Capital Assets Guide : Annexes


An updated PDF version of the Capital Assets Guide is now available by email request and will be published online in the coming months. Please note that until web updates have been completed, some information below may be outdated. To request the most up-to-date version of the guide, please email

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Annex A: Glossary

Appeal: An appeal is an application submitted by a funding requestor with the goal of getting a fully or partially denied capital request reversed.

Complex project: The complexity of a project is determined based on an array of factors including but not limited to: the type of project; the overall anticipated cost of the project; the length of time it will take to complete it; if it is a joint project with multiple service providers; if it is a multi-purpose building intended to offer multiple types of services; where the asset is to be located; if there are health and safety implications; if the property is connected to a road, water and wastewater system, and a source of power; and if there are any environmental impacts.

Escalation: An internal ISC process designed to ensure that, prior to a decision being made by the First Nations Child and Family Services (FNCFS) team concluding that a request must be fully or partially denied, in the case of FNCFS, other ISC colleagues with relevant professional backgrounds (e.g., social workers) or relevant para-professional backgrounds and, if necessary, the Assistant Deputy Minister, review the funding request.

In the case of requests under Jordan's Principle, prior to a decision being made by the Coordination Unit for Jordan's Principle concluding that a request must be fully or partially denied, until a longer-term approach is established, all requests will be approved by the Assistant Deputy Minister responsible for the Capacity, Infrastructure and Accountability Division. Prior to making a decision that a request must be fully or partially denied, the request will be reviewed by the Senior Assistant Deputy Minister responsible for Jordan's Principle.

For more information on the escalation process for the Canadian Human Rights Tribunal (CHRT) orders on capital projects funded under the FNCFS Program or through Jordan's Principle (i.e., 2021 CHRT 41), please see Annex E.

Feasibility Study: The feasibility study stage examines all technically sound and economically viable options available to achieve the objectives of a capital project and provides the planning information required for the project to move ahead to subsequent stages. It details the options and investigates site issues impacting those options, weighs the advantages and disadvantages of each option, assesses the cost effectiveness of each option, and determines if the options meet ISC program funding requirements. The feasibility study report recommends a preferred option. The feasibility study report should determine the most appropriate strategy for moving ahead with the project and maximizing benefits to the community, while meeting ISC program funding requirements.

FNCFS agency: Provincially delegated and First Nation-led agencies providing child and family services to First Nations children, youth, and families. This does not include service providers operating on behalf of First Nations exercising jurisdiction over FNCFS under An Act respecting First Nations, Inuit and Métis children, youth and families.

Funding agreement: A written agreement or documentation constituting an agreement between the Government of Canada and a funding recipient setting out the obligations or understandings of both with respect to one or more transfer payments. It describes the requirements needed to maintain the accountability relationship between ISC and the funding recipient. Additional information on National Funding Agreement Models is available online.

Funding recipient: An individual or entity that has met the eligibility criteria of the program and has signed a funding agreement with ISC to deliver an initiative (program, service, or activity).

Funding requestor (aka Requestor): An individual or entity that has met the eligibility criteria of the program for submitting a capital funding request needed to support the delivery of FNCFS or the delivery of services funded under Jordan's Principle.

Needs Assessment: An assessment process to determine and address needs, or gaps between current and desired conditions.

Operations and maintenance: The activities associated with the daily operations and normal repairs needed to preserve an asset so that it continues to provide acceptable services and it achieves its expected lifespan.

Ready to Proceed: The project has received approval from the First Nation and all applicable project stages (e.g., feasibility or design stages for construction projects) for that project were completed. The asset can be purchased or construction can begin at this point.

Remote: First Nations scored as 0.4 or more based on the Canadian Remoteness Index as published by Statistics Canada.

Annex B: FNCFS eligibility criteria – Capital for prevention services

To be an eligible prevention-related capital asset, the capital asset must provide a location, space, or area, to develop and deliver prevention services, and is required to fit into at least one of the following categories:

  1. The capital asset is a safe, accessible, confidential, culturally appropriate and age-appropriate program setting, that could include administrative space, satellite offices for FNCFS agencies or First Nations, and, where required, accommodations for personnel to deliver FNCFS prevention services.
  2. The capital asset serves to address gaps in service delivery recognizing the unique challenges and added time and expense of delivering prevention services in remote First Nations and communities.
  3. The capital asset will provide a space to deliver services that seek to address the structural drivers and root causes of the over-representation of First Nations children and youth encountering the child welfare system, namely: poverty, substance misuse, multigenerational trauma, and/or family violence. For example, this could include emergency accommodations, specialized resource homes, therapeutic and transitional spaces.
  4. The capital asset will enhance the safety and well-being of First Nations children and families, will reduce incidences of family breakdown or crisis to ensure First Nations children and youth have every opportunity to safely remain together with their families, and leverages intergenerational cultural child caring approaches. For example, this could include alternate living arrangement housing for families, safe, transitional or group homes.
  5. The capital asset will serve to mitigate imminent risk factors within the household for the family to remain intact, and to support reunification and repatriation. For example, this could include multi-purpose spaces to support safety planning, repatriation, reunification, and visitation of families.
  6. The capital asset will provide a space to deliver services that support the physical, mental, emotional, and spiritual wellness of First Nations children, youth, young adults, and families with approaches that ensure connection to language and culture, as well as recognize historical and contemporary disadvantage, contextual and cultural differences. For example, this could include, child and youth, cultural and early intervention program spaces.
  7. The capital asset will provide a space to deliver consistent and reliable social support and resources to help First Nations children, families, and communities navigate crisis. For example, this could include, therapeutic programming sites, and safe, transitional, or interim needs-based accommodations.
  8. The capital asset will, as part of prevention service delivery, provide access to sport, recreation, and physical activity as a means of improving wellbeing outcomes. For example, this could include prevention program space that has an indoor or outdoor area for sports and recreation program related activities.
  9. The capital asset will, as part of prevention service delivery, enable First Nations children and families to choose ways of increasing physical activity that relate to their tradition, culture, and language. For example, this could include prevention program space that has an indoor or outdoor area that promotes and supports physical activity as a part of the services delivered to children and families.

Annex C: Capital Funding Request form

The Capital Funding Request – First Nations Child and Family Services and Jordan's Principle form (PAW#40-013) is available for download online or by request from

Annex D: Examples of key information to include in feasibility study

Strategic context

Organization name

Detail the name of the organization requesting the capital investment.

Organizational overview

To build a strong rationale for a proposed investment, the current environment needs to be described. The organizational overview of the sponsoring agency should include:

  • mission
  • strategic vision, goals, and service objectives
  • current activities and services, including key stakeholders and clients
  • organizational structure (high level)
  • existing capacity—financial and human resources

Problem/opportunity statement

Express the problem or opportunity to which your agency or First Nation is responding.

Strategic fit

To make a robust case for change, the feasibility study should demonstrate how the proposed investment fits within the agency's or First Nation's broader strategic context and contributes toward its goals and objectives, e.g., successful family reunifications, fewer re-entries into protection. This subsection maps the investment proposal to the organizational framework.

Drivers for change

Identify the drivers that have triggered the investment proposal, e.g., additional funding is now available and there is an ongoing need for capital or increased demand for services or demand for additional services. Both internal, e.g., organizational reprioritization, and external drivers of change should be identified and clearly linked to the business need.

Analysis and recommendation

Options analysis

Identify, describe, and explore the range of possible capital project options that can address the need. The list should demonstrate due diligence in exploring options.

Performance alignment

Define the evaluation criteria and how the project aligns with the goal of 2021 CHRT 41 which is to provide appropriate assets to support the delivery of FNCFS and/or the delivery of services under Jordan's Principle.

Life cycle cost for each option

Provide a complete description of the costs. Projected costing estimates should be based on total cost of ownership, which includes ongoing costs over the course of the investment's life cycle as well as potential compliance costs for stakeholder groups; e.g., costs to ensure an asset continues to comply with applicable building codes or health and safety regulations.

Cost-benefit analysis for each option

Based on the costs established for each option, describe how those costs are weighed against the benefits. Conduct the cost-benefit analysis for each option considering costs, benefits, and risks.

Risk analysis for each option

Identify the foreseen risks and conduct a risk assessment for each option, along with the development of a risk response. Risks may include challenges of working in remote areas, or the investment's importance to the agency's operations. A useful tool for assessing the risk and complexity of a project is the Treasury Board Project Complexity and Risk Assessment (PCRA).

Justification and recommendation

Identify the recommended option

Present the recommendation in a straightforward manner, clearly stating why the agency or First Nation will benefit by focusing its investment on one option.

Deciding factors

Identify the deciding factors (financial, strategic, and outcome-related) for selecting the preferred option.

Forecasted performance impact of recommended option

Present the contribution of the requested capital item towards the realization of the objectives of 2021 CHRT 41.

Life cycle cost

Present the life cycle cost for the requested capital item.

Risk mitigation measures of recommended option

Illustrate why the identified risks are acceptable. Narrative may be included to further contextualize the key factors supporting the overall risk assessment, which include impact, probability, outcomes, and so forth. A useful tool is the Treasury Board PCRA.

Annex E: 2021 CHRT 41 Escalation process

The escalation process can occur in 2 instances:

Scenario 1

The request can be escalated to the Assistant Deputy Minister (ADM) if ISC determines that the requestor did not demonstrate clearly how the capital asset supports the delivery of FNCFS and/or Jordan's Principle services as per the applicable Program Terms and Conditions or the Capital Order.

Scenario 2

The FNCFS team or the Coordination Unit for Jordan's Principle determines that the request must be fully or partially denied (e.g., apparent missing elements). The Regional Operations Sector's Capital team and/or First Nations Inuit and Health Branch's Capacity, Infrastructure and Accountability Division does not recommend supporting the requestor's preferred project option because the information provided does not justify it as the most suitable and cost effective option.

Step 1: Prior to escalation – review by other ISC employees with relevant technical expertise

Before escalating a request, the regional staff will engage with NHQ staff and/or the Coordination Unit for Jordan's Principle to discuss eligibility based on the knowledge and expertise of the social workers or other professionals and/or program leads within the team.

After completing their review, if it is determined that the project is approved and it can continue to proceed through any outstanding steps/stages or it is ready to proceed, the regular process to transfer funds will be pursued.

After completing their review, if it is determined that the request does not meet the eligibility criteria in the CHRT order or the Program terms and conditions, and/or eligibility for Jordan's Principle, the FNCFS team and/or the Coordination Unit for Jordan's Principle will provide the funding requestor with all of the relevant information regarding the request and highlighting the basis for their ineligibility concerns and the rationale for the proposed full or partial denial of the capital funding request.

Step 2: Initial step in escalation: 2021 CHRT 41 intake desk – Quality assurance check point

The 2021 CHRT 41 Intake Desk and/or the Coordination Unit for Jordan's Principle will conduct a quality assurance check of the file and ensure that the following information is included:

  • The rationale for the escalation.
  • Confirmation that the proposed denial was reviewed by other ISC staff with applicable professional backgrounds prior to the escalation to the ADM.

The Intake Desk for FNCFS and the Coordination Unit for Jordan's Principle will prepare the following for the ADM's review file:

  • A briefing note for the ADM which clearly outlines all the relevant background information and considerations related to the request and also explains the rationale for the proposed full or partial denial.
  • A denial letter ready to be sent to the funding requestor which clearly states the reason for the full or partial denial, identifies other potential sources of funding (if possible), and key information on the appeals process.

Step 3: Escalation file undergoes ADM review

The ADM reviews the respective escalation file.

Upon the ADM's decision regarding the approval or denial of the request, the FNCFS team and/or the Coordination Unit for Jordan's Principle will notify the funding requestor and update the file for record keeping purposes.

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