Contribution Agreements
• 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.
Introduction
• Grant– Unconditional transfer of funds– Not subject to monitoring
• Contribution– Conditional transfer of funds– Funds must be accounted for and are subject to
monitoring
Grants vs. Contributions
• 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
Accountability
The CA Cycle
• 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;
Planning, Assessing and Recommending Proposals
Call For Proposal (CFP) Cycle
Agreement Negotiated
1st Service Standard: Acknowledgement of Receipt of Application2nd Service Standard: Decision on Applicant Eligibility3rd Service Standard: Decision on proposal Approval
1st Service Standard
(September 7)
2nd Service Standard
(October 17)
3rd Service Standard (January
10
• 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.
When Negotiating a Contribution Agreement
• A legally binding document between your organization 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
Contribution Agreement
Articles
Article Sections: 1.0 Agreement 2.0 Interpretation 3.0 Contribution 4.0 Conditions Governing Payment of the Contribution 5.0 Service Provider Obligations
Articles Continued
6.0 Program Monitoring, Information and Reporting Requirements
7.0 Privacy and Security Obligations8.0 Default 9.0 Third Party10.0 Intellectual Property11.0 Capital Assets 12.0 General
• 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
Schedules
• 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.
Forecast of Cashflow
• 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
Reviewing Claims and Calculating Payments
• 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
Claims Continued
• 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
Amending Contribution Agreements: Slippage
• 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
Amendments
• 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
Monitoring
• 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.)
Purpose of Monitors
• 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
Closing Agreement
• 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
Referral Resources
Questions ?
THANK YOU!