosed to the Council and the Council will determine whether that individual will take part in that decision; and

For Tribal Council
6.1.1 The Council shall maintain a system of accountability to Member First Nations and Members which provides for:
(a) transparency and openness in the Council's decision making process including drafting and maintaining at all times a written conflict of interest policy available to Member First Nations and Members which must, at a minimum, provide that:
(ii) where an elected official or employee of the Council has a personal interest in the outcome of any decision to be made by the Council, and that interest gives rise to a conflict of interest, that conflict and the extent of the interest will be disclosed to the Council and the Council will determine whether that individual will take part in that decision; and
Revised Section 14.11.1 14.11.1 No member of the House of Commons or the Senate of Canada will be admitted to any share or part of this Agreement, or to any benefit arising from it, unless the benefit would otherwise be available to that individual as a Member or Recipient. 14.11.1 No member of the House of Commons or the Senate of Canada will be admitted to any share or part of this Agreement or to any benefit arising from it.
Clarification on the exceptions and limitations of the Dispute Resolution Process (Procedures) Revised Section 12.1 and 12.1.1 12.1 Procedures
12.1.1 Subject to section 12.3 (Exceptions and Limitations), in the event a dispute arises between Canada and the Council regarding the interpretation of a provision of this Agreement or the obligation of a party under this Agreement, Canada and the Council may choose to resolve the dispute in the manner set out below, or in such other manner as the parties may agree in writing.
12.1 The Process
12.1.1 Subject to section 12.3 (Exceptions to the Process), in the event a dispute arises between Canada and the Council regarding the interpretation of a provision of this Agreement or the obligation of a party under this Agreement, Canada and the Council may choose to resolve the dispute in the manner set out below, or in such other manner as the parties may agree in writing.
Revised Section 12.2.1 12.2.1 Subject to subsection 12.2.2, any exchanges between Canada and the Council after one party has given the other notice that it wishes to undertake dispute resolution pursuant to section 12.1 (Procedures), including without limitation:
(a) any minutes or other records of any meetings between Canada and the Council; and
(b) any admissions, discussion, or offers of settlement, whether made verbally or in writing by either party,

will not be admissible in any legal proceedings unless otherwise required by law.
12.2.1 Subject to subsection 12.2.2, any exchanges between Canada and the Council after one party has given the other notice that it wishes to undertake dispute resolution pursuant to section 12.1 (The Process), including without limitation:
(a) any minutes or other records of any meetings between Canada and the Council; and
(b) any admissions, discussion, or offers of settlement, whether made verbally or in writing by either party,

will not be admissible in any legal proceedings unless otherwise required by law.
Revised Section 12.3 12.3 Exceptions and Limitations
12.3.1 Disputes arising as a result of any of the following matters will not be dealt with under the dispute resolution process provided for in section 12.1 (Procedures):
(a) budget decisions of the Council made in accordance with the terms and conditions of this Agreement;
(b) the amount of funding provided by Canada for programs, services and activities under this Agreement; and
(c) an audit or evaluation under article 8.0 (Access by Canada to Records) or section 14.8 (Audit and Evaluation).

12.3.2 No procedure under 12.1 (Procedures) will suspend or delay a decision by Canada that the Council is in default or any action taken by Canada under article 10.0 (Remedies on Default) or section 3.2 (Funding Subject to Appropriations and Departmental Funding Authorities).
12.3 Exceptions to the Process
Disputes arising as a result of any of the following matters will not be dealt with under the dispute resolution process provided for in section 12.1 (The Process):
(a) budget decisions of the Council made in accordance with the terms and conditions of this Agreement;
(b) the amount of funding provided by Canada for programs, services and activities under this Agreement;
(c) an audit or evaluation under article 8.0 (Access by Canada to Records) or section 14.8 (Audit and Evaluation);
(d) a decision by Canada that the Council is in default;
(e) any action taken by Canada under article 10.0 (Remedies on Default) or section 3.2 (Funding Subject to Appropriations and Departmental Funding Authorities); and
(f) matters of policy.
Clarification on the management of proportional reimbursement of ineligible expenditures and unexpended funding requirement where there is more than one funding source for the program, service or activity Revised section 4.3 of Schedule "DIAND-1A" – BLOCK CONTRIBUTION FUNDING 4.3.1 The Council shall reimburse to DIAND any expenditure it makes in a Fiscal Year against the aggregate of annual amounts for programs, services and activities identified as BLOCK in Schedule "FED-1" where that expenditure is not in accordance with the delivery standards of at least one of those programs, services and activities. 4.3.1 Subject to subsection 4.3.2, the Council shall reimburse to DIAND any expenditure it makes in a Fiscal Year against the aggregate of annual amounts for programs, services and activities identified as BLOCK in Schedule "FED-1" where that expenditure is not in accordance with the delivery standards of at least one of those programs, services and activities.

4.3.2 Where there is more than one funding source for the aggregate of the programs, services and activities for which funding is provided under this Schedule, the Council shall reimburse to DIAND an amount, proportional to DIAND's funding for the aggregate of those programs, services and activities.
Revised section 5.1.2 of Schedule "DIAND-1A" – BLOCK CONTRIBUTION FUNDING 5.1.1 Subject to section 5.2 (Retention of Unexpended Block Funding), the Council shall reimburse to DIAND any Unexpended Block Funding. 5.1.1 Subject to section 5.2 (Retention of Unexpended Block Funding) and subsection 5.1.2, the Council shall reimburse to DIAND any Unexpended Block Funding.

5.1.2 Where there is more than one funding source for the aggregate of the programs, services and activities for which funding is provided under this Schedule, the Council shall reimburse to DIAND an amount proportional to DIAND's funding for the aggregate of those programs, services and activities.
Revised section 1.1 – "Cost-sharing" definition added to Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING "Cost-sharing" means a requirement set out in Schedule "DIAND-3" to supplement DIAND funding for a program, service or activity with funding from other sources.  
Revised section 3.2 of Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING 3.2 Reimbursement of Ineligible Expenditures
3.2.1 For each program, service or activity identified as SET, FIXED and FLEX in Schedule "FED-1", the Council shall reimburse to DIAND any expenditure it makes against annual amounts allocated in that Schedule for that program, service or activity and that is not in accordance with the delivery requirements set out in Schedule "DIAND-3" for that program, service or activity.

3.2.2 If Cost-sharing applies to the program, service or activity, the Council shall instead reimburse to DIAND an amount proportional to DIAND's funding share, of any expenditure against the annual amounts from all required sources allocated for that program, service or activity that is not in accordance with the delivery requirements.
3.2 Reimbursement of Ineligible Expenditures
3.2.1 Subject to subsection 3.2.2, for each program, service or activity identified as SET, FIXED and FLEX in Schedule "FED-1", the Council shall reimburse to DIAND any expenditure it makes against annual amounts allocated in that Schedule for that program, service or activity and that is not in accordance with the delivery requirements set out in Schedule "DIAND-3" for that program, service or activity.

3.2.2 Where there is more than one funding source for a program, service or activity for which SET, FIXED or FLEX funding is provided under this Schedule, the Council shall reimburse to DIAND an amount proportional to DIAND's funding for that program, service or activity.
Revised section 3.3 of Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING 3.3 Reimbursement of Unexpended SET Funding
3.3.1 For each program, service or activity identified as SET in Schedule "FED-1", the Council shall reimburse to DIAND the amount by which funds paid to the Council under this Agreement for that program, service or activity for a Fiscal Year exceeds the amount that the Council expends on that program, service or activity in the same Fiscal Year.

3.3.2 If Cost-sharing applies to the program, service or activity, the Council shall instead reimburse to DIAND an amount, proportional to DIAND's funding share, of the difference between the annual amounts from all required sources allocated for that program, service or activity and the amount expended against that total.
3.3 Reimbursement of Unexpended SET Funding
3.3.1 Subject to subsection 3.3.2, for each program, service or activity identified as SET in Schedule "FED-1", the Council shall reimburse to DIAND the amount by which funds paid to the Council under this Agreement for that program, service or activity for a Fiscal Year exceeds the amount that the Council expends on that program, service or activity in the same Fiscal Year.

3.3.2 Where there is more than one funding source for a program, service or activity for which SET funding is provided under this Schedule, the Council shall reimburse to DIAND an amount proportional to DIAND's funding for that program, service or activity.
Revised section 3.4 of Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING 3.4 Reimbursement of Unexpended FLEX Funding
3.4.1 For each program, service or activity identified as FLEX in Schedule ''FED-1'', the Council shall reimburse to DIAND the amount by which funds paid to the Council under this Agreement for that program, service or activity exceeds the amount that the Council expends on that program, service or activity, following the earlier of the end of that program, service or activity as indicated in Schedule "FED-1" and the expiry or termination of this Agreement.

3.4.2 If Cost-sharing applies to the program, service or activity, the Council shall instead reimburse to DIAND an amount, proportional to DIAND's funding share, of the difference between the annual amounts from all required sources allocated for that program, service or activity and the amount expended against that total.
3.4 Reimbursement of Unexpended FLEX Funding
3.4.1 Subject to subsection 3.4.2, for each program, service or activity identified as FLEX in Schedule ''FED-1'', the Council shall reimburse to DIAND the amount by which funds paid to the Council under this Agreement for that program, service or activity exceeds the amount that the Council expends on that program, service or activity, following the earlier of the end of that program, service or activity as indicated in Schedule "FED-1" and the expiry or termination of this Agreement.

3.4.2 Where there is more than one funding source for a program, service or activity for which FLEX funding is provided under this Schedule, the Council shall reimburse to DIAND an amount proportional to DIAND's funding for that program, service or activity.
Revised section 3.5 of Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING 3.5 Reimbursement of Unexpended FIXED Funding
3.5.1 Subject to section 3.7 (Retention of Unexpended FIXED Funding), for each program, service or activity identified as FIXED in Schedule "FED-1", the Council shall reimburse to DIAND the amount by which funds paid to the Council under this Agreement for that program, service or activity for a Fiscal Year exceeds the amount that the Council expends on that program, service or activity in the same Fiscal Year.

3.5.2 If Cost-sharing applies to the program, service or activity, the Council shall instead reimburse to DIAND an amount, proportional to DIAND's funding share, of the difference between the annual amounts from all required sources allocated for that program, service or activity and the amount expended against that total.
3.5 Reimbursement of Unexpended FIXED Funding
3.5.1 Subject to section 3.7 (Retention of Unexpended FIXED Funding) and subsection 3.5.2, for each program, service or activity identified as FIXED in Schedule "FED-1", the Council shall reimburse to DIAND the amount by which funds paid to the Council under this Agreement for that program, service or activity for a Fiscal Year exceeds the amount that the Council expends on that program, service or activity in the same Fiscal Year.

3.5.2 Where there is more than one funding source for a program, service or activity for which FIXED funding is provided under this Schedule, the Council shall reimburse to DIAND an amount proportional to DIAND's funding for that program, service or activity.
Revised Schedule "DIAND-3" – PROGRAM, SERVICE AND ACTIVITY DELIVERY REQUIREMENTS AND ADJUSTMENT FACTORS PROGRAM, SERVICE AND ACTIVITY REQUIREMENTS, COST-SHARING AND ADJUSTEMENT FACTORS PROGRAM, SERVICE AND ACTIVITY REQUIREMENTS AND ADJUSTEMENT FACTORS
Clarification on the management of Grant reimbursement when the First Nation no longer meets INAC’s eligibility requirements for Grant funding for a Program, Service or Activity Revised section 1.1 – "Grant Funding" definition of Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING "Grant Funding" or "GRANT" means funding for a program, service or activity that is subject to DIAND's pre-established eligibility requirements. "Grant Funding" or "GRANT" means funding for a program, service or activity may be used by the Council if conditions specified in this Agreement are met.
Revised section 3.6 of Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING 3.6 Reimbursement of GRANT Funding
3.6.1 If at any time the Council does not meet DIAND’s eligibility requirements for Grant Funding for any program, service or activity identified as GRANT in Schedule "FED-1", DIAND may require the Council to reimburse to DIAND any amount up to the full amount paid to the Council under this Schedule for that program, service or activity.
3.6 Reimbursement of GRANT Funding
3.6.1 For each program, service or activity identified as GRANT in Schedule "FED-1", the Council shall reimburse to DIAND any amounts paid to the Council under this Schedule corresponding to that program, service or activity when the Council does not meet DIAND's eligibility requirements for Grant Funding for that program, service or activity.
Adjustment to the "Management Development Plan" definition to remove the limitation related to the plan Revised section 1.1.1 - "Management Development Plan" definition "Management Development Plan" means a plan, if any, developed and approved by the Council and accepted by Canada, and attached as Schedule "DIAND-5", which addresses any recommendations identified in an assessment of the Council's administrative, accountability and management practices. "Management Development Plan" means a plan, if any, developed and approved by the Council and accepted by Canada, and attached as Schedule "DIAND-5", which addresses any recommendations identified in an assessment of the Council's administrative, accountability and management practices undertaken prior to the execution of this Agreement.
Adjustment to align the provisions of the agreement with the new opportunity to include multi-year budget allocation in a multi-year schedule of payments in funding agreements Revised section 3.1 – Provision of Funding 3.1.1 Subject to the terms and conditions of this Agreement, Canada shall transfer to the Council funding for each Fiscal Year covered by this Agreement in accordance with Schedule "DIAND-1A", Schedule "DIAND-1B ", and Schedule "DIAND-2" and [list any other Schedules under which funding is committed to the Council] of this Agreement up to the amount set out in Schedule "FED-1".

3.1.2 Canada shall transfer funding according to the schedule of periodic payments set out in Schedule "FED-1". If this Agreement covers more than one Fiscal Year, Schedule "FED-1" will set out a schedule of periodic payments for the first Fiscal Year and Canada shall by notice, before each subsequent Fiscal Year, provide a revised schedule of periodic payments for that Fiscal Year.

3.1.3 If funding is provided under this Agreement by more than one Federal Department, DIAND may transfer the funding on behalf of other Federal Departments.
3.1.1 Subject to the terms and conditions of this Agreement, Canada shall transfer to the Council funding as set out in Schedule "DIAND-1A", Schedule "DIAND 1B " and Schedule "DIAND2", and [list any other Schedules under which funding is committed to the Council] of this Agreement by way of periodic payments in accordance with Schedule "FED-1".

3.1.2 If funding is provided under this Agreement by more than one Federal Department, DIAND may transfer the funding on behalf of other Federal Departments.
Revised section 3.3 – Formula-based or Factor-based Funding Adjustments 3.3.1 Where the amount of any funding as set out in Schedule "FED-1" will change in accordance with Schedule "DIAND-1B", Canada shall, by Notice of Budget Adjustment, amend Schedule "FED-1" accordingly.

3.3.2 Where the amount of funding for any program, service or activity as set out in Schedule "FED-1" is changed in accordance with an adjustment factor set out in Schedule "DIAND-3", Canada shall, by Notice of Budget Adjustment, amend Schedule "FED-1" accordingly.
3.3.1 Where the amount of any funding to be provided under Schedule "DIAND-1A" will change in accordance with Schedule "DIAND-1B", Canada shall, by Notice of Budget Adjustment, amend Schedule "FED-1" accordingly.

3.3.2 Where the amount of funding for any program, service or activity for which funding is provided under Schedule "DIAND-2" is changed in accordance with an adjustment factor set out in the Schedule "DIAND-3", Canada shall, by Notice of Budget Adjustment, amend Schedule "DIAND-2" and Schedule "FED-1" accordingly.
Revised section 2.1.1 of Schedule "DIAND-1A" – BLOCK CONTRIBUTION FUNDING 2.1.1 Subject to the terms and conditions of this Agreement, DIAND shall transfer in the Initial Fiscal Year the amount set out in Schedule "FED-1" for Block Contribution Funding for the Initial Fiscal Year. 2.1.1 Subject to the terms and conditions of this Agreement, DIAND shall transfer _______ dollars ($_____) in Block Contribution Funding in the Initial Fiscal Year.
Revised section 2.3.1 (c) of Schedule "DIAND-1A" – BLOCK CONTRIBUTION FUNDING 2.3.1 To terminate or adjust the amount of DIAND Block Contribution Funding for a program, service or activity for which funding is provided under this Schedule following a modification or cancellation of a DIAND funding authority under section 3.2 (Funding Subject to Appropriations and Departmental Funding Authorities) in the main body of this Agreement, DIAND must notify the Council no later than one (1) year in advance of the first day of the Fiscal Year in which the adjustment or termination of funding will take effect. This notice must:
(c) include a revised Schedule "FED-1" and, if necessary, a revised Schedule "DIAND-1B" reflecting the adjustment or termination of funding for that program, service or activity that will replace the previous Schedule "FED-1" and, if it is revised, the previous Schedule "DIAND- 1B".
2.3.1 To terminate or adjust the amount of DIAND Block Contribution Funding for a program, service or activity for which funding is provided under this Schedule following a modification or cancellation of a DIAND funding authority under section 3.2 (Funding Subject to Appropriations and Departmental Funding Authorities) in the main body of this Agreement, DIAND must notify the Council no later than one (1) year in advance of the first day of the Fiscal Year in which the adjustment or termination of funding will take effect. This notice must:
(c) include a revised Schedule "FED-1" and a revised Schedule "DIAND-1B" reflecting the adjustment or termination of funding for that program, service or activity for which funding is provided under this Schedule that will replace the previous Schedule "FED-1" and the previous Schedule "DIAND- 1B" respectively.
Revised section 2.1 of Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING 2.1 Subject to the terms and conditions of this Agreement, in each Fiscal Year, DIAND shall transfer to the Council funding up to the amounts set out in Schedule "FED-1" for SET, FIXED, FLEX or GRANT funding for that Fiscal Year. 2.1 Subject to the terms and conditions of this Agreement, DIAND shall transfer to the Council:
(a) Set Contribution Funding (SET) in the following amounts:
An amount of up to dollars for Fiscal Year; An amount of up to dollars for Fiscal Year; and An amount of up to dollars for Fiscal Year.
(b) Fixed Contribution Funding (FIXED) in the following amounts:
An amount of up to dollars for Fiscal Year; An amount of up to dollars for Fiscal Year; and An amount of up to dollars for Fiscal Year.
(c) Flexible Contribution Funding (FLEX) in the following amounts:
An amount of up to dollars for Fiscal Year;
An amount of up to dollars for Fiscal Year; and An amount of up to dollars for Fiscal Year.
(d) Grant Funding (GRANT) in the following amounts:

An amount of up to dollars for Fiscal Year;
An amount of up to dollars for Fiscal Year; and An amount of up to dollars for Fiscal Year.
Revised section 3.1.1 of Schedule "DIAND-2" – SET, FIXED, FLEXIBLE AND GRANT FUNDING 3.1.1 The Council shall expend the funding provided under section 2.1 only for the purpose of delivering each program, service and activity identified as SET, FIXED or FLEX in Schedule "FED-1" in the Fiscal Years for which funding is allocated for that program, service or activity in that Schedule and in accordance with the delivery requirements for that program, service or activity set out in Schedule ''DIAND-3''. 3.1.1 The Council shall expend the funding provided under this Schedule only for the purpose of delivering each program, service and activity identified as SET, FIXED or FLEX in Schedule "FED-1" in the Fiscal Years for which funding is allocated for that program, service or activity in that Schedule and in accordance with the delivery requirements for that program, service or activity set out in Schedule ''DIAND-3''.
Adjustment to "DIAND" definition Revised Definition of "DIAND" "DIAND" means the Department of Indian Affairs and Northern Development which is also known as Indigenous and Northern Affairs Canada or INAC. "DIAND" means the Department of Indian Affairs and Northern Development also known as Aboriginal Affairs and Northern Development Canada.
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