Details on transfer payment programs of $5 million or more

Transfer payments for Negotiations of Claims and Self-Government Agreements

Start date/End date: Ongoing

Type of transfer payment: Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Contributions to promote social and political development in the North and for Northerners: 2016–17

Contributions for the purpose of consultation and policy development: 2014–15

Contributions to supply public services in Indian Government Support and to build strong governance, administrative and accountability systems: 2018–19

Contributions to support the negotiation and implementation of Treaties, Claims and self-government agreements or initiatives: 2018–19

Contributions to support the Indigenous Nation Rebuilding Program: 2018–19

Link to Department’s Program Inventory: Negotiations of Claims and Self-Government Agreements

Description: This program supports Canada’s commitment to the negotiation of claims and self-government agreements to reconcile Aboriginal rights, as recognized and affirmed under section 35 of the Constitution Act, 1982, with the sovereignty of the Crown. It also supports Canada’s commitment to negotiating self-government agreements to address aspirations for greater Indigenous autonomy and self-reliance and to promote good governance. With the participation of provincial and territorial governments, Canada negotiates claims and self-government agreements that provide Indigenous groups with a solid foundation for self-reliance and for the improvement of social, cultural and economic conditions within their communities.

Canada is undertaking Recognition of Indigenous Rights and Self-Determination discussions with Indigenous groups across Canada. These interest and distinctions-based discussions work toward the development and advancement of shared priorities through collaboratively developed mandates for Indigenous rights and self-determination agreements. Through these processes, the parties will develop a common understanding of what is required to advance reconciliation based on recognition of rights, respect, co-operation and partnership. This will also contribute to the renewal of the Indigenous-Crown relationship and work towards closing socio-economic gaps between Indigenous peoples and the rest of Canada to develop healthier, more sustainable communities.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: The Evaluation of Specific Claims is in progress and is expected to be completed in March 2020. The Evaluation of Negotiations of Claims and Self-Government Agreements is planned to be completed in March 2020.

Engagement of applicants and recipients: In 2018–19, the department engaged with recipients at discussion tables and negotiation tables.

This year, the Nation Rebuilding program was launched through a call for proposals in order to support the rebuilding efforts of Indigenous nations. Recipients submitted project proposals outlining their plans. The department assessed these proposals and provided $13 million in funding in 2018–19.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions to promote social and political development in the North and for Northerners     1,050,000 0 0 (1,050,000)
Contributions for the purpose of consultation and policy development     0 211,000 211,000 211,000
Contributions to supply public services in Indian Government Support and to build strong governance, administrative and accountability systems     6,520,779 9,693,925 9,693,925 3,173,146
Contributions to support the negotiation and implementation of Treaties, Claims and self-government agreements or initiatives     50,506,950 112,149,704 112,149,704 61,642,754
Contributions to support Indigenous Nation Rebuilding Initiative     0 13,436,899 13,436,899 13,436,899
Total contributions     58,077,729 135,491,528 135,491,528 77,413,799
Total other types of transfer payments     0 0 0 0
Total Program     58,077,729 135,491,528 135,491,528 77,413,799
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates and the Budget Implementation Vote for the Negotiation Support Funding Program (+$43.4 million), to help Indigenous Nations Reconstitute (Budget 2018) (+$20.0 million) and to support the Recognition of Rights and Self-Determination (Budget 2018) (+$13.1 million).

Transfer payments for Specific Claims

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Grants to First Nations to settle specific claims negotiated by Canada and/or awarded by the Specific Claims Tribunal, and to Indigenous groups to settle special claims: 2018–19

Contributions for the purpose of consultation and policy development: 2014–15

Contributions to support the negotiation and implementation of treaties, claims and self-government agreements or initiatives: 2018–19

Link to Department’s Program Inventory: Specific Claims

Description: Specific claims are past grievances made by a First Nation against the federal government which relate to the administration of land and other First Nation assets and to the fulfilment of Indian treaties. Examples include the failure to provide enough reserve land, the improper management of First Nation funds, and the unlawful surrender of reserve lands. Key activities include the assessment of the historical and legal facts of a claim, the negotiation of settlement agreements, supporting the presentation of Canada’s interests before the Specific Claims Tribunal, and payment of monetary compensation to First Nations pursuant to the terms of a settlement agreement or an award of the Tribunal. Resolving specific claims fairly and expeditiously supports the recognition and respect of First Nations’ rights, discharges outstanding legal obligations of the Crown, and provides certainty for all Canadians.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: The Support to the Specific Claims Process Audit was cancelled. The CIRNAC Risk-Based Audit Plan has since been updated to reflect the evolving risk landscape.

Findings of evaluations completed in 2018–19: The Evaluation of Specific Claims is in progress and is expected to be completed in March 2020.

Engagement of applicants and recipients: In 2018–19, the department engaged with recipients at discussion tables and negotiation tables.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Grants to First Nations to settle specific claims negotiated by Canada and/or awarded by the Specific Claims Tribunal, and to Indigenous group to settle special claims     689,736,979 1,044,130,572 630,282,483 (59,454,496)
Total grants     689,736,979 1,044,130,572 630,282,483 (59,454,496)
Contributions
Contributions for the purpose of consultation and policy development     900,000 0 0 (900,000)
Contributions to support the negotiation and implementation of treaties, claims and self-government agreements or initiatives     6,859,000 10,519,290 10,519,290 3,660,290
Total contributions     7,759,000 10,519,290 10,519,290 2,760,290
Total other types of transfer payments     0 0 0 0
Total Program     697,495,979 1,054,649,862 640,801,773 (56,694,206)
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through Supplementary Estimates for the settlements of specific claims (+$115.6 million) and the Treaty 8 Agricultural Benefits specific claim with the Little Red River Cree Nation (+$239.4 million). This increase is partially offset by the deferral of the funds for the specific claims settlements (-$413.8 million). These funds were not required in 2018–19. Specific claims settlement funding cannot be used for any other purpose than for settling specific claims but can be re-profiled to future years to be available for the intended purpose.

Transfer payments for Management and Implementation of Agreements and Treaties

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Grants to implement comprehensive land claims and self-government agreements and other agreements to address Section 35 Rights: 2018–19

Grants to First Nations to settle specific claims negotiated by Canada and/or awarded by the Specific Claims Tribunal, and to Indigenous groups to settle special claims: 2018–19

(S) Grants to Aboriginal organizations designated to receive claim settlement payments pursuant to Comprehensive Land Claim Settlement Acts: Please refer to Final Agreements and Related Implementation Matters webpage.

(S) Indian Annuities Treaty payments: Please refer to section 72 of the Indian Act.

Grants to Participating First Nations and the First Nation Education Authority Pursuant to the First Nations Jurisdiction over Education in British Columbia Act: 2014–15

Contributions to support the negotiation and implementation of Treaties, Claims and self-government agreements or initiatives: 2018–19

Contributions to support the construction and maintenance of community infrastructure: 2016–17

Contributions for the purpose of consultation and policy development: 2014–15

Link to Department’s Program Inventory: Management and Implementation of Agreements and Treaties

Description: This program supports the Department’s Core Responsibility: Rights and Self-Determination, through the implementation of treaties and self-government agreements, advancing renewed treaty relationships and consultation and engagement on issues of importance to Indigenous peoples.

It aims to create and maintain ongoing relationships to support the fulfilment of Canada’s legal obligations pursuant to both pre- and post-1975 treaties, while considering ongoing rights and interests of Indigenous peoples. This program supports Indigenous communities in articulating their interests, participating in economic activities, and managing and developing land and resources, where applicable. It also helps to demonstrate the importance of treaties and related partnerships between the Crown and Indigenous peoples. This is achieved by honouring Canada’s obligations as set out in final settlement agreements and treaties, and by improving collaboration between Canada and Indigenous peoples, particularly between Canada and pre- and post-1975 treaty groups. Creating and maintaining relationships that honour pre- and post-1975 treaties contributes to strengthened, healthy, self-reliant and sustainable Indigenous communities while promoting delivery of programs and services vital to the health and advancement of Indigenous peoples.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently, there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: The Evaluation of the Cabinet Directive on the Federal Approach to Modern Treaty Implementation is in progress and is expected to be completed in March 2020. The Evaluation of Management and Implementation of Agreements and Treaties is planned to be completed in March 2021.

Engagement of applicants and recipients: CIRNAC continued to discuss ongoing implementation issues with all Comprehensive Land Claims Agreements and Self-Government Agreements partners. These discussions, which took place during regular implementation panel, committee meetings, and other forums, ensured all parties upheld obligations and advanced mutual goals.

The department also continued fiscal negotiations with 25 self-governing Indigenous governments. Renewed fiscal transfer arrangements expected to result from these negotiations in 2019–20, will incorporate new costing methodologies resulting from the Collaborative Fiscal Policy Development Process.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Grants to implement comprehensive land claims and self-government agreements and other agreements to address Section 35 Rights     564,296,062 642,093,388 642,093,388 77,797,326
Grants to First Nations to settle specific claims negotiated by Canada and/or awarded by the Specific Claims Tribunal and to Indigenous groups to settle special claims     103,482,806 883,024,474 883,024,474 779,541,668
(S) Grants to Aboriginal organizations designated to receive claim settlement payments under Comprehensive Land Claim Settlement Acts     55,153,567 55,908,222 55,908,222 754,655
(S) Indian Annuities Treaty payments     1,400,000 2,099,405 2,099,405 699,405
Grants to British Columbia Indian bands in lieu of a per capita annuity     0 300,000 300,000 300,000
Grants to Participating First Nations and the First Nation Education Authority Pursuant to the First Nations Jurisdiction over Education in British Columbia Act     600,000 0 0 (600,000)
Total grants     724,932,435 1,583,425,489 1,583,425,489 858,493,054
Contributions
Contributions to support the negotiation and implementation of Treaties, Claims and self-government agreements or initiatives     277,923,155 279,446,409 279,446,409 1,523,254
Contributions to support the construction and maintenance of community infrastructure     12,919,000 13,842,997 13,842,997 923,997
Contributions for the purpose of consultation and policy development     3,744,298 0 0 (3,744,298)
Total contributions     294,586,453 293,289,406 293,289,406 (1,297,047)
Total other types of transfer payments     0 0 0 0
Total Program     1,019,518,888 1,876,714,895 1,876,714,895 857,196,007
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates and the Budget Implementation Vote for the William Treaties special claims settlement (+$666.0 million), the implementation of a renewed relationship with the Manitoba Métis Federation (+$129.2 million), and the New Fiscal Relationship: Collaboration with Self-Governing Indigenous Governments (Budget 2018) (+$48.8 million).

Transfer payments for Consultation and Accommodation

Start date/End date: Ongoing

Type of transfer payment: Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Contributions for the purpose of consultation and policy development: 2014–15

Federal Interlocutor’s Contribution Program: 2014–15

Link to Department’s Program Inventory: Consultation and Accommodation

Description: This program provides support to federal departments and agencies as they work to fulfill the Crown’s legal duty to consult, and where appropriate, accommodate Indigenous peoples whose asserted or established Aboriginal or treaty rights may be impacted by a federal activity. The program’s core responsibilities may be summarized as:

The work of the Consultation and Accommodation Unit supports the Departmental Result of "Indigenous Peoples and Northerners determine their political, economic, social and cultural development" by providing advice and guidance to internal and external stakeholders so that they may consult and engage effectively on issues of importance to Indigenous peoples and Northerners. Further, through support in negotiating consultation protocols and contributions to resource centres, the unit supports Indigenous organizations and communities in controlling and managing their interests based on the recognition of and respect for their rights.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: The Audit of Consultation, Accommodation and Engagement with Indigenous Nations was converted to a Review of Consultation and Accommodation. The review is in progress and expected to be completed in March 2020.

Findings of evaluations completed in 2018–19: An evaluation was not completed in 2018–19. The Horizontal Evaluation of the Impact Assessment and Regulatory Processes, led by the Canadian Environmental Assessment Agency is planned to be completed in June 2023. The Evaluation of Engagement and Capacity Support is planned to be completed in March 2020.

Engagement of applicants and recipients: In 2018–19, engagements did not occur for this transfer payment program.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions for the purpose of consultation and policy development     4,778,565 4,331,546 4,331,546 (447,019)
Federal Interlocutor's Contribution Program     280,000 960,000 960,000 680,000
Total contributions     5,058,565 5,291,546 5,291,546 232,981
Total other types of transfer payments     0 0 0 0
Total Program     5,058,565 5,291,546 5,291,546 232,981
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Transfer payments for Consultation and Policy Development

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Contributions for the purpose of consultation and policy development: 2014–15

Contributions to supply public services in Indian Government Support and to build strong governance, administrative and accountability systems: 2018–19

Link to Department’s Program Inventory: Consultation and Policy Development

Description: The Consultation and Policy Development Program is intended to be a vehicle for a wide range of engagements between the department and Indigenous peoples for the development and implementation of departmental policy and programming. Eligible activities are those which investigate, develop, propose, review, inform or consult on policy matters within the mandate of the department. Eligible activities include workshops, studies, meetings, and policy development, all of which relate to and are in support of the department’s policies and programming. The funding supports the department as a whole to collaborate with Status Indians, Innu and Inuit on key policy issues.

Eligible recipients include: Indian, Inuit and Innu peoples (e.g. tribal councils; Indian education authorities).

In 2016–17 the department provided a total of $24 million in funding to eligible recipients across the department portfolio. Legal and Policy Authority:

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently, there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: The Evaluation of Specific Claims is in progress and is expected to be completed in March 2020. The Evaluation of Engagement and Capacity Support is planned to be completed in March 2020.

Engagement of applicants and recipients: The department engaged with First Nations and Inuit stakeholders such as the Assembly of First Nation and Inuit Tapiriit Kanatami, respectively, through regular meetings and communications to identify and address areas of shared priorities.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions for the purpose of consultation and policy development     21,281,746 36,124,830 36,124,830 14,843,084
Contributions to supply public services in Indian Government Support and to build strong governance, administrative and accountability systems     2,741,331 0 0 (2,741,331)
Total contributions     24,023,077 36,124,830 36,124,830 12,101,753
Total other types of transfer payments     0 0 0 0
Total Program     24,023,077 36,124,830 36,124,830 12,101,753
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Budget Implementation Vote for the Permanent Bilateral Mechanisms (Budget 2018) (+$10.9 million).

Transfer payments for Federal Interlocutor’s Contribution Program

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Federal Interlocutor’s Contribution Program: 2014–15

Contributions to support Métis Housing: 2018–19

Link to Department’s Program Inventory: Federal Interlocutor’s Contribution Program

Description: The Federal Interlocutor’s Contribution Program aims to enhance the capacity, stability and accountability of both Métis and Non-Status Indian Aboriginal Representative Organizations to represent their members, and to build partnerships with federal and provincial governments and with the private sector. The program also works more specifically to:

  1. Support the Métis National Council and its governing members in their transition to self-government and self-determination by enhancing their governance capacity.
  2. Develop and standardize "objectively verifiable membership systems" for s. 35 rights-holding Métis collectives in accordance with the Supreme Court of Canada decision in Powley in 2003.
  3. Provide capacity and support for engagement on and development of key policy positions by Métis and Non-Status organizations.

The program supports departmental results that Indigenous and northern governments and institutions are effective and accountable by ensuring core governance capacity exists and is enhanced in key national and provincial Métis and Non-Status representative bodies.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently, there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: The Evaluation of Specific Claims is in progress and is expected to be completed in March 2020. The Evaluation of Engagement and Capacity Support is planned to be completed in March 2020.

Engagement of applicants and recipients: CIRNAC engaged with Métis and Non-Status Indian Organizations, such as the Congress of Aboriginal People, and Les Femmes Michif Otipemisiwak – Women of the Métis Nation, through regular meetings and communications. These engagements have enabled the department to identify and address shared priorities such as capacity building and governance.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Federal Interlocutor’s Contribution Program     27,901,830 35,563,946 35,563,946 7,662,116
Contributions to support Métis Housing     0 45,000,000 45,000,000 45,000,000
Total contributions     27,901,830 80,563,946 80,563,946 52,662,116
Total other types of transfer payments     0 0 0 0
Total Program     27,901,830 80,563,946 80,563,946 56,662,116
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates for the Métis Nation Housing Strategy.

Transfer payments for Basic Organizational Capacity

Start date/End date: Ongoing

Type of transfer payment: Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions: Contributions to support the basic organizational capacity of Indigenous representative organizations: 2017–18

Link to Department’s Program Inventory: Basic Organizational Capacity

Description: Basic Organizational Capacity funding supports basic administration costs and provides a minimum level of capacity so that organizations can advise the federal government of their members’ needs and interests. Basic operations such as salaries, rent and utilities are also covered.

In 2016–17, the department provided a total of $26.5 million in core funding to the 5 national and the 41 regional Indigenous representative organizations. This program aligns to the core departmental responsibility of "Rights and self-determination" by supporting Indigenous and northern organizations, individuals and communities in controlling and managing their own affairs and interests based on collaboration and partnerships.

Eligible recipients are recognized Indigenous organizations. These organizations must be incorporated, represent First Nations, Métis, Inuit, or Non-Status Indian communities or Indigenous women and not be in receipt of core funding from other federal departments for the purpose of maintaining basic organizational capacity to represent or advocate for the interest of its members.

Legal and Political Authority:

Order dated July 2004 authorizing the Minister of Indian Affairs and Northern Development to act as Federal Interlocutor for Métis and Non-Status Indians.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently, there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: The Evaluation of Specific Claims is in progress and is expected to be completed in March 2020. The Evaluation of Engagement and Capacity Support is planned to be completed in March 2020.

Engagement of applicants and recipients: CIRNAC provided support for the core operations (e.g. staff salaries, travel costs, accommodation costs, professional services, meeting/workshop cost, communications and office overhead) of national, provincial, territorial and/or regional representative Aboriginal organizations and national women's organizations such as Pauktuutit, the Assembly of First Nations and Métis National Council.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions to support the basic organizational capacity of Indigenous representative organizations     24,994,637 31,709,199 31,709,199 6,714,562
Total contributions     24,994,637 31,709,199 31,709,199 6,714,562
Total other types of transfer payments     0 0 0 0
Total Program     24,994,637 31,709,199 31,709,199 6,714,562
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through internal reallocation of resources from other programs.

Transfer payments for First Nation Jurisdiction Over Land and Economic Development

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Contributions for the purpose of consultation and policy development: 2014–15

Contributions to support Land Management and Economic Development: 2018–19

Contributions to supply public services in Indian Government Support and to build strong governance, administrative and accountability systems: 2018–19

Link to Department’s Program Inventory: First Nation Jurisdiction Over Land and Economic Development

Description: The program contributes to the development of strong First Nations governance and capacity and provides them with options to exercise jurisdiction, control and manage their own affairs and pursue economic, social and cultural development.

The department also works with Public Safety, the Royal Canadian Mounted Police and the Centre of Excellence for Matrimonial Real Property to provide First Nations with matrimonial real property protection and capacity building allowing for the enactment of provisional federal rules and community-specific laws.

The department and Indian Oil and Gas Canada, in collaboration with First Nations-led institutions are providing legislative and institutional frameworks for First Nation jurisdiction over local taxation and the management of their land, environment, natural resources, oil and gas, finances and moneys. The First Nations Fiscal Management Act regime also provides First Nations with access to long-term and affordable financing.

First Nations Land Management First Nations are provided with resources to develop and negotiate individual agreements with Canada as well as develop their draft land code. First Nations Oil and Gas Money Management communities are provided funding to both acquire professional services in the development of their community’s financial code and payment agreement which prescribe how their moneys are to be expended and to hold a vote to approve the code and the payment of moneys by their communities.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An Audit on Economic Development Programs was completed in 2018–19. The Audit of Lands Management was cancelled. The CIRNAC Risk-Based Audit Plan has since been updated to reflect the evolving risk landscape.

Key findings from the Audit on Economic Development Programs: The Economic Development Programs had structured processes for program delivery including clear program authorities, objectives, roles and responsibilities, recipient and project eligibilities, and reporting requirements.

There were also opportunities to improve the Economic Development Programs’ design and delivery related to:

Finally, there is a timely opportunity for the economic development programs to leverage the opportunities created by CIRNAC and ISC’s new mandates and departmental transformation.

Findings of evaluations completed in 2018–19: An evaluation was not completed in 2018–19. The Evaluation of First Nation Jurisdiction over Land and Economic Development is planned to be completed in March 2023.

Engagement of applicants and recipients: The First Nations Fiscal Management Act Institutions (First Nations Financial Management Board, First Nations Tax Commission and the First Nations Finance Authority) and the department have established an excellent working relationship, and are committed to continue working together to further improve the First Nations Fiscal Management Act Regime.

Regular communication between the department and the institutions and quarterly face-to-face meetings occurred in the fiscal year. Planning and reporting exercises such as annual corporate plans, Budgets, and other reports were also submitted by the institutions to the Minister of Crown-Indigenous Relations. The department also engaged with institutions through the annual General Assessment process where institutions were encouraged to provide feedback on their ratings. Long term and flexible funding arrangement approaches were established for all Institutions.

CIRNAC started working with the First Nations Land Management Resource Centre this year to help the Resource Centre develop their own call for proposals and fund community-led solid waste projects across the country for framework agreement communities. The First Nations Land Management Resource Centre received $700,000 from the department to complete this work, and further work is expected in the coming year.

Through the national engagement on matrimonial real property on-reserve, First Nations provided concrete examples to illustrate their issues and needs to the Centre of Excellence for Matrimonial Real Property and to other partners. Budget 2018 provided investments of $5.5 million over the next 2 years to begin to address some of these issues and needs. Findings from the national engagement are continuing to inform options for future program direction. The department will also continue to work in partnership with the Centre of Excellence for Matrimonial Real Property and the First Nations Chiefs of Police Association to further the implementation of the Family Homes on Reserves and Matrimonial Interests or Rights Act by providing law-making support, training and awareness to First Nations and to key stakeholders.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Grant to the First Nations Finance Authority pursuant to the First Nations Fiscal and Statistical Management Act     500,000 500,000 500,000 0
Total grants     500,000 500,000 500,000 0
Contributions
Contributions for the purpose of consultation and policy development     0 3,732,003 3,732,003 3,732,003
Contributions to support Land Management and Economic Development     34,987,385 36,328,827 36,328,827 1,341,442
Contributions to supply public services in Indian Government Support and to build strong governance, administrative and accountability systems     11,971,737 23,385,581 23,385,581 11,413,844
Total contributions     46,959,122 63,446,411 63,446,411 16,487,289
Total other types of transfer payments     0 0 0 0
Total Program     47,459,122 63,946,411 63,946,411 16,487,289
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates and the Budget Implementation Vote to support the expansion of the First Nations Land Management Act and the successful participation of First Nations under the Act (+$11.7 million) and the First Nation fiscal institutions (Budget 2018) (+$7.4 million).

Transfer payments for Northern and Arctic Governance and Partnerships

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Grants to the Government of the Northwest Territories and the Government of Nunavut for health care of Indians and Inuit: 2014–15

Grants for the political evolution of the Territories, particularly as it pertains to devolution: 2014–15

Grants to implement comprehensive land claims and self-government agreements and other agreements to address Section 35 Rights: 2018–19

Grant to the Manitoba Métis Federation to support construction of the Métis National Heritage Centre: 2018–19

Contributions to promote social and political development in the North and for Northerners: 2016–17

Contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development for Indigenous peoples and the North: 2017–18

Contributions for the purpose of consultation and policy development: 2014–15

Contributions to support the construction and maintenance of community infrastructure: 2016–17

Link to Department’s Program Inventory: Northern and Arctic Governance and Partnerships

Description: This program strengthens the northern communities and people by: devolving responsibilities for lands and natural resources to territorial governments; fostering effective intergovernmental relations with territorial and Inuit governments; collaborating with Inuit organizations and providing support to Territorial Commissioners; providing grants for hospital and physician services in Nunavut and the Northwest Territories; and, advancing Canadian and northern interests through circumpolar forums such as the international Arctic Council. Canadians and Northerners will benefit from territorial governments ultimately having more control over their own affairs.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently, there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: An evaluation was not completed in 2018–19. The Evaluation of Northern and Arctic Governance and Partnerships is planned to be completed in March 2022.

Engagement of applicants and recipients: In 2018–19, CIRNAC undertook a variety of initiatives in order to facilitate the growth of strong, effective, and efficient government structures in the North.

Northwest Territories Devolution Grant: The department continued its ongoing engagement with the Government of the Northwest Territories and 9 Indigenous parties to the Northwest Territories Land and Resources Devolution Agreement. Funding agreements with Indigenous parties in the Northwest Territories Lands and Resources Devolution Agreement were completed in summer 2018. This funding helps Indigenous parties play a role in managing post-devolution land and resources with the Government of the Northwest Territories.

Nunavut Devolution Negotiation Grant: CIRNAC engaged with the Government of Nunavut and Nunavut Tunngavik Incorporated to negotiate an Agreement-in-Principle for the devolution of lands and resources responsibilities. The parties held main table negotiation sessions approximately every 6 weeks throughout the fiscal year. In addition, the 6 working groups each met several times to discuss technical aspects of the draft Agreement-In-Principle and provided support to the main table negotiations. As in previous years, the department signed an agreement with Nunavut Tunngavik Incorporated in 2018 to fund their participation in Nunavut Lands and Resources Devolution Agreement-In-Principle negotiations that took place during the year.

Nunavut Capacity-Building Contribution: The department engaged with the Government of Nunavut to discuss the government’s financial management systems. In February 2019, CIRNAC entered another funding agreement with the Government of Nunavut to help the territory undertake activities such as developing their public accounts strategy and financial information system during the fiscal year necessary to improve its financial management capacity.

Nunavut Act Amendments: Between April 2018 and September 2018, the department engaged with the Government of Nunavut, Nunavut Wildlife Management Board and 11 Indigenous groups regarding amendments to the Nunavut Act that received Royal Assent on June 21, 2018. In fall 2018, the department continued formal Section 35 consultations with the same 11 Indigenous groups, along with the Government of Nunavut and Nunavut Wildlife Management Board on the potential repeal of Section 24 and amendment to Section 23(1)(S) of the Nunavut Act. The dialogue is expected to continue into 2019–20.

Hospital and Physician Services Grant: The department had regular ongoing engagements with the Government of Nunavut and Government of the Northwest Territories. In spring 2018, the department signed annual grant agreements with the governments of Nunavut and the Northwest Territories that would reimburse each territorial government a portion of costs incurred to provide hospital and physician services to Indigenous residents during the year.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Grants to the Government of the Northwest Territories and the Government of Nunavut for health care of Indians and Inuit     56,563,000 56,563,000 56,563,000 0
Grants for the Political Evolution of the Territories, particularly as it Pertains to Devolution     9,100,036 9,599,382 9,599,382 499,346
Grants to implement comprehensive land claims and self-government agreements and other agreements to address Section 35 Rights     0 7,500,000 7,500,000 7,500,000
Grant to the Manitoba Métis Federation to support construction of the Métis National Heritage Centre     0 3,400,000 3,400,000 3,400,000
Total grants     65,663,036 77,062,382 77,062,382 11,399,346
Contributions
Contributions to promote social and political development in the North and for Northerners     2,771,053 6,729,189 5,686,987 2,915,934
Contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development for Indigenous peoples and the North     72,083 285,958 285,958 213,875
Contributions for the purpose of consultation and policy development     0 0 0 0
Contributions to support the construction and maintenance of community infrastructure     0 32,500,000 32,500,000 32,500,000
Total contributions     2,843,136 39,515,147 38,472,945 35,629,809
Total other types of transfer payments     0 0 0 0
Total Program     68,506,172 116,577,529 115,535,327 47,029,155
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates for infrastructure projects in Indigenous communities (+$40.0 million) as well as funding provided through internal reallocation of resources from other programs.

Transfer payments for Individual Affairs

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Contributions to Indian bands for registration administration: 2017–18

Contributions to supply public services in Indian Government Support and to build strong governance, administrative and accountability systems: 2018–19

Contributions to support Land Management and Economic Development: 2018–19

Link to Department’s Program Inventory: Individual Affairs

Description: The First Nations Individual Affairs Program is the lead program for the government’s legislative and administrative responsibilities for registration, membership, status cards, trust moneys, and estates. The work of the program is diverse and comprehensive, including supporting the Indian Registrar, issuing registration documents such as the Secure Certificate of Indian Status, issuing treaty annuity payments, administering estates as provided for under the Indian Act, and providing access to moneys held in trust by Canada on behalf of First Nations. The expected outcome of the program is that Indigenous peoples, communities, and governments are given the tools to exercise their rights and self-determination.

The program contributes to the Rights and Self-Determination Core Responsibility. The rights of individuals are supported through direct client services and partnerships with First Nations to determine eligibility for registration under the Indian Act; while the self-determination of individuals is supported through responding to requests for access to moneys held in trust by Canada on behalf of First Nations.

The program maintains a current and accurate Indian Register and issues proof of registration which identifies those eligible to receive programs and services. The program also ensures that the Government’s responsibilities for estates management under the Indian Act are met.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An Audit of the Estate Services Program is in progress and is expected to be completed in March 2020.

Findings of evaluations completed in 2018–19: An evaluation was not completed in 2018–19. The Evaluation of Individual Affairs is planned to be completed in March 2020.

Engagement of applicants and recipients: Estate management is a mandatory statutory requirement pursuant to the Indian Act. In support of this statutory requirement, grants and contributions have been made available to First Nations to build capacity (e.g. will-writing workshops).

In 2018–19, following a call for proposals, $3.2 million was directed to 87 organizations, groups and/or communities for estates capacity building to support further devolution.

Administration of moneys held in trust is a fiduciary responsibility of the Minister. In 2018–19, the program provided $500,000 to bands and organizations in support of development work for the transfer of Indian Moneys to outside independent trusts managed by First Nations.

In 2018–19, training was provided to 600 community-based Indian Registration Agents on new and revised policies, procedures and directives in order to build their capacity as an important agent in the registration and card issuance process.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions to Indian bands for registration administration     8,998,709 10,743,904 10,743,904 1,745,195
Contributions to supply public services in Indian Government Support and to build strong governance, administrative and accountability systems     209,039 1,456,604 1,456,604 1,247,565
Contributions to support Land Management and Economic Development     0 2,545,635 2,545,635 2,545,635
Total contributions     9,207,748 14,746,143 14,746,143 5,538,395
Total other types of transfer payments     0 0 0 0
Total Program     9,207,748 14,746,143 14,746,143 5,538,395
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates for the transfer from the Department of Indigenous Services Canada to adjust amounts as per Order in Council P.C. 2017-1465 (+$3.5 million) as well as funding provided through internal reallocation of resources from other programs.

Transfer payments for Residential Schools Resolution

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Grant to the Gord Downie and Chanie Wenjack Fund: 2018–19

Contributions for Groups of Indian Residential School survivors who wish to resolve their claim as a group under the Independent Assessment Process: 2006

Link to Department’s Program Inventory: Residential Schools Resolution

Description: The Group Independent Assessment Program (IAP) provides funding to qualified groups across Canada to support healing and reconciliation for group members, their families, and communities. This program provides an opportunity for individuals to come together as they go through their individual IAP claim and/or shortly thereafter.

The overall objectives are:

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently, there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: Not applicable.

Engagement of applicants and recipients: Pursuant to a Budget 2018 commitment, the Downie Wenjack Fund received $5 million in one-time grant funding in January 2019. The Downie Wenjack Fund is looking to find ways to promote more coordinated, progressive, and "community-forward" approaches to build awareness of the lived experience of Indigenous peoples and educate Canadians about the legacy of residential schools.

The Indian Residential Schools Adjudication Secretariat administers the Group IAP contribution funding to provide opportunities for groups of IAP claimants, their families and communities to engage in healing and reconciliation activities and to provide one another mutual support through the process.

The Adjudication Secretariat provided outreach and information sessions to community groups both in person and via teleconference in the first 2 quarters of the fiscal year and continued ongoing engagement with established groups, partners and stakeholders to promote and support the program.

Following the completion of a Call for Proposals process, 11 groups were selected to receive Group IAP funding for the 2018–19 year. A total of $700,000 was provided to fund activities for 200 IAP claimants under 9 contribution agreements. The agreements are dispersed across Canada in Saskatchewan, Alberta, Ontario, Northwest Territories, Manitoba, and Nova Scotia. The funds provided to groups support a variety of cultural and healing activities. Examples this year include holistic healing practices, reclaiming of culture workshops, parenting and family workshops, cultural teachings, drug and alcohol counselling, sweats, pipe ceremonies and more.

In November 2018, the Call for Proposals process was completed for group projects to be held in 2019–20. 2019–20 is anticipated to be the final funded year for Group IAP. However, discussions are underway to seek a mechanism for new applicants entering the IAP from Kivalliq Hall to apply for Group IAP, should timelines and funding availability allow.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Grant to the Gord Downie and Chanie Wenjack Fund     0 5,000,000 5,000,000 5,000,000
Total grants     0 5,000,000 5,000,000 5,000,000
Contributions
Contributions for Groups of Indian Residential School survivors who wish to resolve their claim as a group under the Independent Assessment Process     0 1,000,000 700,000 700,000
Total contributions     0 1,000,000 700,000 700,000
Total other types of transfer payments     0 0 0 0
Total Program     0 6,000,000 5,700,000 5,700,000
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates and the Budget Implementation Vote for the Gord Downie and Chanie Wenjack Fund (+$5.0 million) and to continue Canada’s legal obligations under the Indian Residential Schools Settlement Agreement (+$1.0 million). Funding for Indian Residential Schools Settlement Agreement that was not required in 2018–19 will be re-profiled to future years for the intended purpose.

Transfer payments for Indigenous Entrepreneurship and Business Development

Start date/End date: Ongoing

Type of transfer payment: Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions: Contributions to support Land Management and Economic Development: 2018–19

Link to Department’s Program Inventory: Indigenous Entrepreneurship and Business Development

Description: This program contributes to the Community and Regional Development Core Responsibility by supporting Indigenous entrepreneurs who would otherwise have difficulty accessing capital to create and/or expand a business due to legislative and market-based barriers. The program provides access to capital, support services, and business/procurement opportunities including federal contracts contributing to higher levels of economic prosperity for Indigenous Canadians.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An Audit on Economic Development Programs was completed in 2018–19.

Key findings from the Audit on Economic Development Programs: The economic development programs had structured processes for program delivery including clear program authorities, objectives, roles and responsibilities, recipient and project eligibilities, and reporting requirements.

There were also opportunities to improve the economic development programs’ design and delivery related to:

Finally, there is a timely opportunity for the economic development programs to leverage the opportunities created by CIRNAC and ISC’s new mandates and departmental transformation.

Findings of evaluations completed in 2018–19: An evaluation was not completed in 2018–19. The Evaluation of Indigenous Entrepreneurship and Business Development is planned to be completed in March 2021.

Engagement of applicants and recipients: On an ongoing basis, the department engaged with the National Aboriginal Capital Corporation Association, to ensure that support is provided to effectively deliver programs under this authority. Discussions have commenced with the National Aboriginal Capital Corporations Association to leverage existing financial assets.

CIRNAC, Innovation, Science and Economic Development (ISED), and Employment, Social Development Canada (ESDC) collaborated to provide tools and best practices to the Aboriginal Financial Institutions network. These tools aimed to increase awareness of intellectual property for entrepreneurs and matched skills and employment opportunities under the Indigenous Skills and Employment Training Programs with businesses supported by the Aboriginal Financial Institutions.

The department also engaged with the National Aboriginal Capital Corporations Association and the Aboriginal Financial Institutions network to increase awareness in the use of surety instruments. Collaborative work in the development and tracking new social economic development indicators to measure social and economic conditions continue.

The department supported the implementation of the new Aboriginal Financial Institutions Loan Management System introduced in October 2017 by the National Aboriginal Capital Corporations Association. More than 30% of AFIs are currently under the new system and the department plans to increase this percentage in the next year.

In addition, CIRNAC supported projects funded through the Aboriginal Entrepreneurship Program that provides Canadian Council for Aboriginal Business (CCAB), Indigenous Tourism Association of Canada (ITAC), Indigenous Works (IW), Indigenous Leadership Development Institute (LDI) and the New Relationship Trust (NRT) access to business opportunities to cultivate a culture of entrepreneurship and improve access to business opportunities for Indigenous Businesses. Initiatives that have taken place this year include supporting CCAB’s Aboriginal Procurement Strategy, ITAC’s National Indigenous Tourism Implementation Strategy, IW’s Motivating Disengaged Sectors and Companies to grow their Indigenous Strategies for Business Strategy, LDI’s World Indigenous Business Forum and the NRT’s Young Entrepreneurs Symposium.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions to support Land Management and Economic Development     43,470,000 43,232,842 43,232,842 (237,158)
Total contributions     43,470,000 43,232,842 43,232,842 (237,158)
Total other types of transfer payments     0 0 0 0
Total Program     43,470,000 43,232,842 43,232,842 (237,158)
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Transfer payments for Economic Development Capacity and Readiness

Start date/End date: Ongoing

Type of transfer payment: Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Contributions to support Land Management and Economic Development: 2018–19

Contributions to support the Aboriginal Economic Development Strategic Partnerships Initiative: 2017–18

Link to Department’s Program Inventory: Economic Development Capacity and Readiness

Description: The department is supporting the efforts of Indigenous and northern communities in sustainable economic development, sustainable food, social and green infrastructure, natural resources and environmental management. The Economic Development Capacity and Readiness Program contributes by supporting Indigenous people and communities in advancing their business development and economic growth. The program provides support for the development of Indigenous capacity and the building of relationships with partners, through investments in the development of public and private sector partnerships, participation in targeted economic development opportunities, planning and economic development services and capacity building supports. These investments result in the leveraging of investments, the establishment of regulatory certainty and the capacity to participate in economic opportunities, thereby, enabling Indigenous people and communities to achieve greater self-reliance and sustainable economic prosperity.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An Audit on Economic Development Programs was completed in 2018–19.

Key findings from the Audit on Economic Development Programs: The economic development programs had structured processes for program delivery including clear program authorities, objectives, roles and responsibilities, recipient and project eligibilities, and reporting requirements.

There were also opportunities to improve the economic development programs’ design and delivery related to:

Finally, there is a timely opportunity for the economic development programs to leverage the opportunities created by CIRNAC and ISC’s new mandates and departmental transformation.

Findings of evaluations completed in 2018–19: The Horizontal Evaluation of the Strategic Partnership Initiative Component of the West Coast Energy Initiative, led by Natural Resources Canada is in progress and is expected to be completed in December 2019. The Evaluation of Economic Development Capacity and Readiness is planned to be completed in March 2021.

Engagement of applicants and recipients:

Stakeholder Engagement: CIRNAC supported community planning and relationship building between First Nations and neighbouring municipalities through the Community Economic Development Initiative (CEDI), which is jointly implemented by the Council for the Advancement of Native Development Officers and the Federation of Canadian Municipalities. There are currently 15 partnerships, which includes 25 Indigenous communities and 23 municipalities.

Call for Proposals: CIRNAC supported large-scale commercial and industrial projects in First Nations and Inuit communities through the provision of project funding to pursue economic opportunities and leverage access to private sector resources. In 2018–19, 24 projects in 23 communities with populations ranging from 315 to 11,593 (total population of 63,118), were funded for an investment of $19.5 million.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions to support Land Management and Economic Development     77,540,297 102,698,488 102,698,488 25,158,191
Contributions to support the Aboriginal Economic Development Strategic Partnerships Initiative     22,450,000 26,071,879 26,071,879 3,621,879
Total contributions     99,990,297 128,770,367 128,770,367 28,780,070
Total other types of transfer payments     0 0 0 0
Total Program     99,990,297 128,770,367 128,770,367 28,780,070
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates for the transfer from the Department of Indigenous Services Canada to adjust amounts as per Order in Council P.C. 2017-1465 (+$12.3 million) as well as funding provided through internal reallocation of resources from other programs.

Transfer payments for Land, Natural Resources and Environmental Management

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Grants to First Nations to settle specific and special claims negotiated by Canada and/or awarded by the Specific Claims Tribunal and to Indigenous groups to settle special claims: 2018–19

Contributions to support Land Management and Economic Development: 2018–19

Contributions to First Nations for the management of contaminated sites: 2014–15

Contributions for the purpose of consultation and policy development: 2014–15

Contributions to support the construction and maintenance of community Infrastructure: 2016–17

Link to Department’s Program Inventory: Land, Natural Resources and Environmental Management

Description: This program works with First Nations communities to develop innovative policy, process and system improvements to enhance conditions to increase the reserve land base, support sustainable management of land, environment and natural resources that leverages community and economic development opportunities and facilitates greater First Nations independence/self-sufficiency in managing these assets.

This program provides support to First Nations governments, as well as Aboriginal institutions and organizations through core and targeted funding to:

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was completed on Economic Development Programs in 2018–19. The Audit of Lands Management was cancelled. The CIRNAC Risk-Based Audit Plan has since been updated to reflect the evolving risk landscape.

Key findings from the Audit on Economic Development Programs: The economic development programs had structured processes for program delivery including clear program authorities, objectives, roles and responsibilities, recipient and project eligibilities, and reporting requirements.

There were also opportunities to improve the economic development programs’ design and delivery related to:

Finally, there is a timely opportunity for the economic development programs to leverage the opportunities created by CIRNAC and ISC’s new mandates and departmental transformation.

Findings of evaluations completed in 22018–19: An evaluation was not completed in 22018–19. The Evaluation of Solid Waste Management is planned to be completed in January 2021. The Evaluation of Land, Natural Resources and Environmental Management is planned to be completed in March 2021.

Engagement of applicants and recipients: The department worked in partnership with the National Aboriginal Lands Managers Association to provide forums for First Nations and technical experts to raise issues on the current ratification regulatory framework and to present and discuss ideas, options and recommendations for reform and modernization.

In 2018–19, the department’s investments in land use planning and surveying allowed 25 First Nations to complete their land use plans, 45 to continue with the community-led process and 97 survey projects to be completed.

The department worked with the First Nations Solid Waste Management Initiative National Advisory Committee to implement the Solid Waste Management Initiative. The National Advisory Committee consists of national members and representatives from Regional First Nations Waste Advisory Groups. The establishment of the regional advisory groups enables regional challenges to be raised at national forums and facilitates local discussion on waste management solutions and best practices.

CIRNAC in collaboration with ISC also engaged First Nations, tribal councils and other First Nations organizations on an ongoing basis to ensure that the development and implementation of waste management solutions were suited to community needs.

The department worked with First Nations to assess and remediate contamination on reserve lands. First Nations communities control contractor selection and the types of assessment and remediation technologies used.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Grants to First Nations to settle specific claims negotiated by Canada and/or awarded by the Specific Claims Tribunal and to Indigenous groups to settle special claims     4,500,000 3,481,588 839,371 (3,660,629)
Total grants     4,500,000 3,481,588 839,371 (3,660,629)
Contributions
Contributions to support Land Management and Economic Development     42,628,206 48,292,580 48,292,580 5,664,374
Contributions to First Nations for the management of contaminated sites     29,681,030 54,430,696 47,640,676 17,959,646
Contributions for the purpose of consultation and policy development     658,000 0 0 (658,000)
Contributions to support the construction and maintenance of community infrastructure     0 95,147,750 95,147,750 95,147,750
Total contributions     72,967,236 197,871,026 191,081,006 118,113,770
Total other types of transfer payments     0 0 0 0
Total Program     77,467,236 201,352,614 191,920,377 114,453,141
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates for infrastructure projects in Indigenous communities (+$108.5 million), for the transfer from the Department of Indigenous Services Canada to adjust amounts as per Order in Council P.C. 2017-1465 (+$26.5 million), and for the assessment, management and remediation of federal contaminated sites (+$7.4 million). This increase is offset by the deferral of the funding for the assessment, management and remediation of federal contaminated sites (-$6.8 million) to future years. These funds were not required in 2018–19 and will be re-profiled to future years when it would be available for the intended purpose. This increase is also offset by internal reallocation of resources to other programs.

Transfer payments for Climate Change Adaptation and Clean Energy

Start date/End date: Ongoing

Type of transfer payment: Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development for Indigenous peoples and the North: 2017−18

Contributions to support the construction and maintenance of community infrastructure: 2016−17

Link to Department’s Program Inventory: Climate Change Adaptation and Clean Energy

Description: This program contributes to increasing the resilience of Northern and Indigenous communities by supporting the integration of climate information in decisions, reducing reliance on diesel and greenhouse gas (GHG) emissions. The program takes a collaborative and capacity-building approach, working with provincial and territorial governments, communities and Indigenous organizations to first identify priorities and then provide direct funding support for territorial governments and Indigenous communities to:

Funding is also provided to support northern communities, governments, and organizations to plan and construct renewable energy and energy efficiency projects.

The implementation of adaptation measures will lead to increased resilience and support the ultimate outcome that Indigenous and northern communities strengthen their capacity to adapt to changing environments. This program supports the Core Responsibility Community and Regional Development.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: The Evaluation of Water and Wastewater is in progress and is expected to be completed in March 2020. The Horizontal Evaluation of Climate Change Adaptation and Clean Energy, led by Environment and Climate Change Canada is planned to be completed in June 2021.

Engagement of applicants and recipients: In 2018–19, CIRNAC worked collaboratively with other government departments, Indigenous organizations and communities in the 3 territories, and northern Quebec and Labrador to implement the Climate Change Preparedness in the North initiative. As a part of the program, a climate change adaptation liaison position was created in each of the following regions (Yukon, Northwest Territories, Nunavut, Nunavik and Nunatsiavut) to enable the department to continue to work with communities in identifying adaptation priorities and to facilitate access to program funding.

In December 2018 and March 2019, CIRNAC supported 2 engagement sessions in Ottawa (ArcticNet side meeting) and Regina (Central Canada Gathering) to provide funding recipients with an opportunity to share information and provide feedback towards the implementation of the Indigenous Community-Based Climate Monitoring Program.

For a second year, a national gathering was held in March 2019, bringing together project proponents from the first 3 years of CIRNAC’s First Nation Adapt Program to discuss successes, lessons learned and to receive feedback on program design, priorities and future direction. Select participants were invited to participate in a third day of activities for the first First Nation Adapt Advisory Circle. The advisory circle will provide advice and guidance on strategic elements of the program.

The First Nation Adapt Program also funded the Manitoba USKE Land Managers "Keepers of Land Gathering" Conference on February 26-27, 2019 in Winnipeg, Manitoba. The conference focused on flooding and climate change for band land managers and other staff related to infrastructure. Based on discussions at the workshop, a proposal is under development for communities around Lake Winnipeg to conduct community–based local flood forecasting with the incorporation of Indigenous Knowledge.

16 coastal BC First Nations communities participating in the Coastal Vulnerability Study met in Richmond, BC in May 2018 for an inaugural meeting to discuss elements of this pan-coastal hazard and vulnerability assessment project. The project is assessing hazards such as coastal erosion, sea-level rise, storm surge and tsunami.

Through the Northern REACHE program, the department worked collaboratively with regional stakeholders across the 5 northern regions to deploy clean energy projects. This fiscal year, CIRNAC supported energy coordinator positions in Nunavut, Nunatsiavut, and the Gwich’in Settlement Area in order to facilitate ongoing engagement with community members. Building on that success, CIRNAC will expand this approach to Nunavik and the Inuvialuit Settlement Region in 2019–20.

The department is also supporting and working in partnership with the Assembly of First Nations, Inuit Tapiriit Kanatami, and the Métis National Council at 3 separate senior-level tables to engage with First Nations, Inuit and the Métis Nation in the implementation of the Pan-Canadian Framework on Clean Growth and Climate Change.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development for Indigenous peoples and the North     23,550,000 23,665,199 23,665,199 115,199
Contributions to support the construction and maintenance of community infrastructure     9,000,000 8,659,596 8,659,596 (340,404)
Total contributions     32,550,000 32,324,795 32,324,795 (225,205)
Total other types of transfer payments     0 0 0 0
Total Program     32,550,000 32,324,795 32,324,795 (225,205)
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Transfer payments for Northern and Arctic Environmental Sustainability

Start date/End date: Ongoing

Type of transfer payment: Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development for Indigenous peoples and the North: 2017–18

Contributions to promote social and political development in the North and for Northerners: 2016–17

Link to Department’s Program Inventory: Northern and Arctic Environmental Sustainability

Description: Northern and Arctic Environmental Sustainability contributes to a healthy and sustainable environment for the benefit of Northerners and Canadians by a sustainable management of land and resources in Indigenous communities and the North. The program ensures that decision making is fully informed by providing scientific and policy reports and advice and by co-developing strategic plans to address environmental concerns and impacts. The program ensures efficient and effective monitoring systems in the North by coordinating, generating and managing scientific and environmental data and by publishing results and data.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: The Evaluation of Federal Contaminated Sites Action Plan, led by Environment Canada was completed in 2018–19. The Evaluation of Northern and Arctic Governance and Partnership is planned to be completed in March 2022. The Horizontal Evaluation of the Impact Assessment and Regulatory Processes, led by the Canadian Environmental Assessment Agency, is planned to be completed in June 2023. The Evaluation of Northern and Arctic Environmental Sustainability is planned to be completed in March 2024.

Key findings from the Evaluation of Federal Contaminated Sites Action Plan: The evaluation of the Federal Contaminated Sites Action Plan found that overall, the Federal Contaminated Sites Action Plan (FCSAP) program is an effective approach to addressing federal contaminated sites and that there are opportunities to: improve alignment with federal priorities, enhance efficiencies through changes in the program design, and to report more effectively on its successes in a way that resonates with Canadians. Further, the evaluation found that FCSAP contributed to reducing risks to the environment and human health, although the program does not measure risk reduction directly.

Engagement of applicants and recipients:

Arctic Regional Environmental Studies: In 2018–19, in partnership with Inuvialuit organizations, CIRNAC continued work to complete the Beaufort Regional Strategic Environmental Assessment. Scientific research projects are ongoing and community engagement meetings took place in the 6 Inuvialuit communities to discuss the initiative’s work to date and gather feedback and comments. This process is ongoing and will finish in 2020–21.

A community tour was also hosted in 10 Baffin communities to discuss the Strategic Environmental Assessment in Baffin Bay and Davis Strait. Research priorities were validated from initial community meetings in the Baffin region and through discussions with other federal departments. A final public meeting was held in Iqaluit to finalize the Baffin Bay Davis Strait Strategic Environmental Assessment.

Northern Participant Funding Program: The department conducted 8 program design and implementation sessions with 22 Indigenous groups in the Yukon and the Northwest Territories. A preliminary action plan was created based on the feedback from the 8 sessions. The department will continue engagement efforts in 2019–20 in Nunavut.

The Northern Contaminants Program: The department continued to work with a wide range of partners, including northern Indigenous and Rights-holders organizations, territorial and northern Indigenous regional governments, academics, other federal departments, and other stakeholders, through the Northern Contaminants Program Management CommitteeEndnote 1, 5 Regional Contaminants CommitteesEndnote 2 in Yukon, Northwest Territories, Nunavut, Nunavik and Nunatsiavut, and technical review teams.

To assist potential applicants in preparing proposals, a public webinar was hosted by CIRNAC for the first time in 2018 to share information about the Northern Contaminant Program call for proposals and review process, and to answer questions from potential applicants. The department also launched an online Project Discovery Portal to communicate on an ongoing basis with funding recipients.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development for Indigenous peoples and the North     6,781,499 6,842,995 6,035,298 (746,201)
Contributions to promote social and political development in the North and for Northerners     80,000 0 0 (80,000)
Total contributions     6,861,499 6,842,995 6,035,298 (826,201)
Total other types of transfer payments     0 0 0 0
Total Program     6,861,499 6,842,995 6,035,298 (826,201)
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects internal reallocation of resources to other programs.

Transfer payments for Northern Contaminated Sites

Start date/End date: Ongoing

Type of transfer payment: Grants and Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Financial information table.

Fiscal year for terms and conditions:

Grant to support the Giant Mine Oversight Board and research on arsenic trioxide: 2018−19

Transfer payments to the Government of Yukon for the care and maintenance, remediation and management of the closure of contaminated sites in Yukon: 2013−14

Contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development for Indigenous peoples and the North: 2017−18

Transfer payments to the Government of Yukon for the remediation of the Marwell Tar Pit Site to support the Contaminated Sites Program: 2013−14

Link to Department’s Program Inventory: Northern Contaminated Sites

Description: The Northern Contaminated Sites Program contributes to community and regional development in the North, and the sustainable management of the lands and resources in Indigenous communities and the North.

The program ensures that contaminated sites in the territories are managed to reduce risk to human and environmental health and safety for all Northerners through site assessments, care and maintenance, remediation and monitoring. Indigenous and northern communities benefit from the program’s engagement activities that facilitate improved accessibility of employment and business opportunities created by the program’s projects. This leads to the development and maintenance of long-term partnerships with Indigenous and northern communities through governance and partnering opportunities, as well as capacity building activities facilitated through the program’s active contaminated sites projects.

Northern contaminated sites originated primarily from mining, petroleum, and government military activity dating back over half a century and pose risks to human health and safety, and the fragile northern environment.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: An audit was not completed in 2018–19. Currently there are no future audits planned for this program.

Findings of evaluations completed in 2018–19: The Horizontal Evaluation of the Federal Contaminated Sites Action Plan, led by Environment and Climate Change Canada, was completed in 2018–19. The Evaluation of the Northern Contaminated Sites Program is in progress and expected to be completed in March 2020. The Horizontal Evaluation of Federal Contaminated Sites Action Plan, led by Environment and Climate Change Canada, is planned to be completed in June 2024.

Key findings from the Evaluation of Federal Contaminated Sites Action Plan: The evaluation of the Federal Contaminated Sites Action Plan found that overall, the Federal Contaminated Sites Action Plan (FCSAP) program is an effective approach to addressing federal contaminated sites and that there are opportunities to: improve alignment with federal priorities, enhance efficiencies through changes in the program design, and to report more effectively on its successes in a way that resonates with Canadians. Further, the evaluation found that FCSAP contributed to reducing risks to the environment and human health, although the program does not measure risk reduction directly.

Engagement of applicants and recipients: The department held a total of 221 engagement events with 1980 participants across the 3 territories to ensure that community perspectives from Indigenous and northern communities were considered in the planning and remediation phases of contaminated sites remediation projects. Engagement events included community engagements, consultations, media events, and partnering and capacity building opportunities.

Through the Yukon Northern Affairs Program Devolution Transfer Agreement, the department retains liability for contaminated sites created before devolution in 2003. Funding from the transfer agreement supported the Government of Yukon to continue the management of remediation on these contaminated sites.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Grant to support the Giant Mine Oversight Board and research on arsenic trioxide     1,655,339 1,165,282 1,165,282 (490,057)
Total grants     1,655,339 1,165,282 1,165,282 (490,057)
Contributions
Transfer payments to the Government of Yukon for the care and maintenance, remediation and management of the closure of contaminated sites in Yukon     75,036,824 7,137,210 7,137,210 (67,899,614)
Contributions for promoting the safe use, development, conservation and protection of the North's natural resources, and promoting scientific development for Indigenous peoples and the North     6,611,125 86,716,691 61,765,122 55,153,997
Transfer payments to the Government of Yukon for the remediation of the Marwell Tar Pit Site to support the Contaminated Sites Program     70,000 70,000 70,000 0
Total contributions     81,717,949 93,923,901 68,972,332 (12,745,617)
Total other types of transfer payments     0 0 0 0
Total Program     83,373,288 95,089,183 70,137,614 (13,235,674)
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects incremental funding provided through the Supplementary Estimates for the remediation and assessment activities for the assessment, management and remediation of federal contaminated sites (+$8.2 million). These funds were not required in 2018–19 and will be re-profiled to future years when it would be available for the intended purpose (-$25.0 million). The difference also reflects internal reallocation of resources from other programs.

Transfer payments for Nutrition North

Start date/End date: Ongoing

Type of transfer payment: Contributions

Type of appropriation: Transfer payments are voted unless otherwise denoted with an (S) in below Planning Information table.

Fiscal year for terms and conditions:

Contributions to support access to healthy foods in isolated northern communities: 2017–18

Contributions for the purpose of consultation and policy development: 2014–15

Link to Department’s Program Inventory: Nutrition North

Description: The purpose of Nutrition North Canada (NNC) is to help lower the high cost of food in northern isolated communities in Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Newfoundland and Labrador, Yukon, the Northwest Territories and Nunavut by providing a subsidy on perishable, nutritious foods. The program’s objective is to make these foods more accessible and more affordable than they otherwise would be to residents of eligible isolated northern communities without year round surface (road, rail or marine) access.

The program is a horizontal initiative, with ISC and the Public Health Agency of Canada (PHAC) complementing the NNC retail subsidy by providing funding to support culturally appropriate retail and community-based nutrition education initiatives that aim to increase knowledge of healthy eating and develop skills for the selection and preparation of healthy store-bought and traditional/country foods. The ISC component of the program serves residents of eligible First Nations and Inuit communities, and PHAC serves residents of isolated northern communities that fall outside the mandate of ISC’s First Nations and Inuit Health Branch.

Results achieved: Performance results for this transfer payment program are available in GC InfoBase.

Findings of audits completed in 2018–19: The Audit of Nutrition North Canada was cancelled. The CIRNAC Risk-Based Audit Plan has since been updated to reflect the evolving risk landscape.

Findings of evaluations completed in 2018–19: The Horizontal Evaluation of Nutrition North Canada is in progress and is expected to be completed in March 2020.

Engagement of applicants and recipients: CIRNAC continued to work with a wide range of stakeholders, including the NNC Advisory Board, the NNC Indigenous Working Group, and the Inuit-Crown Food Security Working Group on receiving ongoing input to improve the NNC program, co-develop new initiatives, and engage and communicate with communities. A total of 21Endnote 3 meetings between the department and the various boards and working groups occurred in 2018–19.

Financial information (dollars)
Type of transfer payment 2016–17 Actual spendinga 2017-18 Actual spendinga 2018–19 Planned spending 2018–19 Total authorities available for use 2018–19 Actual spending (authorities used) Variance
(2018–19 actual minus 2018–19 planned)
Grants
Total grants     0 0 0 0
Contributions
Contributions to support access to healthy foods in isolated northern communities     89,428,884 84,419,641 80,212,690 (9,216,194)
Contributions for the purpose of consultation and policy development     0 198,000 198,000 198,000
Total contributions     89,428,884 84,617,641 80,410,690 (9,018,194)
Total other types of transfer payments     0 0 0 0
Total Program     89,428,884 84,617,641 80,410,690 (9,018,194)
a Information not available at program level due to the change from a Program Architecture Alignment structure to a Departmental Results Framework structure.
Note: Due to rounding, figures may not add to totals shown.

Explanation of variances: The difference between planned spending and actual spending primarily reflects the deferral of the funding for NNC (-$4.2 million) to future years. These funds were not required in 2018–19 and will be re-profiled to future years for the intended purpose. The difference also reflects internal reallocation of resources to other programs.

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