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Disaster Financial Assistance Arrangements

In the event of a large-scale disaster, the Government of Canada provides financial assistance to provincial and territorial governments under the Disaster Financial Assistance Arrangements (DFAA). PSEPC administers the DFAA.

• Overview
• Roles and responsibilities
• Eligibility and reimbursement of expenses
• Manual

Overview

When response and recovery costs exceed what individual provinces or territories could reasonably be expected to bear on their own, the DFAA provide the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.

Since the inception of the program in 1970, the Government of Canada has paid out more than $1.6 billion in post-disaster assistance to help provinces and territories offset the costs of response and of returning infrastructure and personal property to pre-disaster condition.

Examples of payments include those for the 2003 British Columbia forest fires, the 1998 ice storm in Quebec and Ontario, and the 1997 Red River flood in Manitoba.

Roles and responsibilities

The provincial or territorial governments design, develop and deliver disaster financial assistance, deciding the amounts and types of assistance that will be provided to those that have experienced losses.

The Government of Canada places no restrictions on provincial or territorial governments in this regard -- they are free to put in place the disaster financial assistance appropriate to the particular disaster and circumstances.

PSEPC works closely with the province or territory to assess damage and review claims for reimbursement of eligible response and recovery costs. Other federal departments and agencies are sometimes asked to assist in determining what constitutes reasonable costs for recovery and restoration.

Eligibility and reimbursement of expenses

Through the DFAA, assistance is paid directly to the province or territory -- not directly to the individuals or communities.

The percentage of eligible costs reimbursed under the DFAA is determined by the cost-sharing formula outlined in the arrangements.

The Government of Canada may provide advance payments to provincial and territorial governments as the reconstruction of major infrastructure proceeds and funds are expended under the provincial/territorial disaster assistance program.

A province or territory may request Government of Canada disaster financial assistance when eligible expenditures exceed $1 per capita (based on provincial or territorial population). Payments are made after provincial/territorial expenditures have been audited. For more details, please consult Appendix A.

Eligible expenses include, but are not limited to, rescue operations, restoring public works and infrastructure to their pre-disaster condition, as well as replacing or repairing basic, essential personal property of individuals, small businesses and farmsteads. For details on eligible expenses, please consult Appendix B.

Appendix A

Disaster Financial Assistance Arrangements (DFAA) per capita sharing formula:

Example: For a disaster in a province with a population of 1 million where the total eligible expenses for responding to and recovering from a disaster are costed at $10 million, the table below shows how eligible expenditures would be cost-shared through the DFAA.

Appendix B

Examples of expenses that may be eligible for reimbursement:

• Emergency provision of essential community services
• Security measures including the removal of valuable assets and hazardous materials from a threatened area
• Costs of measures taken in the immediate pre-disaster period intended to reduce the impact of the disaster
• Repairs to public buildings and related equipment
• Repairs to public infrastructure such as roads and bridges
• Removal of damaged structures constituting a threat to public safety
• Restoration, replacement or repairs to an individual’s dwelling (principal residence only)
• Restoration, replacement or repairs to essential personal furnishings, appliances and clothing
• Restoration of small businesses and farmsteads including buildings and equipment
• Costs of damage inspection, appraisal and clean up

Examples of expenses that would NOT be eligible for reimbursement:

• Repairs to a non-primary dwelling (e.g. cottage, ski chalet or hobby farm)
• Repairs that are eligible for reimbursement through insurance
• Costs that are covered in whole or in part by another government program (e.g. crop insurance)
• Normal operating expenses of a government department or agency
• Assistance to large businesses and crown corporations
• Loss of income and economic recovery
• Forest fire fighting