Common menu bar

Breadcrumb

Aboriginal Skills and Employment Partnership Terms and Conditions for Contributions

1. Summary

The Aboriginal Skills and Employment Partnership (ASEP) initiative represents an important contribution to improvements in Aboriginal skills and learning outcomes. In support of Advantage Canada , (ASEP) addresses both skills and employment deficiencies. Each (ASEP)-funded project will have a collaborative approach to a comprehensive Aboriginal training and employment plan that links skills development to specific job opportunities on major economic developments across Canada with large employment impacts. The initiative will provide both immediate access to jobs and continuous skills development (i.e., short and long-term benefits).

2. Authority

Budget 2007

On November 23, 2006 , the Government released its long term, national economic plan, Advantage Canada: Building a Strong Economy for Candians, designed to make Canada a true, world economic leader. Advantage Canada recognizes the need to help Canadians facing unique challenges and traditionally under-represented in the workforce such as Aboriginal people and to build on programs such as the Aboriginal Skills and Employment Partnership Program. Subsequently, Budget 2007 committed $105M to extending and expanding (ASEP) over the next five years (2007-2008 to 2011-2012 ). This included a commitment of $35M in 2007-2008 to 2008-2009 ($5M and $30M, respectively).

Legislative Authority

(ASEP) was initially developed in 2003 under the authority of section 6 of the former Department of Human Resources Development Act. The authority of the Minister of Human Resources and Social Development (HRSD) to implement a renewed (ASEP) is derived from section 7 of the Department of Human Resources and Skills Development Act. Section 7 provides that the Minister may, in exercising the powers and performing the duties and functions assigned by the Human Resources and Skills Development Act, establish and implement programs designed to support projects or other activities that contribute to the development of human resources of Canada and the skills of Canadians, and the Minister may make grants and contributions in support of the programs.

3. Objectives And Results

The overall objective of the (ASEP) initiative is sustainable employment for Aboriginal people leading to lasting benefits for Aboriginal communities, families and individuals. The (ASEP) will aim to promote maximum employment for Aboriginal people on major economic developments through a collaborative approach.

The objective will be achieved through m ulti-year training and employment plans developed and managed by formalized partnerships. These partnerships are provincially incorporated legal entities designated by the project proponents to administer the funds and implement the plan. The partnership or legal entity is comprised of Aboriginal organizations, employers, and others such as the provincial/territorial government, educational institutions and other members, or partners, as appropriate. (HRSDC) is not a part of the partnership, or a partner but maintains a collaborative relationship with the partnership and is responsible for ensuring that the activities are in line with the training plan and that the funding is spent on the activities delineated in the training plan.

The expected program outcomes will be:

Aboriginal participants assessed and placed in training or employment
Increased level of skills among Aboriginal participants
Increased employability of Aboriginal participants
Long term sustainable employment for Aboriginal people

4. Eligible Activities

Funding will be tied to the implementation of an approved Aboriginal training and employment plan for specific Aboriginal employment opportunities on or resulting from major economic developments. The following are the types of plan activities that may be funded to achieve the objectives of the (ASEP):

programs to help Aboriginals to obtain skills for employment, ranging from basic to advanced skills;
programs to provide wage subsidies to encourage employers to hire Aboriginals for jobs;
programs to help Aboriginals to start their own businesses and become self-employed and find employment;
programs to provide Aboriginals with opportunities through which they can gain work experience which will lead to on-going employment;
programs to provide personal supports and special employment assistance for Aboriginals with disabilities to help them obtain employment;
programs to provide employment services to help Aboriginals obtain employment such as awareness of skills requirements and career options for employment opportunities, counseling, testing and assessment (including prior learning assessment), job finding clubs and job search strategies);
programs to support employers, employee or employer associations, community groups and communities in developing and implementing strategies for dealing with labour force adjustments and meeting human resource requirements; and
other plan activities that, in the opinion of the Minister of (HRSDC), promote the objectives of the (ASEP).

All training and employment activities must take into account equity principles with regard to ensuring the equitable participation in the programs by women and persons with disabilities.

5. Guidelines

Activities will be carried out in accordance with the following guidelines:

Collaboration with departments and regional economic agencies of the Government of Canada to ensure due diligence in assessing projects and synergies between related employment, economic and social development initiatives;
cooperation amongst the local Aboriginal communities; the major employer(s), as well as secondary industries; labour; the provincial or territorial government; local and regional educational institutions; others as appropriate (e.g., sector councils);
development of an Aboriginal training and employment plan that includes joint accountability and evaluation frameworks for measuring the success of the (ASEP) project;
ensuring complementarity between the (ASEP) and the Aboriginal Human Resources Development Strategy or successor strategy;
reduction of dependency on income maintenance or support payments by helping individuals obtain or keep employment; ensuring availability of assistance to participants in either of Canada ’s official languages where there is a significant demand for access in that official language; and,
harmonization with federal and provincial employment and economic initiatives to ensure that there is no unnecessary overlap or duplication.

6. Eligible Recipients

Contributions are made to not-for-profit, incorporated organizations established for the purpose of the (ASEP), to develop and manage multi-year employment and training plans for increased employment on major economic development opportunities.

Eligible recipients will be incorporated organizations with membership that reflects the major interests within the geographical area of the economic development opportunities, including equitable representatives of all the local Aboriginal communities and the private sector. The incorporated organization may also include, as appropriate, representatives of provincial or territorial government(s), labour, local and regional educational institutions and sector councils, as well as others as appropriate.

7. Cost-Sharing

The Aboriginal training and employment plans will reflect a comprehensive approach to Aboriginal skills development and encompass a wide array of activities that will include eligible activities being funded under an agreement between (HRSDC) and the recipient. The members of the incorporated organization will be expected to make a contribution towards the implementation of the plan but not necessarily towards eligible activities under the agreement.

(HRSDC) will share the costs of implementing the Aboriginal training and employment plan with:

other Aboriginal organizations who will contribute their share through their Aboriginal Human Resources Development programs for individuals or through organizations that support skills development and employment opportunities for (ASEP)-funded projects;
private sector and the major employer(s), each of whose contributions will normally be achieved in the form of a cash contribution, but a portion could be in-kind such as the establishment of training facilities and the provision of assistance to enhance the capacity of Aboriginal organizations to participate in the partnership;
the government of the province or territory where the major economic development is being undertaken; and
federal departments and agencies as appropriate.

The normal or targeted level of assistance by the federal government, including (HRSDC), to the Aboriginal training and employment plan is 50%.

8. Stacking Limits

Where appropriate, the costs of eligible activities being funded under an agreement between (HRSDC) and the recipient will be shared with band councils/tribal councils/other Aboriginal organizations, the provincial/territorial government and the major employer(s). Costs may also be shared with federal government departments and agencies and the private sector. However, the maximum level (stacking limit) of Total Government Assistance (federal, provincial or municipal assistance for the same eligible expenditures) may total up to 100% of eligible expenditures.

The department shall ensure that the amount of the contribution it makes is appropriate given the amount of the contributions from other sources to the costs of the eligible activities.

The department shall obtain from the Recipient a statement or declaration about other sources of funding (government and private sector) for the eligible activities to be funded prior to approving a contribution and shall require the Recipient to report quarterly, any additional assistance received from that time.

The department shall ensure that, in the event that Total Government Assistance received by a Recipient exceeds the amounts of such assistance declared, the department has the right to reduce its contribution by the amount of any additional assistance that is to be received, or to require repayment of an amount equal to the amount of such assistance if the department’s contribution has already been paid.

9. Application Requirements

Proposals/applications for assistance from eligible recipients to carry out eligible activities must demonstrate that the implementation of the activities would support the objectives of the (ASEP) and be in accordance with the guidelines outlined in section 5, as applicable:

Applications must include:

a training and employment plan setting out a strategy and programs for providing opportunities for a minimum of 50 long-term jobs for Aboriginal individuals on or in connection with a large scale economic development opportunities;
an estimate of costs to be incurred, including any share to be borne by members of the incorporated organization or other sources, in a monthly cash flow forecast;
an outline of the results to be achieved;
disclosure of the involvement of former public servants who are under the Values and Ethics Code for the Public Service: and
applicants shall provide assurance that where lobbyists are utilized, they are registered in accordance with the Lobbyist Registration Act and that no actual or potential conflict of interest exists nor any contingency fee arrangement.

10. Agreements

Each approved proposal will be the subject of a formal agreement specifying the responsibilities of each party, the items for which expenditures are anticipated, the conditions under which payments will be made and mutually agreed upon measures designed to assess the success of the activities in attaining their objectives. The agreement will also include the terms and conditions under which a recipient may further distribute funds to third party organizations. The agreement will be consistent with Treasury Board requirements as set out in Appendix C of the Treasury Board Policy for Transfer Payments.

11. Eligible Expenditures

Contributions are made to eligible recipients, including those who further distribute funds to ultimate recipients, to cover the eligible expenditures of activities as follows:

where employment is involved, participant wages and related employer costs;
support to individuals who participate in an eligible activity which may include all or a portion of their living expenses and/or tuition expenses. Assistance may also be provided to cover all or a portion of the incremental costs of participation such as expenses relating to providing specialized services, arrangements or equipment for persons with disabilities, dependant care, transportation and accommodation;
overhead costs related to planning, organizing, operating, delivering and evaluating approved activities, including costs such as wages and employment related costs for staff, licenses, permits, fees for professional services, disbursements for research or technical studies, costs related to research subjects, disability needs, bank interest, utilities, materials, supplies, travel, insurance, rental of premises, leasing or purchase of equipment, costs of internal audits, evaluations and assessments;
the costs associated with the workers’ compensation actual costs or assessment paid directly to the provincial/territorial workers' compensation authority on behalf of employers and coordinators for participants or administrative staff are eligible expenditures;
where the recipient further distributes the funding to third party organizations that propose to carry out eligible activities, the reasonable and proper administration costs incurred by the recipient in administering the distribution of the contribution and monitoring and coordinating the implementation of eligible activities being carried out by the third party organizations; and
profits are not an eligible expenditure.

Normally, the total administration costs, including those of third party organizations, will not exceed 15% of the total contribution.

Assistance may be provided for capital costs such as computer equipment, software, simulators and other tools related to the training, to a maximum of $1 million per year per agreement where and to the extent that such costs are essential to the achievement of objectives. Any capital costs must be approved by (HRSDC) prior to purchase. Capital costs for the construction of a building (other than repairs or renovations to support the participation of persons with disabilities) or the purchase of land or buildings are not eligible costs under this program.

12. Maximum Agreement Value And Duration

The maximum amount payable per eligible recipient shall be $25 million over the life of the project.
Agreements will be for a maximum period of five years. Funding will be subject to annual review, progress reports and updating of the training and employment plan.

13. Basis And Timing Of Payment

Each approved proposal will be subject to a formal agreement specifying the conditions under which payments will be made and the obligations of the department and the recipient.

Advance payments shall be made in accordance with the Cash Management provisions of the Treasury Board Policy on Transfer Payments with exemptions to 7.6.4 and 7.6.6 based upon a forecast of cash flow requirements:
1. Quarterly or monthly advance payments based on cash flow forecasts will be allowable for agreements regardless of their value.
2. There will be a holdback of ten percent of the total value of the contribution agreement until completion of the project. A final payment of any sums due will be made following receipt and verification of the final claim and, if considered necessary by (HRSDC), following completion of a financial audit.
3. Recipients will be required to provide monthly or quarterly reports (as appropriate) on expenditures to (HRSDC).
4. Recipients may retain unexpended balances, as of the end of each fiscal year, of advances paid, and use the carry-over to defray eligible costs up to the end of September in the subsequent fiscal year. The amount of carry-over is supplementary to the amount of the contribution payable in the subsequent year. However, upon termination of the agreement, any unexpended balances are debts and must be repaid to Canada.
Payments to the recipients that exceed the amounts to which they are entitled are debts and must be repaid to the Canada.

14. Exemptions To Treasury Board Policy On Transfer Payments

These terms and conditions contain the following exemptions to the Treasury Board Policy on Transfer Payments:

Exemption to Section 7.6.4 of the TB Policy on Transfer Payments to allow (HRSDC) the option to provide quarterly payments to recipients – instead of monthly advance payments based on cash flow forecasts regardless of the total value of the annual amount of the agreement given the following considerations:
1. Monthly reporting is labour intensive especially for smaller organizations. The adjustments to their operations and systems could create operational challenges and or delays for organizations trying to keep administrative costs to a minimum and participation investments to a maximum.
2. The exemption granted previously to (ASEP) has been successfully applied without compromising accountability or reporting requirements.
3. The option is fiscally appropriate in the interest of complementarity, fairness, consistency and efficiency with respect to existing Aboriginal labour market programming. It is appropriate that the same cash management be used.
Recipients are required to report quarterly on their expenditures including interest earned from the advance. Interest earned from the advance payment will be deducted from the following advance payment.
Exemption to section 7.6.6 of the TB Policy on Transfer Payments to allow the (ASEP) partnerships to retain unexpended balances at the end of each fiscal year for use in the subsequent year for the following reasons:
1. The remoteness of project locations and seasonality can pose a risk that activities planned for the last quarter of a fiscal year may be delayed and carried over into the next fiscal year.
2. The exemption provides an opportunity to plan and time activities in accordance with the training and employment plans to meet the objectives and client needs. This ensures a better investment and avoids compromising the integrity of the project.
3. Agreements will set conditions for carry forward, including:
  1. The recipient may retain an unexpended balance only if a carry forward plan, to be submitted no later than 30 days prior to the start of the next fiscal year, on how those unexpended balances will be used in the next fiscal year is developed and the approval is obtained;
  2. For approved carry forward plans, the retained unexpended balance must be used for the same purposes outlined in the previous fiscal years business plan in the next fiscal year;
  3. The retained unexpended balance must be expended by the end of September of the following fiscal year or be remitted to (HRSDC) by October of the same fiscal year; and
  4. Should a carry forward plan not be approved by (HRSDC), the unexpended balance will be considered a debt and the recipient will be responsible for remitting the unexpended balance no later than October.

15. Repayment Of Contributions

The contributions are made to provincially incorporated, non-for-profit corporations created for the purpose of implementing the training and employment plan and are therefore exempt from the requirement to repay a contribution as stated under section 7.8.3 of the Treasury Board Policy on Transfer Payments. However if the Recipient enters into an arrangement with another business to commercialize a product or process this would be subject to repayment (as per section 7.8.3).

16. Authority To Approve Agreements

The authority to approve agreements may be delegated by the Minister of HRSD as per (HRSDC)’s delegation instruments.

17. Authority To Sign And Amend Agreements

The authority to sign and subsequently amend agreements may be delegated by the Minister of HRSD as per HRDSC’s delegation instruments.

18. Authority To Approve Payments

Authority to approve payments by certifying compliance with the terms of the agreements may be delegated by the Minister of (HRSDC) as per (HRSDC)’s delegation instruments.

19. Due Diligence

(HRSDC) provides assurance that departmental systems, procedures and resources for ensuring due diligence in approving transfer payments and verifying eligibility and entitlement and for the management and administration of the program are in place. They include the following: Common System for Grants and Contributions, Grants and Contributions Operations Guide, Quality Assurance Framework, monitoring plan based on risk assessment, annual financial audit and annual plan review.

20. Accountability And Evaluation

(HRSDC) has developed, in consultation with the Treasury Board Secretariat, a results-based management and accountability framework (RMAF), including performance indicators, expected results and outcomes, methods for reporting on performance and evaluation criteria to be used in the assessment of the effectiveness of the transfer payments.

The main focus of the evaluation will be on measuring the success of the initiatives in assisting individuals, employers and communities; and in the development of on going collaboration between government, community and private sector. The key outcomes, as identified in the RMAF, are:

Aboriginal individuals assessed and placed in training or employment;
Increased level of skills among Aboriginal participants;
Enhanced employment situation of Aboriginal participants;
Long-term sustainable employment for Aboriginal people on major economic developments.

21. Audit

For each fiscal year during the period of the agreements, the recipient will submit to Canada a report containing audited financial statements prepared in accordance with generally accepted accounting principles and practices.

The agreements will specify that (HRSDC) retains the right to audit the records of the recipients and, if it is determined that the amount paid exceeds the amount payable, the difference will be considered a debt to the Crown.

(HRSDC) has developed, in consultation with the Treasury Board Secretariat, a risk-based framework for monitoring and audit of the recipients, an internal audit plan, including an evaluation of program management of the transfer payment program.

22. Cost Of Managing The Program

The additional cost of managing and administering the program is $10.3M over five years (2007-2008 to 2011-2012) from the Supplementary Estimates in Human Resources and Social Development Canada Vote 1 (Operating Expenditures).

23. Cancellation Or Reduction In Departmental Funding Levels By Parliament

Program literature and agreements will include provisions for the cancellation or reduction of transfer payments in the event that funding levels are changed by Parliament.

24. Duration Of Terms And Conditions

These Terms and Conditions will apply to, and payments may be made with respect to, the period beginning on June 7, 2007 and ending March 31, 2012.