Archived - Indigenous and Northern Affairs Canada - 2015-16 Departmental Performance Report

Expenses by Type

Total expenses were $9,576 million in 2015–2016, representing a 9% increase from the previous year's expenses of $8,784 million. Transfer payments, the majority to Indigenous peoples and Indigenous organizations, amounted to $8,048 million or 84% of total expenses. Other significant expenses included salaries and employee future benefits totaling $469 million (5%) and court awards and other settlements totaling $552 million (6%).

Revenues by Type

Total revenues for 2015–2016 amounted to $3.3 million, representing a 43% decrease over the previous year's total revenues of $5.8 million. Respendable revenues from the provision of financial and administrative services represent $2.4 million (74%). Respendable revenues from the proceeds from the sale of surplus Crown assets, included in miscellaneous revenue, account for most of the remaining $0.9 million (26%).

Significant changes

The change in total expenses can be attributed mainly to an increase in the provision for claims and litigation of $913 million, as well as to an increase in Environmental Liabilities stemming from a new statistical model developed by the Office of the Comptroller General to estimate the liability for unassessed sites based on historical costs incurred for contaminated sites with similar functions.

The change in total revenues can be attributed mainly to a decrease in respendable revenues related to the proceeds from surplus Crown assets ($1.8 million) and in revenues from information technology services provided to Health Canada and the Public Health Agency of Canada ($0.6 million).

Liabilities by Type

Total net liabilities were $17,165 million at the end of 2015–2016, which is an increase of $1,554 million (10%) from the previous year's total net liabilities of $15,611 million. The provision for claims and litigation represents the largest portion of liabilities at $11,549 million (67%) of total liabilities. Other significant liabilities include environmental liabilities of $3,765 million (22%), trust accounts of $767 million (4%), accounts payable of $755 million (4%) and the liability for settled claims of $228 million (1%).

Net Financial Assets by Type

Total net financial assets were $1,641 million at the end of 2015–2016, which is a decrease of $67 million (4%) from the previous year's total net financial assets of $1,707 million. The assets due from the Consolidated Revenue Fund accounted for $1,556 million (95%) of total financial assets and accounts receivable accounted for the remaining $65 million (5%).

Non-Financial Assets by Type

Total non-financial assets were $177 million, which is an increase of $44 million (33%) from the previous year's total non-financial assets of $133 million. Tangible capital assets represent $138 million (78%) of total non-financial assets while land held for future claims settlements represents the remaining $39 million (22%).

Significant changes

The change in total liabilities can be attributed mainly to an increase in the provision for claims and litigation due to an increase in the number of claims and in the estimate of the settlement amounts. There was also an increase in environmental liabilities due to a change in the Consumer Price Index and to the statistical model used to estimate unassessed sites.

The change in total net financial assets can be attributed mainly to a decrease in monies held in trust for First Nations, which is offset by an increase in accounts receivable for royalties.

The change in total non-financial assets can be attributed mainly to an increase in work in progress costs incurred during the construction of the Canadian High Arctic Research Station as well as the capitalization of the upgrades and betterments associated with information technology systems.

Description

This Program provides support to First Nation governments, as well as Indigenous governance institutions and organizations through core and targeted programming. The intent of this support is to facilitate capacity development in the Indigenous public service, the elected leadership, and entities that administer aggregate services on behalf of or to First Nation governments and their communities. Transparent and accountable First Nation governments attract investment, create opportunities, and effectively support their citizens. Transparent and accountable institutions and organizations strengthen the fabric of Indigenous governments across Canada, assist Indigenous communities and their governments in attracting investment, and support Indigenous participation in the Canadian economy. Ultimately, good governance practices are essential for active Indigenous participation in Canadian society and the economy.

Performance Analysis and Lessons Learned

In 2015–2016, continued support was provided to facilitate capacity development through core and targeted programming to First Nation communities and organizations. INAC allocated $3 million in contribution funding for 150 First Nations under the Default Prevention and Management Policy to assist in implementing governance capacity activities identified in their management action plans. An additional $385,000 was allocated to allow key INAC regional staff to travel to those First Nations for community planning processes. As a result, 67 communities were assisted through 77 separate projects largely concentrating investments in developing basic functions of government. Capacity building activities are long-term community investments. On average, the 44 First Nations that took part in the Default Prevention Management Policy pilot in 2014–2015 reduced their General Assessment scores by 3.89 points between 2013 and 2016; in contrast, all First Nations saw their General Assessment scores decrease by only 1.16 points. General Assessment considers a number of risk factors in First Nation recipients, including governance, planning, and financial and program management. Recipients are assigned a risk level ("low", "medium" or "high"). A lower score indicates reduced risk. The Department continued to build strategic partnerships to support investments in Indigenous community planning and capacity development by developing a draft National Community Development Strategy in collaboration with external stakeholders.

INAC also delivered on the statutory responsibilities of the Minister relating to First Nation elections under the Indian Act and the First Nations Election Act through the continued promotion of the latter Act as a strong electoral option. In 2015–2016, 15 First Nations opted into the First Nations Election Act legislative framework. The Department also provided advisory services on First Nation by-laws and other governance matters and explored opportunities for legislative initiatives to modernize First Nation governance frameworks.

Finally, INAC continued research and analysis on Indian registration, band membership and citizenship — including exploratory discussions with Kahnawake — in accordance with its support and promotion of good governance practices.

Description

This Program seeks to strengthen collaboration between governments and Indigenous groups through mutual respect, trust, understanding, shared responsibilities, accountability, dialogue and negotiation concerning the rights and interests of Indigenous peoples. Partnerships will be established helping to contribute to the strengthening of the social, economic and cultural well-being of Indigenous communities, which conditions support more active participation in Canadian society. The Program also addresses constitutional and historic obligations and public policy by: negotiating agreements that achieve clarity with respect to law-making authority and the ownership, use and control of lands and resources; addressing specific claims; dealing with special claims; developing multi-partner processes in areas identified by Indigenous groups and the federal government; and supporting effective and meaningful consultation with Indigenous groups and their representation in federal policy and program development.

Performance Analysis and Lessons Learned

INAC continued to address section 35 rights (Constitution Act, 1982) and promote economic self-sufficiency for Indigenous communities, as well as economic growth for all Canadians, through the negotiation of comprehensive land claims and self-government agreements, incremental treaty agreements, non-treaty agreements, and other processes. Comprehensive land claims agreements provide greater legal certainty with respect to the use and ownership of lands and resources and the reduction of barriers that impede development. Negotiated agreements provide Indigenous groups with opportunities to improve accountability and governance in key areas such as education, allowing meaningful changes in their communities and improving their quality of life.

The Department also put in place 15 policies and processes supporting strengthened collaboration between governments and Indigenous groups, including for example, negotiation of comprehensive land claims and self-government agreements including special claims and other processes, a Five Year Review of the Specific Claims Tribunal Act, a Federal–Provincial–Territorial Working Group on Aboriginal Consultation, and an Interlocutor's Contribution Program Funding Process.

Negotiation achievements from 2015–2016 include the conclusion of a final settlement agreement on the Camp Ipperwash special claim with the Chippewas of Kettle and Stony Point First Nation. This agreement includes a financial settlement of $95 million and sets out a clear process for remediating the former Camp Ipperwash lands and returning them safely to the First Nation. A settlement agreement on the Listuguj Mi'gmaq Government out-of-court settlement was also concluded and signed on April 29, 2015. This agreement includes a financial settlement of $64.5 million and discontinued Listuguj litigation. The Tla'amin final agreement came into effect on April 5, 2016, making it the third modern-day treaty finalized under the British Columbia treaty process.

The negotiation of the Anishinabek Nation Education Agreement, including the fiscal transfer agreement and the implementation plan, was also successfully completed. Thirty-two of 39 First Nations have expressed their intention to hold a ratification vote slated for November 28 to December 2, 2016. If approved by the parties, this will be the largest education self-government agreement in Canada.

Furthermore, Canada firmly committed on March 20, 2015 to advance claim negotiations with Lubicon Lake Band and the Government of Alberta, with the appointment of Ralph Peterson as Chief Federal Negotiator. The parties continue to make good progress in their negotiations.

Other achievements to be noted include successful ratification of the Deline Self-Government Agreement; signing of agreements-in-principle with Te'mexw Treaty Association, Wuikinuxv, Kitselas & Kitsumkalum, Inuvialuit, and Northwest Territories Métis nation; and signing of one Transboundary Framework Agreement with Nacho Nyak Dun.

In addition, the Department pursued its work on a number of initiatives related to section 35 rights (Constitution Act, 1982), such as putting in place measures to increase efficiency and improving Canada's internal mandating and approval process for treaty and self-government negotiation processes; substantially completing the impact assessment of Indigenous self-government arrangements to assess the socio-economic outcomes and benefits of Indigenous self-government; addressing Canada's consultation and accommodation obligations with regard to overlapping claims; and considering recommendations emerging from the Renewing the Comprehensive Land Claims Policy report prepared by Mr. Douglas Eyford, Ministerial Special Representative.

On May 29, 2015 the principals to the British Columbia treaty negotiations process (the Minister of INAC, Minister Rustad for British Columbia, and the First Nations Summit Task Group) initiated a multilateral engagement process to jointly develop proposals to improve and expedite British Columbia treaty negotiations. The engagement concluded in March 2016 with a joint report titled Multilateral Engagement Report to Improve and Expedite British Columbia Treaty Negotiations, for which joint endorsement by the principals was to be sought.

INAC also continues to address historic grievances through the Specific Claims Policy and the Specific Claims Tribunal. Specific claims refer to claims made by a First Nation against the federal government that relate to the administration of land and other First Nation assets and to the fulfillment of pre-1975 treaties. All Canadians benefit from the resolution of specific claims, and the resolution of claims outside of the court process is in the best interest of all Canadians. Negotiated settlements are about justice, respect and reconciliation. They are not only about coming to terms with the past and respect for treaties but also about moving forward together to realize a better shared future.

INAC conducted a review of the Specific Claims Tribunal Act in which a Minister's Special Representative engaged with First Nations and other interested parties. Though the work of the Minister's Special Representative in conducting the review was completed within the required time frame, the tabling of the Minister's report in both Houses of Parliament was delayed as a result of the election.

The Union of British Columbia Indian Chiefs in its "open letter" to the Minister entitled "In Bad Faith: Justice at Last and Canada's Failure to Resolve Specific Claims" and the Assembly of First Nations in its report entitled "Specific Claims Review: Expert Based — Peoples Driven" have articulated a number of concerns focused principally on the availability of resources and the perception that the Government of Canada is too rigid in its approach to the assessment and negotiation of specific claims. Discussions have begun with the Assembly of First Nations to engage a process in which issues can be identified and constructive responses can be developed.

The Department also continued to provide support to internal and external stakeholders to maintain collaboration with Indigenous groups and their representatives. In 2015–2016, $21.5 million was provided to 46 Aboriginal Representative Organizations through the Basic Organizational Capacity Program. In addition, program activities include efforts to assist federal departments/agencies in fulfilling the Crown's duty to consult, among them training, policy guidance, and advice, tools, and best practices to support information sharing and relationship building through various agreements, such as consultation protocols with Indigenous groups and provinces and territories.

As part of the government´s commitment to a whole-of-government, distinction-based approach to relationships with Indigenous peoples, on December 16, 2015, the Prime Minister committed to the five National Aboriginal Organizations (Assembly of First Nations; Inuit Tapiriit Kanatami; Métis National Council; Indigenous Peoples' Assembly of Canada; and the Native Women's Association of Canada) that he would meet with them annually in order to sustain and advance progress on shared priorities. These meetings are demonstrating a substantive and significant change in how the Government of Canada is working together with Indigenous peoples. INAC's Minister committed to working and meeting regularly with all five National Aboriginal Organizations. The first meeting took place in December 2015.

An evaluation of the Consultation and Accommodation Program carried out in 2015–2016 demonstrated that it supports a whole-of-government approach to Indigenous consultation and accommodation and the alignment with government priorities and roles and responsibilities in the development of the natural resources sector. For example, by providing advice and information related to consultations, federal officials are better prepared to foster relationships with Indigenous groups, thereby supporting departmental engagements and consultations.

An audit of the Métis and Non-Status Indian Relations and Métis Rights Management Program was also carried out in 2015–2016. It found that the Department has established formal processes that are being consistently followed to ensure due diligence is conducted prior to the finalization of funding agreements for Métis registration systems, and ongoing monitoring to assess compliance with the terms and conditions of the agreements. However, while some monitoring is being performed, the audit has identified an opportunity for the Department to work with its partners and stakeholders to establish long-term vision/objectives, appropriate departmental governance, and measurable outcomes for funding disbursed for the Métis registration system. In response, INAC has developed a management action plan to address these issues.

Description

This Program aims to create and maintain ongoing partnerships to support both pre- and post-1975 treaties to fulfill Canada's legal obligations while considering the 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 by improving collaboration between Canada and Indigenous peoples, and between Canada and pre- and post-1975 treaty Indigenous groups. Creating and maintaining partnerships 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 citizens.

Performance Analysis and Lessons Learned

In 2015–2016, INAC continued to create and maintain ongoing partnerships and structures with the signatories to modern treaties and other partners. Good progress was made on the negotiation of implementation plans and fiscal financing agreements in all regions, and the Department got a head start on renewing some of the implementation plans due to expire in the next year or two. Of special significance, negotiations with Nunavut were concluded resulting in the signing of a settlement agreement and ending a lawsuit filed against Canada for alleged breach of treaty obligations. Other achievements include the finalization and publication of annual reports and resolving or advancing the resolution of outstanding implementation issues under existing agreements, such as the review of several environmental assessments, all of which led to impact benefits agreements between the Nisga'a Nation and proponents.

As part of the departmental information management process, work began on the development of version 2 of the Treaty Obligation Management System (TOMS V2), which will give federal officials across government the ability to manage the fulfillment of their modern treaty obligations using a more qualitative approach. In addition, validation of TOMS V1 obligations, with over 35 departments and agencies, continued to ensure the accuracy of the data before migrating them to TOMS V2.

With respect to modern treaties in 2015, a new whole-of-government approach to modern treaty implementation was implemented. This new approach was developed to bridge gaps in how Canada manages its modern treaty obligations across the federal government through enhanced accountability, oversight and awareness. As part of the whole-of-government approach, a Deputy Minister-level oversight committee was established in September 2015. The approach also includes the establishment of the Modern Treaty Implementation Office, the development of tools, resources and guidance, as well as the provision of ongoing training.

An evaluation of the impacts of self-government agreements (SGA) carried out in 2015–2016 found positive effects for Indigenous persons in several regards, including income, labour force attachment, and household crowding. Of note, it is also observed that the Community Well-Being Index and all its component indices rise when a self-government agreement is in place.

Additionally, the evaluation found challenges associated with establishing governance. These included the lack of administrative capacity to effectively manage all new responsibilities under self-government and the need for greater collaboration among agreement partners to strengthen the approach to implementation. As indicated in the Management Response and Action Plan, INAC is actively moving forward to address the challenges identified.

As for pre-1975 treaties, Canada's action plans focus on enhancing the relationships between Canada and Indigenous peoples based on respect, co-operation and partnership. This was achieved by engagement with the Treaty First Nation partners through treaty discussion tables and treaty commissions, to gain a better understanding on their interests, perspectives, and issues with respect to their historic treaties. These views were shared within INAC and with other federal departments as appropriate to ensure their voices were heard in support of their overall objective towards self-sufficiency. This included gathering information and research on the nature of treaties, understanding treaty issues, and treaty implementation. Enhanced understanding and increased awareness of treaties was achieved through public education initiatives delivered by the treaty table partners and treaty commissions. Their objectives also focused on reconciliation, initiating dialogue among diverse groups, both Indigenous and non-Indigenous, and participating in reconciliation activities hosted by other organizations. The ongoing activities on reconciliation are helping to create a unified Canada, with a greater understanding of Indigenous issues and how we all need to succeed for Canada to prosper. Furthermore, the discussions with and support to the tables and commissions demonstrate the government's commitment to renewing the relationship.

Description

This Program supports First Nation and Inuit students in achieving educational outcomes comparable to those of other Canadians. Education is generally a provincial/territorial responsibility but, as a matter of policy, INAC funds elementary and secondary education for First Nation students ordinarily resident on reserve. The Education Program also provides financial support for post-secondary education to eligible First Nation and Inuit students. The overarching goal of INAC's Education programming is to provide eligible First Nation and Inuit students with quality education and ultimately, the opportunity to acquire the skills needed to enter the labour market and be full participants in a strong Canadian economy.

Performance Analysis and Lessons Learned

Improving the education outcomes of First Nation children living on reserve is critical to improving their quality of life and contributing to stronger communities. The Minister of Indigenous and Northern Affairs Canada was mandated to: make significant new investments in First Nation education to ensure that First Nation children on reserve receive a quality education while respecting the principle of First Nation control of First Nation education; work with the Minister of Employment, Workforce Development and Labour to fulfill the Government of Canada's commitment to increase annual support to the Post-Secondary Student Support Program; and work with the Minister of Employment, Workforce Development and Labour and the Minister of Innovation, Science and Economic Development to promote economic development and create jobs for Indigenous peoples.

In order to fulfill the new government's commitments on First Nation education, the Department prepared for a consultative process to engage First Nations and seek advice on how the Department can best support First Nations in improving education outcomes for students attending schools on reserve, while respecting First Nation control of First Nation education. The Department also continued its engagement with provincial partners and other stakeholders to build stronger education systems that deliver better education outcomes for First Nation students.

The Department continued to implement the Strong Schools, Successful Students Initiative, which was renewed through Budget 2015 and delivered through the First Nation Student Success Program and the Education Partnerships Program. This initiative funded 75 proposals to enable First Nations and First Nation organizations to work with partners, engage with community members and enhance the capacity of First Nation organizations to provide school board-type services.

Budget 2016 also provided significant new investments to support both post-secondary students and post-secondary institutions, so that the next generation of Canadians is well-equipped to tackle the challenges of the future. INAC is directly engaged with Employment and Social Development Canada to support the government's work with students, parents, educators and Indigenous groups, exploring how best to ensure that students wishing to pursue post-secondary studies have the resources and supports they need to pursue their dreams and be full participants in the new global economy.

To expand employment opportunities for young Canadians, Budget 2016 proposed to invest an additional $165.4 million in the Youth Employment Strategy in 2016–2017. This includes $38.2 million for the First Nations and Inuit Youth Employment Strategy Skills Link Program administered by INAC. The Department continued to work with Employment and Social Development Canada on the Youth Employment Strategy and opportunities for Indigenous youth.

The Department launched the Post-Secondary Partnerships Program call for proposals on January 16, 2016. By the March 2, 2016 deadline, 211 proposals were received. Proposals were considered in June 2016, so that funds flow to recipients to support students in September 2016.

Description

This Program funds five social programs (Income Assistance, Assisted Living, National Child Benefit, Child and Family Services, and Family Violence Prevention) that assist First Nation individuals and communities to become more self-sufficient, protect individuals and families at risk of violence, provide prevention supports that allow individuals and families to better care for their children, and support greater participation in the labour market. The Program assists First Nation men, women and children to achieve greater independence and self-sufficiency in First Nation communities across Canada by providing funds to First Nations, First Nation organizations, provinces and others that provide individual and family services to on-reserve residents (and Yukon First Nation residents). These services help First Nation communities meet basic and special needs, support employability and an attachment to the workforce, and support the safety of individuals and families. Through these five social programs, First Nations are better able to advance their own development, leverage opportunities and actively contribute to the broader Canadian economy and society.

Performance Analysis and Lessons Learned

In 2015–2016, INAC's Social Development program continued to make progress in improving the lives of First Nation people.

As a result of collaborative work with Employment and Social Development Canada, Income Assistance Reform has been successful in improving labour market outcomes of youth living on reserve. In 2015–2016, 2,900 youth benefited from Enhanced Service Delivery and 1,940 have transitioned off Income Assistance into either jobs or full-time school. Since implementation of the Income Assistance Reform in January 2014 more than 7,000 youth benefited from Enhanced Service Delivery and 4,006 have transitioned off Income Assistance into either jobs or full-time school.

While the overall on-reserve population and number of Income Assistance beneficiaries have increased, the Income Assistance dependency rate decreased to 31%, from 34% over the past few years. The decrease of the dependency rate can be in part attributed to the Income Assistance Reform, which provides both better support to Income Assistance youth beneficiaries as well as opportunities for them to access a range of services and programs aimed at advancing their participation in the labour market.

As another form of financial support to individuals and families, INAC provided $106 million of Assisted Living funding to over 500 First Nation communities. The Department continues to collaborate with Health Canada to explore the possibility of integrating all components of the federal on-reserve in-home care programming. Going forward, INAC will finalize a cost analysis on the program components begun in 2014–2015 to inform future program and policy options.

Meanwhile, the National Child Benefit sub-program and the National Child Benefit Reinvestment are part of a larger suite of anti-poverty measures and have continued to provide supports for low-income families. Through partnership with Employment and Social Development Canada, the lead on the National Child Benefit, as well as provinces, territories and First Nations, INAC is helping reduce the depth and effects of child poverty. For example, in 2015–2016, over $10 million was used to provide meals in on-reserve schools. The National Child Benefit Reinvestment supports are continuously reassessed to ensure that what is provided in First Nation communities is aligned as closely as possible with the supports provided by provinces/territories to children off reserve.

In the area of Child and Family Services, INAC continued to establish and strengthen co-ordination with key partners, notably with Saskatchewan and British Columbia, by clarifying roles and responsibilities, increasing information sharing, and improving compliance tools. In a similar vein, an information sharing agreement with the Government of Manitoba was finalized and endorsed by federal and provincial officials.

INAC has also accepted the decision of the Canadian Human Rights Tribunal and is committed to a full-scale reform of the First Nations Child and Family Services Program. The Department provided immediate relief through new investments announced in Budget 2016 to ensure program stability and provide support to First Nation children and families on reserve. Additionally, key partnerships were developed and strengthened with provinces and First Nation agencies that will contribute to the long-term program reform as directed by the Canadian Human Rights Tribunal decision. The Department is committed to addressing Child and Family Services program reform through regional and national engagement, identifying best practices and joint research opportunities and strengthening partnerships with all key stakeholders.

In 2013–2014, shelters across Canada saw over 60,300 admissions of women. For INAC-funded shelters, usage has increased slightly since 2006. Almost half of abused women in Canada do not report incidents to the police. This demonstrates a continued need for funded shelters. These facts are particularly relevant to INAC's Family Violence Prevention efforts, given that the violent crime rate on reserve is eight times higher than the violent crime rate off reserve, and due to the prevalence of risk factors and root causes of family violence in First Nation communities.

As of 2014–2015, there were 601 shelters (including 41 INAC-funded family violence shelters) for abused women operating across Canada: 74% (445) of these shelters served clients residing off reserve and 26% (156) served clients residing on reserve. In 2014–2015, 2,887 women and 2,828 children accessed the services of the INAC-funded family violence shelters.

As part of these family violence prevention efforts, INAC funded 303 violence prevention and awareness projects in 2015–2016 that focused on intervention, culturally sensitive services (elder and traditional teachings), anger management and men's programming, and self-development projects (healthy parenting and financial skills). In addition, the Department worked actively to strengthen partnerships and improve co-ordination with key partners by participating in a second National Roundtable on Missing and Murdered Indigenous Women and Girls with provinces, territories and National Aboriginal Organizations on February 26, 2016. All parties committed to outcomes and priorities for action, including a national awareness campaign.

Description

This Program contributes to ensuring federal stewardship of the legislative and administrative responsibilities of the federal government pertaining to registration, membership, status cards and estates. Results are achieved through direct client services and partnerships with First Nations to determine eligibility for registration under the Indian Act; issuing proof of registration documents, such as the Secure Certificate of Indian Status; and administering estates under the Indian Act. Through client-centric service delivery, the sound administration of individual affairs contributes to the well-being of First Nation individuals, families and communities.

Performance Analysis and Lessons Learned

In 2015–2016 the Department continued to register individuals entitled to Indian status, including those applying pursuant to the Gender Equity in Indian Registration Act. As of March 31, 2016, there were a total of 957,466 Registered Indians, 36,969 of whom were registered pursuant to the passage of the Gender Equity in Indian Registration Act in 2011.

The Department invested significant resources in a client-friendly process to apply for Secure Certificate of Indian Status (SCIS). The percentage of Registered Indians with an active SCIS has reached 17% in fiscal year 2015–2016. While the established target is set at 90% by March 2020, there are a variety of factors that could affect the Department's ability to attain this target. These factors include: (a) continued access to and issuance of the (non-secure) Certificate of Indian Status; (b) issuance of Temporary Confirmation of Registration Document. As part of its normal operations, the Department continues to review and identify ways to make the SCIS more accessible by clarifying policies, facilitating its application process (e.g., clarifying and simplifying document requirements) and improving its delivery standards to increase the overall percentage of Secure Certificates in circulation.

The Department also continued the integration of business functions related to registration and issuance of SCIS into a seamless, client-centric service delivery model. This business integration, expected to be completed in April 2021, includes a review of the application form for 2016–2017 and alignment of document requirements. The application form will replace multiple separate forms, facilitating access to services for clients. When complete, these changes will also allow INAC to deliver a simplified registration and card issuance experience to its applicants, regardless of the service delivery option they choose. The April 2021 completion date reflects the time needed to adequately address the complexities associated with the client-centric service delivery model.

Further, the Government of Canada published a new standard on identity and credential assurance to ensure consistency in identity management practices. This is to ensure individuals are who they claim to be, and that organizations that have control over identity information maintain it properly. The application of the new government standard to registration and card issuance will allow INAC to reduce the number of identity documents required from applicants to obtain their SCIS, and to align those document requirements with those needed for registration.

The Department also continued the development of the Indian Registration and Estates Management System (IREMS) as an IT solution to consolidate four existing departmental systems and to modernize service delivery. In 2015–2016, the business case for IREMS was developed to address part of the Treasury Board of Canada Secretariat's IT-enabled gating process framework. In addition, a project steering committee was established to support sound project governance.

Improvements were made to the training available to staff on the complexities of the registration provisions of the Indian Act, which increased the Department's ability to reduce the inventory of applications within a reasonable time frame. The Department continued to examine its processes to identify efficiencies that are expected to allow it to render decisions more expediently.

Finally, in pursuit of its objective of appointing executors and administrators of wills and estates under the authority of section 43(a) of the Indian Act, in 2015–2016 the Department undertook focused communications and public education activities to enhance awareness of estates management among First Nation individuals and communities by providing information sessions and distributing publications in First Nation communities. At the same time, the Department worked to strengthen its estate management policies and programs by updating its guidelines for the administration of property for minors, developing guidelines for its Estate Management Program, and surveying regions on their management of Dependent Adults files.

While the number of decedent estates varies throughout a given year, as of March 31, 2016 there were 3,504 active decedent estates files. During 2015–2016, the Department opened 1,044 new decedent estates files, for which it appointed 651 (62%) administrators or executors. The current estates process provides a 120-day timeline for appointing an estate administrator. Although it is the Department's goal that every estate has an administrator within this timeline, a number of factors may affect this process, including: the Department being notified of a death close to the end of fiscal year, delays caused by court actions, delays in communications with clients, and availability of resources and capacity.

Description

This Program supports a fair and lasting resolution to the legacy of Indian Residential Schools and promotes reconciliation with former students, their families and communities, and other Canadians. INAC implements the Indian Residential Schools Settlement Agreement (IRSSA) — a multi-party negotiated settlement monitored by the courts — by resolving claims of abuse under the Independent Assessment Process and meeting the Government of Canada's obligations vis-à-vis the Truth and Reconciliation Commission. In addition to its legal obligations under IRSSA, INAC promotes reconciliation between the Government of Canada and Indigenous peoples, as well as between Indigenous and non-Indigenous peoples, through specific reconciliation initiatives. A fair resolution of the legacy of Indian Residential Schools contributes to improved relationships between Indigenous peoples and other Canadians, and strengthens Indigenous communities.

Performance Analysis and Lessons Learned

In pursuit of its objective of supporting a fair resolution to the legacy of Indian Residential Schools as set out in the IRSSA, in 2015–2016 the Department had a number of accomplishments across the many aspects of IRSSA implementation. Firstly, INAC continued work to conclude all aspects of the Common Experience Payment component. This included substantially completing the Personal Credits program, with over 30,000 applications received and $57.3 million payments sent. This component of the Settlement Agreement was substantially completed by March 31, 2016. Going forward, the Department will prepare a request for direction for the courts to finalize the close-out of the Common Experience Payment and Personal Credits programs.

The Court Order of Madam Justice Brown on the close-out of the Designated Amount Fund (DAF) — the fund set aside for paying Common Experience Payments and Personal Credits of Residential Schools survivors — was entered on July 21, 2015. The Order placed a bar on future applications for Common Experience Payment, Personal Credits applications, and any requests to add an institution through Article 12 of the Settlement Agreement. This is an important step in the successful completion of this component of the Settlement Agreement, allowing for the transfer of the remaining DAF to the National Indian Brotherhood Trust Fund and Inuvialuit Education Foundation. Four existing Article 12 challenges remain to be resolved.

INAC disclosed 203 document packages to the Indian Residential Schools Adjudication Secretariat to facilitate the Independent Assessment Process. The Indian Residential Schools Adjudication Secretariat resolved 3,378 Independent Assessment Process claims through decision, negotiated settlement, withdrawal, jurisdictional decision, or ineligibility. This includes 2,273 decisions rendered by the Indian Residential Schools Adjudication Secretariat and 408 claims resolved through the Negotiated Settlement Process. Since 2007 the Independent Assessment Process has received 38,087 claims, of which 3,516 remain in progress. Since 2007, $3.004 billion in settlement payments have been made.

The Department also completed the transfer of documents from Library and Archives Canada to the Truth and Reconciliation Commission before the end of the Commission's mandate. A total of 967,555 documents were disclosed to the Commission. Working collaboratively with the Commission and building trust was key not only to the document disclosure project's success, but to repairing relationships.

INAC participated in the Truth and Reconciliation Commission's Closing Event, providing educational and promotional material for the education day, and supporting travel costs in the amount of $350,000 for former students attending the event. Also at this event, the Department announced $2 million in funding as a gesture of reconciliation, which included $1 million to support the National Centre for Truth and Reconciliation, $250,000 for the Legacy of Hope Foundation, and $768,800 for Reconciliation Canada.

Following the release of the Truth and Reconciliation Commission's Final Report, as an initial response to Call to Action 78, Canada provided an additional $1.138 million to the National Centre for Truth and Reconciliation to support education and reconciliation opportunities.

The conclusion of the mandate of the Truth and Reconciliation Commission marks a significant milestone in the implementation of the Indian Residential Schools Settlement Agreement. The Commission's Calls to Action provide a path forward for healing and reconciliation.

Description

Supporting Indigenous entrepreneurship leads to greater participation in the economy and improved economic prosperity for Indigenous Canadians. This Program is guided by the Federal Framework for Aboriginal Economic Development and its vision of strengthening Indigenous entrepreneurship. The sub-programs within this Program work together to support the creation and growth of viable Indigenous businesses by providing access to business capital, support services and business opportunities. In playing this key support role, the Program expects to influence longer-term Indigenous business viability, leading to improved economic prosperity for Indigenous Canadians.

Performance Analysis and Lessons Learned

INAC supported the full participation of First Nations, Métis, Non-Status Indians and Inuit, both individual entrepreneurs and businesses, in the Canadian economy.

The Aboriginal Business Financing Program successfully transitioned to the National Aboriginal Capital Corporations Association with 14 Aboriginal Financial Institutions acting as program delivery partners. The transition increased Indigenous control, modernized the existing governance structure, enabled greater collaboration, increased the speed of decision making, and created efficiencies in the use of capital.

With the recent transition, an evaluation of Business Capital and Support Services confirmed the overall performance, relevance and efficiency of the Program. In response to the evaluation's recommendations, INAC developed a Management Response and Action Plan to establish incentives to attract interest and investment from the private and philanthropic sectors to leverage additional capital and diversify the portfolios of Aboriginal Financial Institutions as well as develop quantitative and qualitative indicators to measure economic/social impact.

The results of initial research on the Capital Attraction Tool revealed that potential investors will seek evidence of the effectiveness of the Aboriginal Financial Institutions Network and how the loan portfolio can be adequately securitized. The National Aboriginal Capital Corporations Association continues to assess the securitization of the Aboriginal Financial Institutions Network and the results will be used to inform the criteria for the establishment of a fund.

The Procurement Strategy for Aboriginal Business is providing input for the Nunavut Land Claims Agreement procurement policy to address Article 24 of the Agreement, which requires the development of an Inuit set-aside policy and benefits criteria, including INAC's roles and responsibilities in the future. The Procurement Strategy for Aboriginal Business is renegotiating the re-procurement of the Health Information and Claims Processing System, which will include an Aboriginal Participation Component to generate economic development opportunities for Indigenous businesses. The Procurement Strategy for Aboriginal Business is also negotiating an Aboriginal Participation Component for the Canada Border Services Agency Assessment and Revenue Management project valued at $371.5 million, and a mandatory Aboriginal Participation Component for the Department of National Defence's Health Care Providers Services worth an estimated $1.3 billion.

Procurement strategies on unexploded ordnance clearing and remediation activities were developed for First Nation communities with the Department of National Defence. INAC provided support to incorporate Aboriginal participation language in calls for proposals.

INAC participated in 39 outreach activities on the federal procurement processes to influence the availability of federal procurement opportunities for Indigenous business. INAC provided awareness and training sessions; renewed a memorandum of understanding and work plan with the Office of Small and Medium Enterprises to co-ordinate the delivery of information and training regarding Indigenous procurement opportunities and to explore new approaches to maximizing Indigenous business participation in federal and other potential opportunities; and signed a memorandum of understanding with Public Services and Procurement Canada to access the Procurement Strategy for Aboriginal Business and other federal procurement data to improve data collection and reporting.

To support enhanced Indigenous business participation in the public and private sectors, INAC funded the Canadian Council for Aboriginal Business to complete research studies, which examined the lack of industry knowledge about Indigenous businesses, lack of access to financing, importance of partnerships for Indigenous business growth, measurement of the short- and long-term socio-economic gaps between Indigenous and other Canadian businesses and the resulting impacts at the community and business partnerships levels.

INAC, in partnership with Statistics Canada, has initiated a study to analyze the economic impact of Procurement Strategy for Aboriginal Business set-asides on the Canadian economy and Indigenous communities and businesses. This study also aims to identify the industry sectors in which there is government demand for products and services as well as Indigenous business capacity that is being under-utilized.

Description

Supporting community development leads to greater participation in the economy and improved economic prosperity for Indigenous Canadians. This Program is guided by the Federal Framework for Aboriginal Economic Development and its vision of Enhancing the Value of Indigenous Assets, and supports activities that promote conditions for economic development. In playing this key support role, Community Economic Development programming expects to promote greater self-reliance and participation in the mainstream economy, and community well-being.

Performance Analysis and Lessons Learned

Through the Community Economic Development Program, INAC has supported the full participation of First Nations, Métis, Non-Status Indians and Inuit, both individuals and communities, in the economy.

First Nation and Inuit communities are increasingly pursuing economic opportunities, which are leading to greater independence and economic self-sufficiency. Results demonstrate that band-generated revenues are increasing and that communities are successfully utilizing their lands to enable economic development, while protecting the environment.

Operational legislation, such as the First Nations Commercial and Industrial Development Act (FNCIDA) and the First Nations Land Management Act (FNLMA), have enabled community jurisdiction and control over key activities and attracted private sector proponents, such as potash mining companies, who are willing to partner with First Nations to build large-scale commercial and industrial development projects on reserve land.

The Muskowekwan First Nation, the Province of Saskatchewan and the Government of Canada (INAC) have signed a tripartite agreement and negotiated federal regulations under the optional FNCIDA, to incorporate a provincial regulatory regime allowing development of a solution potash mine on the Muskowekwan First Nation reserve to proceed under the same regulatory regime as potash mines located off reserve. The Muskowekwan Potash Mine will provide significant employment opportunities for First Nation members and generate $50–$80 million annually in royalties for the First Nation over the mine's 80-year lifespan.

Under the Contaminated Sites (On Reserve) Program, INAC supported environmental assessment activities on 137 sites and remediation activities on 96 high-priority sites. This has resulted in decreased risk to human health and safety, an increase in land available for development and a reduction in federal liability related to contaminated sites.

INAC reviewed a total of 1,113 projects for their environmental impacts, and none of the projects was identified as being likely to cause significant environmental effects. In December 2015, INAC held a national workshop to explore the potential of establishing environmental indicators on reserve as part of state of the environment reporting on reserve.

INAC continues to support community planning, including land use plans and strategic economic development plans, as well as capacity building for land management and economic development. This work supports healthy and environmentally sustainable communities and prepares First Nations to effectively respond to economic opportunities and continue attracting private sector investment. INAC will fund $14.25 million over the next two years to support the Strategic Land Use Planning Initiative, in addition to the 15 new land use planning pilots supported in 2015–2016 and a land use planning workshop held in March 2016.

An increasing number of First Nations are managing their own land transactions. The increase is attributed to expansion of the Reserve Lands and Environmental Management Program and the First Nations Land Management Regime, as well as enhanced First Nation access to land management capacity training. The progress (62.5%) is slightly below the target of 65%. This small shortfall is attributed to the number of communities in the developmental phase of the First Nations Land Management Regime that were delayed in scheduling their ratification votes and transitioning to operational status under which they will manage their own transactions.

Six new entrants were welcomed into the First Nations Land Management Regime in 2015–2016. Meanwhile, six other First Nations held successful ratification votes to become fully operational under the Regime, for a total of 56 operational First Nations and 90 First Nations active in this Regime. The First Nations Land Management Resource Centre hosted a series of regional workshops focused on assisting FNLM Regime First Nations in the drafting of their environmental management strategies, laws, and enforcement regimes.

An evaluation of Lands and Economic Development Services carried out in 2015–2016 found that the sub-program complements other activities and funding under the Land and Economy Strategic Outcome. However, the evaluator also recommended that more be done in the future to ensure that programs under Land and Economy maximize their efforts. INAC has developed a Management Response and Action Plan, which includes: strengthening the current formula used to provide funding to operational First Nations in the First Nations Land Management Regime in order to achieve greater results; reviewing Data Collection Instruments and the Performance Measurement Strategy to ensure they adequately inform departmental decision making around community development, with a focus on the outcomes of economic development and land management activities; increasing collaboration and efforts to enable planning around land to facilitate opportunities for economic development; developing a strategy for continued capacity development so that communities maximize access to the continuum of Lands and Economic Development programs, including transition to sectoral self-government; and exploring the continued relevance of the different components under the First Nations Oil and Gas and Moneys Management Act, given the limited participation of First Nations.

Land surveys help to define land interests to better enable community development and economic activity on reserve. New survey standards were implemented that reduced the time and costs associated with completing on-reserve surveys. Also, in collaboration with Natural Resources Canada, electronic survey approval software was developed to streamline the approval process and piloted in INAC regional offices.

Work began in 2015–2016 to complete a comprehensive update to the Indian Act land management policies in partnership with the National Aboriginal Lands Managers Association.

Progress continued on the implementation of the Indian Oil and Gas Act and a new set of regulations. A third consultation draft of the regulations was used to consult First Nations at Alberta and Saskatchewan symposiums and work is underway to finalize a blue-stamp version of the regulations for publication in the Canada Gazette Part I.

As part of the evaluation of land administration, INAC developed a Management Response and Action Plan. The Action Plan commits to implementing land use planning, completing an analysis of survey cost and capacity; and updating the Land Management Manual. Indian Oil and Gas Canada will also implement strategies for recruitment and retention.

Description

The Strategic Partnerships Initiative (SPI) is an innovative horizontal program intended to align federal efforts to support Indigenous participation in complex economic opportunities, particularly large regional opportunities and major resource developments. SPI provides a mechanism for federal partners to collectively identify emerging opportunities, target investment decisions, and streamline program application and approval processes to support Indigenous communities at the early stages of large and complex economic opportunities. In doing so, the initiative also helps build closer partnerships with non-federal partners, including provincial and territorial governments, the private sector, and Indigenous communities. SPI contributes to the Land and Economy Strategic Outcome by aligning federal efforts, leveraging investments from other levels of government and the private sector, and addressing gaps in programming to ensure Indigenous Canadians can participate in, and benefit from, priority regional opportunities and major resource developments.

Performance Analysis and Lessons Learned

INAC leveraged $22 million in investments from federal and non-federal funds under SPI, exceeding the target established for the program by $7 million.

SPI supports the participation of communities in major economic development opportunities through the following activities: early engagement and partnership development, increasing community financial capacity, skills development and training, and the provision of information and resources to help communities engage with partners and stakeholders. A total of 16 initiatives were supported under the program, including West Coast Energy in British Columbia, the Ring of Fire in Northern Ontario, the Labrador Trough mining development in Quebec, biomass projects in the North, and shipbuilding in Atlantic Canada.

SPI supported the increase of Indigenous participation in West Coast energy infrastructure developments in response to the recommendations of the Special Federal Representative on West Coast Energy Infrastructure. Working with a number of other federal departments, the program made investments totaling $15.7 million to support projects focused on engagement and awareness, environmental participation, jobs and growth, and fish habitat restoration.

INAC works with other federal partners to complete environmental scans and develop opportunity profiles on emerging economic development opportunities that could potentially be supported under the program. Over the last year, 18 such profiles were completed on opportunities such as clean energy in British Columbia and mining developments in Voisey's Bay.

Description

This Program supports First Nation communities in acquiring, constructing, owning, operating and maintaining a base infrastructure that protects their health and safety and enables their engagement in the economy. The Emergency Management Assistance sub-program supports the four pillars of emergency management on reserve: mitigation, preparedness, response and recovery. Other sub-programs provide funding and advice to support housing, capacity building, and community infrastructure, including water and wastewater systems, education facilities, roads and bridges, electrification, and community buildings. Ultimately, this program enables First Nations to participate more fully in the Canadian economy by establishing a base of safe infrastructure that meets established standards, and housing and infrastructure that meets the needs of First Nation communities as well as supporting the four pillars of emergency management.

Performance Analysis and Lessons Learned

In 2015–2016, the Department continued to work with First Nation communities to deliver the Capital Facilities and Maintenance Program^{Footnote 3} to ensure that infrastructure investments were strategic and reflected national priorities while also ensuring that the Program's budget was well-managed and produced results informed by value-for-money decisions that supported the objective of having a base infrastructure that protects the health and safety of on-reserve communities and enables their engagement in the economy.

As owners of their infrastructure, First Nations have the flexibility to prioritize funding to meet their community-identified priorities, which may reduce the funding available to support the operation and maintenance of essential physical infrastructure to maximize the life cycle of assets. This could result in slower progress in attaining the objective of ensuring First Nation communities have a base infrastructure that protects their health and safety and enables engagement in the economy, measured by the percentage of INAC-funded infrastructure assets projected to remain operational for their life cycles.

Other community infrastructure captures over 30 different assets types related to energy systems, fire protection, structural mitigation and other essential physical community infrastructure for First Nations on reserve. The assets funded under the Other Community Infrastructure sub-program have not been traditionally prioritized for funding under existing INAC programs. As a result, the percentage of other infrastructure assets that have remained operational for their life cycle is lower than that reported for asset groups such as housing, educational facilities, and water/wastewater, which have benefited from a range of funding, including targeted funds, in past years. INAC recognizes the need to invest more strategically in all community infrastructure assets and will continue to work with First Nations communities to ensure that infrastructure priorities are identified in their annual investment plans and funded in a sustainable manner moving forward.

INAC enhanced capacity building and operators training for water and wastewater systems by implementing the new Circuit Rider Training Guidelines. The percentage of operators certified to the level of their respective water and wastewater system remained stable, at 66% and 55% respectively. These certified operators are better able to ensure that systems meet the Guidelines for Canadian Drinking Water Quality and Environment Canada's Wastewater Systems Effluent Regulations.

In 2015–2016, the First Nations Infrastructure Investment Plan, the National Priority Ranking Framework and the Priority Ranking Framework for Water and Wastewater Projects, which was updated in 2014–2015, were used to strategically allocate funds, including First Nations Water and Wastewater Action Plan funding, towards 290 water and wastewater projects. Of these projects, 93 were completed and 26 of the completed projects were major capital projects (funding greater than $1.5 million per project). Furthermore, the process to identify and fund infrastructure investment opportunities was revised to better support funding decisions by senior management that reflected national priorities. The revised process was implemented in August 2015.

To ensure that First Nations have a base of infrastructure that protects health, the Department continued work to address the regulatory gap on reserve in Phase I regions by beginning to draft regulations under the Safe Drinking Water for First Nations Act for the Northwest Territories, and completing the first draft of drafting instructions for the Atlantic provinces. Engagement activities with First Nations and other stakeholders were funded through Aboriginal Representative Organizations in Ontario, Manitoba and Saskatchewan (Phase II regions) to support regulatory development. In addition, Budget 2016 committed $1.8 billion over five years, starting in 2016–2017, for investments in water and wastewater to address health and safety needs, ensure proper facility operation and maintenance, and end long-term drinking water advisories on reserve.

INAC continued to pursue new approaches for the management, financing and delivery of on-reserve assets by working with the Atlantic Policy Congress and the Halifax Water Authority to develop a corporate structure that supports a First Nations Water Authority in the Atlantic region; revising the Schools Space Accommodation Standard; and bundling of the following three bundles of school projects in a new approach for managing, financing and delivering school projects to increase efficiency and value-for-money:

• three school projects in Little Red River Cree Nation in Northern Alberta;
• four new schools and two school projects in Bunibonibee Cree Nation, God's Lake First Nation, Manto Sipi Cree Nation, and Wasagamack First Nation in Northern Manitoba; and
• two new schools in Fort Severn First Nation and Poplar Hill First Nation in Northern Ontario.

The Department also supported a pilot project with Aboriginal Savings Corporation of Canada (ABSCAN) in the Quebec region to explore the possibility of expanding and replicating the Wendake/ABSCAN housing model in other high-needs First Nation communities. The pilot project had three objectives:

• providing a $1.4-million pilot loan fund to demonstrate demand and commitment from partner First Nations;
• developing an incremental approach to implementing prerequisites for home ownership, including land and property regimes;
• identifying an appropriate financing structure and support requirements.

INAC also made progress in establishing emergency management bilateral agreements to help ensure that First Nations are receiving emergency assistance services comparable to those available to nearby non-First Nation communities. In 2015–2016, INAC signed a five-year bilateral agreement with the Northwest Territories and a four-year bilateral agreement with the Province of Prince Edward Island for emergency management services. In 2015–2016, the Department had three emergency management bilateral agreements in place. INAC also continued to negotiate emergency management bilateral agreements with the remaining provinces and the Yukon Territory.

A program evaluation completed in 2015–2016 pointed to a need for continued program funding to address the specific and significant energy challenges faced by off-grid and northern diesel-dependent communities, and made recommendations on program design and delivery elements. Budget 2016 provided $10.7 million over two years (starting in 2016–2017) to implement renewable energy projects in off-grid Indigenous and northern communities that rely on diesel and other fossil fuels to generate heat and power. This new funding will be delivered by INAC as the Northern REACHE Program and will address the recommendations made in the ecoENERGY program evaluation.

Description

This Program supports the participation of urban Indigenous individuals and communities in the economy. The Program is comprised of two streams: Community Capacity Support and Urban Partnerships. Community Capacity Support provides funding to urban Indigenous community organizations to establish a strong and stable base from which to deliver initiatives that increase the participation of urban Indigenous people in the economy. Urban Partnerships encourages partnership development and community planning, making investments in projects that increase the participation of urban Indigenous people in the economy. In order to achieve more substantive outcomes in urban Indigenous communities, the program collaborates with key stakeholders to undertake strategic planning, articulate outcomes for communities, identify priorities, and jointly implement initiatives. In its approach, the program provides a vehicle by which the federal government can work with other governments, urban Indigenous organizations, and other stakeholders to support urban Indigenous individuals and communities in pursuing social and economic opportunities.

Performance Analysis and Lessons Learned

In 2015–2016, INAC continued to support the National Association of Friendship Centres in their administration of the Community Capacity Support and the Urban Partnerships programs. The National Association of Friendship Centres provided funding to 131 urban Indigenous organizations across Canada under the Community Capacity Support program, and 185 initiatives received funding under the Urban Partnerships program.

The Department targeted its portion of the Urban Partnerships program funding to support the development of eight regional strategic plans, which identified the key areas to focus the National Association of Friendship Centres' funding investments for both programs in 2016–2017. In a number of regions the planning process built on existing collaborative processes among municipal governments and Indigenous organizations, while in others it led to the establishment of new partnership tables. Partnership arrangements varied in their makeup of stakeholders and were at different stages of development. The effectiveness of partnerships will be measured over the coming years.

The current Performance Measurement Strategy was developed in 2013, prior to the Government of Canada's approval of substantial revisions to the Urban Aboriginal Strategy, and was to have been updated in 2015–2016 to identify performance measures that were more reflective of the expected results of the two new programs. As the program will be further redesigned in 2016–2017, the Performance Measurement Strategy will not be revised until future program objectives are determined.

Description

This Program strengthens the North's communities and people by devolving to territorial governments responsibilities for lands and natural resources; by fostering effective intergovernmental relations with territorial governments and providing support to Territorial Commissioners; by subsidizing the costs of nutritious perishable foods and other essential items in isolated Northern communities; by providing grants for hospital and physician services in Nunavut and the Northwest Territories; by working with Northern communities to identify the risks and challenges posed by climate change; and by advancing interests of Canadians and Northerners through circumpolar forums. Canadians and Northerners will benefit with territorial governments ultimately having more control over their own affairs.

Performance Analysis and Lessons Learned

Following devolution of responsibilities for land and natural resources to the governments of Yukon (2003) and the Northwest Territories (2014), INAC continued to support the Chief Federal Negotiator on Nunavut devolution negotiations towards an agreement-in-principle, or Phase 2 of the devolution process, until that process paused with the expiry of the federal mandate in October 2015. Greater control over political and economic affairs resulting from the implementation of devolution in Yukon and Northwest Territories continues to inform expectations and outcomes for the Nunavut devolution process. Lessons flow from fostering effective relations with the parties and stakeholders to ensure the devolution agreement addresses the unique political and economic circumstances in Nunavut and results in a successful transition.

The Department contributed to food security in the North by supporting access to perishable, nutritious food in 103 eligible communities through the provision of subsidies to northern retailers and southern suppliers registered with the Nutrition North Canada (NNC) Program. Between March 2015 and March 2016, the Revised Northern Food Basket^{Footnote 4} for communities that were then eligible for a full subsidy increased by 2.04%, while "food purchased from stores" in the Consumer Price Index, as reported by Statistics Canada, increased by 4.16%, suggesting that the NNC subsidy had a positive impact on the cost of food in these communities.

To support community consultation and engagement, the Nutrition North Canada Advisory Board held a face-to-face Advisory Board meeting in July 2015 that included a public meeting with community members in Kugluktuk, Nunavut. This was followed by an announcement from the Minister of Indigenous and Northern Affairs Canada requiring that NNC major retailers show itemized subsidy savings on retail receipts after April 1, 2016, a new mandatory program requirement that further enhanced both the transparency and accountability of the NNC Program.

INAC continued to address recommendations from the Office of the Auditor General Fall Report on how to improve the NNC Program. The Department examined community eligibility criteria and completed a detailed review of all isolated northern communities to better understand the challenges they face in accessing perishable food due to their isolation. The resulting community profiles have been posted to the Program's website and will be used to inform future Program updates. Through Budget 2016, the Program will receive $64.5 million over five years starting in 2016–2017, followed by $13.8 million per year ongoing from 2021–2022, to expand its coverage to all isolated northern communities. As well, on May 30th, 2016, the Department launched an engagement process across the North to listen and learn from Northern residents on how to further improve the Program.

Through the Northern Infrastructure Standardization Initiative (2011–2012 to 2015–2016), INAC worked with the Standards Council of Canada to engage Northerners in the development of infrastructure standards to consider impacts of thermosyphons,^{Footnote 5} community drainage, permafrost on existing foundations, snow loading on roofs, and geotechnical site investigation. Four of the four infrastructure standards have been completed and are available as national standards for the Canadian public through the CSA Group. A fifth standard was also completed and will be published early next fiscal year.

The Climate Adaptation and Resilience Program for Aboriginals and Northerners, referred to as the Climate Change Adaptation Program, has supported a total of 73 ndividual community and territorial projects in more than 100 communities over the past five years. These projects facilitated community vulnerability assessments, adaptation planning, tools and knowledge dissemination. Specifically, in 2015–2016, the Program funded 38 community and territorial projects that helped communities manage climate change-related risks, including specific and pan-arctic impacts.

With the completion of Canada's 2013–2015 Arctic Council Chairmanship and the Sustainable Development Working Group Chairmanship, the Department is renewing efforts for advancing strong bilateral relationships with our Arctic neighbours, as evidenced by INAC's contribution to the March 2016 U.S.–Canada Joint Statement on Climate, Energy, and Arctic Leadership.

Description

This Program aims to support scientific research and technology in the North through programs and infrastructure to ensure domestic and international policy on key issues for the North is better informed by a scientific knowledge base. The focus of this program is: researching and monitoring contaminants and their impacts on the ecosystem and human health through the Northern Contaminants Program; assessing, managing and communicating scientific data and results, and contributing expertise to help inform public policy making and international controls on certain contaminants; and supporting work to establish the Canadian High Arctic Research Station. Northerners and all Canadians will benefit from a knowledge base that supports health and sustainable development and the positioning of Canada as an international leader in Arctic science and technology.

Performance Analysis and Lessons Learned

In collaboration with program partners, INAC continued to advance contaminant-level monitoring in wildlife and people in the Canadian North, with respect for and inclusion of traditional knowledge, and transferred this knowledge to Northerners and policy makers.

In 2015–2016, the Department contributed data and expertise to national and international initiatives aimed at monitoring, assessing, and reducing or eliminating contaminants from anthropogenic^{Footnote 6} sources that pose a potential health risk for wildlife and people. This included support for the development of the 2015 Human Health Assessment and other upcoming contaminants assessments produced under the Arctic Council's Arctic Monitoring and Assessment Programme, Canadian contributions under the Stockholm Convention and the Minamata Convention, as well as domestic initiatives such as the selenium assessment under the Chemicals Management Plan.

Following guidance from the Northern Contaminants Program Management Committee, INAC will further explore opportunities to demonstrate the multiple ways scientific information and traditional knowledge are being produced through the Program, as well as how this knowledge contributes to action at regional, national and international levels. Findings will be reflected in the final Knowledge in Action report of the Canadian Arctic Contaminants Assessment Report III.

Northern partners and health experts have identified a gap in human biomonitoring studies for contaminants across Canada's North. These biomonitoring projects are complex, require significant consultation and communication efforts as well as resources, resulting in a considerable amount of co-ordination and planning. In order to best co-ordinate efforts and resources, INAC will hold a Human Biomonitoring and Risk Communications Workshop in partnership with Health Canada in 2016–2017. The workshop will assemble health authorities from across the North, Indigenous partners and health experts to set a plan for biomonitoring.

Polar Knowledge Canada (POLAR) was established as a new federal research organization on June 1, 2015, through the coming into force of the Canadian High Arctic Research Station Act. As part of its mandate, the organization will advance the delivery of the Canadian High Arctic Research Station's Science and Technology Program, which was formerly led by INAC. In 2015–2016, the Department continued to support the construction of infrastructure for the Canadian High Arctic Research Station (CHARS) campus on behalf of the Government of Canada, and worked collaboratively with POLAR to ensure alignment between campus infrastructure and the science and technology needs.

In March 2016, INAC signed an agreement with the Qulliq Energy Corporation for upgrades to community power generation, as well as energy transmission to the CHARS campus. The Department also worked with the Government of Nunavut to upgrade a water treatment plant, as well as the associated waterline distribution, which will provide upgrades for the community and piped water to the research station. Through these efforts, INAC was able to support the integration of CHARS within the existing community infrastructure and established a mutually beneficial relationship in which both the community and the research station are well supported.

Inuit Benefit Plans have been used as the key mechanism to deliver on the Nunavut Land Claims Agreement obligations in procurement related to CHARS, including on the construction project, the purchasing of equipment and leased housing. This approach includes implementation of an Inuit Human Resources Plan that identifies targets for Inuit labour force participation, an Inuit Skills Development Plan for on-the-job training and an Inuit Business Plan that provides for contracts to be awarded to Inuit-owned firms. As of February 2016, approximately $52.8 million had been contributed to the CHARS construction project Inuit Benefits Plan. This new approach offers greater flexibility for the awarding of contracts and has led the Department to explore further applications of this approach in other similar projects.

Description

This Program focuses on the management, sustainable development and regulatory oversight of the land, water, natural resources, and environment of the North, delivering on the Department's role as the Government of Canada's natural resource manager in Nunavut and the offshore, and its post-devolution responsibilities in the Northwest Territories and Yukon. This Program involves managing oil and gas resources development; supporting the sustainable management of active mineral exploration and development; supporting the sound management of contaminated sites, Nunavut and the few remaining INAC-managed land and water areas in the North; and ensuring the completion of territorial land-use planning, including zones for conservation, development and other uses. Northerners and Canadians will benefit from economic opportunities and sustainable development.

Performance Analysis and Lessons Learned

According to the most recent Fraser Institute Annual Survey of Mining Companies, the investment attractiveness score in Nunavut has remained fairly stable over the past year, increasing from 73% to 74%, despite an overall decrease in investment attractiveness in the North.

In 2015–2016, INAC sustained its efforts in promoting the North's resource economy while protecting the environment. The Department provided technical and procedural advice and analysis to the Nunavut Impact Review Board and the Mackenzie Valley Environmental Impact Review Board on eight major natural resource development project reviews (five in Nunavut and three in the Northwest Territories). Of these, the environmental assessment recommendation for the Ekati Jay project in the Northwest Territories was submitted for approval under regulated timelines, representing the first project for which decision making was delegated to the Territorial Government following devolution. The Department also prepared for the implementation of development certificates under the Mackenzie Valley Resource Management Act, which will contribute to project monitoring activities.

In Nunavut, the Department supported implementation of the Nunavut Planning and Project Assessment Act. Amendments to the Yukon Environmental and Socio-economic Assessment Act were also enacted following recommendations stemming from a review of the Act, and with the purpose of making regulatory improvements in line with the other northern territories. On October 14, 2015, three Yukon First Nations brought a petition against the governments of Canada and Yukon in the Supreme Court of Yukon alleging that four amendments to the Yukon Environmental and Socio-economic Assessment Act under Bill S-6 breached the honour of the Crown, undermined the First Nations' treaty rights and breached their final land claim agreements. Through a consultative and collaborative approach with First Nations and the Territorial Government, agreement was reached in March 2016 on amendments to the Act that would address the concerns of the First Nations.

The Department also amended the Nunavut Waters and Nunavut Surface Rights Tribunal Act to reduce the regulatory burden, ensure more timely and predictable water licence review processes, and implement more robust enforcement provisions to protect the environment. The Mackenzie Valley Land Use Regulations and the Northwest Territories Water Regulations were also updated and modernized to reflect the recent legislative changes.

In 2015–2016, the Department continued to manage mineral, oil and gas rights in accordance with the Canada Petroleum Resources Act and the Nunavut Mining Regulations, including the administration of the royalty regime and collection of Crown revenues from oil and gas companies and mining companies, as well as the conduct of all audits of royalty returns submitted prior to the devolution of lands and resources management to the Government of the Northwest Territories in 2014. Work also progressed in 2015–2016 on the implementation of a modernized online map selection system for Nunavut mineral exploration and mining companies, including progress on the drafting of the proposed amendments to the current Nunavut Mining Regulations and the associated development of the IT system.

In February 2016, the Department entered into a security management agreement with the Kivalliq Inuit Association and Agnico Eagle Mines Limited to split reclamation security equally between the Inuit land owner and the Crown for Agnico's Meliadine gold mine project in Nunavut. This new approach builds on existing relationships, and encourages greater collaboration and support for the co-management of mineral resource development projects.

An evaluation of the Petroleum and Minerals sub-program conducted in 2015–2016 identified a need for INAC to clarify the roles and responsibilities amongst partners and ensure thorough information sharing for all parties. In response, the Department has committed to develop a new outreach and education approach and identify shared information requirements for the management of lands, water resources and field operations. The Department will also continue to work with partners to support geoscience research and maximize the value of other northern scientific research by further collaborating with federal and territorial partners and stakeholders through the Canada-Nunavut Geoscience Office, and collaborating with scientific partners on the co-ordination of northern scientific research and dissemination of information. Regional and strategic environmental initiatives will also be used to ensure that information for decision making based on evidence and scientific knowledge is integrated into regulatory processes.

In 2015–2016, INAC continued to assess the environmental impacts of potential oil and gas activity through regional partnerships and research. With the Budget 2016 announcement of $19 million over five years, the Department will continue to support collaboration with researchers and Inuit communities to gather existing research and traditional knowledge, and to conduct new research on the Arctic environment in support of evidence-based decision making.

INAC also continued to support ecosystemic and socio-economic monitoring in the North through the Nunavut General Monitoring Plan. Working with partners and recipients, the Department supported the development of the Baker Lake Watershed Aquatic Monitoring Program, as well as 12 other research projects and one data management initiative. Work continued on the development of an interactive socio-economic mapping system using statistical data provided by the Government of Nunavut.

To ensure the protection of human health, safety and the environment for all Northerners and Indigenous peoples, INAC advanced the management of contaminated sites in the North. In support of public engagement, in 2015–2016, over 100 community consultation events were held with more than 1,400 community members from affected communities. Events included public meetings, meetings with elders, and site tours.

The Department also conducted care and maintenance and risk mitigation activities at the Giant Mine site to eliminate high human and environmental health and safety risks, such as the stabilization of degrading underground chambers and pits, as well as the decontamination and removal of deteriorating infrastructure, including the C-shaft headframe. Requirements from the final Environmental Assessment Report continue to be integrated into project planning and are being addressed on a priority basis, as illustrated by the signing of the Giant Mine Remediation Project Environmental Agreement on June 17, 2015.

The C-shaft headframe at the Giant Mine is an iconic structure that was once used to bring miners down to the subsurface mine workings, and had become a safety risk to onsite workers. A plan was put in place to dismantle it; however, due to the historical significance of the structure, there was additional engagement with the local heritage society, community, and Indigenous groups. The consultation process concluded with broad acceptance that the work had to be done in the interests of safety, and the Yellowknife Dene First Nation was able to provide traditional knowledge that influenced when and how the work took place. The work was completed and resulted in the mitigation of a major risk at the site, demonstrating the value of early and inclusive engagement in project activities.

Key activities were also advanced at the Faro Mine site in the Yukon Territory, including the completion of a draft report outlining a proposed approach to construct a diversion for the North Fork Rose Creek, which is one of the most critical components of the project, to ensure the continued protection of the environment.