Programs Update Volume 2 Issue 2
Welcome to Volume 2 Issue 2 of Programs Update, Service Canada’s electronic bulletin with up-to-date information on contribution agreements in Ontario Region. Programs Update is published each quarter, with special issues for news of immediate importance.
Programs Update issues will provide current information in three categories:
- Recent Developments – updates on broad Government of Canada or Service Canada initiatives;
- Program, Policies and Procedures – highlights of operational changes; and
- Agreement Management – tips on program administration.
I encourage you to Contact Us with your feedback and return to this site each quarter to be updated on new developments. The next issue will be published in July 2006.
Rebecca Kingdon
Director General, Employment Programs
June 1, 2006
- Calls for Proposals Update
- Interim Suspension on Mandatory Audits
- Costing Options for Contribution Agreements
PROGRAMS, POLICIES & PROCEDURES
AGREEMENT MANAGEMENT
TALKBACK
The Programs Update team welcomes suggestions, comments and questions from our readers. If you have a question or an idea for an upcoming issue of Programs Update, please Contact Us. Please use Programs Update in your e-mail subject line and refer to the publication date if applicable. The most common or interesting questions will be responded to in future Programs Update articles. If you have a question about a specific project, please contact your local Program Officer.
Note: Visit the Service Canada Web site for updates from the Joint Service Canada/Voluntary Sector Working Group and its successor, the Voluntary Sector Advisory Committee on Employment.
RECENT DEVELOPMENTS
Calls for Proposals
Service Canada reinstated the Call for Proposals (CFP) process on April 26, 2006. CFPs are used as a fair, open, and transparent process to award agreements with Service Canada valued at $500,000 or more per year. In consultation with stakeholders across the country, Service Canada has redesigned the CFP process to make sure that it is as fair, open, and transparent to Canadians as possible. Additional details are available on the Service Canada Web site.
The Canada-Ontario Labour Market Development Agreement (LMDA) transfers full responsibility for EI-funded Employment Benefits and Support Measures from the Government of Canada to the Government of Ontario on January 1, 2007. The Government of Canada and the Government of Ontario are committed to ensuring continuity of service for Employment Benefits and Support Measures clients throughout the LMDA transfer period. As a result, there will be a limited number of CFPs in Ontario this year. Starting May 23, 2006, all active CFPs in Ontario will be listed on the Call for Proposals Web page.
Interim Suspension on Mandatory Audits
In January 2006 Service Canada announced a first round of administrative changes to the way employment related grants and contribution programs are administered. In line with our goal of reducing the administrative burden, we are working to streamline our mandatory project audit requirements. A streamlined Mandatory Project Audit Directive is expected to come into effect later this year. In the meantime, there is a temporary suspension on the mandatory project audits of contribution agreements. For further details, contact your local Program Officer.
Costing Options for Contribution Agreements
A number of new initiatives have been implemented as a result of consultations between Service Canada and members of the Voluntary Sector. In January 2006, Service Canada implemented a new process of costing for contribution agreements. The new process allows sponsors the choice of three costing options: (1) A departmental flat percentage rate; (2) an organization-specific flat percentage rate; and (3) reimbursement of actual costs.
Departmental flat rates
For EAS projects, Service Canada offers a flat percentage rate to applicants as follows:
- 6% for other direct project costs (Type 1A) plus the participant related direct project costs (Type 1B); and
- 14% for organizational infrastructure costs – multiplied by the total project costs (total Type 1)
The departmental flat rates for the Skills Link program are:
- 4% for other direct project costs (Type 1C); and
- 10% for organizational infrastructure costs (Type 2). These flat rates are calculated based on the new Service Canada Standard Eligible Costs List.
These departmental flat rates are available for Skills Link contribution agreements with a start date of April 1, 2006 or later. They are not retroactive for agreements with a start date prior to April 1, 2006. The departmental flat rates cannot be applied to Skills Link agreements that include community-based planning, pre-operational assistance, individual work experience or individual skills enhancement.
Expenditures covered by departmental flat rates are not subject to budget preparation, negotiation or financial monitoring. Additional information on this costing option is available in Annex C of the Project Applicant Instruction Sheet.
Service Canada will develop departmental flat rates for other major service offering areas throughout 2006. The schedule for the development of budgetary flat rates is available on the Service Canada Web site.
Organization-specific flat percentage rates
Applicants choosing this costing option must submit a study or report demonstrating that the flat percentage rate(s) would better reflect the cost structure found within their organization. The study must be reasonable and sound, and provide a good basis for assessment by Service Canada. This submission must be made to a Service Canada site, and will be forwarded to a central Departmental group for analysis and negotiation. Additional information on this costing option is available in Annex C and Annex E of the Project Applicant Instruction Sheet.
Note that in response to suggestions from service providers, Service Canada is currently considering the possibility of allowing organizations to submit a proposal for a set of flat rates that is lower than the ones set for the program which it delivers (e.g. EAS, Youth Skills Link). An announcement on this is expected soon, and additional information will be provided directly to all service providers and placed on the Service Canada Internet site.
Reimbursement of actual costs
Organizations choosing this costing option must include details of all cost items, categorized into the 11 categories. Proposals submitted using this costing option, must include details for all cost items proposed under all cost types. The Budget Template for Proposals Using Estimated Actual Expenditures must be completed and included as part of the proposal. Assessment, negotiation and recommendation of costs will be required for all costs included in the proposal. Payment claims must be submitted based on actual costs incurred and reconciliation of actual costs incurred will be done on all costs claimed as actuals. Monitoring and audits will be done on all actual costs incurred. For more information, please refer to hyperlink to Annex C of the Project Applicant Instruction Sheet.
PROGRAMS, POLICIES & PROCEDURES
Employment Assistance Services Unpaid/Volunteer Work Placements
Service Canada recognizes the value of volunteering as a means of gaining work experience. In consultation with Human Resources and Social Development Canada, Service Canada has developed a policy on unpaid/volunteer work placements that mitigates potential risks to participants and employers, such as concerns about workplace insurance protection, employment standards in the workplace and employer/employee relationship.
Effective April 11, 2006, EAS may be used in certain circumstances, to provide longer-term (up to eight full-time weeks) unpaid/volunteer work placements. For persons with disabilities that prevent them from working full-time, a longer placement may be supported.
The unpaid/volunteer work placement must be used to develop skills specifically relevant to the needs of the individual as outlined in his/her Return to Work Action Plan. Approval for EAS unpaid/volunteer work placements will also depend on local labour market needs, priorities and other variables such as the availability of appropriate employers. Work experience should normally be provided to insured participants through Targeted Wage Subsidies or Job Creation Partnerships.
If you are interested in applying for EAS funding or amending current agreements to include unpaid/volunteer placement, please contact your local Program Officer. For additional information, please read the Employment Assistance Services Unpaid/Volunteer Work Placements Policy.