Annual Report to Parliament 2023

A Note on Terminology

To advance reconciliation, all language in this report pertaining to Indigenous Peoples and communities will be pluralized to reflect the diversity of Indigenous Peoples and cultures. All Indigenous terminology will be capitalized, and care has been taken to avoid colonial and paternal language and adopt respectful language that recognizes the right to self-determination. Historically harmful and oppressive terms will be avoided, except when citing historical documents, literature, or existing laws.

The report refers to "transfer of services" and "reclamation of jurisdiction" as two distinct but related concepts which contribute to the overarching goal of advancing Indigenous self-determination. It is important to distinguish between:

1. the transfer of departmental responsibilities to Indigenous control through agreement between the Minister of Indigenous Services Canada and Indigenous partners and
2. efforts on the part of Indigenous partners to reclaim jurisdiction over service delivery to their citizens/members through legislative means.

Under the Department of Indigenous Services Act section 7(b), the Minister is to "give effect to the gradual transfer to Indigenous organizations of departmental responsibilities with respect to the development and provision of those services." While this report refers to the "transfer of responsibilities" as outlined in the departmental Act, this includes transferring capacity and control of the delivery of those services to Indigenous control. The transfer of departmental responsibilities to Indigenous control is one of several tools to support the advancement of Indigenous partners in reclaiming full jurisdiction. Indigenous Services Canada remains open and committed to further clarifying the definitions and intent of these concepts with partners.

Indigenous Services Canada also recognizes the inherent right to self-government. To avoid confusing the transfer of responsibilities for services with self-government agreements concluded with Crown-Indigenous Relations and Northern Affairs Canada, the report uses "self-determination" or "transfer of services" unless it refers to legislated self-government agreements.^{Footnote 1}

The department grounds its understanding of co-development while maintaining respect for Indigenous Autonomous Institutions, as articulated in the United Nations Declaration on the Rights of Indigenous Peoples Act, which affirms Article 18 of the Declaration and states that "Indigenous Peoples have the right to participate in decision-making in matters which would affect their rights, through representatives chosen by themselves in accordance with their procedures, as well as to maintain and develop their Indigenous decision-making institutions." The department recognizes and respects that Indigenous partners have articulated expectations around co-development, including principles and best practices.

Throughout this report, the term "institution" is used to refer to Indigenous service delivery organizations that Indigenous Services Canada is currently working with, or intends to work with, to advance self-determination for Indigenous partners and to move toward addressing socio-economic disparities facing Indigenous Peoples in Canada.^{Footnote 2}

The report uses the acronym 2SLGBTQQIA+ to refer to members of the 2-Spirit (Two-Spirit), lesbian, gay, bisexual, trans, queer, questioning, intersex, and asexual community. The "+" sign acknowledges additional identities not covered by the acronym. In addition, the term "Distinctions+" is used to reflect the need to consider diversity among First Nations, Inuit and Métis across Canada, recognizing that Indigenous Peoples' identities and experiences are shaped by many intersecting factors, including gender and sexual identity, age, disability, geography and place of residence, connection to culture and community, unique and distinct community histories, and other factors.

Income

Overall, median individual income was higher in 2020^{Footnote 3} than in 2015 for all Indigenous groups, even after accounting for inflation. Although a similar proportion of individuals were employed compared to 2016, those who were employed made more—bringing home an extra $800 to $4,200 a year in income after adjusting for inflation. With increased income came a reduction in the number of households in a low-income situation. A clear narrowing of the gap was observed between the non-Indigenous population and each of the Indigenous groups with the gaps narrowing by 31.8 to 46.5 percent. The number of Indigenous People living in a low-income situation dropped from 471,560 in 2015 to 335,560 in 2020.

Overall, 136,000 fewer Indigenous People (60,190 Registered Indians living on reserve, 45,030 Registered Indians living off reserve, 8,975 Non-Status Indians, 2,840 Inuit and 18,965 Métis) were living in a low-income situation compared to 2015. In addition to contextualising the historical implications of the pandemic on the socio-economic well-being of all Canadians, Census 2026 will be important to determine whether there have been lasting changes of these gaps beyond the availability of enhanced government benefits during the COVID-19 pandemic.

Education

Amongst those 25–64 years of age with at least a high school education, a small narrowing of the gaps was observed for Registered Indians living off-reserve and Non-Status Indians, while a large narrowing of the gap was seen for Métis. In total, there were 80,280 more Indigenous People with a high school level education in 2021 (925 Registered Indians living on reserve, 26,150 Registered Indians living off reserve, 25,545 Non-Status Indians, 1,730 Inuit and 25,930 Métis). Increases in high school completion are important as it often represents a critical step to employment and higher education. From 2016 to 2021, there was a widening of the gap for all Indigenous groups in the proportion of the population with a university degree. Although an additional 47,980 Indigenous People (4,985 Registered Indians living on reserve, 14,630 Registered Indians living off reserve, 9,200 Non-Status Indians, 890 Inuit and 18,275 Métis) obtained a university education since 2016, the non-Indigenous population saw greater gains in university completion during the same period.

Housing

Housing quality and conditions (i.e., crowding and needing major repairs) generally improved for Indigenous Peoples from 2016 to 2021; however, the narrowing of the gap in the proportion of dwellings that were crowded was due in part to increases in crowding for the non-Indigenous population. Overall, the number of Indigenous households experiencing crowding was relatively flat from 2016 (25,220 dwellings) to 2021 (25,345 dwellings). Métis and Non-Status Indians had lower proportions of crowded dwellings than the non-Indigenous population in 2016 and 2021. There were also substantial improvements in the proportion of dwellings requiring major repairs. From 2016 to 2021, there were 3,715 fewer dwellings associated with Indigenous Peoples that required major repairs.

Children in Care

Indigenous children continue to be overrepresented in foster care. As the Census is limited to counting private dwellings, it only identifies children living in foster care in a private home. It excludes those in institutions, group homes or other care arrangements. The proportion of Registered Indians, Non-status Indians and Métis children in foster care remained relatively the same over the period. There was an increase of almost one percentage point for Inuit children. There were 17,410 Indigenous children in foster care in 2016 compared to 17,320 in 2021.

Languages

Indigenous languages are a vital part of the country's cultural and linguistic diversity and essential to Indigenous Peoples' identity, culture, and well-being. In addition to the socio-economic gaps, the declines in Indigenous language knowledge are noteworthy. In 2021, there were over 70 Indigenous languages spoken in Canada, with over 20 (28.6 percent) of them having 500 or fewer people reporting speaking them as their mother tongue.^{Footnote 4} Overall, 243,155 individuals could conduct a conversation in an Indigenous language, 188,905 people reported having at least one Indigenous mother tongue, and 182,925 reported speaking an Indigenous language at home at least regularly. Many of the Indigenous languages in Canada are endangered, facing the risk of extinction due to the impacts of colonialism, residential schools, and ongoing discrimination.

Criminal Justice

Indigenous Peoples in Canada continue to be overrepresented in the criminal justice system, both as victims and offenders. Reporting on custody admissions is limited to a pan-Indigenous identifier. From 2016 to 2021, the proportion of adults who entered a correctional facility for remand or who were sentenced to custody or a community supervision program who are Indigenous increased slightly from 29.9 percent in 2016 to 31.2 percent in 2021. However, the total number of these admissions decreased considerably during this same period, with the number of admissions for Indigenous adults dropping from 74,823 in 2016 to 46,633 in 2021, a difference of 28,190 people.

Moving Forward

Addressing socio-economic gaps between Indigenous and non-Indigenous Peoples in income, employment, education, housing, foster care, and incarceration is crucial for reconciliation. These gaps result from systemic barriers and inequalities that have led to the marginalization and oppression of Indigenous Peoples. For example, addressing income disparities can help alleviate poverty and unemployment in Indigenous communities, while improving educational attainment can increase employment prospects and lead to higher incomes. Addressing the housing crisis Indigenous Peoples face, including overcrowding and lack of access to safe and affordable housing, can help improve their overall well-being and quality of life. Preserving Indigenous languages is also crucial for reconciliation, as it is important to Indigenous culture and identity. Language revitalization efforts help to promote the maintenance and preservation of Indigenous languages, which in turn helps to promote cultural understanding and appreciation. Furthermore, addressing the over-representation of Indigenous Peoples in the foster care and the criminal justice systems requires identifying and addressing poverty, intergenerational trauma, and discrimination. Detailed data and more information on these indicators will be available in the compendium report.

2.1 Child and Family Services – Affirming Jurisdiction and Efforts Toward Reform

Indigenous children and youth are overrepresented in foster care and require culturally competent, Indigenous-led child and family services.^{Footnote 5} The report Denouncing the Continued Overrepresentation of First Nations Children in Canadian Child Welfare released by the Assembly of First Nations points to this correlation in that:

"the lack of adequate resources available to First Nations parents

• brought by the persistent underfunding of essential services
• creates additional structural stressors that are beyond First Nations families' control.

Given the 'tendency to see Aboriginal poverty as a symptom of neglect, rather than as a consequence of failed government policies,' this increases the risk for First Nations children to be investigated and eventually apprehended by the child welfare system."^{Footnote 6}

2.2 Education – Advancing Regional Education Agreements

Education is a key factor contributing to reclaiming language, culture and livelihoods for future generations. The department continues to support self-determination and transfer of responsibility for education services to First Nations partners, recognizing that education services designed by First Nations and First Nations organizations for First Nations students effectively support student success and the closing of education attainment gaps.

Developing Regional Education Agreements will guide the next level of service transfer. Nine Regional Education Agreements have been signed with First Nations in British Columbia, Alberta, Saskatchewan, New Brunswick, and Quebec.

Discussions with over 50 First Nations and First Nations education organizations are underway to advance new regional education agreements nationwide.

On July 14th, 2022, Grand Chiefs and Chiefs of the 22 member communities of the First Nations Education Council of Quebec and Indigenous Services Canada signed a historic regional education agreement in Kahnawà:ke. The agreement funds a system designed entirely by the Council's member communities and secretariat, affecting nearly 5,800 students. It follows ten years of research and analysis conducted by the Council, which included a comprehensive assessment of the needs of First Nations students, considering communities' cultural, linguistic, social and geographic circumstances, and identifying barriers to student success. Budget 2022 invested $310.6 million over five years to implement this agreement. Partners have said it will ensure "sufficient funding for First Nations K-12 education; access to quality education that meets the real needs of the communities; education focused on the culture, language, and social and geographical realities of communities; a sufficient environment that promotes learning in the territory; and increased techno-pedagogical capacity of teachers."^{Footnote 10}

Through the First Nations Education Council Regional Education Agreement, Indigenous Services Canada intends to support partners in:

• Implementing a culturally appropriate school program;
• Recruiting and retaining over 600 professionals in education and other specializations;
• Improving student success;
• Increasing student retention and high school graduation rates; and,
• Improving funding for school transportation, with the goal of restoring control.
• Ownership of education funding to and for communities.

In addition to advancing regional education agreements, collaborative work with partners continues to advance priorities such as adult education to support First Nations People on reserve to complete their high school education as well as First Nations, Inuit and Métis Nation post-secondary education. Building on the launch of the distinctions-based strategies in 2019, a key priority related to post-secondary education is work with First Nations related to the First Nations Post-Secondary Education Policy Proposal, which received endorsement from First Nations in assembly in December 2021. Post-secondary education is a priority for the department, and we will continue to work with partners on ways to improve outcomes in this important work.

2.3 Health – Co-developing Distinctions-based Health Legislation and Progress toward Health Transformation

Progress has been made since the establishment of Joyce's Principle^{Footnote 11} in 2020 to ensure that all Indigenous Peoples in Canada have equal and unbiased access to social and healthcare services and have the right to optimal physical, emotional, mental, and spiritual health. Collaborative work to support improved Indigenous health continues through several ongoing health-focused initiatives, services and programs, including the Non-Insured Health Benefits Program, on which the department continues to engage with First Nations and Inuit partners.

2.4 Social Development – New Approaches to Social Services

To support Indigenous individuals and families, Indigenous Services Canada provides a suite of social services, including income assistance to individuals, assisted living for vulnerable individuals, and long-term care for those with extended needs. Social services are typically formula-driven programs tied to provincial comparability standards, and it has long been recognized that these programs must be transformed to best respond to Indigenous partners' needs.

2.5 Urban and Off-reserve Indigenous Service Delivery and Infrastructure

The Urban Programming for Indigenous Peoples program focuses explicitly on Indigenous Peoples living in, transitioning to, or accessing services in urban centres. This program assists First Nations (status and non-status), Inuit and Métis Peoples living off-reserve by providing financial support to urban Indigenous service delivery organizations. These Indigenous service delivery organizations support Indigenous Peoples in navigating what are often harsh and complex urban realities. The program also provides funding to coalitions to encourage continued collaboration among multiple government jurisdictions, the philanthropic sector and Indigenous organizations to prioritize areas of greatest local and regional need and to leverage existing programs and sources of funds. Additionally, the program's research and data collection initiatives help better understand the growing needs of the urban Indigenous population. First Nation communities continue to prioritize ensuring access to these vital services for their off-reserve and urban members.

In June 2022, funding for the Urban Programming for Indigenous Peoples program became available in the amount of $101.1 million over three years (2022 to 2023 to 2024 to 2025), including $71.1 million to renew existing funding, $25 million for an expansion of funding, and $5 million for research and data collection.^{Footnote 13}

In addition to funding for capacity and service delivery, as of December 31, 2022, 136 minor and major projects have been funded, of which 50 minor infrastructure projects have been completed.^{Footnote 14}

Additionally, a call for proposals for 2023 to 2024 and 2024 to 2025 Indigenous Community Infrastructure Fund, Urban Component funding was completed on December 30, 2022.

2.6 Economic Development – Advancing an Economic Reconciliation Framework

An important step was taken through Budget 2023 toward advancing economic reconciliation by proposing to provide $5 million in 2023 to 2024 to Indigenous Services Canada to support the co-development of an Economic Reconciliation Framework with Indigenous partners. The Economic Reconciliation Framework will be built upon the vision outlined in recent Indigenous-led initiatives, such as the National Indigenous Economic Strategy, to advance economic reconciliation to reflect the needs, priorities and perspectives of Indigenous Peoples.

The National Indigenous Economic Strategy for Canada^{Footnote 15} was launched in June 2022 and developed by over 20 Indigenous organizations. The department acknowledges that to "achieve the meaningful engagement and inclusion of Indigenous Peoples in the Canadian economy…the basic conditions for economic development and well-being" must be met across businesses, communities, and governments. The department is taking concrete action to work toward economic reconciliation with First Nations, Inuit, and Métis Peoples by supporting elements in the four Strategic Pathways—People, Lands, Infrastructure, and Finance—as identified in the Strategy. This includes expanding economic development opportunities in the urban space for the non-Status and urban Indigenous populations.

The Strategy states that economic development cannot be separated from other factors directly impacting socio-economic outcomes, such as education, housing, health, and clean water. In alignment with the Strategy's core principles, Indigenous Services Canada supports improving housing, clean water, and economic opportunities in Indigenous communities. Budget 2022 allocated $150 million to advance shovel-ready economic opportunities in Indigenous communities, and $35 million over five years to increase financial capacity supports, including specialized training opportunities delivered by Indigenous-led organizations.

To enhance opportunities for Indigenous businesses, the Government of Canada has implemented a mandatory requirement for 97 federal departments and agencies to ensure a minimum of 5% of the total value of contracts are held by Indigenous businesses. This requirement includes public reporting and is being phased in over three years, which began last fiscal year. As of February 28, 2023, Indigenous procurement for the 2022 to 2023 fiscal year reached 16.9%. In addition, Indigenous Services Canada is engaging with Indigenous partners on transformative approaches to Indigenous procurement, including a proposed Indigenous-led procurement organization and the potential transfer of services, notably the Indigenous Business Directory, which is designed to assist and support Indigenous businesses in the pursuit of business opportunities, including federal procurement. Further, a new service is now available through Indigenous Services Canada: the Indigenous Business Navigator Service. This new service provides a single point of contact that connects Indigenous organizations and businesses to services and programs from different federal departments.^{Footnote 16}

2.7 Closing the Housing and Infrastructure Gap by 2030

Providing essential services to community members relies on a foundation of proper infrastructure as community members depend on clean water, safe housing, adequate sanitation, reliable power supply, bridges, and roads to maintain their daily well-being.

However, First Nations communities do not have legally enforceable safe drinking water protections comparable to what is in place in provinces and territories. In response, and aligned with the Safe Drinking Water Class Action Settlement Agreement, Indigenous Services Canada has committed to developing and introducing new First Nations drinking water and wastewater legislation in consultation with First Nations. During this past fiscal year, the department engaged directly with First Nations, including Modern Treaty and Self-Governing Nations, and with First Nations organizations, including the Assembly of First Nations and provinces and territories, to advance the development of a legislative proposal for drinking water and wastewater.

Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada also worked collaboratively with distinctions-based Indigenous partners to understand community infrastructure needs for closing the infrastructure gap. The department engaged with First Nations and Inuit partners to co-develop distinctions-based infrastructure plans. The top categories of infrastructure needs identified by First Nations include housing, transportation infrastructure, water, wastewater and utilities, and emergency services.

With support from Indigenous Services Canada, the Assembly of First Nations was also engaged and developed a comprehensive cost report to close the First Nations infrastructure gap by 2030. In the report, the Assembly of First Nations estimated that the cost to complete the First Nations infrastructure gap would be $349.2 billion.

Indigenous Services Canada engaged with Inuit Tapiriit Kanatami, who engaged the four Inuit regional Land Claims Organizations and submitted a report outlining priority infrastructure projects in Inuit Nunangat. Inuit Tapiriit Kanatami estimated that $55.3 billion over ten years and $793.7 million annually would be required to support priority projects to narrow the infrastructure gap in Inuit Nunangat.

Indigenous Services Canada will build on this work throughout 2023 by engaging First Nations communities and organizations, other government departments, and financial institutions to define a bold, new approach to how the department funds on-reserve infrastructure and to advance the transfer of housing and infrastructure service delivery. With funding from Indigenous Services Canada, First Nations organizations are working to determine new models of service delivery, including infrastructure services, that meet their own diverse needs, priorities and approaches. All models are opt-in and must be supported by leadership.

2.8 Local and Regional Approaches to Emergency Management and Community Safety

2.9 Efforts to support Indigenous Women and 2SLGBTQIA+ individuals

Intersectional marginalization widens socio-economic gaps for Indigenous Peoples in Canada. It highlights the resilience and inherent strengths of Indigenous women and 2SLGBTQIA+ Peoples that are needed to navigate intersecting systems of oppression. These systems undermine physical, social, and economic security by perpetuating poverty and inequities in housing, education, and transportation, which are further intensified in remote communities. The resulting socio-economic disparities and overlapping systems of oppression contribute to the ongoing national crisis of gender-based violence against Indigenous women, girls, and 2SLGBTQIA+ Peoples in Canada, rooted in the traumatic and destructive history and continuing effects of colonization.

Indigenous Services Canada is contributing to the implementation of the $724.1 million Prevention Strategy which is part of the Federal Pathway to Address Missing and Murdered Indigenous Women, Girls, and 2SLGBTQQIA+ People. This strategy aims to expand access to culturally relevant supports for Indigenous women, children, and 2SLGBTQQIA+ people facing gender-based violence. In collaboration with the Canada Mortgage and Housing Corporation, it supports the construction of new shelters and transition housing for Indigenous groups across the country. Recently, the department has extended its authorities to address the needs of communities off reserve in the provinces, ensuring that services are available to the whole of Inuit Nunangat, Métis, and urban Indigenous communities. On May 8, 2023, the selection of 22 new shelter and transitional housing projects was announced—a combined investment of up to $103 million for construction and ongoing operational support.

To support this work, Budget 2022 provided a total of $61.5 million over six years, starting in 2022 to 2023, to supplement operations and programming within the existing shelter network and enhance violence prevention activities.

In response to the issue of forced and coerced sterilization of Indigenous women, the Advisory Committee on Indigenous Women's Wellbeing was established by Indigenous Services Canada in 2019. Indigenous-led, the co-chairing organizations are Les Femmes Michif Otipemisiwak and the National Council of Indigenous Midwives. Indigenous Services Canada provided funding to Indigenous women's organizations to develop information products on women's reproductive rights, and to begin understanding the scope of forced and coerced sterilization.^{Footnote 18}

The Advisory Committee on Indigenous Women's Wellbeing has identified the following priorities for action:

• Stopping the practice through the promotion of Indigenous-led midwifery and Indigenous patient advocates;
• Seeking accountability through improved data collection;
• Healing for victims;
• Examining the role of child welfare in the issue;
• Seeking changes to the Criminal Code;
• Preventing the practice through mandatory anti-racism training for health providers;
• Ensuring there are no barriers to medical transportation to access a midwife.

The Committee has also been instrumental in providing feedback on investments, allocation options and guidelines. As part of the overall investment to address Anti-Indigenous Racism in health systems, the Government of Canada has committed $33.3 million over three years, starting in 2021 to 2022, to increase access to culturally safe health services, with a focus on services for Indigenous women, 2SLGBTQQIA+ people, people with disabilities and other marginalized groups who may experience intersecting discrimination.^{Footnote 19}

In addition, an investment of $6.2 million over two years, starting in 2022 to 2023, was funded through Budget 2022 to respond directly to the needs of survivors. The objective is to support a range of healing initiatives related to the physical, mental, spiritual and emotional well-being of Survivors of forced and coerced sterilization.

2.10 Other Key Departmental Business

2.11 Bringing it all Together: Governance and Capacity as the Building Blocks for Transfer

All of these services—child and family, education, health, social development, economic development, infrastructure, emergency management, and governance—are built on a network of effective management that may not always be seen. The Indigenous public sector provides a wide range of services to Indigenous communities, including direct service delivery, regulatory functions, and policy and advocacy support. The ongoing growth of an Indigenous public sector supports transferring departmental programs and service responsibilities to Indigenous control. To fulfill its mandate, Indigenous Services Canada is supporting Indigenous governments and organizations in developing the skills and resources necessary to exercise jurisdiction over self-determined services in line with culturally relevant governance, sound financial administration and auditing practices, cutting-edge IT and information management, legal counsel, robust communications, and evaluation and performance measurement.

RoadMap empowers the implementation of Indigenous rights by providing options that support self-determination

Authority

RoadMap proposes more decision-making authority and expanded jurisdiction through the FMA.

Capacity

RoadMap offers more capacity to govern through independent revenue and institutional support.

Sustainability

RoadMap provided a risk management framework that satisfies all stakeholders and an innovation system to support continuous growth.

Source: The First Nations Financial Management Board RoadMap Project, which Budget 2023 referred to as an Indigenous-led initiative that provides a strong foundation to advance economic reconciliation.

To support this, Budget 2023 proposed $76.3 million in 2023 to 2024 to Indigenous Services Canada to continue to support the administrative capacity of First Nations governments and tribal councils delivering programs and services to their members.

The diagram below outlines the building blocks Indigenous Services Canada recognizes as essential in advancing Indigenous self-determination:

Text alternative for A Vision for Coordinated Support

Reclaiming Jurisdiction and Transfer

• Agreements providing coverage and guidance for transfer of departmental services to Indigenous control.
• Supporting Indigenous data capacity and sovereignty – foundation to service transfer.

New Fiscal Relationship

• Instruments, institutions and accountability mechanisms for sufficient, flexible and predictable funding of self-government services.
• Creation of Indigenous-led fiscal policy, statistical and audit institutions.

Economic Reconciliation Framework

• Bridges joint mandates of service delivery, transfer, and closing socio-economic gaps with Indigenous partners.
• Includes Indigenous-led, distinctions-based economic reconciliation frameworks.

Governance Modernization

• Comprehensive, collaborative review of federal programs and funding supporting First Nations governance.
• Tools for supporting skills and capacity of Indigenous public sector to design and oversee services.

Rights-based Self-determination Backdrop

• United Nations Declaration on the Rights of Indigenous Peoples Act drives the imperatives for self-determination and co-development.
• Alignment with other government departments and evolving picture of section 35 rights.

Indigenous Services Canada is continuing to work with its partners on the New Fiscal Relationship that seeks to provide First Nations with sufficient, predictable and sustained funding.

A key element of this approach is the New Fiscal Relationship 10-year Grant that provides eligible First Nations with long-term, predictable funding. The Grant advances the objective of service transfer by providing First Nations with the flexibility to design and deliver programs to meet community priorities. In 2022 to 2023, an additional 13 First Nations opted to sign Grant agreements, for a total of 130 operating under the Grant.

The department is also exploring with partners further opportunities to advance the New Fiscal Relationship through the interim recommendations of the Assembly of First Nations-Indigenous Services Canada Joint Advisory Committee on Fiscal Relations, including more flexible and stable funding arrangements supported by appropriate institutional and capacity supports.

Taken together with other departmental reform initiatives encompassing economic reconciliation and governance modernization, these initiatives represent transformational building blocks in Indigenous Services Canada's relationships with Indigenous partners, setting the foundations for self-determination.

Indigenous partners have expressed a clear vision of self-determined services. While the scale and scope of their approaches vary, they universally signal that the common essential elements are:

1. jurisdiction and responsibility for services,
2. sufficient funding for implementation, and
3. the skills and capacity to design and oversee service delivery.

3.1 Calls for More Accountability of Indigenous Services Canada to Indigenous Peoples^{Footnote 21}

As Indigenous Services Canada works with Indigenous partners to transfer control of departmental responsibilities, what we consider "success" will also change. The department currently measures its program and service delivery progress through the Departmental Results Framework, a public management tool used by all departments and agencies to plan, monitor and report performance providing transparency and accountability in government.

Indigenous Services Canada and the Assembly of First Nations have been working together since 2017 to develop a National Outcome-Based Framework as part of the effort to build a new fiscal relationship with First Nations. The goal of the Framework would be to measure at a national level, in a manner reflecting First Nations' worldviews and values, progress in closing socio-economic gaps between First Nations and the non-Indigenous population in Canada.

A preliminary draft Framework has been prepared, and targeted engagements with First Nations leaders and organizations on the purpose and design of the Framework are underway, after which the draft Framework will be further developed and refined, and ultimately subject to validation by First Nations through a resolution of the First Nations-in-Assembly.

While the department continues to use existing measurement frameworks such as the Department Results Framework and the National Outcomes-Based Framework, it has heard from Indigenous partners of the need to co-develop an overarching measurement and results framework to measure progress on the transfer of services to hold the department accountable. Measuring progress related to the transfer of responsibility of services to Indigenous control requires Indigenous Services Canada to consider:

1. The current state of results and measurement approaches;
2. The transition state where the department must co-develop a results and measurement strategy to hold itself accountable on progress related to the transfer of responsibilities; and
3. The end state, where Indigenous Peoples control the design, delivery, and management of programs and services.

3.2. Creating a Culturally Competent, Safe and Inclusive Internal Working Environment

Indigenous Services Canada has taken concrete steps over the last fiscal year toward the transfer of departmental services to Indigenous control. Concurrently, efforts have been underway to establish a culturally competent, safe, and inclusive working environment. Fostering a safe and inclusive internal environment helps the department to serve Indigenous Peoples effectively.

3.3 Implementation of Gender-Based Analysis plus

As a core component of Indigenous Services Canada's mandate and to contribute to making policies, programs, and services more responsive to the needs of diverse groups of Indigenous Peoples, the department has continued to work toward implementing Gender-Based Analysis Plus. The department established a dedicated Gender-Based Analysis Plus focal point unit, the Responsibility Centre within the Strategic Policy and Partnerships Sector. The focus of the team to date has been to systematize, integrate, and build capacity for culturally-competent Gender-Based Analysis Plus throughout the department, including a Gender-Based Analysis Plus challenge function role for major departmental initiatives. The department continues to work with Indigenous partners to develop and advance culturally-competent Gender-Based Analysis, including through the Advisory Committee on Indigenous Women's Wellbeing.

3.4 Indigenous Services Canada's Contribution to the Implementation of the United Nations Declaration Act

The Department of Indigenous Services Act commits in its preamble to implementing the United Nations Declaration on the Rights of Indigenous Peoples and sets out clear direction on the collaboration with and transfer of responsibilities and services to Indigenous partners and institutions.

Indigenous Services Canada supports the United Nations Declaration on the Rights of Indigenous Peoples Act by building foundational pieces to support community-led control of programs and services and through the ongoing co-design and transfer of programs and services. All of these are critical to advancing self-determination and increasing equity—key objectives of the Act.

Indigenous Services Canada has taken an active part in interdepartmental efforts led by the Department of Justice to support the implementation of the Act. This includes contributing to the development of an Action Plan in collaboration and cooperation with Indigenous Peoples. A number of transformative measures related to Indigenous Services Canada's mandate have been included in the Action Plan.

Indigenous Services Canada is also working with the Department of Justice to ensure that its existing and future laws are consistent with the United Nations Declaration on the Rights of Indigenous Peoples. A recent example is the December 2022 tabling of Bill C-38, which aims to address inequities in the registration and band membership provisions of the Indian Act. The tabling of the Bill resulted from close engagement with Indigenous partners, including Indigenous women's organizations.

For more information on Indigenous Services Canada's commitments towards the implementation of the Declaration, please consult the Department of Justice's Annual Progress Report on the Implementation of the United Nations Declaration on the Rights of Indigenous Peoples Act and Action Plan.

Appendix A

Overview of the change in the observed gap between Indigenous and non-Indigenous populations from 2016 to 2021 for all domain indicators, Indigenous and non-Indigenous populations, Canada.

Source: Indigenous Services Canada. Custom Tabulations, 2016 & 2021 Census of Population

Notes

According to Cohen (Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Hillsdale, NJ: Lawrence Erlbaum Associates), a percent change of 5 percent would be considered a small effect size. Using Cohen's conventions to estimate result sizes with similar magnitudes of change, a percent change of 12.5 percent would be considered a medium effect size, and a percent change of 20 percent or more would be considered a large effect size.

The on/off reserve breakdown is not included for children in foster care as it may be misleading since Registered Indian children living in foster care off reserve may come from families living on reserve.