1 The Canada Common Funding Agreement Aboriginal Affairs & Northern Development Canada (AANDC) / Health Canada (HC) November, 2015

2 The Canada Common Funding Agreement The Canada Common Funding Arrangement (CCFA) is a voluntary, singular contribution agreement for First Nations that receive funding from both HC and AANDC  Introduced in FY 2013/14 for low risk, common recipients, who were interested in a common agreement  Adopted by two First Nations in Ontario for FY 2013/14 and three additional First Nations for FY 2014/15  The CCFA was built from existing HC-FNIHB and AANDC agreement models to create one agreement with common terms and conditions and department specific program schedules

3 Guiding Principles  The CCFA is optional and entered into at the request of commonly funded recipients  The objective is to reduce the administrative burden by streamlining departmental policies, and avoiding long and detailed agreements  Use existing clauses wherever possible to minimize unnecessary adjustments.

4 Benefits of CCFA The focus of the CCFA model is to reduce the administrative burden placed on recipients.  Recipients receive one agreement signed by both AANDC and HC-FNIHB  Harmonized terms and conditions found in body of agreement and fewer departmental specific conditions identified in Schedules

5 Building on Existing Relationships The CCFA model seeks to build upon existing relationships and promote collaboration between First Nations and funding organizations.  Continued relationships with both departments through AANDC Funding Services Officers and HC Senior Program Officers  Collaboration between AANDC officers and HC officers to ensure efficient service delivery is received by First Nations

6 Reporting Requirements Reporting on the use of public funds to community members and to Canadians remains an essential element of the management control framework for transfer payments.  CCFA Recipients have a singular annual audit, submitted to AANDC which is subsequently shared with HC and is completed in accordance with the AANDC Reporting Guide  Reporting Guide available at:  Any additional program reporting requirements ( financial or activity based reporting) are laid out in each individual Program Plan

7 Dispute Resolution The objective of the Dispute Resolution Guide is to support fair, effective resolution of any Dispute between Canada and a Council regarding the interpretation of a provision of a CCFA  AANDC & HC have adopted the Dispute Resolution Guide (DRG) for disputes under a CCFA  The DRG sets the process to be followed to resolve a dispute through facilitated discussion or mediation or by other mutually agreeable processes  Depending on the circumstances of a dispute and at Canada’s discretion, Canada may be represented by one or both departments

8 Default Management & Remedies on Default Defaults under a CCFA agreement and remedies on default are provided in Section 10 & 11 of the agreement respectively  A Council may be considered to be in default of it’s obligations under the terms of the agreement to either both signatory Ministers or an individual Minister  A recipient would default with both Ministers if: The auditor of a Council provides a disclaimer of or adverse opinion on the recipient’s audited financial statements The Council declares bankruptcy, becomes insolvent or goes into receivership  A recipient would default with a Minister if: In the opinion of the respective Minister the Council is not fulfilling their obligations under the terms of the agreement

9 Remedies on Default Default scenarios and Remedies are identified within the body of the agreement.  As per section 11.1 in the CCFA agreement "In the event the Council is in default under this Agreement, and without limiting administrative measures a signatory Minister may take under an Act of Parliament, Canada may take one or more of the following actions as may reasonably be necessary, having regard to the nature and extent of the default:"  Any remedy on default must be an appropriate and proportionate response to the default that has occurred.  Based on the Default Prevention and Management Policy (DPMP), default prevention and management may be targeted at a specific program versus intervention administered as a whole.

10 Recipient Engagement to Date The introduction of these agreements has been supported by engagement efforts with First Nations and First Nations organizations so as to ensure that these groups are properly informed and have been provided with the opportunity to ask questions and provide feedback  Information packages mailed to First Nations and Tribal Councils in February 2013  Presentations at AANDC information sessions held in November 2013 and 2014 in Sudbury, Brantford and Thunder Bay  Meetings with individual First Nations as requested by First Nations seeking additional information on the CCFA model

11 Recipient Engagement Strategy Going Forward AANDC and HC are committed to moving forward collaboratively with this model in a fashion that ensures that First Nations and First Nations organizations are informed of this model and any changes in this area  Continued commitment to engage and provide information sessions for First Nations groups and individual First Nations based on expressions of interest  Use of video conferencing and teleconferencing technologies to facilitate  Please contact either your AANDC Funding Services Officer or HC Senior Program Officer to initiate discussions.