A6 contribution agreement oct 23 semhar and carlyPresentation Transcript
Introduction• Outline: – Grant versus Contribution Agreement – Accountability – The Contribution Agreement Life Cycle – Resources – Question and Answer• Goal: – By the end of the session you will understand the lifecycle of a contribution agreement within the Integration branch.
Grants vs. Contributions• Grant – Unconditional transfer of funds – Not subject to monitoring• Contribution – Conditional transfer of funds – Funds must be accounted for and are subject to monitoring
Accountability• The Grants & Contributions program is governed by the need to collect data, evaluate services and to be administratively effective.• An environment of heightened scrutiny and accountability• Audits and reviews• Standing Committee on Citizenship and Immigration
The CA Cycle
Planning, Assessing and Recommending Proposals• Planning – Set priorities, and formulate delivery objectives to ensure that services meet client needs• Assessing and Recommending Proposals – Ensure contribution agreement funds are awarded using a fair and transparent process;
Call For Proposal (CFP) Cycle 1st Service Standard (September 7)1st Service Standard:Acknowledgement of Receiptof Application 2nd Service2nd Service Standard: StandardDecision on Applicant Eligibility (October 17)3rd Service Standard:Decision on proposal Approval 3rd Service Standard (January 10 Agreement Negotiated
When Negotiating a Contribution Agreement• Quantitative and qualitative objectives, deliverables should be: – in support of CIC’s program objectives; – achievable within the duration of the agreement.• Costs must be: – reasonable and directly related to the provision of services – conformed with CIC’s Negotiation Guidelines.• CIC will contribute to a portion of the shared costs required to achieve program objectives.• Service providers need to declare all sources of funding initially and during the duration of the CA.
Contribution Agreement• A legally binding document between yourorganization and the Government of Canada.• Stipulates the maximum contribution/budget over a specified period for the administration and delivery of identified services and expected results• CA is comprised of two parts: – The Articles and – The Schedules
ArticlesArticle Sections:1.0 Agreement2.0 Interpretation3.0 Contribution4.0 Conditions Governing Payment of the Contribution5.0 Service Provider Obligations
Articles Continued6.0 Program Monitoring, Information and Reporting Requirements7.0 Privacy and Security Obligations8.0 Default9.0 Third Party10.0 Intellectual Property11.0 Capital Assets12.0 General
Schedules• Schedule 1 – Describes the objectives, activities, outputs, outcomes and reporting• Schedule 2 – Program Budget• Schedule 3 – Outlines the terms of payment• Schedule 4 – Contains supplementary terms and conditions related to financial practices and program activities
Forecast of Cashflow• What is a forecast of cashflow? – Is a CIC reporting requirement – Developed in consultation with the program manager – Forecast expenditures accurately according to activities occurring that month.
Reviewing Claims and Calculating Payments• What can be claimed? (Article 2.3) – Eligible costs, incurred and paid for, up to the total value of Schedule 2 (per fiscal year)• Claims submitted by 10th of the following month• Approximately 2 weeks for CIC to issue payment• CIC may request supporting documents to substantiate claimed expenses• March claims should only include eligible expenses incurred up to and on March 31
Claims Continued• To avoid delays in processing claims, ensure that: – Claims along with statistical and narrative reports are submitted on time – Copies of supporting documentation are attached when requested – Costs are incurred and paid – Costs are eligible – Expenses do not exceed maximum in Schedule 2 – Shared costs are claimed as per agreed percentage spilt – Claims are mathematical accurate
Amending Contribution Agreements: Slippage• Slippage occurs when claimed amount is greater than forecast – Apparent slippage if the funds will be claimed later – Real slippage if the funds will not be claimed• Real Slippage must be identified so that it can be de-committed or reallocated – Aim is to support programs throughout the region
Amendments• Used to modify the CA to account for slippage or new developments in the program• Amendments are usually negotiated in winter• Amended CA documents are signed by your organization and CIC• Allow 6 - 8 weeks for approval
Monitoring• Review of program finances and activities to ensure that the terms and conditions of the CA are being met. – Each organization is subject to at least one activity and one financial monitor for the duration of the agreement – Monitors provide an opportunity to improve mutual understanding between the service provider and the Settlement Officer
Purpose of Monitors• Financial monitor – Adequate financial controls are in place – Supporting documentations are available – Expenditures are reasonable and eligible under the terms of the agreement• Activity monitor – Meet with management, staff and clients – Review client files to ensure proper reporting and record keeping (refer to article 6.0) (if applicable) – Observe activities (classes, conversation circles, etc.)
Closing Agreement• Final Claim – Deadline is usually set for the first week of April – Expenses must be incurred before March 31• Final Report (Section 6.7 of CA) – Submitted after the completion of fiscal year activities (Annual Project Performance Report)• Final payment – Includes March claim and 10% holdback if applicable – Usually occurs at the end of May – May include the reconciliation of any overpayments