Policy On Funding To Aboriginal Representative Organizations

1.  This policy states departmental procedures governing the distribution of funding to eligible Aboriginal Representative Organizations for political advocacy, membership liaison, policy development, and project implementation.

2.  This policy is issued under the authority of the Minister of Indian Affairs and Northern Development and the Federal Interlocutor for Métis and Non-Status Indians.

3.  This policy applies to all departmental sectors and Regions.  In the event of a conflict between the provisions of this policy and the program Terms and Conditions, the Terms and Conditions will prevail.

4.  An Aboriginal Representative Organizations is an organization mandated by its members to represent or advocate for the interests of those members, while meeting the eligibility criteria in Appendix B.

5.  Tribal Councils, individual First Nation bands and any issue-based organizations (e.g., Aboriginal Financial Officer's Association) are not considered Aboriginal Representative Organizations under this policy.

6.  Political advocacy refers to activities which promote the improvement of the quality of life of members and member communities through the promotion of their rights and interests. This includes consultations and advocating positions about policy, program development and jurisdictional issues.

7.  Aboriginal Representative Organizations are the primary mechanisms through which the federal government has been able to engage on issues affecting Aboriginal peoples.

8.  Aboriginal Representative Organizations receive two types of funding from the department: core funding and proposal-based project funding, provided through specific program authorities.

9.  Neither core funding nor project funding are intended to be used to support start- up costs for new organizations.

10.  Providing core funding support to Aboriginal Representative Organizations is intended to have the following outcomes:

• core organizational capacity to help Aboriginal Representative Organizations to contribute and to participate in government policy and program development;
• better informed representative Aboriginal organizations, their members, and elected officials;
• identification and agreement among members on priorities for action and approaches to issues;
• increased input to legislation, policies and programs to be more reflective of Aboriginal perspectives; and
• improvements in relations between Aboriginal people and federal government.

11.  This policy is intended to be read in conjunction with relevant departmental program authorities and Government policies and regulations regarding transfer payments and general financial administration.

12.  Definitions to be used in the interpretation of this policy are contained within Appendix A.

13.  Funding agreements for Aboriginal Representative Organizations are managed by four separate areas of the department to ensure funding is managed by the area that has the relationship with the organization. The following chart outlines the four responsible areas of the Department and the organizations for which they are responsible:

14.  The mandate of an Aboriginal Representative Organization may change from time to time.  When such a change has an impact on the current responsible Office of Primary Interest, the future Office of Primary Interest shall work with the current Office to develop a transitional plan if a current core funding relationship exists between the Aboriginal Representative Organizations and the Department.  Note: in the case where a representative Aboriginal organization representing non-status Indians becomes eligible for band creation under the Indian Act (e.g., Cabinet approval), the organization is no longer eligible under the Office of the Federal Interlocutor portion of the program and/or may no longer be eligible for funding under this program.

15.  The transitional plan shall contain a schedule for transferring the responsibility for managing the relationship across the Offices of Primary Interest, ensuring a seamless transition for Aboriginal Representative Organizations or newly forming Indian Act band when applying for and potentially receiving departmental funding.

16.  Each Office of Primary Interest is responsible for managing the master funding agreement for each Aboriginal Representative Organization under its responsibility. These responsibilities include, but are not limited to:

1. Liaising with appropriate sectors in the department to ensure all approved departmental project funding is incorporated through amendment into the master funding agreement for each Aboriginal Representative Organization.
2. Ensuring that all approved funding amounts, core and project-based, are provided to each organization funded in a timely manner.
3. Ensuring all mandatory reporting requirements for the core funding are met by the organizations funded.
4. Liaising with the funded Aboriginal Representative Organization(s) on relationship development and key issues, but not lead on program-specific matters, which are left to the particular program to lead.

17.  The Senior Assistant Deputy Minister, Policy and Strategic Direction or his/her delegate develops, prepares and circulates all policy directives related to this policy and monitors, evaluates and analyzes its implementation and effectiveness in conjunction with all Offices of Primary Interest.

18.  The Intergovernmental Relations Directorate (HQ) provide an overarching monitoring role for thecontributions provided under this policyby co-ordinating the development of the Annual Aboriginal Representative Organizations Funding Report with all other Offices of Primary Interest.

19.  On an annual basis, or at the beginning of a multi-year period, Aboriginal Representative Organizations seeking core funding will complete and submit the Department's application form for core funding to the appropriate Office of Primary Interest.

20.  Upon receipt of an application for core funding the appropriate Office of Primary Interest will:

1. verify that the organization is eligible for core funding (Appendix B);
2. determine the availability and level of core funding for the eligible Aboriginal Representative Organizations; and
3. enter into a funding arrangement or an amendment to a funding arrangement with eligible Aboriginal Representative Organizations, consistent with the Policy on Transfer Payments, with Indian and Northern Affairs Canada's Delegation of Financial Signing Authorities Manual and with the requirements of the Year End Reporting Handbook.

21.  Funding provided under this policy to Aboriginal Representative Organizations under the Basic Organizational Capacity program, or for the purpose of political advocacy, shall not be flowed through the Aboriginal Representative Organizations to other organizations.

22.  Core funding is limited to only national, regional and sub-regional First Nation organizations. Sub-sub regional organizations are not eligible for funding.

23.  Departmental funds available to HQ for First Nation organizations core activities will be:

1. allocated by HQ amongst departmental Regional offices where there are eligible First Nation regional organizations, according to the following formula:
   
   
   1. A base allocation will be determined by dividing the total amount of funding available to Indian and Northern Affairs Canada Regions under the Contributions to support the basic organizational capacity of representative Aboriginal organizations by three.  The resulting amount (one-third of total amount available under the authority) will then be divided equally amongst those Regions, as a base allocation. 
   2. The remaining two-thirds will be allocated to those Regions based on a weighting of 60 percent for total Status Indian population, according to the Indian Registry System, and 40 percent for the number of First Nations (member communities) in the Region. The following example will help illustrate the allocation:
      
      
      • If core funding available to Regions is $100, the base allocation would be $33.  Therefore, each Region (assuming there are nine, as is currently the case) would each receive $3.67 as a base allocation. The amount remaining ($66) would then be divided according to a weighting of 60 percent population and 40 percent number of First Nations.
   3. The actual numbers used in the calculation of the Indian and Northern Affairs Canada regional allocation, i.e., Status Indian population, and number of First Nations, will be revisited and, if necessary, adjusted every three years.
2. allocated to Intergovernmental Relations Directorate for distribution to national First Nation organizations.

24.  Funding to support the core capacity of national First Nation organizations will be allocated to eligible national First Nation organizations taking into account:

1. the role of the national organization in working with the Department; and
2. the organization's membership size.

25.  Departmental Regions in which there are eligible First Nation regional organizations will allocate their core funding amongst those organizations according to the following criteria:

1. Where there is only one First Nation organization in a province or across a region, the Region will allocate the entire core funding to that organization.
2. Where there is more than one First Nation organization in a Region, where one is region-wide and the others are sub-regional, the Region will:
   
   
   1. Determine and allocate an appropriate fixed percentage of the Region's total core funding allocation calculated, as set out in paragraph 20a, to the organization which represents all of the First Nations in the Region. This percentage must be a fixed amount between 10 percent and 50 percent, at 5 percent increments. The Region will advise the Senior Assistant Deputy Minister of Regional Operations or his/her delegate of the percentage so fixed and allocated
      
      
      1. When determining the fixed percentage to be allocated to an organization representing all of the First Nations in a region, the Region will consider the role the organization has played and will play within the region.
   2. Allocate the remaining amount amongst the other eligible First Nation sub-regional organizations in their region according to a weighting of 60/40 of total Status Indian population according to the Indian Registry System and the number of First Nations (member communities) represented by each First Nation regional organization respectively.

26.  Where an eligible First Nation regional organization represents communities in multiple regions, the region hosting the majority of the communities will serve as the Office of Primary Interest.

27.  Departmental funding allocated to national Métis and non-status Indian organizations is limited to the two National Aboriginal organizations with which the federal government maintains a bilateral relationship: the Métis National Council and the Congress of Aboriginal Peoples. Funding to support the core capacity of these two national organizations will be allocated taking into account:

1. the overall role of the national organization in working with the Department; and
2. the organization's membership size.

28.  A variety of Aboriginal organizations claim to represent Métis or non-status Indians and, in some cases, both Métis and non-status Indians. Core funding will be limited to only one province-wide organization representing a particular constituency. In certain cases core funding may be provided to two  organizations in a province provided that they do not claim to represent the same constituency. For example, in the past, core funding has been provided to both MNBC (representing BC Métis) and UNN (representing non-status Indians in BC). Currently, there is one province-wide Representative Aboriginal Organization that represents Métis in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Newfoundland and Labrador. There is one province-wide Representative Aboriginal Organization that represents both Métis and non-status Indians in Quebec, New Brunswick, Nova Scotia and Prince Edward Island.

29.  The history of who represents First Nations and Inuit is different than that for Métis and non-status Indian people – federal acts (Indian Act) and policies (Comprehensive Land Claims) help to determine membership numbers, defined membership lists, and geographic boundaries of the First Nation or Inuit communities being represented.  There is nothing comparable for Métis or non-status Indians. As a result, Aboriginal organizations not currently receiving funding pursuant t clause 28 and seeking eligibility under this program as representatives of Métis and/or non-status Indians must demonstrate that they are democratically controlled and that they have the support and are representative of the majority of potential constituents within their geographic area to ensure that the views being put forward to Government are supported (mandated) by the majority of the defined population that the organization is claiming to represent.

30.  Two or more Aboriginal organizations claiming to represent the same constituency in the same province cannot, and will not, both be funded.

31.  Funding for eligible regional (province-wide) Métis and non-status Indian organizations will be allocated amongst eligible organizations according to the following criteria and available funding:

1. A base allocation will be set for all eligible organizations; and
2. A supplemental allocation will take into account the number of verified members; the overall role of the organization in working with the department; the demonstrated capacity of the organization to be representative based on membership system processes; and the demonstrated capacity of the organization to be accountable for public funds to government and to its membership.

32.  Organizations representing Inuit nationally will be allocated 66 percent of the funding based on their more demanding travel, co-ordination and liaison mandates.

1. Larger national organizations (with higher representation/membership and involved in wide range of policy files) will be allocated 66 percent of the national allocation.
2. Smaller national organizations (organizations with a more limited mandate and smaller representation) will be allocated a percentage of the remaining 33 percent national funds based on a per capita formula.

33.  Where there are eligible Inuit regional organizations in a region, the Region will allocate their core funding amongst those eligible regional or according to the following criteria:

1. Where there is only one Inuit regional organization, the Region will allocated the entire core funding to that organization.
2. Where there is more than one regional organization and there is no region-wide organization, the Region will allocate its core funding equally between the regional organizations.

34.  The appropriate Office of Primary Interest and Indian and Northern Affairs Canada programs will work together with each Aboriginal Representative Organization to consolidate all the approved funded activities into one master funding agreement per organization.

35.  Relevant Indian and Northern Affairs Canada program areas will:

1. Lead the negotiations with the relevant Aboriginal Representative Organization to agree on the contents of the project work plan, related funding and reporting requirements.
2. Verify that the Aboriginal Representative Organization is eligible for project funding according to the relevant Indian and Northern Affairs Canada authority.
3. Ensure that common Indian and Northern Affairs Canada and Aboriginal Representative Organization priorities and objectives are reflected in the project work plan, as per the departmental priorities described in Indian and Northern Affairs Canada's Report on Plans and Priorities.
4. Determine the availability and source of funding for the activity.
5. Recommend project work plan and related funding to the Office of Primary Interest, for inclusion in the Aboriginal Representative Organization's master funding agreement.
6. Transfer the funding for the approved project to the Office of Primary Interest responsible for the Aboriginal Representative Organization's master funding agreement, who will then enter it into the First Nation and Inuit Transfer Payment system.
7. Manage these contribution agreements according to the specified terms and conditions.
8. Track reporting requirements and sign off on reports.
9. Alert the Office of Primary Interest holding the master agreement when terms and conditions have been met or where there are outstanding issues/reports to be addressed.

36.  Questions concerning this policy should be directed to the Director, Intergovernmental Relations, Policy and Strategic Direction Sector, Indian and Northern Affairs Canada.

1. Core Funding: Funding provided under the Contributions to support the basic organizational capacity of representative Aboriginal organizations authority, is intended to have the following outcomes:
   
   
   • core organizational capacity to help representative Aboriginal Organizations in contributing and participating in Government policy and program development;
   • better informed Representative Aboriginal Organizations, their members, and elected officials;
   • identification and agreement among members on priorities for action and approaches to issues;
   • input to legislation, policies and programs so that they are more reflective of Aboriginal perspectives; and
   • improvements in relations between Aboriginal people and the federal government.
2. Department: Indian and Northern Affairs Canada (INAC) including the Office of the Federal Interlocutor (OFI).
3. Region: A "Region" refers to an INAC regional office. The terms "regional," "region", or "region-wide" refer to provincial or, in the case of the Atlantic Region, multi-provincial organizations or geographic space.
4. Project Funding: Funding provided to Aboriginal Representative Organizations under any INAC authority other than the Contributions to support the basic organizational capacity of representative Aboriginal organizations authority.
5. Policy and program development: Activities that investigate, develop, propose, review, inform or consult on policy matters within the mandate of the Department.
6. Office of Primary Interest: The area of the Department responsible for managing and co-ordinating funding agreements for each particular Aboriginal Representative Organizations.
7. Master Funding Agreement: For the purpose of this policy a master funding agreement contains all of the activities, core and project, funded by INAC for a particular Aboriginal Representative Organization.
8. Democratically controlled:  The organization is run by a board (usually of Directors and a President) that is elected through a regularized competitive electoral process. This is evidenced through by-laws and/or constitutions that outline the electoral process and includes such information as;
   
   
   • elections via ballot box or at annual assembly;
   • whether it is election by majority vote (51 percent);
   • term of office for President and Directors (e.g. three years);
   • quorum – or number of votes considered sufficient for election to be valid;
   • appeal mechanisms;
   • right to petition elected officials; and
   • elected officials regularly meet and communicate with the membership at large; publish reports on the organizations financial status.
9. Support/Representative of Majority of Constituency:  Able to demonstrate support and representation of the majority of potential constituents within geographic area (defined as the province/territory), based on the stated definition of membership of the organization.
   
   
   • support - the number of members (a person voting in an election)
   • majority - more than 50 percent
   • potential constituents – is the number of people within a province that could meet the stated membership criteria
10. Sub-Regional Organizations: A sub-regional organization is any organization where the majority of the membership is already represented at a regional level.
11. Sub-sub-Regional Organization: A sub-sub-regional organization is any organization where the majority of the membership is already represented at a sub-regional level.

An organization will be eligible for core funding under this policy if all of the following criteria are met:

1. The organization is
   
   
   1. a recognized Aboriginal Representative Organization at the national level (e.g. the Assembly of First Nations, the Métis National Council), the provincial/territorial or regional level (e.g. Federation of Saskatchewan Indian Nations, Council of Yukon First Nations, Métis Nation of Alberta or Inuvialuit Regional Corporation); or
   2. an autonomous, national Aboriginal women's organization representing the interests of its respective First Nations, Inuit, Métis and non-status Indian members;
2. The organization is an Aboriginal organization incorporated under Part II of the Canada Corporations Act or under corresponding provincial or territorial legislation;
3. The organization's membership is restricted to a defined or identifiable group of First Nation, Inuit, Métis and non-status Indian communities and/or organizations;
4. The organization is mandated, by its members, to represent or advocate for the interests of those members; and
5. The organization is not in receipt of any other core funding from any other federal department, including INAC (including OFI), for the purpose of maintaining a basic organizational capacity to represent or advocate for the interests of its members.