Guidance Document: Proactive Disclosure of Grants and Contributions over $25,000

1. Background

On October 21, 2005, the Government announced its commitment to proactively disclose the awarding of grants and contributions over $25,000 as part of its Management Improvement Agenda[1]. These new requirements represent a continuation of the phased introduction of proactive disclosure requirements that started with those relating to travel and hospitality expenses, contracts for goods and services and position reclassification information.

This document is intended to provide guidance to departments and agencies to help ensure that grant and contribution information is collected and presented consistently across government and in a manner that promotes transparency and facilitates public access.

2. Effective Date and Scope

2.1 General Requirements

This requirement is effective January 01, 2006 and applies to all departments and agencies listed on Schedules I, I.1, and II of the Financial Administration Act.

Using templates provided by the Treasury Board of Canada Secretariat, departments and agencies are to report their respective grant and contribution information posted on their own websites.

A phased approach to the disclosure of grant and contribution information is being adopted to permit departments and agencies to make the necessary adjustments to business processes.

Grants are defined to include named and conditional grants while contributions include repayable contributions as defined in the Policy on Transfer Payments.

The amount of the grant or contribution awarded is to be reported. More specifically, it is the amount of the grant or contribution ultimately authorized by the responsible Minister, Deputy Head or similar authority that needs to be reported and not the series of payments made to give effect to the grant or contribution.

At this point in time and subject to provisions set out in the Access to Information Act and the Privacy Act (see section 4), all grants and contributions, are to be reported.

Reporting shall be done on a quarterly basis, corresponding to the government’s fiscal year quarters. Grants and contribution information must be posted on-line within sixty (60) days of the end of each reporting period, as indicated below:

General Notes

The pattern of Reporting Periods and (Web site) Posting Dates, as outlined in the preceding chart, continues seamlessly into the future. In the event a Posting Date falls on a weekend or a statutory holiday, the Posting Date must be brought forward to the last business day immediately preceding the weekend or statutory holiday in question.

As is the case regarding all Proactive Disclosure initiatives, the provisions of the Access to Information Act and the Privacy Act must be respected. Accordingly, any information whose disclosure would be prohibited by either one of these 2 Acts is not to be disclosed. To this end, departments and agencies should first consult with their in-house ATIP Coordinators and/or Legal Services to ensure what information can be disclosed.

Funding requirements for a particular award fall outside the scope of the Proactive Disclosure - Grants & Contributions initiative. More specifically, interdepartmental settlements (IS) of funds required to give effect to a grant or contribution awarded fall outside the realm of this initiative. Accordingly, the department or agency that actually authorizes and provides a grant or contribution to a recipient shall post the award along with a notation as to the involvement of the other department(s).

In a similar vein, departments and agencies whose grants and contributions are awarded on their behalf by another department or agency must include a statement to this effect on their Proactive Disclosure - Grants & Contributions web site (Refer to Section 3.7.2 below)

Information posted for one Reporting Period can be modified in a subsequent posting only where a material error was made in the information originally reported. Departments and agencies are responsible to have in place a clear policy as to what constitutes a material error. Any modified information must be clearly indicated as such (refer to Section 3.7.3 below). A grant or contribution that is awarded and is subsequently repaid to the Crown does not constitute a material error.

In those instances where grants and contributions are awarded and apply to more than one fiscal year, the total amount of the award is to be posted. In such instances, a notation to his effect must also be posted in the Comments information field. (see Section 3.7.5 below)

Departments and agencies that do not have and grant and contribution programs must nonetheless indicate as such on their Proactive Disclosure – Grants & Contributions web site. A notation to this effect is sufficient.

The department or agency’s Deputy Head is accountable and responsible for ensuring that the information being reported is appropriately validated, complete and reported in a timely manner. Departments and agencies are to ensure that any limitations associated with the information are clearly indicated on their own websites.

2.2 Transfer Payments that are not to be reported

2.2.1 Transfer payments to Provinces and Territories; and
2.2.2 Statutory transfer payments (e.g.: benefits under the Employment Insurance Act)

2.3 Other payments that are not to be reported

2.3.1 Payments made in lieu of taxes

3. Information Fields to be completed

The following table provides a summary of the information fields that must be completed for each grant or contribution award being reported.

Information field-specific elaboration is provided below:

3.1 Recipient Name

The name of the individual, company or organization to which the award is paid. Typically the name indicated on, say, a funding agreement.

3.2 Location

The municipality, Province or Territory and Country of residence / place of business / headquarters of the Recipient. Typically as indicated on the face of the cheque(s) issued as payment(s) of the award.

3.3 Date

The date at which the awarding of a grant or contribution has been officially authorized and, by extension, results in a commitment in favour of a recipient.

3.4 Value

The dollar value of the award. In the case where a good or service is awarded as a grant or contribution, the fair market value at the time of the award should be reported.

In those instances where a grant or contribution as awarded applies to more than one fiscal year, the total amount of the award is to be posted. In such instances, departments and agencies are to include a notation to this effect in the Comments information field. (see Section 3.7.5 below).

3.5 Type

Indication that the award is either a grant or contribution.

3.6 Purpose

Departments and agencies should endeavour to provide entries that are as descriptive as possible as to the purpose of the grant or contribution being awarded.

3.7 Comments (if any)

It is expected that entries in this information field will be provided on an exceptional basis only. Departments and agencies must nonetheless provide information in this field in those instances where one or more of the following circumstances apply;

3.7.1 (Notation that) recipient reallocates or otherwise redistributes grant or contribution award to third-party beneficiaries;
3.7.2 (Advisory where) two or more departments or agencies are involved in the funding of and/or the awarding of a particular grant or contribution award;
3.7.3 Restatement, due to a material error, of a previously-reported grant or contribution award together with appropriate cross-referencing;
3.7.4 Belated reporting of a grant or contribution award; and
3.7.5 Award provided and spanning more than one fiscal year.

4. Privacy issues

Information falling under the exemptions in sections 13-23 of the Access to Information Act, such as those pertaining to law enforcement or security intelligence services, should not be reported. In these cases, departments and agencies should consult with their ATIP Coordinators and/or Legal Services for advice.

5. Posting on department and agency websites

Grant and Contribution information must be provided on department and agency websites in accordance with Treasury Board Common Look and Feel Standards. To facilitate navigation and ensure consistency, the Treasury Board of Canada Secretariat has developed a new Proactive Disclosure Intranet site that will provide a template for posting grant and contribution information, as well as answers to frequently asked questions. This site will be updated periodically to deal with developments as they arise.

In the meantime, department and agency websites should be organized as follows:

5.1 Grant and Contribution Information Page

The department’s or agency’s home page should include a prominently displayed link that takes users to a page that provides links to all proactive disclosure information - to which will now be added information pertaining to grants and contributions. This information is to be sorted by reporting period and by recipient of the grant or contribution award.

This page will provide contextual information and important notices, with appropriate hyperlinks, as follows:

"On October 21, 2005 and as part of its Management Improvement Agenda, the Government announced its commitment to proactively disclose the awarding of grants and contributions over $25,000.

This website provides information on grants and contribution awarded by or on behalf of the [Name of Department or Agency]. Beginning on May 31, 2006, this website will be updated on a quarterly basis to include information on grants and contributions awarded throughout the year.

The rules and principles governing government grants and contributions are outlined in the Treasury Board Policy on Transfer Payments which can be found at http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/TBM_142/ptp_e.asp. Transfer payments are transfers of money, goods, services or assets made from an appropriation to individuals, organizations or other levels of government, without the federal government directly receiving goods or services in return, but which may require the recipient to provide a report or other information subsequent to having received the transfer payment. These expenditures are reported in the Public Accounts of Canada. The major types of transfer payments are grants, contributions and ‘other transfer payments’. Included in this category, but not reported under proactive disclosure of grants and contributions awards are (1) transfers to other levels of government such as Equalization payments as well as Canada Health and Social Transfer payments; (2) grants or contributions reallocated or otherwise redistributed by a recipient to third-party beneficiaries; and (3) information that would normally be withheld under the Access to Information Act and the Privacy Act."

5.2 Notes

In order to facilitate public access to grant and contribution information on a government-wide basis, the Treasury Board of Canada Secretariat will provide links from its web page to the grant and contribution disclosure URLs for each department or agency. Departments and agencies are to provide their respective URLs to Michael Hutchison, Corporate Communications at TBS, at hutchison.michael@tbs-sct.gc.ca or at (613) 952-3094.

6. Monitoring

Departments and agencies are responsible for ensuring that grant and contribution information is accurate and up to date, and is posted in accordance with these guidelines.

7. References

• Access to Information Act
• Common Look and Feel Standards
• Financial Administration Act
• Privacy Act
• Treasury Board Policy on Transfer Payments

8. Contacts for more information

Questions regarding any financial, procurement, systems, or access to information aspects of this guidance document should be directed to the appropriate functional authority within departments and agencies.

For more information on the new mandatory disclosure of grants and contributions, officials should first search through the available information on the web site http://publiservice.tbs-sct.gc.ca/pd-cp/index_e.asp and seek interpretive policy guidance from the appropriate functional experts within their respective institutions. They may also seek advice/interpretation preferably by e-mail by contacting Suzanne Murtagh of the Treasury Board of Canada Secretariat, at murtagh.suzanne@tbs-sct.gc.ca or by phone at (613) 957-9677.

For guidance related to the Access to Information Act or the Privacy Act, they may contact Jean Plamondon of the Treasury Board of Canada Secretariat, preferably by e-mail at plamondon.jean@tbs-sct.gc.ca, or by phone at 613-946-3047.

[1] Management In The Government Of Canada - A Commitment To Continuous Improvement (Oct.2005) p.19