Tribal Council Funding Program Manual

4.1.1.a. Moratorium on Tribal Councils

As part of the Deficit Reduction Action Plan (2012), a moratorium was placed on the formation of new tribal councils. The moratorium was intended to control future funding pressures.

In 2016, the Department came to the conclusion that the moratorium restricted communities from moving forward and conflicted with the Department's priority to support stronger indigenous communities. To support and help strengthen indigenous communities, the Department is allowing First Nations to decide how they wish to aggregate, in ways that they choose, in accordance with historical, social, cultural, geographic or economic commonalities with other communities.

The moratorium on tribal councils was lifted, effective April 1, 2017.

4.1.1.b. Minimum Standard for New Tribal Councils

When First Nations deem it necessary for aggregate program/service delivery, they have the option of forming a tribal council and request TCF. The tribal council's Board of Directors will have to represent each of the member First Nations.

To be eligible for TCF, new tribal councils must satisfy the Department that there exists a valid historical, social, cultural, geographic and/or economic reason to justify the new tribal council.

New tribal councils will need to meet the Objective of the TCF Program. This means each new tribal council will have to demonstrate how it plans to provide capacity development to its member First Nations and/or aggregate program/service delivery, as endorsed by its member First Nations. Refer to Planned Funded Services for additional information.

New recipients are responsible for explaining to the Department how they meet (or plan to meet) the Roles and Responsibilities of tribal councils and of member First Nations (refer to Roles and Responsibilities). These include providing the Department with a 12 month notice (refer to Notice for Major Changes), providing the Department with their incorporation documents (refer to Incorporation and in "Good Standing"), and the requirement for a Band Council Resolution from each member First Nation showing its intent to affiliate (refer to Monitoring Member First Nations).

The minimum number of member First Nations required for a new tribal council is two (2), which is the minimum requirement for all tribal councils (refer to Member First Nations).

4.1.1.c. Approval of Funding for New Tribal Councils

Before approving a new tribal council, discussions with the Department will have to take place to ensure that expectations are clear about the tribal council's requirement to meet the criteria.

Regions will need to determine the potential cost of funding the new tribal council, as well as a source of funds. The number of eligible programs/services to be provided by the new tribal council will need to be established in order to determine the correct funding tier. This can be calculated by the Region, taking into account the other drivers of the funding formula, and can be verified by the Program at headquarters.

It is important to keep in mind that the stacking limits cannot be exceeded (refer to First Nations Moving between Tribal Councils for details).

The approval of a new tribal council is sought by the Region, in consultation with the Governance Capacity Directorate at HQ, through a Decision Note to the Deputy Minister (DM). The Decision Note will brief the DM on how the Minimum Standard for New Tribal Councils has been met and will recommend to approve the tribal council as a new Tribal Council Funding recipient (refer to Roles and Responsibilities).

The region is responsible for communicating approval/disapproval of the new tribal council to the applicant.

Once a new tribal council has been approved for TCF, the TCF Program Policy will apply, including the Application, Work Plan and Report processes.

4.1.1.d. Unrecognized Tribal Councils

Certain organizations are known as tribal councils yet are not (or no longer) receiving TCF or recognized by the TCF Program. If such an organization wishes to be re-admitted under the TCF Program, it will be required to go through the same process as New Tribal Councils.

If a tribal council was cut off from the TCF Program in the past and has an outstanding balance owing to the Department, a repayment plan may be required prior to the tribal council being re-admitted under the Program.

4.1.3.a. New Bands/Band Amalgamations

First Nations have the possibility of either splitting to form new bands or amalgamating with another First Nation to become one. Refer to the New Band/Band Amalgamation Policy and New Bands in section 17(1) of the Indian Act.

In cases where a new First Nation is created from a formerly unrecognized group of individuals or if a First Nation is splitting into two separate First Nations, eligibility as member First Nations for TCF purposes will be based on the terms and conditions of the creation or the split.

4.1.3.b. Inactive Member First Nations

When a member First Nation becomes inactive, it still counts towards its affiliated tribal council's tier and will still be considered a member First Nation. The change in affiliation will only become effective following the appropriate Notice for Major Changes.

4.1.3.c. First Nations Moving between Tribal Councils

First Nations have the option of leaving a tribal council and becoming affiliated with another; however, the stacking limits cannot be exceeded.

If a First Nation's original tribal council is locked in a Block Funding Agreement, the Department will have to determine if the First Nation was a main driver for that tribal council's funding tier. This is because the Program Terms and Conditions will not allow a First Nation to drive the formula for two different tribal councils.

In such a case, the newly affiliated tribal council would likely have to face a reduction in TCF until the end of the original tribal council's funding agreement.

If the First Nation's originating tribal council has a set/fixed funding agreement, there is no issue because funding tiers are calculated and re-calculate with each new fiscal year.

What Appendix A – Roles and Responsibilities of the TCF Program Policy says:

What the Tribal Council Funding Program Policy says:

4.3.1.a. Submission and Deadline

Tribal councils must submit the Application for Tribal Council Funding to the Region. If the submission is not approved by the recommended date of January 15, there may be funding delays. If the submission is not approved by March 31, funds may not be secured.

4.3.1.b. Incorporation and in "Good Standing"

Tribal councils must be incorporated under provincial or federal legislation and must maintain that status. They must also be in "good standing" under the laws of Canada or of the Province or Territory. These requirements are described in the funding agreement.

It is important to ensure that the name of the tribal council on the Application is its official incorporated name because it will be used in the funding agreement.

"Good standing" is a term used in funding agreements. A tribal council that is past due in corporate filing should not be categorized as not being in "good standing", simply on the basis of being past due in corporate filing.

4.3.1.c. Member First Nations

Tribal councils need at least two (2) member First Nations, and all member First Nations must be listed on the Application.

For TCF purposes, on an exceptional basis, the Department can consider an Indian Act First Nation as more than one member First Nation.

Refer to Monitoring Member First Nations for details.

4.4.1.a. Work Plan Submission and Deadline

To be eligible for TCF, tribal councils must have an approved Application. They must also have submitted the Tribal Council Consolidated Work Plan to the Region. If the Work Plan is not approved by January 31, there may be funding delays. If it is not approved by September 30, funding may be reduced.

What the Tribal Council Funding Program Policy says:

4.4.1.b Planned Funded Services

Tribal councils must identify their planned expenditures in the Work Plan Information section of the Work Plan, and their expenditures in the Report Information section of the Report. They must categorize their expenditures as one of three funded services shown below, as they are on the form.

1. Core Administrative Costs
   
   Core administrative costs generally consist of costs related to salaries and wages, and office overhead and rent. The Work Plan and Report do not provide space for descriptions. Therefore, the minimum requirement for this field is the total dollar amount.
2. Delivery of Funded Services
   
   This consists of the costs associated with the delivery of departmentally funded programs/services (major programs) that are managed by the tribal council. The dollar amount in this field should be similar to the funded programs/services that the tribal council delivered the previous year, unless a change to the tribal council's funded programs/services was made. The Work Plan and Report do not provide space for descriptions. Therefore, the minimum requirement for this field is the total dollar amount.
   
   If the tribal council does not provide funded services, this field should have a dollar amount of zero (0).
3. Capacity Development of Member First Nations
   
   For Capacity Development, there are many possible activities and it is important that tribal councils be clear about what they intend to do with the funding. As such, tribal councils are required to enter their Capacity Development activities, give descriptions, and provide planned expenditures for each activity individually.

The activities may include one or both of the following activity types:

1. Capacity development projects, where there is transfer of knowledge and where there is an expectation that First Nation employees will now be able to deliver a specific service or complete a specific task based on their newly acquired skills or knowledge. Projects in this category are not ongoing and therefore do not require ongoing funding.
2. Advisory services type support, which provides specialized services with an economy of scale that is not available to any individual member First Nation. For this activity type, the service in question may be ongoing and funding may be requested on an ongoing basis.

Refer to Appendix C – Guidelines on Eligible Activities and Expenditures of the Tribal Council Funding Program Policy for list of activities that can or cannot be included.

Tribal councils must at a minimum deliver funded services (B) and/or provide capacity development (C) to be eligible for TCF. Core administrative costs (A) alone are not enough.

Regardless of the amount of information provided, the Work Plan and Report are acceptable as long as the regional program officer is confident that the Planned Expenditures in the Work Plan and Expenditures in the Report are clear and eligible.

What the Tribal Council Funding Program Policy says:

4.4.1.c. Eligibility of Planned Expenditures

Refer to Eligibility of Expenditures.

4.4.1.d. Amount of Expenditures

Tribal councils will often submit Work Plans with expenditures that go above their eligible funding amount. In such cases, the regional program officer should keep in mind that the Work Plan will be used to assess the tribal council's reporting and audited financial statements.

In rare situations, a tribal council may submit a Work Plan covering less than its eligible funding amount. In such cases, the Region would need to inform the tribal council that it is eligible for the full tier amount. If the tribal council chooses not to provide an amended Work Plan, it may only be funded at the amount requested.

Tribal councils may also have an approved Work Plan, but for some reason, realize that they will not be able to provide a specific activity. Ideally, the tribal council would submit an amended Work Plan to replace that expenditure with another.

What Appendix C – Guidelines on Eligible Activities and Expenditures of the TCF Program Policy says:

4.4.1.e. Endorsement of Member First Nations

Refer to Endorsement of Member First Nations in the Report section.

4.4.1.f. Supporting Documents

Refer to Supporting Documents in the Report section.

What the Tribal Council Funding Program Policy says:

Refer to First Nations Moving between Tribal Councils for information the stacking limits.

As it is difficult to create a Work Plan that accurately reflects the needs of member First Nations for the entire duration for a block funding agreement, and as the tribal council's priorities may change during the term of the agreement, it is important for tribal councils to make amendments to their Work Plan accordingly (i.e., annually), to ensure Endorsement of Member First Nations and Eligibility of Expenditures. For tribal councils in block funding agreements, the Call Package can serve as a reminder to tribal councils with new planned activities that the policy requires an amended Work Plan.

4.6.1.a. Report Submission and Deadline

Tribal councils must have received TCF in the last fiscal year. They must have submitted the Report on Tribal Council Funding to the Region. If the Report is not received and accepted by April 30, TCF will be halted.

4.6.1.b. Funded Services

Refer to Planned Funded Services.

4.6.1.c Eligibility of Expenditures

Refer to Appendix B – Guidelines on Ongoing Major Programs of the Tribal Council Funding Program Policy for a breakdown of the programs/services that are eligible within each of the seven (7) ongoing major programs.

Refer to Appendix C – Guidelines on Eligible Activities and Expenditures of the Tribal Council Funding Program Policy for direction on the eligibility of activities and expenditures in a work plan and/or a report.

For the Work Plan, tribal councils must clearly identify their planned Activities for C) Capacity Development of Member First Nations. If the eligibility of a specific Planned Expenditure is not clear, the regional program officer must request clarifications in the Description section of the form for that Activity, or request Supporting Documents. Ineligible activities can be removed from the Work Plan by amending it and having an Endorsement of Member First Nations. Regardless of whether or not ineligible activities are removed, only eligible expenditures will be funded.

As a tribal council's needs and priorities can change throughout the year, especially during the term of a Block Funding Agreement, it is important that the tribal council make amendments to its work plan accordingly, if necessary, to ensure eligibility of expenditures and Endorsement of Member First Nations.

Tribal councils must report on their expenditures identified in the Work Plan, but should still verify them because the Report does not always reflect the Work Plan.

If an expenditure identified in the Report is not eligible, the amount allotted towards that activity will be recovered, unless it was replaced by another endorsed eligible activity.

If a tribal council has a surplus of funds at the end of an agreement, those funds will be handled differently depending on the type of funding agreement. Refer to Backgrounder – Funding Approaches for information about whether those funds need to be recovered or if they can remain with the tribal council.

4.6.1.d Accounting

Refer to The Reporting Guide.

4.6.1.e. Endorsement of Member First Nations

For a Work Plan to be approved, it must first be endorsed by each member First Nation. In the same way, the Report must also be endorsed. Member First Nations are responsible for endorsing their tribal council's Work Plan and Report in a timely and efficient manner.

The ideal endorsement has each member First Nation sign the Member First Nation Endorsement portion of the Work Plan or Report, but endorsements can also be done in attachments. Regions should ensure that attached endorsements are dated. Tribal councils could attach endorsements from a previous submission to a new one, and this is not acceptable.

For a well-structured tribal council, endorsement is generally not an issue because it will have a good Work Plan, have it endorsed by all member First Nations, and follow through with that Work Plan for the term of the agreement. A well-organized tribal council will also provide the Department with an amended Work Plan when priorities change and activities need to be added or removed. Maintaining a Work Plan will ensure that the tribal council will be funded for its eligible expenditures.

If a tribal council with an endorsed Work Plan is experiencing exceptional issues in obtaining full endorsement of a Report, the region may take this into consideration, provided the eligible expenditures do not vary from the Work Plan to the Report.

In situations where a First Nation is refusing to endorse its tribal council's Work Plan or Report, refer to Inactive Member First Nations.

4.6.1.f. Supporting Documents

Tribal councils have the option of attaching supporting documents to their Work Plan or Report. The key is for the regional program officer to be comfortable with approving the Work Plan and Report.

If the Work Plan or Report has a reference to an attachment, it will be considered incomplete until the supporting document has been received and attached. Alternatively, if an attachment has been provided but is not referenced in the Work Plan or Report, the regional program officer is responsible for contacting the tribal council to confirm whether or not the attachment was meant to be referenced.

4.6.1.g. Funding Agreement Met

Tribal councils must meet and abide by the terms of their funding agreement. If they do not, some funds may need to be recovered. In addition, funding for the following fiscal year may be denied.