ContributionAgreements
Introduction• Outline:   –   Grant versus Contribution Agreement   –   Accountability   –   The Contribution Agreement Lif...
Grants vs. Contributions• Grant   – Unconditional transfer of funds   – Not subject to monitoring• Contribution   – Condit...
Accountability• The Grants & Contributions program is  governed by the need to collect data,  evaluate services and to be ...
The CA Cycle
Planning, Assessing and Recommending Proposals• Planning  – Set priorities, and formulate delivery objectives    to ensure...
Call For Proposal (CFP) Cycle                                                     1st Service                             ...
When Negotiating a Contribution Agreement• Quantitative and qualitative objectives, deliverables  should be:   – in suppor...
Contribution Agreement• A legally binding document between yourorganization and the Government of Canada.• Stipulates the ...
ArticlesArticle Sections:1.0 Agreement2.0 Interpretation3.0 Contribution4.0 Conditions Governing Payment of the      Contr...
Articles Continued6.0 Program Monitoring, Information and   Reporting Requirements7.0 Privacy and Security Obligations8.0 ...
Schedules• Schedule 1  – Describes the objectives, activities, outputs,    outcomes and reporting• Schedule 2  – Program B...
Forecast of Cashflow• What is a forecast of cashflow?   – Is a CIC reporting requirement   – Developed in consultation wit...
Reviewing Claims and Calculating Payments• What can be claimed? (Article 2.3)   – Eligible costs, incurred and paid for, u...
Claims Continued• To avoid delays in processing claims, ensure that:   – Claims along with statistical and narrative repor...
Amending Contribution Agreements: Slippage• Slippage occurs when claimed amount is  greater than forecast  – Apparent slip...
Amendments• Used to modify the CA to account for  slippage or new developments in the  program• Amendments are usually neg...
Monitoring• Review of program finances and activities to  ensure that the terms and conditions of the  CA are being met.  ...
Purpose of Monitors• Financial monitor   – Adequate financial controls are in place   – Supporting documentations are avai...
Closing Agreement• Final Claim   – Deadline is usually set for the first week of April   – Expenses must be incurred befor...
Referral Resources• Meeting client needs• Developing referral relationships   – LIPs, Francophone agencies, OCASI, etc.• L...
Questions ?
THANK YOU!
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A6 contribution agreement oct 23 semhar and carly

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  • Grant:An unconditional transfer payment made to an individual or organization where eligibility criteria that are applied before payment assure that the payment objectives will be met. An individual or organization that meets the eligibility criteria for a grant can usually receive the payment without having to meet any further conditions. Grants are not subject to being accounted for or audited.Contribution:A conditional transfer payment to an individual or organization for a defined purpose as set out in a contribution agreement. Specific terms and conditions must be met by a recipient before payment is given. The use of a contribution is subject to be accounted for and audited.CIC Integration (Settlement) only uses Contribution Agreements.Payments are made on a reimbursement basis for costs that are incurred based on the Contribution Agreement.
  • Activities to meet these needs include: monitors, forecasts, claims and spot checks. CIC management of a large and diverse portfolio demands rigorous accountability as governed by Federal Acts and policies. Federal Acts and policies:Federal Accountability Act, Financial Administration ActTreasury Board’s Transfer Payment Policy CIC operates an audit and review processes designed around effectively monitoring and reporting the disbursement of funding throughout Ontario
  • We’ll start with the Planning stage and make our way to closing an agreement.
  • During the planning stage CIC conducts a needs/gaps analysis, mapping exercise.Generally, two individuals assess a proposal. In the event of a tie, there is a third assessor. Selection CriteriaTimeliness - Proposal was submitted on or before the deadline Completeness - A signed application was received. All necessary documents were included with the proposal as stated in the CFP Eligibility of the Applicants:accessible to all newcomer population;Provincial, territorial or municipal governments; Not for profit organizations including non-governmental organizations, non-profit corporations, community groups and umbrella organizations; Businesses; Educational institutions (including school boards, districts and divisions); Individuals. Eligibility of the Proposed Clientele Permanent Residents of Canada.;Convention Refugees and Protected PersonsIndividuals who have been selected, in Canada to become permanent residents (pending verifications) and who have been informed, by a letter from Citizenship and Immigration Canada; Live-in Caregivers who are in Canada with a work permit under the Live-in Caregiver Program are eligible to settlement services, but not language training.Eligibility and Appropriateness of Proposed ActivitiesMeet priorities and prescribed activities identified in the call for proposals;Able to achieve the objectives within the duration of the agreement.Costs Effectiveness of the ProposalMinimum contributions to achieve the proposed objectives;Costs must be necessary and directly related to the delivery of services and achievement of the program objectives;Proposal must demonstrate and represent a sound investment for the Department.Past and Current Performance of the ApplicantApplicant’s track records in meeting negotiated targets/deliverables;Applicant’s track records in meeting financial accountability requirements;Applicant’s management and governance capacity and capability;CIC’s past experience with the Applicant.Financial Stability of the ApplicantReview of the applicant’s financial situation based on audited financial statement.
  • Acknowledgement letter - September 7 Eligibility - October 17 Confirmation of funding/need additional time - January 10
  • CIC will not reimburse costs that occurred prior to the start of and after the end of the agreement;Examples of eligible costs: HST Salaries and benefits required to deliver services classroom rentalsTravel costs related to the administration and delivery of servicesChild care snakes and suppliesExamples of ineligible costs:Employee severance costs Parking tickets Internal agency hospitality expensesSalaries costs related to union activities Maternity and long term disability Early lease cancellation penaltyLate payment fees and charges
  • A Contribution Agreement identifies the objectives, activities, results and deliverables of the agreement.Has a clearly defined start and end date signaling the contribution period.Articles are: The cornerstone of what your organization and CIC commit to one another. Schedules are an integral part of the Contribution Agreement. They supplementthe articles.
  • Highlights of articles as they appear in your contract agreements, refer to the training manual for a more detail description.1.0  Agreement– lists the attached schedules, with accompanying titles2.0  Interpretation– explains the terminology used in the agreementSection 2.3 "Eligible costs" means the costs described in Schedules 2 are:incurred and paid by the Service Provider in relation to the services during the funding period,Section 2.5 "Eligible client" means:A) For the Settlement Program:i. Permanent Residents of Canada who have not become Canadian citizens;ii. Protected persons;iii. Individuals who have been selected, in Canada or overseas, to become permanent residents and whohave been informed, by a letter from Citizenship and Immigration Canada;iv. Convention refugees and protected persons overseas who have been selected for resettlement;v. Live-in CaregiversIneligible clients: Canadian citizens, refugee claimants.3.0  Contribution  – explains the rules governing this type of funding provided by the Government of Canada. It covers areas such eligible costs, funding from other sources, tax rebates. It also briefly explains conflict of interest guidelines around hiring of immediate family (nepotism)4.0  Conditions Governing Payment of the Contribution– explains payment terms. It also explains both the Treasury Board’s and Parliament’s role in approving and providing contribution funds for specific programs5.0  Service Provider Obligations– explains obligations related to record keeping, declaration of funds received from other sources and requirements related to all personnel designated by the SPO to provide services under Schedule 1. It also explains obligations related to Official Languages requirements and Board governance.
  • 6.0  Program Monitoring, Information and Reporting Requirements– describes how your organization needs to maintain financial records, meet audit requirements, and comply with financial monitoring and reporting requirements.7.0  Privacy and Security Obligations– explains obligations under the privacy and access to information legislation.8.0  Default– explains how and why an agreement can end before its stated date, from both, your organization’s perspective and CIC’s.9.0  Third Party – highlights what your organization should know about the Department’s rules and regulations for contracting with outside parties.10.0 Intellectual Property – describes the intellectual property rights and obligations of your organization and CIC.- Article 10.3, which states that “Service Providers should, or must if applicable, negotiate a copyright license with one of the Canadian copyright licensing agencies in order to have rights on all copyright materials for use by students, instructors and administrative staff.” Was introduced by CICNHQ to greater foster the acknowledgment of the parties responsible for the creation of materials as well as to protect the integrity of these materials.   However, because some SPOs already have an agreement via the provinces (i.e. some colleges and school boards) in place with Copyright Access, this contractual obligation has already been satisfied.11.0  Capital Assets – outlines the obligations related to purchase, use and disposition of capital assets by your organization.11.2 That an inventory of capital assets purchased with Department funds be kept by the Service Provider.11.3 That the Service Provider neither sell, transfer, mortgage, lease nor otherwise dispose of any capital assets purchased with such funds without the prior written consent of the Department.12.0 General– provides general details related to initiating, amending and ending the agreement
  • Schedule 1A (Orientation) – Clients have information and understand life in CanadaB (Language/Skills) – Clients have the official language and life skills needed to function in CanadaC (Labour Market Access) – Clients have knowledge of labour market and skills necessary to job searchD (Welcoming Communities) – Clients are connected to community, community is connected to clients E (Program and Policy Development) – Policies and programs are effective Objectives: as described in your funding proposal and further developed during negotiationsActivities: Outlines activities such as providing information and referral, holding workshopsActivitiesNeeds Assessment and Referrals Support ServicesInformation and Awareness ServicesLanguage Learning and Skills Development Employment Related ServicesCommunity Connections Policy and Program Development/Program Implementation and Management Outputs: sets targets for the year, number of clients served etc. Outcomes: impact on clients and long term solutions ReportingMonthly reports ClaimStatisticalNarrativeAction PlanDue with May claim! Outlines how/when the organization will perform activities and delivery outputs Final Report (Annual Project Performance Review)Due after end of the contribution agreement Schedule 2Lists maximum eligible costs by budget line item that your organization may claimSchedule 3Outlines the terms of payment Advances vs. ReimbursementsAdvancesFunding recipient has demonstrated a need for advance payment;Funding recipient has accessed other alternative funding sources and request advance payment in writing10% holdbackOccurs when the amount paid out to your organization reaches 90% of the total contribution agreement for the yearThe final 10% is held back by CIC to ensure that overpayments can be recovered and all final reporting requirements are met 10% is released at the time of payment of the March claim Schedule 4 : Supplementary conditionsReporting requirements: HARTs and iCAMSCommunication ProtocolNotify CIC, within 14 days, of changes to the Board or staff that relate to the AgreementNotify CIC of Annual General Meeting No duplication of funding for the same expense No reimbursement of salary increases without prior authorization from CIC No movement of funds to or from salary & benefits, overhead or capital costs Flexibility to move $1,000 across line items
  • Used to determine the value of advancesTool to track expenditures and slippageDo not divide budgeted amounts by 12 months
  • CIC’s reimbursement is also contingent on service provider has demonstrated its compliance with all the elements of the contribution agreement;Direct Deposit will reduce CIC’s payment time
  • CLAIMS PROCESS Claim is reviewed by the officer for accuracy and eligibility The officer will contact the organization if there are any issues Officer recommends the claim for approval when satisfied that the claim is compliant with the T&Cs Claim is approved and processed for payment
  • Apparent slippage if the $ will be claimed laterInsurance: Forecast in May but will not be invoiced until JuneReal slippage if the $ will not be claimedSalary: Hiring anticipated in April but completed in MayTORONTO SPECIFIC ONLY: In the slippage report there are two pink boxes which will need to be completed by the SPO. The two boxes will turn yellow once they sum to the FYTD Slippage box.
  • The process for an amendment is similar, if not the same, as completing a new agreement.Do not action any changes to the terms of the CA until an amendment is fully signed or approval has been provided by the department (Settlement Officer). Examples of reasons to conduct an amendment:Movement of funds greater than $1,000Creation of a new line itemChange in activities
  • Section 6 of the CA.Monitors are an opportunity to see the output of activities first hand
  • Ensure the terms of the agreement are adhered to (for both activity and financial)Ensure proper use of public fundsMonitors are to ensure expenditures are not also charged to another funding source (double dipping).Funding recipient can demonstrate that organization’s own internal policy and management control has been properly followed and there is effective program delivery oversight in place;SPO can demonstrate and share with CIC the challenges and successes of program delivery and the changes in clients and community needs.Monitors are conducted by Settlement Officers either on or off site. At times financial monitors may be conducted by a Financial Officer. Monitors go smoothly when the requested information is complete and well organized.Allows Officers to see activities take place, better understand the program/project and meet staff and/or clients first hand.
  • Conduct a thorough review of the last claim; Assess and document performance in terms of output and outcomes, as applicable; Determine the disposition of the capital assets (if applicable); Ensure all overpayment has been recovered; Issue the final payment to funding recipient.
  • A6 contribution agreement oct 23 semhar and carly

    1. 1. ContributionAgreements
    2. 2. 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.
    3. 3. 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
    4. 4. 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
    5. 5. The CA Cycle
    6. 6. 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;
    7. 7. 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
    8. 8. 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.
    9. 9. 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
    10. 10. ArticlesArticle Sections:1.0 Agreement2.0 Interpretation3.0 Contribution4.0 Conditions Governing Payment of the Contribution5.0 Service Provider Obligations
    11. 11. 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
    12. 12. 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
    13. 13. 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.
    14. 14. 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
    15. 15. 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
    16. 16. 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
    17. 17. 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
    18. 18. 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
    19. 19. 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.)
    20. 20. 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
    21. 21. Referral Resources• Meeting client needs• Developing referral relationships – LIPs, Francophone agencies, OCASI, etc.• List of organizations serving newcomers – http://www.servicesfornewcomers.cic.gc.ca/ – www.settlement.org – www.211toronto.ca
    22. 22. Questions ?
    23. 23. THANK YOU!
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