Archived - Contributions to provide women, children and families with protection and prevention services (fiscal year 2020 to 2021)

1. Introduction

The First Nations Child and Family Services (FNCFS) program oversees and provides contribution funds for the ongoing provision of culturally-appropriate prevention, protection and well-being services for First Nations children and families on reserve.

Children are defined as persons under the age of majority, which means the age at which a person is granted the rights and responsibilities of an adult, in accordance with provincial or territorial legislation. Services may also be provided to First Nations youth formerly in care after they reach the age of majority pursuant to legislative provisions regarding post-majority care^{Footnote 1}.

In the case of child protection and band representatives in Ontario, services are provided in accordance with the legislation and standards of the province or territory of residence. As provinces and territories have jurisdiction over child and family services, all child and family service providers must be delegated or in the process of delegation by the province or territory and must comply, at minimum, with provincial or territorial legislation and standards. The safety and best interest of the child are paramount in the provision of these services.

The FNCFS program is now intended to emphasize the use of preventive, early intervention and least intrusive measures in order to respond to child maltreatment (abuse or neglect), support for family preservation and well-being, maintenance of family, cultural and linguistic connections for children in care, former children in care (post-majority) and community wellness using a community supported approach. It also promotes a collaborative relationship between communities and agencies. The introduction of a new funding stream within FNCFS for Community Well-being and Jurisdiction Initiatives (CWJI) is designed to enable projects of up to 5 years in duration to expand the availability of prevention and well-being initiatives that are responsive to community needs, and to support First Nations in developing and implementing jurisdictional models.

With program reform, services under the FNCFS program will be provided on the basis of substantive equality to address the specific needs and circumstances of First Nations children and families living on reserve (including their cultural, historical and geographical needs and circumstances) in a manner that accounts for cost drivers related to inflation and increased needs or numbers of children in care and their families. The program also needs to provide paramountcy to the safety and best interest of the child. In order to provide equal opportunity and achieve equitable results and outcomes, the program supports variations in service requirements and methods of service provision.

Fixed and flexible funding approaches through contribution agreements are available for the FNCFS program, as described in the Directive on Transfer Payments (Appendix K: Transfer payments to Indigenous recipients). CWJI projects will also be managed through multi-year contribution agreements.

2. Authority

The FNCFS program is delivered under the authority of the Department of Indigenous Services Act, S.C., 2019, c. 29, s.336., which provides the Minister of Indigenous Services with powers, duties and functions that extend to and include all matters over which Parliament has jurisdiction and that are not by law assigned to any other department, board or agency of the Government of Canada — relating to the provision of services to Indigenous individuals who, and Indigenous governing bodies that, are eligible to receive those services under an Act of Parliament or a program of the Government of Canada for which the minister is responsible.

The Canadian Human Rights Tribunal orders relating to the FNCFS program are as follows:

• The tribunal's January 26, 2016 order (2016 CHRT 2) to cease its discriminatory practices with respect to First Nations child welfare and reform the FNCFS program and 1965 Agreement to comply with the tribunal's findings.
• The tribunal's April 26, 2016 order (2016 CHRT 10) to immediately take measures to address:
  • incentives in the FNCFS program to remove children from their homes and communities
  • the funding of FNCFS agency operations budgets based on assumptions regarding population thresholds and children in care
  • reductions in operations budgets for small and remote FNCFS agencies that affect these agencies' ability to provide effective programming, respond to emergencies, and put some small and remote agencies at risk of closing
  • bringing the FNCFS program in line with current provincial child welfare legislation and standards
  • the need for adjustments to funding for inflation and cost of living or changing service standards to help address increased costs over time and to ensure that prevention-based investments more closely match the full continuum of services provided off reserve
  • funding deficiencies for items such as salaries and benefits, training, cost of living, legal costs, insurance premiums, travel, remoteness, multiple offices, capital infrastructure, culturally appropriate programs and services, band representatives and least disruptive measures
• The tribunal's September 14, 2016 order (2016 CHRT 16):
  • not to decrease or further restrict funding for First Nations child and family services
  • to determine budgets for each FNCFS agency based on an evaluation of that agency's distinct needs and circumstances, including an appropriate evaluation of remoteness
  • to establish the assumption of 6% of First Nations children in care and 20% of families in need of services as minimum assumptions only and to determine funding for FNCFS agencies with rates of First Nations children in care and families in need exceeding these assumptions in accordance with the actual level of children in care and families in need
  • to cease formulaically reducing funding for FNCFS agencies serving fewer than 251 eligible children and instead determine funding based on actual service level needs, regardless of population level
  • to cease requiring FNCFS agencies to recover cost overruns related to maintenance from prevention or operations streams
• The tribunal's May 26, 2017 order (2017 CHRT 14) to immediately implement the full meaning and scope of Jordan's Principle
• The tribunal's February 1, 2018 order (2018 CHRT 4) to:
  • eliminate that aspect of the FNCFS program's funding formulas and models that creates an incentive resulting in unnecessary apprehension of First Nations children from their families and communities and cease its discriminatory practice of not fully funding the cost of prevention and least disruptive measures, building repairs, intake and investigations and legal fees in child welfare
  • to provide funding on actual costs for least disruptive measures and prevention, building repairs, intake and investigations and legal fees in child welfare
  • to provide funding on actual costs for child service purchase in child welfare
  • to provide funding on actual costs for small FNCFS agencies
  • to provide funding on actual costs for band representative services for Ontario First Nations

Authority is also conveyed through the "Administrative Reform Agreement with the Province of Alberta (1991)," also known as the "Alberta Reform Agreement".

3. Purpose, objectives and expected results

ISC provides funding for social services on reserve including the FNCFS program. This program mainly aims to fund protection and prevention services for children and families ordinarily resident on reserve. First Nations, provincial or territorial representatives and other recipients who receive funding provide on reserve residents and Yukon First Nations with individual and family services that are developed and implemented in collaboration with partners. The intention of the program is to assist First Nations individuals and communities to become more self-sufficient to provide prevention supports that allow individuals and families to better care for their children.

First Nations that are engaged in advancing their own development are better equipped to leverage opportunities made available by their communities and actively contribute to the broader Canadian economy and society.

FNCFS outcomes focus on safe, healthy children and families being supported by communities able to identify and address child and family needs.

4. Eligible recipients

FNCFS agencies or societies would include agencies in the process of obtaining delegation, and those that are recognized by provinces in the delivery of child and family services.

Prevention services may be delivered by non-delegated service providers. Communities who undertake prevention related activities and projects through the CWJI stream of funding can do so without being delegated as well.

5. Eligible initiatives and projects

6. Type and nature of eligible expenditures

These expenses should support the activities stated in section 5.

7. Stacking limits

The stacking limit is the maximum level of funding to a recipient from all sources (including federal, provincial, territorial, and municipal) for any 1 activity, initiative or project. The limit is 100% of eligible costs.

The Children's Special Allowance is not used to fund child welfare services generally and is not to be considered as a source of revenue by the program for stacking purposes.

8. Method for determining the amount of funding

9. Maximum amount payable

The program's funding methodology is being reformed as per orders from the Canadian Human Rights Tribunal (CHRT). While the department has a temporary exception to item 8 of Appendix E of the Directive on Transfer Payments, from an operational perspective the maximum amount payable is currently considered to be the maximum amount of a given claim of actual eligible expenditures that meets the reasonableness requirements included in section 10 (Basis for payment). Once the revised funding methodology has been established, or in 3 years (whichever is earlier), the department will return to the Treasury Board with a maximum amount payable that adheres to the Policy on Transfer Payments.

10. Basis for payment

Payments will be made in accordance with the type of funding arrangement, and will be guided by departmental policies as reflected in the contribution agreement. Where it is advantageous to the success of the activities, the department shall offer fixed or flexible funding approaches for contributions to Indigenous recipients, in accordance with Appendix K of the Directive on Transfer Payments. Basic payment principles applicable to FNCFS specify that:

• funds be used for eligible activities and cost categories as specified in the contribution agreement
• costs charged to the program not exceed any maximums specified in the agreement
• funds be used within the period and to address the needs for which they were provided
• financial reporting requirements specified in the contribution agreement be met

Notwithstanding the above, costs for maintenance will continue to be reimbursed based on actual costs incurred. In addition, the department will reimburse actual costs for the following expenses when agencies have not already received funding through another federal program (including another program of ISC), or any provincial, territorial or municipal government funding source for that activity:

• prevention
• intake and investigations services
• legal fees
• building repairs
• full eligible agency operations costs for small agencies
• child service purchase costs

The 6 areas above are those the tribunal has ordered the program to pay on actuals. A National Recipient Guide detailing how recipients may claim retroactive costs in these areas has been shared with recipients to support them in accessing funds as ordered by the tribunal.

As per tribunal orders, the department will also reimburse actual costs for band representative services delivered to Ontario First Nations (see section 6 for eligible expenditures and any applicable funding caps) when eligible recipients have not already received funding through another federal program or any provincial, territorial or municipal government funding source for that activity.

In this respect, the reasonableness of a particular cost will be established by determining whether the expense was:

• necessary to ensure substantive equality and the provision of culturally-appropriate services, given the distinct needs and circumstances of the individual child and his or her family, including their cultural, historical and geographical needs and circumstances, for instance, by taking into account any needs that stem from historical disadvantage and the lack of on-reserve or surrounding services
• deemed by the recipient to be necessary for the best interest of the child
• generally recognized as normal and necessary for the conduct of the activity
• aligned with restraints and requirements of generally accepted accounting principles, arm's length bargaining, federal, provincial or local laws and regulations or Certified Accountant terms

Advance payments will be permitted, based on a forecast of cash flow provided by the recipient and supported by the community plan. Progress payments will be subject to periodic reports of activities and expenditures, as specified within the funding agreement, which will be reviewed and validated by the department. Officials will ensure that all applicable requirements are met prior to processing a payment.

Holdback requirements, if applicable, will be determined based on risk assessment and may be up to 20% of the total contribution.

Final payment will be contingent on the receipt by the department of the final activity, performance and financial reports, as specified in the agreement.

Funding under the FNCFS program is targeted and cannot be used for any other purposes.

11. Application requirements and assessment criteria

Before entering into a funding arrangement, ISC shall confirm its authorities to enter into an agreement with the recipient and to fund the proposed activities. The departmental review procedures for verifying eligibility, entitlement and application approval (including risk assessments) are detailed in relevant departmental program directives and procedures. Specific requirements include, but may not be limited to:

FNCFS agencies or societies, other delegated or designated providers of child and family service providers, including provincially delegated or designated agencies and societies, provinces and Yukon territory:

• legal entity's name, address and telephone
• provincial delegation document or certification (those wishing to only provide prevention services are not required to have a delegation agreement in place)
• for corporations: incorporating documents (articles of incorporation or Patents Letters), by-laws
• band council resolution for each community being represented or serviced
• disclosure of any involvement of former public servants who are subject to the Conflict of Interest and Post-Employment Code for Public Office Holders or the Conflict of Interest and Post-Employment Code for the Public Service
• multi-year plan identifying community's needs, planned activities, performance measures and reporting requirements; along with evidence of consultation and collaboration with communities

Communities (CWJI)

• a mandate, as evidenced by a band council resolution, or other formal mandate for initial agreements, upon renewal of agreements or for the addition of any new initiatives, as required by the program
• a multi-year community plan that identifies the community's needs, defines its capacity to respond and outlines its programs and services, performance measures and reporting requirements to address priorities
• evidence of demonstrated capacity in areas such as financial and administrative experience to deliver the programs and services

12. Performance measurement and reporting

13. Official languages

Where a program supports activities that may be delivered to members of either official language community, which means where there is significant demand, the recipient is required to provide access to services in both official languages. In addition, the department will ensure that the design and the delivery of programs respect the obligations of the Government of Canada as set out in the Official Languages Act.

14. Redistribution of contributions

Recipients may redistribute contributions, as per the terms of their funding agreements. Redistributions should be done in line with program objectives, eligibility criteria and eligible expenses. In doing so however, recipients will not act as agents of the federal government. Where a recipient further distributes contribution funding to another service delivery organization (such as an authority, board, committee, or other entity authorized to act on behalf of the recipient), the recipient will remain liable to the department for the performance of its obligations under the funding agreement. Neither the objectives of the programs and services nor the expectations of transparent, fair and substantively equivalent services will be compromised by any redistribution of contribution funding.

15. Other terms and conditions