Last year, we wrote about the 10-Year Grant funding initiative. Today we’d like to share some updates on this initiative.
*please note that the original blog was published in March of 2020, for the latest information, be sure to check the relevant websites for most up-to-date instructions and details.
KEY TAKEAWAYS (September 8, 2021):
Since the ISC launched the grant initiative in 2019, more than 115 First Nations have joined.
The grant is intended to provide increased flexibility and predictability for communities to provide services based on their own priorities and manage the funds appropriately. Aimed at reducing admin and reporting burdens.
To access the NFR grant starting April 1, 2022, provide a written request to their ISC contact by September 30, 2021
Visit FMB website for detailed information
ORIGiNAL BLOG POST (March, 2020)
First Nations have always initiated their projects with the help of their own resources and suffered from a lack of support from the Canadian Federal and Provincial Governments. While several funding opportunities have been initiated in recent years, it can be incredibly difficult to navigate the different funding programs. It takes a considerable amount of time and work to gain an understanding of the available services, implementation processes, and rights and responsibilities of nations upon receipt of the funds. To simplify the process, a 10-year grant has been introduced by the Federal Government.
10-Year Grant
With input from the Assembly of First Nations (AFN), the Federal Government introduced a 10-Year grant in April 2019 to provide longer funding periods to First Nations across Canada. This enables them to allocate and use the funds based on their priorities and requirements. The fund also claims to enable unspent portion be managed by First Nations, as well as reduce the regulatory and reporting burdens on the communities. By supplying funds over a 10-year span, it is argued that this would provide a clearer view of the distribution of funds to a community, supplying funding with a long-term planning advantage. It is believed that the 10-year grant will support First Nations in building stronger communities in the long run.
First Nations can use this fund for a wide range of services including but not limited to:
Social Development
Land & Economic Development
Health
Education
Governance
Infrastructure
Child safety
Community Development.
(Indigenous Services Canada, 2019)
With a wide range of services, the grant also offers significant benefits such as
A 10-year term (most contribution agreements have shorter terms).
More flexible in terms of delivering services, design, allocation, and planning of available and unspent funds.
Less administrative and reporting burden compared to most.
Annual escalation based on inflation and population growth starting in 2020 (Indigenous Services Canada, 2019)
So is the grant available to every community? And does it have eligibility requirements?
Assembly of First Nations (AFN) and First Nations Financial Management Board (FMB) co-developed the eligibility criteria. To qualify, the applicant must have a Financial Administration Law or Bylaw in force at the time of the application and, among other conditions, undergo a Financial Performance Analysis based on the most recent 5-year financial statements. Successful First Nations applicants should meet the following criteria:
Must have in place a financial administration law
be asked to ensure that certain provisions of their financial administration law are supported by policies and procedures, where required, and have been legally brought into force
Financial statements for the preceding 5-year period must be in substantial compliance with certain financial performance standards as of March 31, 2019 (Indigenous Services Canada, 2019)
To get a better understanding of how the 10-year funding process works, FMB has provided the following diagram.("Eligibility Criteria", 2020)
("Eligibility Criteria", 2020) Eligibility Criteria. (2020). Retrieved 6 February 2020, from https://fnfmb.com/en/10-year-grant/eligibility-criteria
While the reaction to the 10-year grant opportunity is positive, there have been many questions pertaining to the difference between “block funding” and new 10-year grant. Indigenous Services Canada provides the following details in explaining the potential differences:
Block funding has a five-year term
Block funding is a contribution, not a grant, and as such, it comes with more administrative and reporting requirements, and limitations on eligible expenditures.
Block funding recipients must complete unexpended funding plans at the end of the agreement
Block funding generally does not permit program redesign or provide the flexibility to set standards and levels of service associated with these programs
Block funding recipients are subject to department-initiated recipient audits and compliance reviews. (Indigenous Services Canada, 2019)
What’s Next?
First Nations Financial Management Board (FMB) will support First Nations during the 10-year grant funding application process. They will coordinate with First Nations on fulfilling eligibility criteria and will provide an assessment report reporting on this status. It is important to note that the final approval resides with Indigenous Services Canada (ISC).
We’ve heard feedback on the grant in the form of questions including:
How far will it prove to be beneficial for the Indigenous Communities?
How will the communities utilize it?
What could be the potential drawbacks of the grant?
We’d love to hear what you think of the 10-year grant. Will your community take advantage of this funding opportunity?
We hope this information is helpful to you and your community in your strategic planning.
References
10-year grant. (2020). Retrieved 13 March 2020, from https://www.sac-isc.gc.ca/eng/1527080791657/1527080813525
10-Year Grant. (2020). Retrieved 13 March 2020, from https://fnfmb.com/en/10-year-grant
("Eligibility Criteria", 2020) Eligibility Criteria. (2020). Retrieved 6 February 2020, from https://fnfmb.com/en/10-year-grant/eligibility-criteria