Band Support Funding

Program

The purpose of this program is to assist First Nations meet the costs of local government and the administration of departmentally funded services. This support is intended to provide a stable funding base to facilitate effective community governance and the efficient delivery of services.

Program History / Background

Band Support Funding (BSF) is one component of First Nation Indian Government Support Funding Programs. The other components are Band Employee Benefits Program, Tribal Council Program, Band Advisory Services, Professional and Institutional Development.

This program operates under broad authorities provided by the Department of Indian Affairs and Northern Development Act and derives its legislative authorities for the activity from annual Parliamentary appropriations and Treasury Board authorities.

Description of Operations

From very modest contributions to First Nation Councils in 1956 to support school committees, Band Support Funding has evolved into formula-based funding of First Nation governance. It has provided the foundation for the devolution of programs and services to First Nations and may often be the largest source of funding for local governance and administration. Band Support Funding was consolidated in 1982 as a formula-based contribution. It was converted to grant funding in 1985.

Band Support Funding is provided to all First Nations provided they are constituted in accordance with the Indian Act, whether or not they are located on an Indian reserve as defined in the Indian Act. Since funds are provided in the form of a grant, First Nations may determine how they organize their local administration and the operation of the First Nation Council. There is a focus on the accountability of Chief and Council to their membership rather than complying with terms and conditions outlined in contribution agreements.

The funding formula considers a range of components including: support for First Nation Council costs (based on the registered membership); basic overhead; unit costs for major services; location costs; audit and professional fees; and service employee office costs. The formula was developed to provide more equitable support between communities. It takes into account the population, geographic location and the programming responsibilities of individual First Nation governments. Band Support Funding also includes provisions to support the administration of sub-offices in "subsidiary" communities. All funds must, however, flow to the First Nation Council which in turn determines and manages community specific arrangements.

Overall, the grant funding is designed to provide, in comparison with other local jurisdictions of comparable size, a reasonable contribution to the costs of governance, with a specific focus on the costs associated with the administration of departmentally funded programs and services. This support does not accommodate all circumstances and there is an assumption that citizens will also contribute to their costs of community governance.