- PROVINCES AND TERRORITIES- HAVE THE RIGHT 2 ALLOCATE ALL FUNDS RECEIVED ACCORDING 2 THEIR OWN PRIORITIES... NOT FEDERAL GOVERNMENT OR OTHER SOURCES -
Consolidated federal, provincial, territorial and local government ...
www5.statcan.gc.ca/cansim/a26?lang=eng&id=3850001 - Cached
Use the Add/Remove data tab to customize your table. ... Local and provincial and territorial governments, Total revenue, 333,468(T), 357,889(T) ... Provinces
and territories can allocate the funds they receive according to their priorities. ...
and 1998/1999 by $133 million since a federal to provincial government transfer
was ...
[PDF] Update on Major Transfer Arrangements - Government of Manitoba |  | ||||
History of Health and Social TransfersHealth and social transfer payments have developed over the years from cost-sharing programs to block funding transfers. The illustration below shows the evolution of those transfers.
History of Post-Secondary Education, Social and Health Funding in Canada
1950s and 1960sHealth and social transfers were either provided as cash grants or were cost-shared to encourage the establishment of national social programs. In 1966, the Canada Assistance Plan (CAP) was introduced, creating a cost-sharing arrangement for social assistance programs. Conditions were attached to federal funding, including the provision that provinces and territories not require a period of residency in the province or territory as a condition of eligibility for social assistance or for the receipt of social assistance.1977The Established Programs Financing (EPF) was introduced, replacing cost-sharing programs for health and post-secondary education. Federal funding provided through the EPF initially took the form of equal portions of a tax transfer and a cash transfer. Provinces received 13.5 percentage points of personal income tax (PIT) and 1 percentage point of corporate income tax (CIT), including some points carried over from the previous post-secondary education program. Provinces and territories received equal per capita total EPF support through a mix of cash and equalized tax points. The value of the tax points grew in line with the economy. The growth rate of the cash transfer was modified several times as the program underwent changes throughout the years.1984The Canada Health Act was enacted. EPF funding was made conditional on respect for the five criteria of the Canada Health Act (universality, accessibility, portability, comprehensiveness, and public administration) and provisions for withholding funding were introduced.1995The federal budget announced that the Canada Assistance Plan and Established Program Financing would be combined into one block fund – the Canada Health and Social Transfer, or CHST. The CHST provided funds to provincial and territorial governments in support of health care, post-secondary education, social assistance and social services. Like the Established Program Financing transfer, the CHST was a combination of the 1977 tax transfer and a cash transfer and the total was allocated on an equal per capita basis.2000-2003In 2000 and 2003, the Government of Canada and provincial and territorial governments entered into a series of agreements to strengthen and renew Canada's publicly funded health care system. These agreements also sought to improve accountability and reporting to Canadians.As part of the First Ministers' Accord on Health Care Renewal in February 2003, First Ministers also agreed to restructure the CHST effective April 1, 2004 to create two new transfers - the Canada Health Transfer, or CHT, and the Canada Social Transfer, or CST – to improve the transparency and accountability of federal support to provinces and territories. Reflecting provincial spending patterns, 62 percent of the CHST was allocated towards health and the remaining 38 percent was allocated towards post-secondary education, programs for children and other social programs. Budget 2003 allocated $16 billion over five years through a new Health Reform Transfer targeted to primary health care, home care and catastrophic drug coverage. 2004In September 2004, First Ministers signed the 10-Year Plan to Strengthen Health Care. In support of this 10-year plan, the Government of Canada committed additional funding to provinces and territories for health that included increases to the CHT through a base adjustment and an annual six percent escalator.Under the 2004 10-Year Plan to Strengthen Health Care, the Health Reform Transfer was incorporated into the Canada Health Transfer effective April 1, 2005. 2007Pursuant to the federal government's commitment to restore fiscal balance in Canada, Budget 2007 put all major transfers to provinces and territories on a legislated, long-term track out to 2013-14.Budget 2007 restructured the CST to provide equal per capita cash support to provinces and territories. Additional investments were made to facilitate this transition and to enhance the stability and predictability of support to provinces and territories for post-secondary, education programs for children and other social programs. Total CST cash levels were also set in legislation to grow by three percent annually. Respecting the 2004 10-Year Plan to Strengthen Health Care agreement, the CHT was legislated to move to equal per capita cash in 2014-15. For a smooth transition and to provide certainty in budget planning, Budget 2007 also ensured that no province or territory would receive lower cash transfers under the CST or CHT relative to what they would have received in 2007–08 prior to the implementation of the new Equalization system and an equal per capita cash allocation for the CST. 2009The Budget Implementation Act 2009 legislated a technical adjustment to ensure that Ontario, as an Equalization-receiving province, received the same per capita CHT cash as other Equalization-receiving provinces.2011The Government of Canada announced in December 2011, that the CHT will continue to grow at six percent annually until 2016-17. Starting in 2017-18, the CHT will grow in line with a three-year moving average of nominal gross domestic product (GDP) growth, with funding guaranteed to increase by at least three percent per year. In addition the CST will continue to grow at its current rate of three percent annually in 2014-15 and beyond. The CHT and the CST will be reviewed in 2024.
Health and social transfers are at record highs and continue to grow. |
Level of Health and Social Transfers Over Time
BLOGGED:
CANADA MILITARY NEWS: Fed. Expense Claims/Quality Standards/Code of Ethics/Conflict of Interest- okay folks as a 26YR fed employee/prov/municipality- what the f**k happened since the 80s and 90s??? – shame on all of ya... what happened 2 SERVING THE PUBLIC.... regardless of your political crap... that’s all u have 2 do... and staff – honour your family your community and urself- sweet jesusmothermary and joseph/the lower ranks honour the rules - and all political greedy parties abuse them -u all kinda suck imho
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CANADA
MILITARY NEWS: Fed.Gov. Code of Ethics, Standards, Conflict of Interest, Health
and Safety- your duty and obligation as employees and the government’s 2 u....
WTH... the everyday staff honour and do it right by the people of their
communities... OTTAWA F**KS UP WITH AL THEIR PARTIES AND STEAL AND ABUSE AND
HIJACK IN THEIR ELITE-PRIVILEGED LITTLE WORLD... ewwww – did u know that NDP
collects gov. Employee union dues which is mandatory... we could not donate 2
charity- by Supreme Court Canada? THE GOOD NEWS-chk out- 21st Century Job
Quality:Achieving What Canadians want
BLOGGED:
CANADA MILITARY NEWS: Canada does need more Immigrants- NOT Refugees – come on Europeans and Asia with your smarts and culture- we’d love u have u- SOME FACTS ON CANADA LAWS AND REGS.-/Passports/always blogs links/page 1 and 2
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Please save Canadians all party political bullshit and beans ... and all parties please stop being as useless as titties on a bull... and Provinces and Territories....plse stop being so hard on your citizens... WE ARE WATCHING... WE ARE EDUCATED ... AND WE SEE U... we are well educated, savvy, smart and a brilliant young and beautiful nations that is free because of the people who stood up and sacrificed their lives 2 give us all our beautiful God's last nature gift on this planet... Our Canada... second largest country with only 36 million people (of which there IS no middle class thanks 2 the banks, stockmarket and wall street and global greed and indifference of the the world rulers) of whom, 90% are just getting by... and 50% barely make ends meet.... we have over 200 cultures and two official languages.... - God bless our Canada.... and NOT ONE FEDERAL POLITICAL PARTY DESERVES OUR CONSIDERATION... unless they drop the old ways... and bring in fresh honest and new and better and right up front facts of their parties success... and what they will do individually for Canada as political parties... and don't bother with the dumbed down Canada media.... we get more blog reads than they have viewers.... because in the end... honesty soars... imho
WATER-
Federal Policy and Legislation
In this Section:
When it
comes to water governance in Canada, the federal government has jurisdiction
related to fisheries, navigation, federal lands, and international relations,
including responsibilities related to the management of boundary waters shared
with the United States, including relations with the International Joint
Commission. It also has significant responsibilities for agriculture, health
and the environment, and plays a significant role supporting aquatic research
and technology, and ensuring national policies and standards are in place on
environmental and health-related issues.
To fully
understand the federal government's role in water management in Canada, it is
important to first understand the interests and mandates of the departments
involved in program delivery. Within the federal government, over
20 departments and agencies have unique responsibilities for fresh water.
As all levels of government hold key policy and regulatory levers which apply
to water management, a central challenge is to ensure that these levers are
developed and used collaboratively.
Environment
Canada works closely with other federal departments to develop a more strategic
approach to addressing nationally significant freshwater issues.
Legislation
administered by Environment Canada in its water-related activities include:
- the Canada Water Act, which contains provisions for formal consultation and agreements with the provinces;
- the International River Improvements Act, which provides for licencing of activities that may alter the flow of rivers flowing into the United States; and,
- the Department of the Environment Act, which assigns the national leadership for water management to the Minister of the Environment.
Other
important federal legislation includes:
- International Boundary Waters Treaty Act ( R.S. 1985, c. I-17 ) ; Bill C-6 (Assented to 18 December 2001)
- Canadian Environmental Protection Act (1999)
- Fisheries Act
- Navigable Waters Protection Act
- Northwest Territories Waters Act
- Mackenzie Valley Resource Management Act
- Nunavut Waters and Nunavut Surface Rights Tribunal Act
- Arctic Waters Pollution Prevention Act
- Canada Shipping Act
- Dominion Water Power Act
Canada Water Act Annual Reports
Under the
provisions of the Canada Water Act, Section 38 requires that a report on
operations under the Act be laid before Parliament as soon as possible after
the end of each fiscal year. The annual reports on operations under the Canada
Water Act for the following fiscal years are available on this site:
- 2013-2014
- 2012-2013
- 2011-2012
- 2010-2011
- 2009-2010
- 2008-2009
- Combined 2006-2007 and 2007-2008
- 2005-2006
- 2004-2005
- 2003-2004
- 2002-2003
- 2001-2002
- 2000-2001
International River Improvements Act Annual Reports
Under the
provisions of the International River Improvements Act, Section 10 requires
that a report on operations under the Act be laid before Parliament as soon as
practicable after the end of each calendar year. The annual reports on
operations under the International River Improvements Act for the following
calendar years are available on this site:
Annual
reports for fiscal years beginning 1995-1996 are available in the Departmental
Performance Reports (DPR) available on the Treasury Board of Canada
Secretariat Website.
Regulations
are rules of conduct which the governor-in-council or minister is empowered to
make to facilitate the carrying out of an Act of Parliament. Regulations exist
under some federal water-related legislation (e.g., Fisheries Act,
International River Improvements Act), but not others (e.g., Canada Water Act).
Ideally,
polluting contaminants should be prevented from entering the water. At the
most, in some circumstances, they can be allowed only in low concentrations.
All provinces and territories in Canada have pollution control regulations. In
deciding which substances to control, and to determine their concentrations and
how they may enter the environment, a number of questions have to be asked,
including:
- what are the sources, amounts and effects of various substances?
- what happens to them and what do they do after they have entered the water? do they change? to what?
- where do the substances end up?
- can they be prevented from reaching the water body or removed by treatment?
An example
of a substance successfully regulated to reduce pollution is the phosphate
found in laundry detergents. The Canadian Environmental Protection
Act (CEPA) regulates many of the substances that have a deleterious effect
on the environment.
See also Water Qualitysection
Canada is
among the countries leading the global environmental effort toward sustainable
development. As the world enters the 21st century we stand at a
crucial turning point with respect to the health of our planet, and in
particular, to the quality and distribution of its water. Water, which for
millions of years supported multiple uses by all life forms, has in the past
few decades experienced increasing pressures. We have reached the point where
its ability to continue to provide support for expanding economic and social
needs is seriously being questioned.
Recognizing
the need for better environmental management, the federal government passed the
Canada
Water Act in 1970 and created the Department of the Environment in 1971,
entrusting the Inland Waters Directorate with providing national leadership for
freshwater management. Under the Constitution Act (1867), the provinces are
"owners" of the water resources and have wide responsibilities in
their day-to-day management. The federal government has certain specific
responsibilities relating to water, such as fisheries and navigation, as well
as exercising certain overall responsibilities such as the conduct of external
affairs.
While
providing national leadership to ensure that Canada's freshwater management is
in the national interest, Environment Canada also actively promotes a
partnership approach among the various levels of government and private sector
interests that contribute to and benefit from the wise management and
sustainable use of the resource.
All of these
interests were extensively consulted during the 1984/85 Inquiry on Federal
Water Policy, which conducted Canada-wide hearings toward the development of a
federal water policy. Guided by the findings of the Inquiry, the government
released its Federal
Water Policy in 1987, which has since given focus to the water-related
activities of all federal departments and which will continue to provide a
framework for action in the coming years as it evolves in the light of new
issues and concerns.
The Federal
Water Policy, the first of its kind in Canada, the policy was formulated
after several years of intensive consultation, both within and outside the
government. It addresses the management of water resources, balancing water
uses with the requirements of the many interrelationships within the ecosystem.
The policy
takes into account the needs of all Canadians in its overall objective:
- to encourage the use of freshwater in an efficient and equitable manner consistent with the social, economic and environmental needs of present and future generations.
To manage
Canada's water resources, the federal government has defined two main goals:
- to protect and enhance the quality of the water resource; and,
- to promote the wise and efficient management and use of water.
The policy
stresses that government action is not enough. Canadians at large must become
aware of the true value of water in their daily lives and use it wisely. We
cannot afford to continue undervaluing and therefore wasting our water
resources.
The federal
government uses five strategies to reach its stated goals. The five strategies
are broad courses of action which define a supportive, yet flexible, role for
the federal government, one that enables the various federal agencies, other
levels of government, and industry, to respond to their particular
circumstances and challenges. This approach is compatible with the federal
structure and the realities of a large and diverse country.
While the
federal government has jurisdictional responsibility for water in certain areas
such as navigation, fisheries and boundary waters, and shares responsibilities
with the provinces in other areas such as agriculture and health, it is also
responsible for managing water in its own "federal house". The
federal house includes federal lands (e.g., National Parks), federal facilities
(e.g., office buildings, labs, penitentiaries, and military bases), First
Nation reserves, as well as Nunavut and the Northwest Territories.
The federal
government is the largest land owner in Canada. It owns or leases more than
25 000 properties across Canada with a total land area of over
30 million hectares. These lands include such things as national parks,
experimental farms and wildlife areas. In addition, there are approximately
240 million hectares of federal crown land in Nunavut and the Northwest
Territories.
The federal
government owns over 30 million square meters of floor area in more than
46 000 buildings across the country. The buildings vary widely in
size from very small structures such as border crossing stations to large
complexes such as military bases. They also serve many functions from office
buildings to warehouses to labs and penitentiaries. Some facilities have no
water services, while others are large users of water.
As part of
its obligation to greening government operations, the federal government is
committed to using water efficiently and managing its wastewater appropriately.
For more information on these activities, visit the following web sites:
- Office of Greening Government Operations (OGGO)
- A Water Conservation Plan for Federal Government Facilities
- Wastewater
Health Canada works with other departments to make
sure all federal government employees have access to safe drinking water in
their workplaces.
The federal
crown has ownership of the water resources in the Northwest Territories and
Nunavut. The Department of Indian and Northern Affairs Canada (INAC) has a
mandate to manage those water resources.
Visit INAC's
Web site to learn more about water
management in Northwest Territories and Nunavut.
The
management of potable drinking water and wastewater on First Nation reserves is
a shared responsibility between First Nations and the federal government.
Programs and services for providing clean, safe and secure water on reserves
are provided through First Nation band councils, Indian and Northern Affairs
Canada (INAC) and Health Canada (HC), including an advisory role to INAC by
Environment Canada (EC). Details on the various roles and responsibilities can
be found on INAC's Website.
Infrastructure Canada programs also provide
funding for water infrastructure in First Nations communities.
For more
details on Health Canada's activities under the First Nations Water Management
Strategy visit the "First
Nations, Inuit and Aboriginal Health" page on their Website.
Date
Modified:
2015-05-28
Secondary menu
---
Purpose
6.1 The purpose of section
6, and of the provisions set out in that section, is to provide for the
sustainability and ongoing productivity of commercial, recreational and
Aboriginal fisheries.
2012, c. 19,
s. 135.
FISHERY LEASES AND LICENCES
Marginal note:Fishery leases and licences
7. (1) Subject
to subsection (2), the Minister may, in his absolute discretion, wherever the
exclusive right of fishing does not already exist by law, issue or authorize to
be issued leases and licences for fisheries or fishing, wherever situated or
carried on.
Marginal note:Idem
(2) Except as otherwise
provided in this Act, leases or licences for any term exceeding nine years
shall be issued only under the authority of the Governor in Council.
R.S., c.
F-14, s. 7.
Marginal note:Fees
8. Except where licence
fees are prescribed in this Act, the Governor in Council may prescribe the fees
that are to be charged for fishery or fishing licences.
Marginal note:Minister may cancel licence
9. The Minister may suspend
or cancel any lease or licence issued under the authority of this Act, if
FISH ALLOCATION FOR FINANCING PURPOSES
Marginal note:Allocation of fish
(2) The Minister may
specify, in a licence issued under this Act, a quantity of fish or of fishing
gear and equipment allocated for the purpose of financing those activities.
11. to 16. [Repealed,
1991, c. 1, s. 3]
LOBSTER FISHERIES
17. [Repealed,
1991, c. 1, s. 4]
Date
modified:
2015-06-04
Secondary menu
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USA-
RCW 43.20A.550Federal programs — Rules and regulations — Internal reorganization to meet federal requirements — Statutes to be construed to meet federal law — Conflicting parts deemed inoperative. |
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(history of Federal transfers)
Our study examined the three main mechanisms used by the federal government to transfer funds to the provinces and territories. We also looked at the nature and extent of conditions attached to these transfers.
We undertook this study to inform parliamentarians about the federal government's transfers to the provinces and territories. Because this is a study and not an audit, it is descriptive, and does not include recommendations.
As auditors, we recognize that decisions on whether, and to what extent, conditions attached to transfers are policy decisions, often involving sensitive federal-provincial/territorial negotiations. We do not question these decisions.
We did not examine funding arrangements with First Nations, payments to foundations or municipal governments, or transfer payments to individual Canadians.
The nature and extent of conditions attached to federal transfers to the provinces and territories varies significantly. While some transfers have specific conditions that recipients must meet, others are unconditional and there is no requirement for a province or territory to report to the federal government on the use of the transferred funds. It is not always clear to parliamentarians which transfers have conditions attached and what the nature and extent of those conditions are.
1.2 The federal government delivers programs and services to
Canadians in a number of distinct ways. It directly administers some
programs and services (for example, issuing passports). In other cases,
it transfers funds to the provinces and territories, with the approval
of Parliament, for specified purposes (for example, to support labour
market development). Provinces and territories are then responsible for
designing and delivering related programs and services to Canadians.
1.3 Federal transfers to the provinces and territories constitute a significant portion of the federal government's annual expenses. They are a major source of funds for services provided to Canadians in areas such as health care, post-secondary education, and housing. In the 2006–07 fiscal year, these transfers amounted to approximately $50 billion, or just under 23 percent of federal expenses.
1.4 Some federal transfers to the provinces and territories are conditional, meaning that the federal government requires recipients of the funding to fulfill certain commitments, with consequences for failing to meet the conditions. Such conditions may be explicitly stated in agreements between the federal government and provincial or territorial governments, or found in other sources, such as statutes.
1.5 Other transfers are unconditional, meaning that recipient provinces and territories can spend these payments according to their own priorities, and are not obligated to report to the federal government how they spent the transferred funds or what effect that spending had.
1.7 We examined only mechanisms that the federal government uses to transfer funds to the provinces and territories. Because this is a study rather than an audit, it is descriptive, and does not include recommendations.
1.8 More details on the objectives, scope, and approach of the study are in About the Study at the end of this chapter.
1.11 The $42.3 billion does not include federal tax transfers,
which in the 2006–07 fiscal year provided additional support of
approximately $20 billion, including $12.6 billion through the Canada
Health Transfer and $7.8 billion through the Canada Social Transfer.
According to Finance Canada, the value of this tax transfer reflects the
current value of the federal taxation transferred, or ceded, to
provinces in 1977 (equalling 13.5 percentage points of its Personal
Income Tax and 1.0 percentage point of its Corporate Income Tax). This
value is calculated in accordance with applicable legislation.
1.13 By 1977, health care and post-secondary education programs were well established. To allow provinces greater flexibility in allocating funding and to reduce the administrative burden, federal transfer support shifted away from cost sharing to block funding. In 1996, two existing support programs, Established Programs Financing (a block transfer supporting health and post-secondary education) and the Canada Assistance Plan (the last major cost-sharing program supporting social programs), were merged into the Canada Health and Social Transfer program, which supported broad federal spending priorities, including health care and social programs.
1.14 Effective 1 April 2004, the Canada Health and Social Transfer was restructured into the Canada Health Transfer and the Canada Social Transfer.
1.15 The Canada Health Transfer. This is a federal transfer provided to each province and territory to support health care. Funding is provided through both cash payments and tax transfers. The requirement attached to this transfer is that provinces and territories meet the conditions in the Canada Health Act. These conditions include the five criteria that apply to health services (public administration, comprehensiveness, universality, portability, and accessibility), provisions relating to extra-billing and user charges, and conditions related to the provision of information and recognition of federal financial contributions. Health Canada is responsible for monitoring compliance with these conditions.
1.16 The Canada Social Transfer. This is a federal transfer to provinces and territories to support post-secondary education, social assistance and social services, and programs for children. This transfer consists of both cash and tax transfer components. The sole condition of this transfer is that provinces and territories meet a national standard: no one is required to live in a province or territory for a minimum period of time before becoming eligible to receive social assistance. The Federal-Provincial Fiscal Arrangements Act also states that the social transfer must finance social programs in a manner that provides provincial flexibility. The Act also states that all provincial and territorial governments are invited to work together to develop a set of shared principles and objectives that could form a foundation for promoting the well-being of Canadians.
1.17 Equalization Program Transfer. This transfer was established in 1957 and enshrined in the Constitution. It is intended to enable less-prosperous provinces to provide public services that are reasonably comparable to those provided by more-prosperous provinces, at reasonably comparable levels of taxation. Equalization Program payments are unconditional. The provinces that receive them can spend the funds according to their own priorities.
1.18 Territorial Formula Financing. This is an annual, unconditional federal transfer to territorial governments designed to take into account the higher costs of providing public services in the territories. This transfer is similar to that of the Equalization Program, in that its objective is to enable the territories to provide a range of public services that are reasonably comparable to those offered by the provincial governments, at reasonably comparable levels of taxation.
1.19 As transfer mechanisms have evolved, so too have reporting arrangements. The nature of cost-sharing programs required that provincial governments report their expenses directly to the federal government. More recent large transfers reflect a shift away from government-to-government reporting and toward government-to-citizen reporting. Under this model, the federal government reports to Parliament on how much it transferred to provincial and territorial governments and why. Recipient governments are then expected to report to their legislative assemblies, their citizens, and their stakeholders on how they use public funds, including federal transfers. Provincial and territorial compliance with these reporting expectations may be subject to audit by their respective auditors.
1.21 In the 2006–07 fiscal year, according to the Public Accounts, just over $5 billion, or just over 2 percent of the federal government's expenses, comprised program-specific transfers to provinces or territories. Close to 75 percent of this total was accounted for by five federal departments: Human Resources and Social Development Canada, Transport Canada (including Infrastructure Canada), Natural Resources Canada, Indian and Northern Affairs Canada, and Agriculture and Agri-Food Canada (including the Canadian Food Inspection Agency).
1.22 Examples from three departments—Agriculture and Agri-Food Canada, the Department of Justice, and Human Resources and Social Development Canada—illustrate the types of conditions attached to these transfers.
1.24 In these bilateral agreements, the provinces agree to adhere to a number of conditions, and it is Agriculture and Agri-Food Canada's responsibility to see that they are met. Among the conditions are those related to financial and compliance audits, progress reports, environmental assessments, program evaluation, and acknowledgement in communications materials and products of federal support for the program.
1.25 Department of Justice. Criminal legal aid is a shared responsibility between the federal government, which has authority in matters of criminal law and criminal procedure, and provincial and territorial governments, which have authority for the administration of justice. On the basis of this shared responsibility, a long-standing federal-provincial partnership has ensured coordination between federal criminal law-making powers and provincial responsibility for the administration of justice. The provinces and territories deliver legal aid services through entities created under statutory authority in each of the 10 provinces and three territories.
1.26 Through bilateral agreements, the federal government provides contribution funding to the provinces and territories to support criminal legal aid for eligible adults as well as for youth charged under the Youth Criminal Justice Act, and for immigration and refugee legal aid in provinces that provide these services. The transfer amounts are based on negotiated funding formulas. Justice officials told us that audited claims for shareable expenses provide assurance that these transfers are being used for the agreed purposes. In the 2006–07 fiscal year, the federal government transferred close to $120 million to the provinces and territories for criminal, and immigration and refugee legal aid. Recipient jurisdictions agreed to conditions, including those related to
1.28 In the 2006–07 fiscal year, payments totalled $1.95 billion, of which just over $1 billion went to participating provinces and territories in the form of transfer payments. The terms of federal-provincial-territorial agreements on labour market development included requirements related to
1.32 In accordance with the current standards of the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants and the stated accounting policies of the federal government, transfers are expensed in the year they are announced, provided that a public commitment is made, that enabling legislation or Parliamentary authorization for payment is received prior to completion of the financial statements, and that any conditions are met prior to 31 March. Accordingly, letters of agreement need to be in place and all conditions must be met by the provinces and territories by 31 March. The accounting standard for government transfers, which would apply to intergovernmental transfers through trusts, is currently under review by the accounting profession.
1.33 Between 1999 and 2008, the federal government transferred almost $27 billion to the provinces and territories using trusts (Exhibit 1.3). The individual value of these trusts ranged from $120 million to $4.25 billion. From 1999 to 2003 (inclusively) $13 billion was transferred through the establishment of six trusts. This compares to the $14 billion transferred from 2004 to 2008 (inclusively) through 17 trusts. In the 2006–07 fiscal year, five trusts were created to transfer $3.3 billion to the provinces and territories (compared to the approximately $50 billion in total transfers that year; Exhibit 1.4).
Source: Department of Finance Canada
1.34 Transfers provided through trusts payable to the provinces
and territories are earmarked for specific purposes in public
announcements by the federal government. In order to become eligible to
draw on these trust funds, provinces and territories must confirm in
writing their understanding of the purposes of the trust and name an
authorized agent (typically the deputy minister of finance of the
recipient jurisdiction).
1.35 Recent federal trust announcements have included "operating principles," which outline the purpose of the funding and the need for provinces and territories to report to their own citizens on how the funds are spent and what results are achieved. However, because these operating principles are not part of the trust agreements, they are not legally binding on the provinces and territories with respect to how the transferred funds are spent.
1.36 In recent years, as an additional condition of eligibility, provinces and territories must publicly opt-in as a beneficiary of the trust by making a public announcement regarding how they will use the funds. These public announcements must be in line with the federal operating principles for the trust.
1.37 Exhibit 1.5 illustrates the chronology of actions taken to establish the Public Transit Capital Trust 2008, including the requirement that recipient governments publicly announce to their own citizens how the funds will be spent.
1.38 As noted earlier, provinces and territories must meet all
conditions of eligibility in order to qualify as beneficiaries under a
federal trust. However, once the federal government has deposited
the funds in a trust account, the money becomes the property of the
trustee. The trustee pays out the amount allocated to the beneficiaries
in accordance with the trust agreements.
1.39 After the funds have been transferred, these trusts have no additional legal conditions that obligate provinces and territories to spend the funds for the announced purposes.
1.40 Instead, once the provinces and territories have established their eligibility to draw funds from the trust, they become accountable in principle to their own citizens, not to the federal government, for how they use the funds. In this sense, trusts, as used by the federal government, are similar to the Equalization Program and the Territorial Formula Financing transfers, in that there are no mechanisms to withhold funds. Trusts are also similar to the Canada Health Transfer and the Canada Social Transfer, in that provinces and territories are not required to report on this spending to the federal government.
1.41 The following are three examples of trusts that the federal government recently established to transfer funds to the provinces and territories.
1.43 Once the federal government has reached agreement with the provinces and territories about the conditions attached to a transfer, it must demonstrate that it is monitoring provincial and territorial compliance with those conditions, and that it is taking action in cases of non-compliance. Our Office conducts performance audits to determine how well the federal government has carried out this obligation. The 2008 Report of the Commissioner of the Environment and Sustainable Development includes an example of this type of audit. See Chapter 3, Managing Environmental Programming—Agriculture and Agri-Food Canada.
1.44 As noted earlier, if no conditions have been established, the provinces and territories have the flexibility to spend the funds according to their own priorities. Because there are no conditions, our Office does not audit the non-financial elements of these transfers. In these circumstances, the federal government remains accountable to Parliament for choosing an unconditional transfer as the best available policy option. Accountability for results rests with provincial and territorial governments, and to their citizens, not to the federal government.
1.45 For all transfers, the federal government is responsible for ensuring that it sends the correct amount of funds to the provinces and territories. The role of the Office of the Auditor General, as Parliament's auditor, is to carry out financial audits of the Public Accounts of Canada. These audits determine if the government has recorded the amounts paid in accordance with Public Sector Accounting Board standards and with the stated accounting policies of the federal government.
1.47 According to government officials whom we interviewed, the federal government may, depending on the circumstances, opt for a conditional transfer in order to
1.50 According to the federal government, the extent of federal accountability for how the provinces and territories spend transferred funds depends on the nature and extent of conditions attached to the transfers. In all cases, the government is accountable for its decision to use transfers with or without conditions as the best policy choice available in the circumstances.
1.51 Some transfers involve conditions that, for example, oblige recipients to provide the federal government with information on how they have spent the transferred funds and to what effect. The federal government must demonstrate that it is monitoring provincial and territorial compliance with these conditions and that it is taking action in cases of non-compliance. Where transfers have limited or no conditions, the provinces and territories have the flexibility to spend the funds according to their own priorities, with no legal obligation to account to the federal government for the spending.
1.52 A significant addition to the transfer mechanisms used by the federal government was the introduction of trusts in 1999. Since then, 23 trusts have been established to transfer almost $27 billion to the provinces and territories. In each case, the federal government has publicly announced (jointly with recipients for recent trusts) the intended purposes of this funding. Once the eligibility conditions for these trusts have been met, no additional legal conditions obligate provinces and territories to spend the funds for the purposes announced. Instead, once the provinces and territories have established their eligibility to draw funds from the trust, they become accountable in principle to their own citizens, not to the federal government, for how they use the funds. In this sense, these trusts are similar to the four major transfers.
1.53 Where transfers have conditions, how well the federal government monitors the conditions is subject to performance audits by our Office, and our audit reports are provided to Parliament. For all transfers audited, we ensure that the amount paid is properly recorded in accordance with Public Sector Accounting Board standards and the stated accounting policies of the federal government.
We did not examine funding arrangements with First Nations, payments to foundations, payments to municipal governments, or transfer payments to individual Canadians.
Principal: Glenn Wheeler
Director: Colin Meredith
Nola Juraitis
Ruth Sullivan
Irene Andayo
For information, please contact Communications at 613-995-3708 or 1-888-761-5953 (toll-free).
Block transfers—Payments based on legislation or an arrangement, which normally includes a formula or schedule as one element used to determine the amount. However, once payments are made, the recipient may redistribute the funds among the several approved categories in the arrangement. (Return)
Contributions—Conditional transfer payments to an individual or organization for a specified purpose. These payments are pursuant to a contribution agreement and are subject to being accounted for and audited. (Return)
Grants—Transfer payments made to individuals or organizations. Although grant payments are not subject to being accounted for or audited, the eligibility and entitlement of grant recipients may be verified, and they may need to meet certain preconditions. (Return)
Trusts—A trust is created when one party, the settlor, transfers legal ownership of property to another party, the trustee, for the benefit of a third party, the beneficiary. In the case of trusts used to transfer federal funds to the provinces and territories, the federal government is the settlor, the provinces and territories are the beneficiaries, and an independent financial institution is the trustee. (Return)
http://www.oag-bvg.gc.ca/internet/English/parl_oag_200812_01_e_31825.html
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http://irpp.org/wp-content/uploads/assets/research/canadian-federalism/new-research-article/wp2004-07.pdf
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In Canada we have taught our children and grandchildren right- this is from a CANADIAN GRADE IV STUDENT...
BLOGSPOT:
CANADA AND NOVA SCOTIA- please stop pimping booze, gambling and tobacco 4 ur profit- ur killing us...ur killing us...(UVE CREATED HORRIFIC HOMELESSNESS) . Every Political Party in Canada and Nova Scotia PROMISED 2 ELIMINATE- GAMBLING.... every one.... and ...u ...doubled...it...Seriously.... /CANADA HAS A RACISM PROBLEM (Well don't all Nations) -love u Winnipeg 4 stepping up 2 this and First Nations needs 2 protect their women and children and $$$$ goes 2 their First People instead of Chiefs and Band Councils-/Canada and Nova Scotia pls. fix the underbelly of booze, gambling and tobacco...and by the by First Nations own their lands and their taxes
http://nova0000scotia.blogspot.ca/2015/01/canada-and-nova-scotia-please-stop.html
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THE POINT IS CANADIANS ARE THE ONLY ONES WHO CARE... God's last Nature place on earth
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(history of Federal transfers)
2008 December Report of the Auditor General of Canada
Chapter 1—A Study of Federal Transfers to Provinces and Territories
Main Points
Introduction
Focus of the study
Observations
Four major federal transfers to provinces and territories
Evolution of federal support for health and social programs
Program-specific transfers to provinces and territories
Types of conditions
Revisions to the transfer payment policy
Federal use of trusts
Significance of conditions
Imposing conditions is a policy decision
Conclusion
About the Study
Exhibits:
1.1—Areas of federal, provincial, and shared activity
1.2—Four major transfers to the provinces and territories accounted for 19% of federal expenses in the 2006–07 fiscal year
1.3—From 1999 to 2008, the federal government transferred some $27 billion to the provinces and territories using trusts
1.4—Five trusts comprised just over $3 billion of the approximately $50 billion transferred to the provinces and territories in 2006–07
1.5—Chronology of actions taken to establish the Public Transit Capital Trust 2008
Main Points
What we examined
The federal government uses a number of mechanisms to transfer funds to the provinces and territories for general areas of spending such as health or for specific purposes such as improving infrastructure. In 2006–07, these federal transfers amounted to approximately $50 billion, or just under 23 percent of federal spending.Our study examined the three main mechanisms used by the federal government to transfer funds to the provinces and territories. We also looked at the nature and extent of conditions attached to these transfers.
We undertook this study to inform parliamentarians about the federal government's transfers to the provinces and territories. Because this is a study and not an audit, it is descriptive, and does not include recommendations.
As auditors, we recognize that decisions on whether, and to what extent, conditions attached to transfers are policy decisions, often involving sensitive federal-provincial/territorial negotiations. We do not question these decisions.
We did not examine funding arrangements with First Nations, payments to foundations or municipal governments, or transfer payments to individual Canadians.
Why it's important
Federal transfers to the provinces and territories make up a significant portion of the federal government's annual spending. They are a major source of funds for services provided to Canadians in areas such as health, post-secondary education, and housing.The nature and extent of conditions attached to federal transfers to the provinces and territories varies significantly. While some transfers have specific conditions that recipients must meet, others are unconditional and there is no requirement for a province or territory to report to the federal government on the use of the transferred funds. It is not always clear to parliamentarians which transfers have conditions attached and what the nature and extent of those conditions are.
What we found
- The federal government uses three main mechanisms to transfer funds to the provinces and territories. The first and largest includes four major transfers that recur annually by law and are managed by Finance Canada: the Canada Health Transfer, the Canada Social Transfer, Equalization Program transfers, and Territorial Formula Financing (just over $42 billion transferred in the 2006–07 fiscal year). The second mechanism involves the transfer of funds by individual federal departments to support specific program areas (just over $5 billion in 2006–07). Finally, the federal government also transfers funds to the provinces and territories using trusts (just over $3 billion in 2006–07).
- According to the federal government, the extent of federal accountability for how the provinces and territories spend transferred funds depends on the nature and extent of conditions attached to the transfers. In all cases, the federal government is accountable to Parliament for its decision to use transfers with or without conditions as the best policy choice available in the circumstances.
- Some transfers involve conditions that, for example, obligate recipients to provide the federal government with information on how they spent the transferred funds and to what effect. The federal government must demonstrate that it is monitoring provincial and territorial compliance with these conditions and that it is taking action in cases of non-compliance. Where transfers have limited or no conditions, the provinces and territories have the flexibility to spend the funds according to their own priorities, with no legal obligation to account to the federal government for the spending.
- A significant addition to the transfer mechanisms used by the federal government was its introduction of trusts in 1999. Since then, 23 trusts have been established to transfer almost $27 billion to the provinces and territories. In each case, the federal government has stated the intended purposes of the trusts in public announcements. Once the eligibility conditions for these trusts have been met, no additional legal conditions obligate provinces and territories to spend the funds for the purposes announced.
- Once the provinces and territories have established their eligibility to draw funds from the trust, they become accountable in principle to their own citizens, not to the federal government, for how they use the funds. In this sense, these trusts are similar to the four major transfers.
- Where transfers have conditions, how well the federal government monitors the conditions is subject to performance audits by our Office and our audit reports are provided to Parliament. For all transfers audited, we ensure that the amount paid is properly recorded in accordance with Public Sector Accounting Board standards.
Introduction
1.1 The Constitution Act of 1867 assigns a range of exclusive legislative powers to the federal and provincial orders of government, as well as joint jurisdiction over other specific areas. Over time, however, it has become common in practice for the federal government to spend in areas over which it does not exercise legislative jurisdiction. Exhibit 1.1 lists areas of federal, provincial, and shared activity as described by Finance Canada.Exhibit 1.1—Areas of federal, provincial, and shared activity
| Sector | Federal | Provincial |
|---|---|---|
| Money and banking | √ | |
| International and interprovincial trade | √ | |
| Airlines and railways | √ | |
| Telecommunications and broadcasting | √ | |
| Foreign affairs/international assistance | √ | |
| Defence and veterans affairs | √ | |
| Border security | √ | |
| Employment insurance | √ | |
| Criminal law | √ | |
| Fiscal equalization | √ | |
| Indirect taxation | √ | |
| Direct taxation | √ | √ |
| Pensions and income support | √ | √ |
| Aboriginal peoples | √ | √ |
| Immigration | √ | √ |
| Agriculture | √ | √ |
| Industry | √ | √ |
| Environment | √ | √ |
| Policing | √ | √ |
| Transportation infrastructure | √ | √ |
| Housing | √ | √ |
| Post-secondary education, training, and research | √ | √ |
| Public health | √ | √ |
| Primary and secondary education | √ | |
| Health care | √ | |
| Municipal institutions | √ | |
| Social assistance and social services | √ | |
| Natural resources | √ | |
| Administration of justice | √ | |
| Source: Focusing on Priorities, Budget 2006, Department of Finance Canada | ||
1.3 Federal transfers to the provinces and territories constitute a significant portion of the federal government's annual expenses. They are a major source of funds for services provided to Canadians in areas such as health care, post-secondary education, and housing. In the 2006–07 fiscal year, these transfers amounted to approximately $50 billion, or just under 23 percent of federal expenses.
1.4 Some federal transfers to the provinces and territories are conditional, meaning that the federal government requires recipients of the funding to fulfill certain commitments, with consequences for failing to meet the conditions. Such conditions may be explicitly stated in agreements between the federal government and provincial or territorial governments, or found in other sources, such as statutes.
1.5 Other transfers are unconditional, meaning that recipient provinces and territories can spend these payments according to their own priorities, and are not obligated to report to the federal government how they spent the transferred funds or what effect that spending had.
Focus of the study
1.6 We carried out this study to inform parliamentarians about the federal government's transfers to the provinces and territories. In particular, we wanted to describe the main mechanisms that the federal government uses to accomplish these transfers, in order to answer questions parliamentarians have about them. We also wanted to outline the Office's mandate to audit these transfers.1.7 We examined only mechanisms that the federal government uses to transfer funds to the provinces and territories. Because this is a study rather than an audit, it is descriptive, and does not include recommendations.
1.8 More details on the objectives, scope, and approach of the study are in About the Study at the end of this chapter.
Observations
1.9 For the purposes of this study, we identified three main mechanisms used by the federal government to transfer funds to the provinces and territories. These are- four major statutory transfers managed by Finance Canada,
- program-specific transfers managed by individual departments and agencies, and
- trusts (also managed by Finance Canada).
Four major federal transfers to provinces and territories
1.10 In the 2006–07 fiscal year, the federal government provided $42.3 billion—or 19 percent of its total expenses of $222 billion—to provincial and territorial governments, through four major recurring transfers managed by Finance Canada as authorized by the Federal-Provincial Fiscal Arrangements Act. These transfers, and the amounts transferred in the 2006–07 fiscal year, are listed in Exhibit 1.2.Exhibit 1.2—Four major transfers to the provinces and territories accounted for 19% of federal expenses in the 2006–07 fiscal year
| Transfer | ($ millions) |
|---|---|
| Total federal expenses | 222,214 |
| Major transfers | |
| Canada Health Transfer | 20,140 |
| Canada Social Transfer | 8,500 |
| Equalization Program | 11,535 |
| Territorial Formula Financing | 2,118 |
| Total | 42,293 (19.0% of total federal expenses) |
| Source: Department of Finance Canada and the Public Accounts of Canada | |
Evolution of federal support for health and social programs
1.12 The federal government has used transfers to support provincial and territorial governments in providing health care, post-secondary education, social assistance and social services, and programs for children. In the 1950s and 1960s, the federal government encouraged development of nation-wide hospital, medical care, social, and post-secondary education programs. The costs of these programs were for the most part shared equally between the federal government and the provinces and territories. Federal legislation and related agreements outlined program objectives and standards, and stipulated which types of expenses were eligible to be covered. Provincial and territorial governments provided detailed documentation of their expenditures to the federal government.1.13 By 1977, health care and post-secondary education programs were well established. To allow provinces greater flexibility in allocating funding and to reduce the administrative burden, federal transfer support shifted away from cost sharing to block funding. In 1996, two existing support programs, Established Programs Financing (a block transfer supporting health and post-secondary education) and the Canada Assistance Plan (the last major cost-sharing program supporting social programs), were merged into the Canada Health and Social Transfer program, which supported broad federal spending priorities, including health care and social programs.
1.14 Effective 1 April 2004, the Canada Health and Social Transfer was restructured into the Canada Health Transfer and the Canada Social Transfer.
1.15 The Canada Health Transfer. This is a federal transfer provided to each province and territory to support health care. Funding is provided through both cash payments and tax transfers. The requirement attached to this transfer is that provinces and territories meet the conditions in the Canada Health Act. These conditions include the five criteria that apply to health services (public administration, comprehensiveness, universality, portability, and accessibility), provisions relating to extra-billing and user charges, and conditions related to the provision of information and recognition of federal financial contributions. Health Canada is responsible for monitoring compliance with these conditions.
1.16 The Canada Social Transfer. This is a federal transfer to provinces and territories to support post-secondary education, social assistance and social services, and programs for children. This transfer consists of both cash and tax transfer components. The sole condition of this transfer is that provinces and territories meet a national standard: no one is required to live in a province or territory for a minimum period of time before becoming eligible to receive social assistance. The Federal-Provincial Fiscal Arrangements Act also states that the social transfer must finance social programs in a manner that provides provincial flexibility. The Act also states that all provincial and territorial governments are invited to work together to develop a set of shared principles and objectives that could form a foundation for promoting the well-being of Canadians.
1.17 Equalization Program Transfer. This transfer was established in 1957 and enshrined in the Constitution. It is intended to enable less-prosperous provinces to provide public services that are reasonably comparable to those provided by more-prosperous provinces, at reasonably comparable levels of taxation. Equalization Program payments are unconditional. The provinces that receive them can spend the funds according to their own priorities.
1.18 Territorial Formula Financing. This is an annual, unconditional federal transfer to territorial governments designed to take into account the higher costs of providing public services in the territories. This transfer is similar to that of the Equalization Program, in that its objective is to enable the territories to provide a range of public services that are reasonably comparable to those offered by the provincial governments, at reasonably comparable levels of taxation.
1.19 As transfer mechanisms have evolved, so too have reporting arrangements. The nature of cost-sharing programs required that provincial governments report their expenses directly to the federal government. More recent large transfers reflect a shift away from government-to-government reporting and toward government-to-citizen reporting. Under this model, the federal government reports to Parliament on how much it transferred to provincial and territorial governments and why. Recipient governments are then expected to report to their legislative assemblies, their citizens, and their stakeholders on how they use public funds, including federal transfers. Provincial and territorial compliance with these reporting expectations may be subject to audit by their respective auditors.
Program-specific transfers to provinces and territories
1.20 A second mechanism for federal transfers is one in which individual federal departments transfer funds to provinces and territories to support specific program areas. The Treasury Board's 2000 Policy on Transfer Payments sets out the types of conditions attached to these transfers. These allow federal departments to require recipients of federal contributions (as distinct from recipients of federal grants) to report on the use of the funds and to provide audited financial information or submit to an audit by the federal government. Depending on the program, Parliament reviews and approves spending on transfers, either through its approval of enabling statutes or as part of the annual Estimates process.1.21 In the 2006–07 fiscal year, according to the Public Accounts, just over $5 billion, or just over 2 percent of the federal government's expenses, comprised program-specific transfers to provinces or territories. Close to 75 percent of this total was accounted for by five federal departments: Human Resources and Social Development Canada, Transport Canada (including Infrastructure Canada), Natural Resources Canada, Indian and Northern Affairs Canada, and Agriculture and Agri-Food Canada (including the Canadian Food Inspection Agency).
1.22 Examples from three departments—Agriculture and Agri-Food Canada, the Department of Justice, and Human Resources and Social Development Canada—illustrate the types of conditions attached to these transfers.
Types of conditions
1.23 Agriculture and Agri-Food Canada. In 2007, the Department entered into bilateral agreements with nine provinces to share the costs associated with assisting industry to adapt to new controls on animal feed. This program, referred to as the Facilitation of the Disposal of Specified Risk Materials (SRM) Program, was established to address the risk that bovine spongiform encephalopathy (mad cow disease) might affect food safety, the environment, or the agricultural industry. The bilateral agreements provided for federal funding of 60 percent of eligible provincial expenses. Total federal funding for this program was $76.5 million, to be spent by the end of the 2008–09 fiscal year. Payments are made to the participating provinces for eligible expenses as defined in the federal-provincial agreements.1.24 In these bilateral agreements, the provinces agree to adhere to a number of conditions, and it is Agriculture and Agri-Food Canada's responsibility to see that they are met. Among the conditions are those related to financial and compliance audits, progress reports, environmental assessments, program evaluation, and acknowledgement in communications materials and products of federal support for the program.
1.25 Department of Justice. Criminal legal aid is a shared responsibility between the federal government, which has authority in matters of criminal law and criminal procedure, and provincial and territorial governments, which have authority for the administration of justice. On the basis of this shared responsibility, a long-standing federal-provincial partnership has ensured coordination between federal criminal law-making powers and provincial responsibility for the administration of justice. The provinces and territories deliver legal aid services through entities created under statutory authority in each of the 10 provinces and three territories.
1.26 Through bilateral agreements, the federal government provides contribution funding to the provinces and territories to support criminal legal aid for eligible adults as well as for youth charged under the Youth Criminal Justice Act, and for immigration and refugee legal aid in provinces that provide these services. The transfer amounts are based on negotiated funding formulas. Justice officials told us that audited claims for shareable expenses provide assurance that these transfers are being used for the agreed purposes. In the 2006–07 fiscal year, the federal government transferred close to $120 million to the provinces and territories for criminal, and immigration and refugee legal aid. Recipient jurisdictions agreed to conditions, including those related to
- financial auditing of program expenses,
- provision of defined services,
- performance measurement and participation in federally funded program evaluation,
- bilateral sharing of information related to criminal legal aid, and
- provincial acknowledgement of the federal contribution to public legal education activities and materials.
1.28 In the 2006–07 fiscal year, payments totalled $1.95 billion, of which just over $1 billion went to participating provinces and territories in the form of transfer payments. The terms of federal-provincial-territorial agreements on labour market development included requirements related to
- performance measurement and reporting,
- program evaluation,
- information sharing,
- recognition of the federal contribution in public information, and
- participation in joint management committees.
Revisions to the transfer payment policy
1.30 A renewed version of the federal Policy on Transfer Payments was approved in May 2008 for implementation in October. The changes to the policy are in keeping with the recommendations of an independent panel established in 2006 to examine federal grants and contributions programs. One of the panel's recommendations was that the oversight and reporting requirements for federal transfers be tailored to the capacities and circumstances of funding recipients. The panel's view was that this recommendation applies "quite directly" to federal grants and contributions to the provinces and territories, where "audit standards and capacities may well be as high as those of the federal government."Federal use of trusts
1.31 Trusts are a third mechanism that the federal government has used since 1999 to transfer funds to the provinces and territories. The trustee (in this case, an independent financial institution) allocates the funds in the trusts to the beneficiaries of the trusts (in this case, the provinces and territories), in accordance with the trust agreement. Trusts have been used by the Government of Canada to respond to particular short-term priority pressures in well-established areas of provincial responsibility (such as medical equipment) by providing targeted funds available to the federal government at year-end. In each case, the federal government has given provinces and territories the flexibility to draw down and use the funds according to their own priorities. With some exceptions, trusts that the federal government has created for these purposes have been announced in federal budget proposals. Parliament has then approved these transfers of funds through the legislative process.1.32 In accordance with the current standards of the Public Sector Accounting Board of the Canadian Institute of Chartered Accountants and the stated accounting policies of the federal government, transfers are expensed in the year they are announced, provided that a public commitment is made, that enabling legislation or Parliamentary authorization for payment is received prior to completion of the financial statements, and that any conditions are met prior to 31 March. Accordingly, letters of agreement need to be in place and all conditions must be met by the provinces and territories by 31 March. The accounting standard for government transfers, which would apply to intergovernmental transfers through trusts, is currently under review by the accounting profession.
1.33 Between 1999 and 2008, the federal government transferred almost $27 billion to the provinces and territories using trusts (Exhibit 1.3). The individual value of these trusts ranged from $120 million to $4.25 billion. From 1999 to 2003 (inclusively) $13 billion was transferred through the establishment of six trusts. This compares to the $14 billion transferred from 2004 to 2008 (inclusively) through 17 trusts. In the 2006–07 fiscal year, five trusts were created to transfer $3.3 billion to the provinces and territories (compared to the approximately $50 billion in total transfers that year; Exhibit 1.4).
Exhibit 1.3—From 1999 to 2008, the federal government transferred some $27 billion to the provinces and territories using trusts
| Source of announcement | Purpose | To be drawn down by | ($ millions) |
|---|---|---|---|
| Budget 1999 | One-time supplement to Canada Health and Social Transfer (for health) | 2001–02 | 3,500 |
| Budget 2000 | Supplement to Canada Health and Social Transfer (for post-secondary education and health care) | 2003–04 | 2,500 |
| September 2000 Agreement on Health Renewal | Medical Equipment Fund in support of the 2000 Health Accord | 2001–02 | 1,000 |
| 2003 First Ministers' Accord on Health Care Renewal | Cash supplement to Canada Health and Social Transfer | 2005–06 | 2,500 |
| 2003 First Ministers' Accord on Health Care Renewal | Diagnostic/Medical Equipment Fund | 2005–06 | 1,500 |
| 2003 First Ministers' Accord on Health Care Renewal | Supplement to Canada Health and Social Transfer (for health) | 2005–06 | 2,000 |
| Budget 2004 | 2004 Public Health and Immunization Fund | 2006–07 | 400 |
| 10-Year Plan to Strengthen Health Care | 2004 Wait Times Reduction Trust | 2008–09 | 4,250 |
| Budget 2005 | Early Learning and Child Care Trust | 2005–06 | 700 |
| Budget 2005 | Northern Strategy Trust | 2007–08 | 120 |
| Budget 2006 | Post-Secondary Education Infrastructure Trust | 2007–08 | 1,000 |
| Budget 2006 | Public Transit Capital Trust | 2008–09 | 900 |
| Budget 2006 | Affordable Housing Trust | 2008–09 | 800 |
| Budget 2006 | Northern Housing Trust | 2008–09 | 300 |
| Budget 2006 | Off-Reserve Aboriginal Housing Trust | 2008–09 | 300 |
| Speech by the Prime Minister in February 2007 | Clean Air and Climate Change Trust Fund | 2009–10 | 1,519 |
| Budget 2007 | Patient Wait Times Guarantee Trust | 2009–10 | 612 |
| Budget 2007 | HPV Immunization Trust | 2009–10 | 300 |
| Budget 2007 | Transition Trust (for labour market training agreements and post-secondary education; in Ontario, Manitoba and Saskatchewan) | 2007–08 | 614 |
| Speech by the Prime Minister in January 2008 | Community Development Trust | 2010–11 | 1,000 |
| Budget 2008 | Police Officers Recruitment Fund | 2012–13 | 400 |
| Budget 2008 | Saskatchewan Carbon Capture and Storage Demonstration Trust | 2011–12 | 240 |
| Budget 2008 | Public Transit Capital Trust 2008 | 2009–10 | 500 |
| Funds transferred 1999–2008 through trusts | 26,955 | ||
| Source: Department of Finance Canada | |||
Exhibit 1.4—Five trusts comprised just over $3 billion of the approximately $50 billion transferred to the provinces and territories in 2006–07
1.35 Recent federal trust announcements have included "operating principles," which outline the purpose of the funding and the need for provinces and territories to report to their own citizens on how the funds are spent and what results are achieved. However, because these operating principles are not part of the trust agreements, they are not legally binding on the provinces and territories with respect to how the transferred funds are spent.
1.36 In recent years, as an additional condition of eligibility, provinces and territories must publicly opt-in as a beneficiary of the trust by making a public announcement regarding how they will use the funds. These public announcements must be in line with the federal operating principles for the trust.
1.37 Exhibit 1.5 illustrates the chronology of actions taken to establish the Public Transit Capital Trust 2008, including the requirement that recipient governments publicly announce to their own citizens how the funds will be spent.
Exhibit 1.5—Chronology of actions taken to establish the Public Transit Capital Trust 2008
Actions taken before 31 March 2008
- Federal announcement: On 26 February 2008, the Budget Plan is tabled in Parliament. It commits the federal government to providing $500 million to provinces and territories for investments in public transit. The Budget states that funding will be paid into the trust "for only those beneficiaries that have made public commitments before March 31, 2008, to undertake investments in public transit."
- Governments work together on where to target investments: The federal government notifies provincial and territorial colleagues of the designated federal funding, and asks provinces to identify priority areas for investment prior to 31 March 2008 to signal their intention to participate. The federal government outlines the purpose of the funding and suggested areas for investments. The federal government also reinforces the importance of reporting to provincial and territorial citizens on the use of the funding. Federal, provincial, and territorial officials work together to confirm priority areas of investment.
- Provincial and territorial announcements: Provincial and territorial ministers formally reply to the federal government, indicating their intention to participate. They make public announcements in line with federal operating principles regarding their intended use of funding and how they intend to report publicly.
- Budget legislation: Bill C-50, Budget Implementation Act 2008 tabled.
- Trust arrangements finalized and trust accounts established with independent financial institution.
Actions taken after 31 March 2008
- Budget bill moves through Parliament.
- Royal Assent given to the Budget bill, authorizing appropriations of public funds.
- Payment made to the trust on behalf of the provinces and territories.
- Provinces and territories able to draw funds from trust, spend the funds, and follow through on their public reporting commitments.
1.39 After the funds have been transferred, these trusts have no additional legal conditions that obligate provinces and territories to spend the funds for the announced purposes.
1.40 Instead, once the provinces and territories have established their eligibility to draw funds from the trust, they become accountable in principle to their own citizens, not to the federal government, for how they use the funds. In this sense, trusts, as used by the federal government, are similar to the Equalization Program and the Territorial Formula Financing transfers, in that there are no mechanisms to withhold funds. Trusts are also similar to the Canada Health Transfer and the Canada Social Transfer, in that provinces and territories are not required to report on this spending to the federal government.
1.41 The following are three examples of trusts that the federal government recently established to transfer funds to the provinces and territories.
- The Diagnostic/Medical Equipment Fund. Announced as part of the 2003 First Ministers' Accord on Health Care Renewal, this fund was in support of specialized staff training and equipment to improve access to publicly funded diagnostic services. The federal government put $1.5 billion into this trust, to be drawn down by the end of the 2005–06 fiscal year.
- The Clean Air and Climate Change Trust Fund. The funding for this $1.5-billion trust was initially announced in February 2007, in a speech by the government. The trust was established to support provincial and territorial projects aimed at reducing greenhouse gas emissions and air pollutants. Environment Canada's use of a trust to accomplish this transfer limited its ability to report on how the transferred funds were spent and the results achieved (see Chapter 1, Managing Air Emissions, of the 2008 Report of the Commissioner of the Environment and Sustainable Development).
- The Community Development Trust. On 10 January 2008, the federal government announced $1 billion for the Community Development Trust. This trust was designed to help provinces and territories assist communities and workers suffering economic hardship caused by the current volatility in global financial and commodities markets.
Significance of conditions
1.42 According to federal officials, the extent to which the federal government is accountable for funds it transfers to the provinces and territories depends on the extent to which conditions are attached to these transfers.1.43 Once the federal government has reached agreement with the provinces and territories about the conditions attached to a transfer, it must demonstrate that it is monitoring provincial and territorial compliance with those conditions, and that it is taking action in cases of non-compliance. Our Office conducts performance audits to determine how well the federal government has carried out this obligation. The 2008 Report of the Commissioner of the Environment and Sustainable Development includes an example of this type of audit. See Chapter 3, Managing Environmental Programming—Agriculture and Agri-Food Canada.
1.44 As noted earlier, if no conditions have been established, the provinces and territories have the flexibility to spend the funds according to their own priorities. Because there are no conditions, our Office does not audit the non-financial elements of these transfers. In these circumstances, the federal government remains accountable to Parliament for choosing an unconditional transfer as the best available policy option. Accountability for results rests with provincial and territorial governments, and to their citizens, not to the federal government.
1.45 For all transfers, the federal government is responsible for ensuring that it sends the correct amount of funds to the provinces and territories. The role of the Office of the Auditor General, as Parliament's auditor, is to carry out financial audits of the Public Accounts of Canada. These audits determine if the government has recorded the amounts paid in accordance with Public Sector Accounting Board standards and with the stated accounting policies of the federal government.
Imposing conditions is a policy decision
1.46 Government officials whom we interviewed cited a number of reasons for choosing transfer mechanisms with limited or no conditions. In a mature federation, provincial and territorial governments have flexibility in matters involving their own jurisdictions, and report directly to their own legislatures and citizens rather than to the federal government. As well, in many areas, provinces and territories are best positioned to determine program priorities and implement programs in response to them. Another reason given by the officials was that the federal government can achieve its objectives in ways other than by imposing conditions on transfers. For example, shared understanding and expectations may have been established based on a long history of recurring negotiations between the federal government and the provinces.1.47 According to government officials whom we interviewed, the federal government may, depending on the circumstances, opt for a conditional transfer in order to
- ensure that recipients use the funds for specific purposes,
- encourage uniformity of services across the provinces and territories, and
- receive information on results achieved.
Conclusion
1.49 The federal government uses three main mechanisms to transfer funds to the provinces and territories. The first and largest mechanism includes four major transfers:- the Canada Health Transfer,
- the Canada Social Transfer,
- the Equalization Program transfer, and
- Territorial Formula Financing.
1.50 According to the federal government, the extent of federal accountability for how the provinces and territories spend transferred funds depends on the nature and extent of conditions attached to the transfers. In all cases, the government is accountable for its decision to use transfers with or without conditions as the best policy choice available in the circumstances.
1.51 Some transfers involve conditions that, for example, oblige recipients to provide the federal government with information on how they have spent the transferred funds and to what effect. The federal government must demonstrate that it is monitoring provincial and territorial compliance with these conditions and that it is taking action in cases of non-compliance. Where transfers have limited or no conditions, the provinces and territories have the flexibility to spend the funds according to their own priorities, with no legal obligation to account to the federal government for the spending.
1.52 A significant addition to the transfer mechanisms used by the federal government was the introduction of trusts in 1999. Since then, 23 trusts have been established to transfer almost $27 billion to the provinces and territories. In each case, the federal government has publicly announced (jointly with recipients for recent trusts) the intended purposes of this funding. Once the eligibility conditions for these trusts have been met, no additional legal conditions obligate provinces and territories to spend the funds for the purposes announced. Instead, once the provinces and territories have established their eligibility to draw funds from the trust, they become accountable in principle to their own citizens, not to the federal government, for how they use the funds. In this sense, these trusts are similar to the four major transfers.
1.53 Where transfers have conditions, how well the federal government monitors the conditions is subject to performance audits by our Office, and our audit reports are provided to Parliament. For all transfers audited, we ensure that the amount paid is properly recorded in accordance with Public Sector Accounting Board standards and the stated accounting policies of the federal government.
About the Study
Objectives
We conducted this study to inform parliamentarians about the federal government's transfers of funds to provinces and territories, and about the Office's mandate to audit them. This study describes the different transfer mechanisms and the extent of the conditions attached to these transfers.Scope and approach
This study examined- the three main mechanisms the federal government uses to transfer funds to the provinces and territories, and
- the conditions attached to these transfers.
We did not examine funding arrangements with First Nations, payments to foundations, payments to municipal governments, or transfer payments to individual Canadians.
Study work completed
Examination work for this study was substantially completed on 31 May 2008.Study team
Assistant Auditor General: Neil MaxwellPrincipal: Glenn Wheeler
Director: Colin Meredith
Nola Juraitis
Ruth Sullivan
Irene Andayo
For information, please contact Communications at 613-995-3708 or 1-888-761-5953 (toll-free).
Definitions:
Federal tax transfer—Reduction by the federal government of its tax rates, upon agreement, to allow provinces and territories to raise their tax rates by an equivalent amount. With a tax transfer, the changes in federal and provincial/territorial tax rates offset one another, and revenue that once flowed to the federal government now flows to the provincial/territorial governments. There is no change in the overall taxes paid by Canadians. Specifically, a federal tax transfer involves the federal government ceding some of its tax room to provincial and territorial governments. (Return)Block transfers—Payments based on legislation or an arrangement, which normally includes a formula or schedule as one element used to determine the amount. However, once payments are made, the recipient may redistribute the funds among the several approved categories in the arrangement. (Return)
Contributions—Conditional transfer payments to an individual or organization for a specified purpose. These payments are pursuant to a contribution agreement and are subject to being accounted for and audited. (Return)
Grants—Transfer payments made to individuals or organizations. Although grant payments are not subject to being accounted for or audited, the eligibility and entitlement of grant recipients may be verified, and they may need to meet certain preconditions. (Return)
Trusts—A trust is created when one party, the settlor, transfers legal ownership of property to another party, the trustee, for the benefit of a third party, the beneficiary. In the case of trusts used to transfer federal funds to the provinces and territories, the federal government is the settlor, the provinces and territories are the beneficiaries, and an independent financial institution is the trustee. (Return)
PDF Versions
To access the Portable Document Format (PDF) version you must have a PDF reader installed. If you do not already have such a reader, there are numerous PDF readers available for free download or for purchase on the Internet:http://www.oag-bvg.gc.ca/internet/English/parl_oag_200812_01_e_31825.html
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Federal-Provincial Transfers for Social Programs in Canada: Their Status in May 2004
*
Stephen Laurent
Library of Parliament
and
François Vaillancourt
Université de Montréal
July 2004
Introduction
There is
and can be no final solution to the allocation of financial resources in a
federal system. There can only be adjustments and re-allocations in the light
of changing conditions. What a federal government
needs,
therefore, is machinery adequate to make these adjustments.
-
K.C.
Wheare
The
purpose of this paper is to present funding a
rrangements
used by the Canadian federal government in
the area
of social policy as of early 2004. This is of interest since all national parties
that contested the June 2004 federal elections have promised to modify them by
varying amounts, purposes, conditions and
so on.
This paper should be useful in assessing the changes effectively put in place
after the election. The first section of this paper provides a brief history of
intergovernmental transfers in that area in Canada from
the end
of the Second World War until 1996. The second section provides a detailed look
at federal funding for activities related to children, health care, post-secondary
education and welfare since 1997. The last
section
addresses the issue of conditions. We do not examine equalization or
conditional cost sharing transfers in the area of agriculture, legal aid,
official languages, social housing and so on.
1
1.
Federal-Provincial Conditional Transfers for Education, Health and Welfare in
Canada, 1945-1995
This
brief history of federal-provincial conditional grants puts the
emphasis
on the determinants of past choices that affect current policies.
2
Traditionally,
these grants were used by the federal government to
intervene
in areas of provincial jurisdiction; this is the so-called spending power of
the federal government.
*
We thank
Bill Robson for asking us to work on this topic and
France
St-Hilaire, Alain Noel and John Richards for comments on
a
previous version.
1
On these
small transfers, see Vaillancourt (2000)
2
For more
background information, see Hobson and St-Hilaire (2000)
http://irpp.org/wp-content/uploads/assets/research/canadian-federalism/new-research-article/wp2004-07.pdf
--------------
In Canada we have taught our children and grandchildren right- this is from a CANADIAN GRADE IV STUDENT...
BLOGSPOT:
CANADA AND NOVA SCOTIA- please stop pimping booze, gambling and tobacco 4 ur profit- ur killing us...ur killing us...(UVE CREATED HORRIFIC HOMELESSNESS) . Every Political Party in Canada and Nova Scotia PROMISED 2 ELIMINATE- GAMBLING.... every one.... and ...u ...doubled...it...Seriously.... /CANADA HAS A RACISM PROBLEM (Well don't all Nations) -love u Winnipeg 4 stepping up 2 this and First Nations needs 2 protect their women and children and $$$$ goes 2 their First People instead of Chiefs and Band Councils-/Canada and Nova Scotia pls. fix the underbelly of booze, gambling and tobacco...and by the by First Nations own their lands and their taxes
http://nova0000scotia.blogspot.ca/2015/01/canada-and-nova-scotia-please-stop.html
---
BLOGSPOT:
CANADA'S SOCKEYE SALMON'S courage distinction verging on extinction-is teaching what us Climate Oldies have been preaching - each and every Canadian must actually GET INVOLVED IN CANADA'S NATURE- do something physical- not just dumb protests that cost $$$billions- go out and save our nature-our salmon teach us who we were and what we are losing...imho/OLD CANADIANS UNDERSTAND THIS- we grew up in WWII severe poverty and saving and using everything and always respect the land and sea- please get don't wave a poster- get actually involved- our nature's dying
http://nova0000scotia.blogspot.ca/2014/11/canadas-sockey-salmons-courage.html
CANADA'S SOCKEYE SALMON'S courage distinction verging on extinction-is teaching what us Climate Oldies have been preaching - each and every Canadian must actually GET INVOLVED IN CANADA'S NATURE- do something physical- not just dumb protests that cost $$$billions- go out and save our nature-our salmon teach us who we were and what we are losing...imho/OLD CANADIANS UNDERSTAND THIS- we grew up in WWII severe poverty and saving and using everything and always respect the land and sea- please get don't wave a poster- get actually involved- our nature's dying
http://nova0000scotia.blogspot.ca/2014/11/canadas-sockey-salmons-courage.html
---
THE POINT IS CANADIANS ARE THE ONLY ONES WHO CARE... God's last Nature place on earth
---
BLOGGED:
CANADA MILITARY NEWS- Nova Scotia Provincial Liberal majority- taxes, taxes and more taxes- nailing unions, arts, students, environment and seniors (sound familiar Canada- same old sheeet in different package)/Terry Fox/ Nova Scotia Gov. horrific Environment betrayal on back of same dogma of NDP and Tories?? ...sigh April 16, 2015
http://nova0000scotia.blogspot.ca/2015/04/canada-military-news-nova-scotia.html
CANADA MILITARY NEWS- Nova Scotia Provincial Liberal majority- taxes, taxes and more taxes- nailing unions, arts, students, environment and seniors (sound familiar Canada- same old sheeet in different package)/Terry Fox/ Nova Scotia Gov. horrific Environment betrayal on back of same dogma of NDP and Tories?? ...sigh April 16, 2015
http://nova0000scotia.blogspot.ca/2015/04/canada-military-news-nova-scotia.html
---
BLOGSPOT
CANADA MILITARY NEWS: Water- Canada’s glorious water…./Canada history… /Canada let’s preserve our water better and drink from taps instead of killing whales and wildlife with plastic eh?/ NOVA SCOTIA CANADA’S MI’KMAQ PEOPLES OF NOVA SCOTIA- ATLANTIC CANADA.... SHOWED US IMMIGRANTS HOW 2 FIND WATER, HUNT, FISH AND SURVIVE/ International Water Day March 22, 2015
http://nova0000scotia.blogspot.ca/2015/03/canada-military-news-water-canadas.html
CANADA MILITARY NEWS: Water- Canada’s glorious water…./Canada history… /Canada let’s preserve our water better and drink from taps instead of killing whales and wildlife with plastic eh?/ NOVA SCOTIA CANADA’S MI’KMAQ PEOPLES OF NOVA SCOTIA- ATLANTIC CANADA.... SHOWED US IMMIGRANTS HOW 2 FIND WATER, HUNT, FISH AND SURVIVE/ International Water Day March 22, 2015
http://nova0000scotia.blogspot.ca/2015/03/canada-military-news-water-canadas.html
---
BLOGSPOT:
CANADA AND NOVA SCOTIA- please stop pimping booze, gambling and tobacco 4 ur profit- ur killing us...ur killing us...(UVE CREATED HORRIFIC HOMELESSNESS) . Every Political Party in Canada and Nova Scotia PROMISED 2 ELIMINATE- GAMBLING.... every one.... and ...u ...doubled...it...Seriously.... /CANADA HAS A RACISM PROBLEM (Well don't all Nations) -love u Winnipeg 4 stepping up 2 this and First Nations needs 2 protect their women and children and $$$$ goes 2 their First People instead of Chiefs and Band Councils-/Canada and Nova Scotia pls. fix the underbelly of booze, gambling and tobacco...and by the by First Nations own their lands and their taxes
http://nova0000scotia.blogspot.ca/2015/01/canada-and-nova-scotia-please-stop.html
CANADA AND NOVA SCOTIA- please stop pimping booze, gambling and tobacco 4 ur profit- ur killing us...ur killing us...(UVE CREATED HORRIFIC HOMELESSNESS) . Every Political Party in Canada and Nova Scotia PROMISED 2 ELIMINATE- GAMBLING.... every one.... and ...u ...doubled...it...Seriously.... /CANADA HAS A RACISM PROBLEM (Well don't all Nations) -love u Winnipeg 4 stepping up 2 this and First Nations needs 2 protect their women and children and $$$$ goes 2 their First People instead of Chiefs and Band Councils-/Canada and Nova Scotia pls. fix the underbelly of booze, gambling and tobacco...and by the by First Nations own their lands and their taxes
http://nova0000scotia.blogspot.ca/2015/01/canada-and-nova-scotia-please-stop.html
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