Transfer Payment Program Terms and Conditions: Contributions to support the construction and maintenance of community infrastructure

Table of contents

1.0 Introduction

The provision of community infrastructure funding to First Nations is based on the Government of Canada's spending power as a matter of social policy. The Department of Indigenous Services Canada (ISC) allocates funding for the construction and the maintenance of community infrastructure to First Nations at regional level through formula, proposal based project funding or as a combination of both.

Capital Facilities and Maintenance Program

Contributions to eligible recipients under the Capital Facilities and Maintenance Program (CFMP) provide financial assistance to plan, construct and/or acquire and operate and maintain community capital facilities and services such as infrastructure, including schools and residential housing consistent with approved policies and standards. This assistance is provided to First Nations on reserves, as well as First Nations and other eligible recipients on Crown land or recognized First Nations land.

The department's regional offices work in collaboration with First Nations to establish and prioritize 5-year capital plans according to the CFMP's National Priority Ranking Framework. The highest priority is assigned to those projects which mitigate the most urgent health and safety risks. Protection of assets through adequate operation and maintenance is also key to mitigating health and safety concerns and ensuring that existing and new assets reach their full life cycle.

ISC's policies and procedures relating to the CFMP are set out in a number of frameworks, mainly the department's Level of Service Standards (LSS) - Fire Protection Services, in addition to the protocols for water and wastewater, and the school space accommodation standards. The department's policy, as stated in the level of service standards, is to support and assist First Nations in providing basic community services comparable to the levels of services that would generally be available in non-First Nations communities of similar size and circumstances.

In managing the CFMP, the department is in conformance with the Indian and Inuit Affairs Program Environment Policy and associated guidelines. In the absence of applicable federal, provincial or territorial environmental legislative requirements, ISC will adopt best environmental practices and principles. The CFMP must also comply with the department's Sustainable Development Strategy and support national efforts toward climate change.

For the purpose of this program, different funding arrangements with Indigenous recipients are used, depending on the demonstrated capacity of the recipient to manage transfer payments. In addition to standard contributions funding arrangements, these flexible funding arrangements are defined as fixed, flexible or block contribution funding arrangements.

First Nation Infrastructure Fund

The First Nations Infrastructure Fund (FNIF) supports this mandate and improves the quality of life and the environment for First Nations by assisting First Nations communities on reserve, Crown Land or land set aside for the use and benefit of a First Nation within the provinces of Canada to improve and increase public infrastructure. Building on current financial support through existing ISC-administered infrastructure programs, the FNIF provides funding to First Nations communities on a proposal basis. The program also provides flexibility in project categories, in recognition of the range of infrastructure pressures in First Nations communities.

Fire Protection Awareness Program

The incidence of fire losses in terms of fire deaths and property loss on First Nations reserves is high and substantially above the Canadian national average. An important part of the departmental fire protection policy has been to find ways to address the need to lower fire losses. One method of achieving this is by increasing fire awareness on First Nations reserves. In light of this, ISC funds a fire poster competition for First Nations and Inuit students in band or federal operated schools. Monetary prizes and the reimbursement of travel expenses for the winners are made through the Indigenous Firefighters Association of Canada via its contribution agreement with ISC.

  Grant payments Contribution payments
Set Fixed Flexible Block
Indigenous Recipients Only
Capital Facilites Maintenance Program (CFMP)   Yes Yes Yes Yes
First Nations Infrastructure Funds (FNIF) Program   Yes Yes Yes Yes
Fire Protection Awareness Program (FPAP)   Yes      

In the department's Program Alignment Architecture, Construction and Maintenance of Community Infrastructure is listed under the Land and Economy and Community Infrastructure.

2.0 Legal and policy authority

3.0 Purpose program objective and expected results

Each component of the Contributions to Supply Construction and Maintenance of Community Infrastructure program has a specific objective and expected results as outlined:

  Objectives Expected Results
Capital Facilites Maintenance Program (CFMP)

Provide financial support to First Nations and other eligible recipients to:

  • invest in physical assets or services that mitigate health and safety risks in their communities
  • make sure assets meet established codes and standards
  • make sure assets are managed in a cost-effective and efficient manner that protects, maintains and maximizes asset life cycle
  • make sure the above activities are done in an environmentally sound and sustainable manner
 First Nations communities have infrastructure that protects health and safety and enables engagement in the economy
First Nations Infrastructure Funds (FNIF) Program

Improve the quality of life and the environment for First Nations communities by assisting First Nations in the provinces to improve and increase public infrastructure on:

  • reserves
  • Crown Land
  • land set aside for the use and benefit of a First Nation
  • off reserve in the case of cost-shared project with non-First Nation partners such as neighbouring municipalities

The expected results include:

  • improving health and safety of First Nations communities
  • contributing to a cleaner and healthier environment for First Nation communities
  • enhancing collaboration between the Government of Canada, First Nation communities, municipalities, provinces, and the private sector
  • leveraging other sources of funds for infrastructure projects in First Nations communities
Fire Protection Awareness Program (FPAP) Promote fire protection awareness in band or federally operated schools Raise the level of fire protection awareness and knowledge at the community level

4.0 Eligibility

4.1 Eligible recipients

  CFMP FNIF FPAP
First Nations, Innu or Inuit class of eligible recipients
Bands or settlements land, reserves, trusts Yes Yes No
First Nations, Innu or Inuit governments referred to in a self-government or land claims agreement Yes Yes No
District councils or chief councils Yes Yes No
Tribal councils Yes Yes No
First Nations students attending band or federally operated schools and their chaperon No No Yes
Organizations
societies, for example, First Nation Emergency Services Society Yes Yes No
associations Yes Yes YesTable note *
institutions, for example, Saskatchewan Indian Institute of Technology Yes Yes No
corporations, major shareholder is First Nations, Innu or Inuit, for example, Ontario First Nations Technical Services Corporation, Little Red River Education Authority Yes Yes No
partnerships Yes Yes No
Private and public class of eligible recipients
Private
Associations, for example, B.C. Water and Wastewater Association Yes Yes No
Corporations, construction, general contractor, partnerships with First Nations Yes Yes No
Colleges and other training institutions in the area of training, ISC may enter into arrangements with a private entity Yes Yes No
Societies Yes Yes No
Financial Institutions if bridge financing Yes Yes No
Public
Training institutions, for example, Saskatchewan Institute of Applied Science and Technology Yes Yes No
Provincial or territorial governments, for example, provincial winter roads, joint school agreements Yes Yes No
Provincial or territorial agencies including provincial school boards, for example, SaskWater Corporation Yes Yes No
Municipalities, various municipal-type agreements for provision of services such as water, wastewater, fire protection Yes Yes No
Local authorities, for example, Fraser Basin Authority or other authorities established by provincial governments to divest responsibilities Yes Yes No
Boards and commissions, same as local authorities Yes Yes No
Universities and colleges, for example, agreements to provide training and certification for water and wastewater operators Yes Yes No
Table note *

Monetary prizes and the reimbursement of travel expenses for the winners are made through an Indigenous association.

Return to table note * referrer

4.2 Eligible initiatives and projects

Eligible initiatives and projects are those that assist First Nations in acquiring, constructing and operating and maintaining housing and community infrastructure including water and wastewater systems, schools, roads and bridges, electrification and community buildings or to hold activities to raise the level of fire protection awareness.

The support to the eligible initiatives and projects is provided through 3 streams to eligible recipients:

  • Operations and maintenance: funding provided to First Nations for the maintenance and operation of existing assets
  • Minor capital: funding provided to First Nations for housing and for construction, acquisition, renovation or significant repair projects with value below $1.5 million
  • Major capital: funding provided to First Nations for specific, proposal-driven construction, acquisition, renovation or significant repair projects with value exceeding $1.5 million

The FNIF is a proposal based program that requires First Nations to identify all eligible infrastructure projects through their First Nation Infrastructure Investment Plan (FNIIP). Annual FNIIPs and supporting documents are then submitted to ISC.

There are 8 categories of projects eligible for funding:

  • planning and skills development
  • solid waste management
  • roads and bridges
  • energy systems
  • connectivity
  • structural mitigation
  • cultural and recreational facilities
  • fire protection

More details on the list of the eligible initiatives and projects to sustain community infrastructure is available on ISC website in the program guide.

*For the Fire Prevention Awareness Program eligible initiatives and projects allow for the provision of prizes for a national fire protection competition in band or federally operated schools.

5.0 Type and nature of eligible expenditures

5.1 Capital Facilities and Maintenance Program: Eligible projects and activities

A. Project costs

I. Community infrastructure

Community infrastructure expenditures apply to First Nations and other eligible recipients and off reserve in cases of cost-shared projects with municipalities or provinces, for example, off reserve access roads to link a reserve community to a main provincial road, water, sewer or electrical grid services.

  1. Planning, design, identification and acquisition of necessary land rights, water rights, rights-of-way, construction, acquisition, renovation, expansion, repair, replacement, operation and maintenance of:
    • community water supply, treatment and distribution systems, for example, wells, cisterns, supply lines, intakes, pumping stations, treatment plants, distribution system piping, house service connections, fire hydrants, tank trucks, storage reservoirs
    • community wastewater collection, treatment and disposal systems, for example, septic tanks, lift stations or lagoons, force mains, sewage collection piping, manholes, house services, treatment plants, outfall sewers, storage tanks, collection vehicles, storm sewers
    • community solid waste collection and disposal systems, for example, collection vehicles, disposal sites, incinerators
    • electrical and energy systems, electrical power supply and distribution systems, for example, poles, wires, cables, transformers, street lighting, power generation plants, grid extensions
    • connectivity, terrestrial transport infrastructure, for example, fiber or copper-based pole lines that run from an external regional telecommunications grid to a community point-of-presence base station, large capacity satellite dish infrastructure to receive signals from a satellite transponder coupled with a community point-of-presence base station, last mile infrastructure and specialized switching equipment, wire or wireless and software that connect the point-of-presence base station to community buildings and facilities. This does not include the connectivity equipment required within individual institutions, homes or business use, for example, computers, software, routers, internal cabling and individual receivers
    • bulk fuel storage and distribution systems, for example, heating, oil, natural gas for community, non-commercial use
    • roads including community roads, access roads, for example, off-reserve access roads outside the boundary of a reserve which permit access to the reserve from a provincial, territorial, regional or municipal transportation system, sidewalks, curbs, culverts, ditches and signs
    • bridges including any structure that spans an obstruction, for example, deep gully, roadway, railway, waterway, so enabling the continuation of either a roadway, railway or pedestrian way over the obstruction, also includes underpasses and tunnels
    • other transportation and access, where no other access is available, including such services as ferry transportation, marinas, buses, boats, floats, airstrips and wharves or docks
    • firefighting facilities and fire detection systems including such items as fire halls, vehicles and equipment, related facility services, for example, service connections, parking areas, water supply and landscaping and early-warning systems such as alarms, sirens, detectors acquisition, servicing and testing of fire warning systems and firefighting equipment
    • community buildings such as band administration buildings, recreational facilities, community halls, warehouses, maintenance shops, garages, community freezers, community washhouses, facilities and equipment including construction or maintenance equipment, for example, rolling stock used for maintenance of community assets, furniture and office equipment, this includes any related facility services such as service connections, parking areas and landscaping
    • special CFMP services which are deemed necessary to meet the health and safety needs of Indigenous and Innu communities that do not fall clearly within 1 of the above specific categories and are not related to economic or commercial endeavours
    • flood and erosion control practices, such as slope protection, sheet piling, gabions, rip-rap, river diversion, dykes, dredging, dams, spillway, impoundment areas, drainage ditches, berms and embankments for foundation and buildings
  2. Administrative costs associated with the planning, construction and operation and maintenance of community infrastructure assets such as:
    • salaries and benefits
    • insurance
    • professional and consultant fees
    • legal expenses such as legal expenses relating to acquisition of land, contracts, surveys, but no legal expenses associated with injury and damage claims during construction
    • internal audit fees
    • project office expenses
    • training
    • transportation
    • information technology
  3. Coordination, training and capacity building for the activities related to community infrastructure such as:
    • operations and maintenance of potable water and wastewater treatment facilities
    • coordination with the Emergency Management Program as well as input to the local emergency plans and follow-up on emergency remediation measures
    • establishment and operation of a construction safety program
    • fire protection and prevention programs covering such things as the negotiation of fire protection agreements, development and enforcement of fire and safety guidelines and building codes, the operation of community awareness programs, training of community firefighting and prevention staff and other community members, investigating and reporting of fires in First Nations communities, review of First Nation Infrastructure Investment Plans and inspections of buildings and other facilities to ensure compliance with fire and safety regulations
  4. Community infrastructure planning and management:
    • costs associated with the identification of on-reserve infrastructure needs, the development of First Nation Infrastructure Investment Plans, Capital Plans, for example, needs analyses, feasibility studies, cost and benefit analyses and the design and ongoing implementation of maintenance management practices. This could include those activities usually associated with input to the development of a First Nation Infrastructure Investment Plan
  5. Special initiatives:
    • funding is also provided to create sustainable capital to meet on-reserve infrastructure needs. These include measures:
      • create interest bearing debt services such as revolving loan funds, loan pools and loan circle mechanisms
      • permit the leverage of First Nations funding and private sector capital in the establishment of capital pools
      • support private market investment measures for on-reserve assets
II. Education assets and facilities
  1. Federal and band school facilities: Planning, design, construction or acquisition, renovation, repair, replacement, demolition, decommissioning, operations and maintenance and related training and capacity building, for example, maintenance of water, heating and safety systems of federally- or band-operated elementary, secondary and post-secondaryFootnote 1 education facilities including schools buildings, teacherages, bus garages and school residences and any related facility services such as service connections, parking areas, landscaping, including the purchase of furniture equipment and school buses. This includes the identification and acquisition of necessary land rights.
  2. Provincial school facilities, including joint schools: Costs covered in agreements with provincial school boards for the planning, design, construction, acquisition, demolition and decommissioning of facilities, for daycareFootnote 1 and elementary, secondary and post-secondaryFootnote 1 education of Indian children ordinarily resident on reserves including school buildings, teacherages, bus garages and student residences. This includes the purchase of furniture equipment, school buses and facility services.
  3. Educational furniture, equipment and furnishing: Acquisition, replacement and repair of furniture, equipment and furnishing for federally- and band-operated schools, teacherages and student residences, for example, desks, chairs, office equipment, instructional equipment, including computer hardware and software, electronic data equipment for office and instructional furniture, furnishings such as drapes and curtains, playground and institutional equipment including major appliances and maintenance equipment.
  4. Administrative costs associated with the planning, construction and operation and maintenance of education facilities such as:
    • salaries and benefits
    • insurance
    • professional and consultant fees
    • legal expenses such as legal expenses relating to acquisition of land, contracts, surveys, but no legal expenses associated with injury and damage claims during construction
    • internal audit fees
    • project office expenses
    • training
    • transportation
    • information technology
  5. Education facilities planning and management: Identification of education facility needs and the development of education facility plans for example, needs analyses, feasibility studies, cost and benefit analyses and the design and ongoing implementation of maintenance management practices. This could include activities normally associated with input to the development of a First Nation Infrastructure Investment Plan.
  6. Special initiatives: Funding is also provided to create sustainable capital to meet on-reserve educational facilities needs while respecting any treaty obligations. These include measures:
    • create interest bearing debt services such as revolving loan funds, loan pools, and loan circle mechanisms
    • permit leverage of First Nations funding and private sector capital in the establishment of capital pools
    • support private market investment measures for on-reserve assets
  7. Ineligible costs: When school buses are purchased under the CFMP, the operations and maintenance costs will continue to be covered by the transportation component of the Education Program's regional funding formulas.
III. Housing

Eligible expenditures for the construction of housing may be made in respect of:

  • federal Crown land, reserve land, and settlement land
  • provincial Crown land, provided that the province which owns the land has signed an agreement with the Government of Canada indicating that it will transfer the land to the Government of Canada and provided that the Government of Canada has initiated a process to set aside the land as reserve land
  1. Housing, new construction: Planning, design, construction and acquisition of new housing units. Housing units include single units, multi-units, mobile homes, as well as special needs housing such as homes for the elderly, group homes, and homes for people who require assisted living but not medical care. Funding is also provided to cover the identification and acquisition of required land rights.
  2. Housing, renovations: Renovations of existing housing units. The types of housing units covered are described under the Housing, new construction.
  3. Other housing related activities: All housing related activities including the day-to-day operation and maintenance, insurance, the administration and management of the housing portfolio and debt servicing.
  4. Management support: Management and administration support for housing programs and projects including the provision of management expertise, advisory services, multi-year housing program planning, and the formation and operations of housing councils. This could include activities normally associated with input to the development of a First Nation Infrastructure Investment Plan.
  5. Technical support: Inspection of on-reserve housing to ensure compliance with the relevant code, the general improvement in technical expertise regarding the housing program.
  6. Special initiatives: Funding is provided to explore different ways to support on-reserve housing needs. These include new ways to administer housing, for example, through the establishment of a housing authority and measures to create sustainable capital to meet on-reserve housing needs including:
    • permitting the creation of interest bearing debt services such as revolving loan funds, loan pools, and loan circle mechanisms
    • permitting the leveraging of First Nations funding and private sector capital in the establishment of capital pools
    • supporting private market investment measures for on-reserve assets
  7. Housing related training: Funding is provided for training in the delivery of the housing program, training for community housing inspectors, and life-skills training for residents related to housing for residents.
IV. Indian Residential Schools

  1. Decommissioning of and demolition of former residential schools: Includes land and buildings of former residential school sitesFootnote 2 located on and off reserveFootnote 3,Footnote 4 and associated or supporting activities such as renovations to existing facilities and planning and feasibility studies for replacement infrastructure listed below under CFMP coverage.

    Off-reserve initiatives related to residential schools and any associated buildings are responsive only, for example, intended to respond to immediate community needs, until an assessment of the broader off-reserve context is completed. An environmental scan on the location, ownership and condition of residential school buildings and sites off reserve and in the North is underway, which will inform the development of a comprehensive engagement strategy with Indigenous communities and third party public and private interests.

    The off-reserve authority is intended to enable the delivery of specific initiatives for off-reserve and northern IRS buildings and sites by working with communities to respond to immediate needs. This is a provisional approach, recognizing the uncertainty around possible recipients and other complexities.

    Activities to address IRS are intended to be Indigenous-led and funding is provided to eligible communities. It is delivered in partnership with the Lands and Economic Development Sector's Contaminated Sites on Reserve Program to provide the following services:

    • remediation: action to eliminate, limit, correct, counteract, mitigate or remove any contaminant or the adverse effects on the environment or human health of any contaminant
    • decommissioning: action to make inoperative, dismantle and decontaminate to make safe includes remediation, demolition and disposal of materials
    • demolition: action to dismantle or destruct

    The Contributions to First Nations for the Management of Contaminated Sites - Indian and Inuit Affairs Program, now Contaminated Sites on Reserve covers:

    • environmental site assessment
    • remediation and risk management of contamination and associated project management and administrative tasks including site closure on contaminated site inventories. As with other sites, remediation will be completed to meet the future land use plans of the community

    The Capital Facilities and Maintenance Program (CFMP) covers:

    • demolition, including off-site disposal of waste materials
    • potential building renovations, should a community determine that they would prefer that the former residential school buildings remain
    • planning and feasibility studies related to the construction of new community infrastructure to house community services being offered out of the former residential school buildings
    • skills development and capacity building

    Responses to address IRS off reserve may include similar activities delivered to address residential schools on reserve listed above but would be limited until the environmental scan is completed. Off-reserve activities will be delivered to address the most immediate needs of communities.

  2. Ineligible costs: Taxes for which the recipient is eligible for a tax rebate and all other costs eligible for rebates are deemed to be ineligible costs.

5.2 First Nations Infrastructure Fund : Eligible projects and activities

A. Project costs

  • Capital costs of acquiring, constructing or renovating a tangible capital asset
  • Fees paid to qualified professionals, technical personnel, consultants and contractors specifically engaged to undertake the surveying, design, engineering, manufacturing or construction of a project infrastructure asset and related facilities and structures
  • Costs of environmental assessments, monitoring, and follow-up programs as required by Canadian Environmental Assessment Act for an eligible project
  • Incremental costs related to strengthening the ability of First Nations communities to develop their infrastructure maintenance capacity, develop their planning capacity and First Nation Infrastructure Investment Plans planning and skills development
  • Eligible project costs incurred after conditional project approval
  • For projects related to acquiring, constructing or renovating a tangible capital asset, up to 10% of such costs can include training for the construction, renovation, operations and maintenance of the asset
  • Other costs that are considered to be direct and necessary for the successful implementation of a project and that have been approved in advance, and in writing, by the Regional Committee in consultation with the secretariat of the National Oversight Committee

Employee and equipment costs

The incremental costs of the First Nations community's employees or equipment may be included in its eligible costs if all of the following conditions are met:

  • First Nations community has determined, and the ISC regional office agrees, that it is not economically feasible to tender a contract
  • employee or equipment are employed directly in respect of the work that would have been the subject of the contract
  • arrangement is approved in advance and is outlined in writing by the ISC regional office

Salary costs to support skills development projects are also permitted under the following conditions:

  • salary is incremental to existing funded positions
  • tasks to be performed by the position are well-defined and related to the project
  • arrangement is approved in advance and is outlined in writing by the ISC regional office

B. Ineligible costs:

  • project costs incurred before conditional approval of a project
  • services or works that, in the opinion of ISC, are normally provided by the First Nations community, a federal department or a related party
  • salaries and other employment benefits of any employees of the First Nations community
  • a recipient's overhead costs, its direct or indirect operating or administrative costs, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by its staff
  • costs of feasibility studies for individual projects
  • taxes for which the recipient is eligible for a tax rebate and all other costs eligible for rebates
  • costs of land, including its acquisition, or any interest therein, and related costs
  • cost of leasing of equipment by the recipient except for as indicated in section 13.1.1 above
  • legal fees
  • routine repair and maintenance costs
  • audit and evaluation costs

5.3 Fire Prevention Awareness Program (FPAP): Eligible projects and activities

The following costs are eligible:

  • School or regional student prize amount
  • National awards, costs for first prize winners in each category and their chaperons, this includes travel, accommodation and meal allowances and other categories
  • Administration costs associated with this program must not exceed 10% of the overall program's funding

6.0 Total Canadian government funding and stacking limits

Total maximum government assistance is 100% of eligible costs.

Recipients, excluding the winners of the fire protection awareness competition, are required to declare any and all prospective sources of funding for the program or project, inclusive of all federal, provincial, territorial or municipal governments, total government assistance, and other sources that are expected to be received. Annual financial reporting shall show all sources of funding received by the recipient. Provisions for repayment shall be included in the funding arrangements. Recipient records relating to adjustments and overpayments may be subject to periodic review.

7.0 Method for determining the amount of funding

Capital Facilities and Maintenance Program and First Nations Infrastructure Fund

Contribution amounts for capital projects are based on actual project costs. Contribution amounts are determined by regional offices on the basis of proposals submitted by recipients, First Nations assets inventories, and regional funding formulae. All projects will be identified through the First Nation Infrastructure Investment Plans, although the eligible categories for CFMP funding and FNIF funding will be distinct. As well, FNIF projects will be assessed separately from CFMP given FNIF funding is separate and distinct from CFMP funding.

The determination of operations and maintenance contributions varies from region to region. However, all regions start with ISC 's Cost Reference Manual, and the Management Control Framework which outlines the following information:

The gross funding requirement (GFR) is that amount required to operate and maintain a facility to generally accepted standards. The net funding requirement (NFR) is the GFR less any amount the operator or administrator received as a result of user fees or other income.

Operations and maintenance costs are determined in the following manner:

Operations and maintenance costs (GFR) = Base Unit Cost x City Centre Index x Zone (Remoteness) Index x Asset Count.

Fire Prevention Awareness

The method for determining the amount of funding is described within these terms and conditions under the headings of Application requirements and assessment criteria and Maximum amount payable.

8.0 Maximum amount payable

Program Maximum per year Exception
Capital Facilities Maintenance Program (CFMP) $125,000,000 per recipient per year Treasury Board approval for contribution in excess of the maximum
First Nations Infrastructure Funds (FNIF) Program $10,000,000 per recipient per year  
Fire Protection Awareness Program (FPAP) $500 Prize amount at both the schools and regional competition
$4,333 includes travel, accommodation and meal allowances for the national awards
$1,450 for other categories
$3,000 per region for travel, accommodation and meal allowances
$12,000 prizes costs per region		  

9.0 Basis on which payments will be made

Contribution progress payments and final payments will be made on the basis of one or a combination of the following:

Hold back

With the exception of First Nations or tribal council. ISC may hold back up to 20 % of the funding allocated for this service, until the recipient submits final and acceptable financial and other reports according to the requirements set out in the funding arrangement.

10.0 Application requirements and assessment criteria

Capital Facilities and Maintenance Program

  1. Before entering into a funding arrangement, ISC must confirm its authorities to enter into an agreement with the recipient and to fund the activities. In most cases, capital facilities infrastructure services, operation and maintenance, and housing would be one of several services to be funded by ISC for a particular recipient. The potential recipient, therefore, shall be required to provide a complete review of its accountability and management processes and systems. This review shall be based on appropriate accountability and management control frameworks.
  2. Following an assessment of the potential recipient's accountability and management processes, ISC may also work with that recipient to prepare a management development plan. This plan must address any gaps identified by the assessment and must be part of all funding agreements with the recipient until all recommended actions in the management development plan have been implemented.
  3. The departmental review procedures for verifying eligibility, entitlement and application approval, including risk assessment, are detailed in relevant departmental program directives and procedures.

Minimum program requirements

Construction of physical assets, including housing: will be planned and implemented according to the following management principles:

  • the project will have a well defined and formally approved scope of work, schedule and budget
  • a qualified project manager acceptable to the band or tribal council (council) will be appointed to manage the implementation of the project
  • a feasibility study will be carried out in advance of construction of the project commencing when deemed necessary by the council
  • the project will be designed to meet all the applicable federal, provincial and territorial codes and standards for the design, construction and operation of similar physical assets, and in accordance with departmental level of service standards, as may be amended from time to time
  • where the total estimate cost of the project exceeds $50,000 or is not within the competence of a technician or technologist, the design of the project will be approved and so certified by a professional engineer or architect licensed to practice as such in the province or territory where the facility is to be constructed
  • the project will be inspected and certified for compliance with applicable regulatory requirements by qualified inspectors at the various stages
  • the council will have a policy on the use of the competitive tendering process to ensure best value, prudence, probity and sound contract management

In addition, recipients are required to use capital surplus amounts for projects that are included on ISC's approval First Nation Infrastructure Investment Plan.

Where the council has opted into the community-based on-reserve housing program, the recipient must have in place a multi-year community-based housing plan that addresses the following:

  • maximizing the life expectancy of housing through sound maintenance repair and insurance practices
  • rehabilitation of existing housing to an acceptable standard, such as the Canada Mortgage and Housing Corporation Residential Rehabilitation Assistance Program standards
  • additions to existing houses and new construction to an acceptable standard, but not less than the National Building Code
  • linkages to job creation, training and skills development and economic and business development
  • a resource plan

The recipient will provide annual updates to the community-based housing plan.

For the operation and maintenance of physical assets, the recipient will at all times provide for the preservation of public health and safety and the environment, and the protection of the investment in the physical assets under its care and control. The recipient will operate and maintain capital assets by:

  • developing and maintaining a current inventory of all capital assets
  • developing and maintaining a written, up-to-date Maintenance Management Plan and budget consistent with service standards for each capital asset that:
    • identify minimum performance standards for that capital asset
    • identify all maintenance activities to be conducted for that capital asset
    • assign responsibility and identify a schedule and a budget for those maintenance activities
    • maintain a record of those maintenance activities and associated expenditures
  • ensuring that satisfactorily trained personnel are available at all times to operate and maintain technical systems, for example, water and wastewater treatment plants and other technical systems according to the design standards of the specific plant or equipment
  • making arrangements for the provision of fire protection services for the community

First Nation Infrastructure Fund

First Nations are to identify all eligible infrastructure projects through their First Nation Infrastructure Investment Plan and submit it to ISC.

The program guide, available on the ISC website, outlines the program and all application requirements

Fire Prevention Awareness

The fire poster competitions will be initiated by the Indigenous Firefighter Association, which will send a promotional package to all prospective school principals inviting them to participate. To ensure consistency, all participating schools and regions will be subject to the same set of guidelines for the competition. The poster competition will include the following 4 categories of contestants: kindergarten to grade 2, grades 3 to 6, grades 7 to 8 and grades 9 to 12. Students in the grades 9 to 12 category will be eligible to submit multimedia projects in addition to traditional poster entries. Separate judging and prizes will be awarded in each category. Category winners advance progressively through 3 levels of the competition. The first level will involve individual schools. The principal will direct the organization and judging process needed to select 1 winner from each category. The second level of the competition will be at the regional level. Officials from the provincial First Nations fire fighting association will direct the competition and judging which will result in 1 winner per category being selected. The third level will be managed by the Indigenous Firefighters Association of Canada's National Board where regional winners will each compete for the National prizes in 1 of the 4 categories.

A maximum total of 8 national prizes, first, second, third and 5 honorable mentions for each category ensures winners from each participating region win a prize thereby maximizing the fire protection promotional value of the competition.

For the travel costs, travel claims for students and chaperons are submitted to Indigenous Firefighters Association of Canada for reimbursement.

11.0 Due diligence and reporting

Departmental systems, procedures and resources are in place to ensure due diligence in approving transfer payments, verifying recipient eligibility as well as managing and administering grants and contributions programs. They include the Infrastructure Performance Measurement Strategy, which identifies performance targets, measures and data used for program management and decision making, data collection instruments (DCIs) which allows for the systematic capture of recipient reporting data and which serves, inter alia, as a repository for DCI information, allowing monitoring, analysis and reporting of program data and decision support in concert with ISC's Grants and Contributions Information Management System (GCIMS). Additionally, the Construction and Maintenance of Community Infrastructure Program conducts 2 different types of inspections to assist with the monitoring of assets on reserve:

To determine the performance of the Construction and Maintenance of Community Infrastructure program the key performance indicators includes:

Housing

  • Positive change in rating in the community well-being index for employment, income, education and housing sub-indices
  • Percentage of First Nations housing is adequate as assessed and reported annually by First Nations. Adequate is defined in the year-end reporting handbook for the housing data collection instrument
  • Percentage of First Nations that adhere to the 1996 Housing Policy having valid housing plans

Schools

  • Percentage of First Nations communities implementing Maintenance Management Plans for schools
  • Percentage of First Nations schools with a greater than fair condition rating based on physical and structural conditions as assessed through Asset Condition Report inspections

Water

  • Percentage of First Nations drinking water systems with treated water that meets prescribed standards in the Guidelines for Canadian Drinking Water Quality
  • Percentage of First Nations drinking water systems that have low risk ratings
  • Percentage of First Nations systems that have primary operators certified to the level of the drinking water systems

Wastewater

  • Percentage of First Nations wastewater systems that have low risk ratings
  • Percentage of First Nations systems that have primary operators certified to the level of the wastewater systems
  • Percentage of First Nations wastewater systems producing treated water that meet effluent quality regulations and guidelines

Roads and bridges

  • Percentage of bridges with greater than fair condition rating
  • Percentage of roads with greater than fair condition rating

Other

  • Percentage of First Nations communities implementing Maintenance Management Plans for drinking water and wastewater systems
  • Percentage of First Nations communities implementing annually-updated Emergency Management Plans for each of the following assets: water systems, wastewater systems schools, and fire halls

The department has systems, procedures and resources in place to ensure due diligence for financial reporting. Each project is subject to different financial reports based on the recipient, project risk and the cost of each project. The table below outlines the different types of financial reports required.

Reporting requirements of First Nations, tribal councils and First Nations political organizations financial reporting requirements: Chart 1
Risk score Types of financial reports package
F-0080 Annual audited financial statements package F-0081 Annual unaudited schedule of revenue and expenditure package
Low Yes (>= $150k) Yes (< $150k)
Medium Yes (>= $100k) Yes (< $100k)
High Yes (>= $75k) Yes (< $75k)
Reporting requirements for all organizations other than First Nations, tribal councils and First Nations political organizations financial reporting requirements: Chart 2
Low risk score
  Types of financial reports package
Recipient funding group Type and purpose of funding No additional reports F-0190 Annual audited financial statements package F-0191 Annual audited schedule of revenue and expenditure package F-0192 Annual unaudited schedule of revenue and expenditure package
Provincial or territorial organization or other legislated organization Contributions: invoice based reimbursement Yes      
Advance       Yes
All others Contributions: invoice based reimbursement Yes      
Advance for programs and services   Yes(> = $150k)   Yes(< $150k)
Other advance including projects based     Yes(> = $150k) Yes(< $150k)
Medium risk score
  Types of financial reports package
Recipient funding group Type and purpose of funding No additional reports F-0190 Annual audited financial statements package F-0191 Annual audited schedule of revenue and expenditure package F-0192 Annual unaudited schedule of revenue and expenditure package
Provincial or territorial organization or other legislated organization Contributions: invoice based reimbursement Yes      
Advance       Yes
All others Contributions: invoice based reimbursement Yes      
Advance for programs and services   Yes(> = $100k)   Yes(< $100k)
Other advance including projects based     Yes(> = $100k) Yes(< $100k)
High risk score
  Types of financial reports package
Recipient funding group Type and purpose of funding No additional reports F-0190 Annual audited financial statements package F-0191 Annual audited schedule of revenue and expenditure package F-0192 Annual unaudited schedule of revenue and expenditure package
Provincial or territorial organization or other legislated organization Contributions: invoice based reimbursement Yes      
Advance       Yes
All others Contributions: invoice based reimbursement Yes      
Advance for programs and services   Yes(> = $75k)   Yes(< $75k)
Other advance including projects based     Yes(> = $75k) Yes(< $75k)

12.0 Official languages

Where a program supports activities that may be delivered to members of either official language community, access to services from the recipient will be provided in both official languages where there is significant demand and part IV of the Official Languages Act is applicable. 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 part VII of the Official Languages Act.

13.0 Intellectual property

Where a contribution is provided for the development of material in which copyright subsists, conditions for shared rights will be set out in the funding agreement.

14.0 Repayable contributions

First Nations Infrastructure Fund

Repayment of contributions is not required where contributions are paid to enterprises controlled by a First Nation and the articles of incorporation do no permit dividends to be paid or distributed to shareholders or there is no intent to distribute dividends. In case of sale or other disposition of the project assets, ISC may reserve the right to a repayment proportional to the contribution made to the project. In instances where a First Nations community receives funds resulting from the disposal of project assets, ISC will recover the cost from the First Nation or tribal council.

Where asset is sold, leased, encumbered or disposed of within: Return of contribution in current dollars
2 years after project completion 100%
Between 2 and 5 years after project completion 55%
Between 5 and 10 years after project completion 10%

15.0 Redistribution of contributions

Where a recipient delegates authority or further distributes contribution funding to an agency or a third party, such as an authority, board, committee, or other entity authorized to act on behalf of the recipient, the recipient shall 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 equitable services shall be compromised by any delegation or redistribution of contribution funding.

Recipients have full independence in the selection of such third parties and will not be acting as an agent of the government in making distributions.

16.0 Other terms and conditions

16.1 Program guide

The program guide for FNIF is available on the ISC website.

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