Contribution Agreements

• Outline:– Grant versus Contribution Agreement– Accountability– The Contribution Agreement Life Cycle– Resources– Question and Answer

• Goal: – By the end of the session you will understand the

lifecycle of a contribution agreement within the Integration branch.

Introduction

• Grant– Unconditional transfer of funds– Not subject to monitoring

• Contribution– Conditional transfer of funds– Funds must be accounted for and are subject to

monitoring

Grants vs. Contributions

• The Grants & Contributions program is governed by the need to collect data, evaluate services and to be administratively effective.

• An environment of heightened scrutiny and accountability

• Audits and reviews• Standing Committee on Citizenship and

Immigration

Accountability

The CA Cycle

• Planning– Set priorities, and formulate delivery objectives

to ensure that services meet client needs

• Assessing and Recommending Proposals– Ensure contribution agreement funds are

awarded using a fair and transparent process;

Planning, Assessing and Recommending Proposals

Call For Proposal (CFP) Cycle

Agreement Negotiated

1st Service Standard: Acknowledgement of Receipt of Application2nd Service Standard: Decision on Applicant Eligibility3rd Service Standard: Decision on proposal Approval

1st Service Standard

(September 7)

2nd Service Standard

(October 17)

3rd Service Standard (January

10

• Quantitative and qualitative objectives, deliverables should be: – in support of CIC’s program objectives;– achievable within the duration of the agreement.

• Costs must be:– reasonable and directly related to the provision of

services– conformed with CIC’s Negotiation Guidelines.

• CIC will contribute to a portion of the shared costs required to achieve program objectives.

• Service providers need to declare all sources of funding initially and during the duration of the CA.

When Negotiating a Contribution Agreement

• A legally binding document between your organization and the Government of Canada.

• Stipulates the maximum contribution/budget over a specified period for the administration and delivery of identified services and expected results

• CA is comprised of two parts:– The Articles and– The Schedules

Contribution Agreement

Articles

Article Sections: 1.0 Agreement 2.0 Interpretation 3.0 Contribution 4.0 Conditions Governing Payment of the Contribution 5.0 Service Provider Obligations

Articles Continued

6.0 Program Monitoring, Information and Reporting Requirements

7.0 Privacy and Security Obligations8.0 Default 9.0 Third Party10.0 Intellectual Property11.0 Capital Assets 12.0 General

• Schedule 1– Describes the objectives, activities, outputs, outcomes

and reporting• Schedule 2– Program Budget

• Schedule 3– Outlines the terms of payment

• Schedule 4– Contains supplementary terms and conditions related

to financial practices and program activities

Schedules

• What is a forecast of cashflow?– Is a CIC reporting requirement – Developed in consultation with the program

manager– Forecast expenditures accurately according to

activities occurring that month.

Forecast of Cashflow

• What can be claimed? (Article 2.3)– Eligible costs, incurred and paid for, up to the total

value of Schedule 2 (per fiscal year)• Claims submitted by 10th of the following month• Approximately 2 weeks for CIC to issue payment• CIC may request supporting documents to

substantiate claimed expenses• March claims should only include eligible

expenses incurred up to and on March 31

Reviewing Claims and Calculating Payments

• To avoid delays in processing claims, ensure that:– Claims along with statistical and narrative reports are

submitted on time– Copies of supporting documentation are attached when

requested– Costs are incurred and paid– Costs are eligible– Expenses do not exceed maximum in Schedule 2– Shared costs are claimed as per agreed percentage spilt– Claims are mathematical accurate

Claims Continued

• Slippage occurs when claimed amount is greater than forecast– Apparent slippage if the funds will be claimed

later– Real slippage if the funds will not be claimed

• Real Slippage must be identified so that it can be de-committed or reallocated– Aim is to support programs throughout the

region

Amending Contribution Agreements: Slippage

• Used to modify the CA to account for slippage or new developments in the program

• Amendments are usually negotiated in winter

• Amended CA documents are signed by your organization and CIC

• Allow 6 - 8 weeks for approval

Amendments

• Review of program finances and activities to ensure that the terms and conditions of the CA are being met.– Each organization is subject to at least one

activity and one financial monitor for the duration of the agreement

– Monitors provide an opportunity to improve mutual understanding between the service provider and the Settlement Officer

Monitoring

• Financial monitor – Adequate financial controls are in place– Supporting documentations are available– Expenditures are reasonable and eligible under the

terms of the agreement• Activity monitor– Meet with management, staff and clients– Review client files to ensure proper reporting and

record keeping (refer to article 6.0) (if applicable)– Observe activities (classes, conversation circles, etc.)

Purpose of Monitors

• Final Claim– Deadline is usually set for the first week of April – Expenses must be incurred before March 31

• Final Report (Section 6.7 of CA) – Submitted after the completion of fiscal year activities

(Annual Project Performance Report)• Final payment – Includes March claim and 10% holdback if applicable– Usually occurs at the end of May – May include the reconciliation of any overpayments

Closing Agreement

• Meeting client needs• Developing referral relationships– LIPs, Francophone agencies, OCASI, etc.

• List of organizations serving newcomers– http://www.servicesfornewcomers.cic.gc.ca/ – www.settlement.org– www.211toronto.ca

Referral Resources

Questions ?

THANK YOU!