Terms and Conditions: First Nations and Inuit Policing Program

1. Introduction

The Government of Canada is committed to promoting the safety and security of all Canadians in close collaboration with provincial and territorial governments given their jurisdiction over the administration of justice.

Since 1991, the Government of Canada has worked with provinces and territories to improve the level and quality of policing services in First Nations and Inuit communities. These efforts have been primarily funded through the First Nations and Inuit Policing Program (FNIPP) and the First Nations and Inuit Policing Facilities Program (FNIPFP) in accordance with a 52% federal - 48% provincial/territorial cost-sharing ratio.

In response to the Auditor General of Canada's March 2024 performance audit report on the FNIPP, the Minister of Public Safety committed to update the 1996 First Nations Policing Policy and the Terms and Conditions that govern the delivery of the FNIPP. In parallel to ongoing work to update the Policy and undertake significant program improvement initiatives, these Terms and Conditions are an initial step forward in addressing the Auditor General's recommendations.

2. Legal and Policy Authority

The FNIPP is delivered under the authority of the Minister of Public Safety and Emergency Preparedness Canada to make grants or contributions which is found at paragraph 6(1) (c) of the Department of Public Safety and Emergency Preparedness Act, S.C. 2005, ch. 10.

The delivery of the FNIPP is guided by the First Nations Policing Policy, which Public Safety Canada has committed to updating in response to the Auditor General of Canada's recommendations.

3. Purpose and Objective

The purpose of the FNIPP is to fund initiatives that improve policing and community safety outcomes in First Nations and Inuit communities, in collaboration with provinces and territories of jurisdiction.

The overall objective of the FNIPP is to contribute to improved policing and community safety outcomes in First Nations and Inuit communities, in response to their unique needs and priorities.

4. Funding Streams

The FNIPP is structured around four funding streams.

4.1 Stream 1 – Funding Agreement for a First Nations or Inuit Police Service

Stream 1 seeks to contribute to operations of First Nations and Inuit police services that have been authorized and/or established under relevant provincial or territorial legislation. Stream 1 seeks to provide sustainable and equitable funding for the services that First Nations and Inuit police services provide to the communities they serve.

Stream 1 funding agreements are multipartite, and involve the Government of Canada, a provincial or territorial government (or governments), a First Nations or Inuit community (or communities), and, if applicable, a police governance body. These funding agreements seek to ensure that First Nations or Inuit police services are able to:

For additional clarity, Stream 1 funding is not to be used to:

4.2 Stream 2 – Funding Agreement with an Existing Police Service (non- Indigenous and non-Royal Canadian Mounted Police)

Stream 2 seeks to contribute to the costs of allocating a contingent of police officers, special constables or other appointed policing or community safety positions from an existing police service (provincial, territorial, municipal or regional) to a First Nation or Inuit community in order to provide a dedicated level of policing services. The individuals in these positions are expected to dedicate all their time providing service to the First Nation or Inuit community (or communities), as specified in the funding agreement.

Stream 2 funding agreements can be entered into when the provincial or territorial government determines that a First Nations or Inuit community requires a level of dedicated policing or community safety support, beyond what is required under relevant provincial or territorial requirements. Funding agreements can be tripartite, involving the Government of Canada, the provincial or territorial government, and the First Nations or Inuit community; or multipartite, involving the Government of Canada, the provincial or territorial government, the First Nations or Inuit community, and the municipality whose municipal police service the positions are being drawn from.

4.3 Stream 3 – Funding Agreement for Community Safety Officers

Stream 3 seeks to contribute to a long-term and stable presence of safety officers in First Nations and Inuit communities, complementing the role of the police of jurisdiction. In multiple jurisdictions, safety officers are authorized to undertake activities that are distinctive from the responsibilities of police officers, but that nevertheless contribute to improved community safety outcomes.

Stream 3 funding agreements can be entered into when the provincial or territorial government determines that a First Nations or Inuit community requires the presence of regulated safety officers as a complement to the police of jurisdiction. Stream 3 funding agreements can be bilateral, involving the Government of Canada and the province or territory of jurisdiction; or tripartite or multipartite in cases where one or more First Nations or Inuit communities are signatories.

4.4 Stream 4 – Funding Agreement for Other Policing Initiatives (Project-Based)

Stream 4 seeks to contribute to time-limited projects that contribute to FNIPP's overall expected outcomes, including but not limited to:

Stream 4 funding agreements can be bilateral or multipartite depending on the nature and scope of the project.

5. Expected Results

Immediate

Intermediate

Ultimate

6. Eligible Recipients by Stream

Contributions may be provided to the following classes of eligible recipients, only if they have the legal capacity to enter into a funding agreement. Government departments as defined in Section 2 of the Financial Administration Act (including the RCMP) and federal Crown corporations are not eligible for funding under the FNIPP.

Stream 1 – Funding Agreement for a First Nations or Inuit Police Service

Stream 2 – Funding Agreement with an Existing Police Service

Stream 3 – Funding Agreement for Community Safety Officers

Stream 4 – Funding Agreement for Other Policing Initiatives

7. Eligible Expenditures

Across all FNIPP programming streams, expenditures related to hospitality have to be reasonable for the activities undertaken. Refer to the Treasury Board guidelines on hospitality for examples of rates and eligible expenditures.

All expenditures related to travel have to be reasonable for the activities undertaken. Refer to the National Joint Council travel directive for examples of rates and eligible expenditures. Any international travel must be pre-authorized in writing.

7.1 Eligible Expenditures – Stream 1

Eligible expenditures for Stream 1 of the FNIPP, which support the ongoing operations of First Nations and Inuit police services, are distinctive from those of other FNIPP streams.

The following are eligible categories of expenditure for Stream 1, insofar as they relate to costs incurred by the First Nations or Inuit recipient, First Nations or Inuit police service, and/or, if applicable, First Nations or Inuit police governance body, to support the objectives outlined in section 4.1:

  1. Pay and benefits;
  2. Administrative expenses as agreed to in a funding agreement, if not already included in other line items. All administrative expense amounts must be supported by reasonable methodology and breakdown and be for costs directly related to the administration of Stream 1 funding;
  3. Expenses necessary to fulfil the roles and responsibilities of the police governing authority, including: travel, training, room rentals, and honoraria;
  4. Police equipment;
  5. Travel and transportation expenses, including those related to daily police service operations;
  6. Expenses related to prisoners' keep and escorts;
  7. Information technology and communications equipment and associated expenses;
  8. Training and recruitment expenses;
  9. Rent subsidies for housing of officers, where applicable;
  10. Police facility costs including: rent (or equivalent to rent) costs, normal utilities, maintenance of offices and other buildings, and insurance;
  11. Policing infrastructure expenditures when the police facility is owned by the First Nation or Inuit community, as defined as:
  12. Insurance premiums for general liability insurance for policing operations, and vehicles and other means of transportation operated by or on behalf of the police service;
  13. Professional fees, including legal costs related to establishing or concluding funding agreements, translation and fees related to the preparation of financial statements;
  14. Honoraria for Elders;
  15. Hospitality, including gifts (for a maximum of $100), community feasts, ceremonies and ceremonial meals, gatherings, and circles;
  16. Annual union, association, or professional dues incurred by the First Nation or Inuit police service and/or police governing body; and
  17. Third-party police service delivery costs, including contracts with other agencies in order to meet applicable provincial/territorial policing requirements.

7.2 Eligible Expenditures – Streams 2, 3 and 4

The following are eligible categories of expenditures across Streams 2, 3 and 4 of the FNIPP:

  1. Pay and benefits;
  2. Professional fees, including legal costs related to establishing and concluding funding agreements and translation;
  3. Costs of engaging consultants or other qualified professionals;
  4. Costs related to the purchase, ownership and maintenance of equipment, including vehicles, to support program objectives;
  5. Costs related to the repair or renovation of capital assets, including existing police service facilities;
  6. Facility costs including: rent (or equivalent to rent) costs, normal utilities, maintenance of offices and other buildings, and insurance;
  7. Honoraria for Elders;
  8. Travel and transportation costs;
  9. Expenses related to prisoners' keep and escorts;
  10. Information technology and communications equipment, and associated expenses;
  11. Workshops, conferences and meetings;
  12. Audit and evaluation;
  13. Insurance;
  14. Research and Studies;
  15. Hospitality, including gifts (for a maximum of $100), community feasts, ceremonies and ceremonial meals, gatherings, and circles; and

  16. Administrative expenses are limited to 15% of total eligible costs.

    This only applies to Streams 3 and 4:

  17. Further distribution of funds by the initial recipient(s) to the ultimate recipient(s).

7.3 Non-Eligible Expenditures – All Streams

The following are ineligible categories of expenditures across all streams of the FNIPP:

8. Pre-Execution Expenditures

Subject to the Minister's approval, Public Safety Canada may authorize eligible pre-execution expenditures (costs incurred prior to the signature of a funding agreement). However the reimbursement of eligible expenditures will be limited to the fiscal year in which the funding agreement is signed, and will be authorized based on the date a funding proposal is received by the department. Public Safety Canada will not reimburse an applicant for any pre-execution expenditures costs should the applicable funding agreement not be executed.

9. Maximum Amount Payable

The maximum amounts payable per recipient per year, based on federal share, are as follows:

Recipients may enter into multiple agreements within a single stream and may also receive funding under multiple streams. However, the total annual amount received within each stream must not exceed its respective maximum.

10. Stacking Limits

The stacking limit is the maximum level of funding to a recipient from all government sources, federal, provincial, territorial and municipal, for the same eligible expenditures. Total government assistance shall not exceed 100% of the eligible expenditures. Recipients are required to disclose all confirmed and potential sources of funding prior to the signature of a funding agreement and at the completion of a funding agreement. The repayment of any amount exceeding the total government assistance limit will be calculated on a prorated basis (based on total government assistance received toward the same eligible expenses).

11. Contribution Funding Approaches for Transfer Payments to Indigenous Recipients

11.1 Fixed Contribution Funding

Public Safety Canada will consider using a fixed contribution funding approach for Indigenous recipients when the amount of the contribution can be based on a reliable estimate of the funding required to achieve the objectives of the project.

A fixed contribution approach allows the recipient, in a single-year funding agreement, to retain any unexpended funding remaining at the expiry of the funding agreement provided that the obligations and objectives set out in the funding agreement are met and the recipient agrees to use the unexpended funding for purposes consistent with the objectives of these Terms and Conditions.

11.2 Flexible Contribution Funding

Public Safety Canada will consider using a flexible contribution funding approach where a recipient has an established track record in the management of transfer payments as evidenced by having met the assessment criteria outlined in Section 14 below. This approach enables the recipient to redirect funding among the cost categories established in the funding agreement.

It also allows the recipient, in a multi-year funding agreement, to retain unexpended funding remaining at the end of each fiscal year for use in the next fiscal year to further achieve results toward the funding objectives. A request or notification letter must be made in writing by the recipient, prior to the end of the fiscal year, to retain unexpended funding for use in the next fiscal year.

All unexpended funding from Public Safety Canada at the termination or expiry of the agreement will constitute a debt owed to Canada and must be reimbursed.

In order to provide Indigenous recipients with flexible contribution funding approaches, Public Safety Canada must consider the elements below of the applicant:

  1. governance structure;
  2. organization for purposes of funding and activities management, financial and administrative experience, and capacity to deliver activities;
  3. management processes, procedures and controls;
  4. accountability mechanisms for transparency, disclosure, responsibility and redress; and
  5. financial situation.

All applicants may be required to submit additional information in order to facilitate this assessment.

12. Basis of Payments

Streams 1, 2 and 3

Advance payments will be based on annual forecasted cashflow requirements of the recipient and when deemed necessary to attain the objectives of the funding agreement.

Where progress payments are required, they will be issued to reimburse the recipient for expenditures incurred. They will be based on receipt of financial and non-financial project reporting outlining activities and expenditures to date, and acceptance thereof by Public Safety Canada.

Stream 4

Where advance payments are required for the successful delivery of a project, they will be issued in accordance with the recipient's cash flow requirements and the project's risk profile.

Progress payments will be issued to reimburse the recipient for expenditures incurred. They will be based on receipt of financial and non-financial project reporting outlining activities and expenditures to date, and acceptance thereof by Public Safety Canada.

The assessed level of risk will also determine requirements for a holdback provision to be included in the agreement.

Provided that the recipient has met the requirements of the funding agreement, a final payment will be made only upon receipt and acceptance of final deliverables as stated in the agreement.

13. Further Distribution of Contribution Funding – Streams 3 and 4

Stream 3 and 4 recipients may further distribute contribution funds to one or more persons or entities. Further distribution of contribution funds must be clearly defined and pre-approved as part of the funding agreement. Public Safety Canada will ensure that fair and transparent processes are in place. Public Safety Canada will review all documentation relevant to the selection process but will not exercise control over the selection of those persons or entities. In making distributions, a recipient will not be acting or representing itself as an agent of the Government of Canada.

14. Recipient Financial and Non-Financial (Performance) Reporting

Project expenditures should support Canadian industry by sourcing Canadian goods, services and suppliers, where possible. Recipients will be required to report on project expenditures related to Canadian goods, services and suppliers as part of their project reporting.

Streams 1 and 2

On an annual basis, the funding recipient is required to provide a performance report, which describes the activities undertaken and the associated results achieved by the police service and, if applicable, its police governance body, in a given fiscal year. The funding recipient is also required to provide annual financial reporting, including annual audited financial statements. Where possible, these reports can be the same performance and financial reports that are produced for the client First Nations or Inuit communities that the police service serves.

Stream 3

On an annual basis, the funding recipient is required to provide a performance report, which describes the activities undertaken and the associated results achieved by regulated safety officers supported by the program in a given fiscal year. Information included in this report may include, but not be limited to:

The funding recipient is also required to provide annual financial reporting as outlined in the relevant agreement.

Stream 4

In accordance with the Ministerial Grants and Contributions Risk Directive, the following financial and performance reporting will be requested from recipients by Public Safety Canada, as applicable:

In all instances above, Public Safety Canada may require additional reporting from a funding recipient if deemed necessary to meet the requirements of these Terms and Conditions or the applicable funding agreement.

15. Funding Proposal and Determination Process (Stream 1)

15.1 Initial Request for Funding for Stream 1

In accordance with their governance processes or legal systems, a First Nations or Inuit community(ies) may request funding for a First Nations or Inuit police service and, if applicable, police governance body. Applicants are required to provide proof of community support such as letters or resolution(s) of support from the First Nation(s) or Inuit community(ies).

Given that provinces and territories have jurisdiction over the administration of justice within the province/territory, which includes policing, Public Safety Canada requires confirmation that the relevant provincial or territorial government(s) has or will exercise its authority in establishing, recognizing or appointing members of a First Nations or Inuit police service and, if applicable, establishing or recognizing a police governance body, including confirmation that the police service and, if applicable, police governance body have met the appropriate requirements for establishment, recognition or appointment, as applicable.

15.2 Funding Proposal for Stream 1

Subject to the requirements outlined in 15.1 being met, applicants are required to provide Public Safety Canada with a multi-year business plan and budget forecast that clearly outlines the proposed operations and capital planning of the police service and, if applicable, the police governance body. This plan must demonstrate how the proposal meets the objectives outlined in section 4.1 and fits within the scope of eligible expenditures outlined in section 7.1.

15.3 Assessment Criteria for Stream 1

The conclusion of a funding agreement to support First Nations or Inuit police services, and if applicable, police governance bodies, is contingent on the Government of Canada, the province/territory, and First Nations or Inuit community(ies) agreeing on the amount of funding needed to meet the objectives outlined in section 4.1. The process to determine funding should be done collaboratively, based on trust, mutual respect, joint participation in decision-making, and aligned with the respective roles and responsibilities of the First Nations or Inuit community(ies), and provincial/territorial government(s).

Public Safety Canada officials, in conjunction with provinces and territories, will review the information received. The provincial/territorial government(s) are required to validate the proposal with respect to the relevant policing requirements, standards, and applicable legislative and regulatory requirements of their jurisdiction and the broader policing landscape to ensure responsible management and stewardship of public funds. Public Safety Canada will then assess:

15.4 Method Used to Determine the Amount of a Contribution for Stream 1

The amount of funding will be based on total eligible project costs agreed upon by all parties, with funding allocated in accordance with a 52% federal - 48% provincial/territorial cost-sharing ratio. The amount of a contribution will be determined based on factors including, but not limited to:

A funding agreement should be adaptable to changing circumstances and include provisions to adjust funding amounts to respond to changes in the operational and funding requirements of a First Nations or Inuit police service and/or, if applicable, police governance body or municipality. Amendments to a funding agreement are subject to agreement between the Government of Canada, the province/territory, the First Nations or Inuit community(ies), and/or the municipality and will result in an amended agreement signed by all parties.

16. Funding Proposal and Determination Process (Streams 2 and 3)

16.1 Initial Request for Funding for Streams 2 and 3

Stream 2

In accordance with their governance processes or legal systems, a First Nations or Inuit community(ies) may request funding for a contribution agreement with an existing police service. Applications are required to include proof of support from the community(ies) such as letters of support, a band council resolution or a hamlet resolution, proof of support from the municipality(ies) and/or existing police service to undertake the project and confirmation from the province or territory of jurisdiction that it is prepared to cost share the proposed initiative.

Stream 3

Stream 3 funding applications shall be proposed by the relevant provincial or territorial government, following direct engagement with First Nations or Inuit communities in their jurisdiction. Applications are required to include proof of support from the community(ies) and demonstrate that the role of CSOs and police officers in their jurisdiction are clearly differentiated pursuant to provincial or territorial legislation.

16.2 Funding Proposal for Streams 2 and 3

Subject to the requirements outlined in section 16.1 being met, applicants are required to provide Public Safety Canada with a business case and budget forecast that clearly outline the proposed operations of the officer(s) (Stream 2) or CSO(s) (Stream 3). This plan must demonstrate how the proposal meets the objectives outlined in section 4.2 or 4.3, respectively, and fits within the scope of eligible expenditures outlined in section 7.2.

16.3 Assessment Criteria for Streams 2 and 3

Stream 2

Public Safety Canada officials, in conjunction with provinces and territories, will review the information received. The provincial/territorial government(s) are required to validate the proposal with respect to the relevant policing requirements, standards, and applicable legislative and regulatory requirements of their jurisdiction.

Streams 2 and 3

Public Safety Canada will assess:

16.4 Method Used to Determine the Amount of a Contribution for Streams 2 and 3

The amount of funding will be based on total eligible project costs agreed upon by all parties with funding allocated in accordance with a 52% federal - 48% provincial/territorial cost-sharing ratio.

17. Funding Proposal and Determination Process (Stream 4)

17.1 Funding Proposal for Stream 4

When making a request for funding, applicants are required to provide Public Safety Canada with information that that may include but is not limited to:

17.2 Assessment Criteria for Stream 4

Once a funding proposal is submitted, Public Safety Canada will review and may assess it based on the following criteria:

In addition, for an application for funding from a recipient that has previously received contribution funding for a policing service or for other policing initiatives within the past 24 months, Public Safety Canada will review the applicant's performance in managing those past agreements.

17.3 Method Used to Determine the Amount of a Contribution for Stream 4

Financial contributions for time-limited projects are determined based on a detailed project proposal, a budget outlining all proposed activities and projected expenditures, and the availability of federal funding and provincial or territorial funding. Federal funding support will vary by project, up to a maximum of 100% of eligible expenditures.

18. Intellectual Property

If a project produces intellectual property, the recipient retains copyright for any work produced under the funding agreement. However, in situations where Public Safety Canada wishes to use the intellectual property produced by a recipient, additional clauses may be included in the funding agreement.

19. Official Languages

Public Safety Canada will take into account the relevant official language obligations and comply with all applicable official language requirements stipulated in the Official Languages Act and the related regulations, as well as federal government policies in this regard.

Public Safety Canada will work with the recipient of an agreement in the official language of their choice.

Agreements will include a clause requiring that communications and services to the public be made in both official languages according to the policies and directives on official languages of the Government of Canada (and equivalent provincial or territorial government requirements). This applies, whenever a First Nation or Inuit community (or communities) receiving policing services requires such communications and services in one or both official languages.

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