Archived - 2016–17 Departmental Results Report

Description

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

Results

Permanent bilateral mechanisms with national Indigenous organizations were announced in December 2016, and will undertake comprehensive, distinctions-based approaches with First Nations, Métis and Inuit to priority setting, policy co-development and stock-taking. These mechanisms will include annual meetings with the Prime Minister, as well as meetings with key Ministers at least twice a year. This includes the February 9, 2017, meeting between the Inuit Tapiriit Kanatami and the Prime Minister.

The implementation of Budget 2016's $20 million investment in the First Nations Finance Authority allowed the issuance of a $110 million debenture (i.e. loan certificate) in June 2016 to support infrastructure, housing and other public works in First Nation communities. As well, $7 million in federal funds for the First Nations Fiscal Management Act institutions contributed to the addition of 34 new First Nations to the regime, and the collection of over $86 million in property tax revenues by First Nations.

The Department changed its approach and engaged on a way forward for mutual transparency and accountability between First Nations and the Government of Canada. This broader approach better reflected the Government of Canada's commitment to renew its relationship with Indigenous peoples, based on recognition.

In January 2017, the Government kicked off a five-month process of engagement with First Nations leaders, communities and organizations across the country on new approaches to support mutual transparency and accountability. A final report on this consultation process and the review of the First Nations Financial Transparency Act will follow, and will also be shared with the Working Group of Ministers on the review of laws, policies and operational practices related to Indigenous peoples.

INAC has engaged in the renewal of its fiscal relationship with First Nations. This effort, along with the Report of the House of Commons Standing Committee on Indigenous and Northern Affairs on Default Prevention and Management (2017), will feed into the renewal of its Default Prevention and Management Policy as well as its approach on Third Party Funding Agreement Management.

As well, streamlined business processes and sustainable transfer payment options were implemented in support of the administrative enhancements to the First Nations Fiscal Management Act enacted on April 1st, 2016. These changes will provide for faster scheduling and more flexible longer-term funding arrangement options. INAC also developed draft regulations to facilitate First Nations access to the framework under the Act, in collaboration with treaty First Nations, the institutions under the Act (i.e. the First Nations Tax Commission, the First Nations Financial Management Board, and the First Nations Finance Authority), and the Province of British Columbia.

INAC has collaborated with Indigenous partners under the Indigenous Community Development National Strategy to build a nationally sustainable model for community capacity development, with the planning process starting in May 2016. Within the Strategy, INAC has focused on working with Indigenous communities to develop Comprehensive Community Plans addressing their community priorities, and delivered Indigenous Community Development Training to support 157 public service employees in developing their cultural competencies. Support was also provided to Indigenous Community Development Training, aimed at competency development within the Indigenous public service.

Through programs including Band Support Funding, Professional and Institutional Development, and Band Employee Benefits, INAC continued to provide First Nations with core governance support through the creation and maintenance of strong local administration at the community level. As well, in 2016–2017, approximately $10.6 million was distributed to support First Nation governance capacity building initiatives. Departmental officials have held preliminary discussions with interested First Nations groups that may lead to the development of a partnership to explore legislative and policy reforms around First Nations by-laws.

To date, 11 First Nations have enacted matrimonial real property laws pursuant to the Family Homes on Reserves and Matrimonial Interests or Rights Act, while another 35 First Nations have enacted them as a component of their Land Code. There continues to be strong interest in this area, with 238 First Nations having sought information from the INAC-funded Centre of Excellence for Matrimonial Real Property, and 28 First Nations being funded by a pilot project to support the development and ratification of matrimonial real property laws.

INAC continued to research and analyze issues related to Indian registration, Band membership and citizenship, including through a risk assessment of the Secure Integrated Registration and Certificate Unit. The Department has identified approaches to address capacity and governance issues identified in this assessment.

The 2016 evaluation of the Governance and Institutions of Governance program revealed that the institutions established under the First Nations Fiscal Management Act are highly relevant to First Nation needs. However, it suggested that the Department collaboratively explore opportunities to address the demand and growth-driven changes in the regime, and support low-capacity First Nations seeking to enter. In response, INAC is working on funding, legislative and regulatory proposals to enhance and expand the regime and establish stable, multi-year funding for the institutions.

Description

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

Results

With the goal of achieving reconciliation, and in support of the federal government's commitment to renewing the relationship between Canada and Indigenous peoples, Recognition of Indigenous Rights and Self-Determination discussions are one federal approach that seeks to advance community-identified rights, needs and interests. As of March 31, 2017, 46 discussion tables are currently underway, representing over 300 communities and over 600,000 people. These discussions, in addition to other federal processes, are intended to inform the federal policy reform process, which in turn will ultimately serve as a federal reconciliation framework for addressing section 35 rights. Tools to address section 35 rights, including the negotiation of land claims, self-government, special claims and other related processes such as out-of-court settlements, will continue to be enhanced through discussions and negotiations with Indigenous groups. It is anticipated that these processes will occur within the context of a Federal Reconciliation Framework as federal policies are reformed and renewed, and the Framework developed.

In 2016–2017, Canada signed ten mutually developed agreements that outline the topics and process for continued discussion. Important accomplishments include the Tla'amin Final Agreement in British Columbia covering comprehensive land claims and self-government, and the Déline Final Self-Government Agreement in Northwest Territories; these agreements came into effect on April 5, 2016 and September 1, 2016, respectively. As well, in November 2016 the Anishinabek First Nations ratified the first aggregated self-government education agreement in Ontario. The Principals of the British Columbia treaty process approved the final Multilateral Engagement Report in May 2016, which consisted of 24 proposals to improve and expedite modern treaty negotiations in the British Columbia treaty process. A working group began implementation work in June 2016; it has completed six proposals and is developing strategies to implement the remaining proposals.

INAC has also led Recognition of Indigenous Rights and Self-Determination discussions on behalf of Canada with the Métis Nation and its affiliates. The result has been three Memoranda of Understanding with the Manitoba Métis Federation, the Métis Nation of Ontario and the Métis Nation of Alberta. The Department also provided funding to support Métis rights and relationships via the renewal and enhancement of the former Powley program. This program will provide significant new resources to the Métis National Council and its Governing Members to enhance Métis self-determination and support the transition to Métis self-government, and for maintenance of objectively verifiable registries of Métis section 35 rights holders. During 2016–2017, the Department also finalized the co-development of a new Canadian Standards Association standard for the operation of the registries.

Since June 2016, departmental officials have been engaged in a Joint Technical Working Group process overseen jointly with the Assembly of First Nations and other interested parties to identify fair and practical measures to improve the specific claims process. Discussions have been positive and productive, and focused on four priority issues: funding to support claims research and development; the process for resolving claims over $150 million; the use of mediation; and public reporting. The Department reviewed claim submissions, filed claims with the Minister, assessed claims for outstanding lawful obligations and, where an obligation was found to exist, accepted claims for negotiation. When required, the Department also supported the Department of Justice in proceedings with the Specific Claims Tribunal.

The Department continued to provide assistance to federal departments/agencies in fulfilling the Crown's legal duty to consult and, where appropriate, accommodate when Crown conduct may adversely affect potential or established Aboriginal or treaty rights of Indigenous peoples. This includes strengthening the understanding of the duty to consult by developing and delivering advanced training to approximately 600 federal officials. INAC also advanced reconciliation through relationship building, including concluding the negotiation of the Abenaki consultation protocol and continuing consultation protocol negotiations with four groups across Canada. INAC also continued to provide support on Indigenous consultation and accommodation issues related to major resource projects, including the Trans Mountain Expansion project and the Energy East pipeline. INAC worked with consultation partners, including consultation practitioners and Indigenous communities, to ensure that the Aboriginal and Treaty Rights Information System is populated with the most useful information possible to bolster the system's utility to an expanded community of users. As a result, 1,200 new or amended records were added in the system and 400 new, unique user accounts were added.

The Department is also developing a Federal Reconciliation Framework for addressing section 35 rights through engagement and dialogue with treaty partners. INAC also continued to enhance tools to address these rights, including the negotiation of land claims, self-government, special claims, and other related processes such as out-of-court settlements, within the context of the Federal Reconciliation Framework under development.

Description

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

Results

It is through the timely implementation of agreements that INAC has continued to renew the relationship with Indigenous peoples. Over the past year, the Department has maintained continuous engagement with our Indigenous treaty partners through regular meetings via the structures established by the treaties, such as Boards and Implementation Committees. Financial arrangements and implementation plans were coordinated through the administration of Fiscal Financing Agreements and transfer of expenditures to Indigenous peoples, all within the mandated time frames.

INAC has also engaged with and sought the input of Indigenous partners in the development of the whole of Government approach to modern treaty implementation. This approach facilitates improved tracking and delivery of Canada's treaty obligations, and establishes a strong accountability framework and ongoing oversight of federal responsibilities under these important agreements. In December 2016, Indigenous governments discussed the co-development of a fiscal approach to self-government agreements and the importance of the fiscal relationship in supporting reconciliation, with Deputy Ministers from INAC and other federal departments and agencies. Development of a performance measurement framework for modern treaty implementation began in 2016–2017; once completed, it will assess the implementation status of Canada's obligations and measure the socio-economic outcomes of modern treaty peoples, through modern treaty-specific performance indicators.

INAC also initiated the rollout of the Modern Treaty Management Environment in March 2017, to replace the Treaty Obligation Monitoring System. INAC has worked with other government departments and agencies to ensure the accuracy of data included in this tool. By providing a consistent environment for reporting and analysis of implementation across all departments and agencies, this system will support the effective management of the implementation of Canada's obligations arising from comprehensive land claims (modern treaties) and self-government agreements.

Through discussions and engagement with treaty First Nation partners at treaty discussion tables, and the treaty commissions in Saskatchewan and Manitoba, Canada continued to work collaboratively to renew Indigenous-Crown relationships based on recognition of rights, respect, co-operation and partnership. INAC continued to support enhanced awareness and public understanding of treaties and the treaty relationship and the pursuit of reconciliation, through education and awareness activities developed and/or delivered by the treaty table partners and treaty commissions; these initiatives include the Office of the Treaty Commissioner in Saskatchewan and the Treaty Relations Commission of Manitoba's Speakers' Bureau, as well as school materials such as the Office of the Treaty Commissioner's "Teaching Treaties in the Classroom" resource guides.

Through Budget 2016, INAC provided $80 million over two years to Inuit land claim holders for the construction and repair of housing units in Nunatsiavut, Nunavik and the Inuvialuit Settlement Region to address urgent housing needs. Inuit recipients estimate that the $80 million investment will allow them to construct 193 new housing units.

Description

This Program addresses payments related to the resolution of litigation and/or out-of-court settlements for any claim that cannot be designated to any other existing INAC program. Key activities could include: the assessment of the merits of the claim; the completion of a settlement agreement where appropriate; payment of any monetary compensation and funding and implementation of related activities pursuant to the terms of a settlement agreement and/or direction by a Tribunal or court.

Results

The Government of Canada is committed to achieving reconciliation via a renewed relationship between Canada and Indigenous peoples based on recognition, rights, respect, co-operation and partnership.

In 2016–2017, given the ongoing objective of reconciliation, INAC worked closely with the Department of Justice to emphasize negotiation over litigation, with attempts to settle claims out of court instead of proceeding to trial even in the case of claims that are not considered to have high legal risk.

In support of this approach, eight new financial settlement mandates were sought, with a total of 23 approved mandates to support out-of-court settlement negotiations in place as of March 31, 2017. As well, eight out-of-court settlements were concluded this year — the financial implications for seven of these settlements are reported under other INAC programs.

INAC continues to work with the Department of Justice to develop a process to enhance settlement opportunities through streamlining processes and reviewing authorities.

Program expenditures this year are a direct result of achieving an out-of-court settlement in the Anderson et al. case; as such, exceeding planned spending reflects the successful conclusion of a claim, and the achievement of program objectives.

Description

This Program's overarching goal is to work in partnership with First Nations, provincial and territorial governments and other education stakeholders, to provide eligible First Nation and Inuit students with support in order to achieve educational outcomes that are comparable to those of other Canadians. The Education Program provides funding for culturally-appropriate elementary and secondary education for eligible First Nation students ordinarily resident on reserve, and financially supports post-secondary education for eligible First Nation and Inuit students.

Results

The Government of Canada is committed to making significant investments in First Nations education and to ensuring that First Nations children on reserve receive a quality education that results in improved outcomes for students.

In 2016–2017, INAC allocated over $245 million in new funding to First Nation recipients, as part of Budget 2016's substantial incremental investments in elementary and secondary education on reserve; the total investment will be $2.6 billion over five years. These new investments helped address immediate needs, while helping ensure that First Nation students living on reserve receive a culturally appropriate, high-quality education, and at the same time respecting the principle of First Nation control of First Nation education.

Budget 2016 also committed to support the transformation of on-reserve education. To this end, the Department continued discussions and negotiations with First Nation groups, and made significant new investments in language and culture through the New Paths for Education program, in literacy and numeracy through the Strong Schools, Successful Students Initiative, and in special needs education. Additional new funding was also provided for the Martin Family Initiative's work to improve early literacy rates in eight First Nations-operated schools. In 2016–2017, 13 projects were funded at the national level under a new innovation component of the New Paths for Education program; these innovative projects sought to test new approaches in areas such as early childhood education, culturally based academic content, curriculum and skills development, and arts programming. Through these investments and engaging with First Nations, the Government of Canada is delivering on its commitment to provide sufficient, predictable and sustained funding for on-reserve education.

A key lesson learned in the implementation of these new investments was that close partnership and discussion with First Nations is critical to ensure newly available funding can be fully absorbed into communities and First Nation planning cycles. INAC has also committed to provide more flexibility in the management of funding agreements; in 2016–2017, additional types of funding approaches were made available to First Nations for the High-Cost Special Education Program. Lessons from this experience will inform future discussions with First Nations on approaches to funding.

Tripartite education memoranda of understanding, between INAC, First Nations and a provincial government, are key to improved First Nations control over education systems. On March 31, 2017, the Department, the Province of British Columbia, and the First Nations Education Steering Committee reached agreement on an 18-month extension, beyond the March 31, 2017 expiry of the Tripartite Education Framework Agreement, with renewal discussions to continue in 2017–2018.

INAC also continued to work to strengthen connections between First Nations and provincial education systems. In December 2016, the Government of Canada and the Government of Quebec concluded with Institut Tshakapesh a Tripartite Education Agreement to better support the learning needs for approximately 1,810 Innu students. In February 2017, the Government of Canada signed a Tripartite Memorandum of Understanding with the Association of Iroquois and Allied Indians and the Province of Ontario that will improve the holistic development and learning outcomes of their kindergarten to grade 12 First Nations students. This agreement will enable the development of a community-based language strategy to support curriculum development, and will strengthen collaboration between First Nations and provincial schools in the areas of professional development, data and resource sharing, the transition of students between First Nation and provincially funded schools, and parental and community engagement.

In 2016–2017, INAC also began working with various First Nations partners to implement an inclusive and comprehensive engagement process aimed at developing recommendations for strengthening First Nations education. Community-level discussions, held from November 2016 to March 2017 and led by 37 First Nation organizations, provided parents and community members with the opportunity to share their views. These discussions were supported by $3.6 million in federal funding, with additional stakeholder input coming from a nationwide survey, open from February to April 2017, launched by INAC. With support from the Assembly of First Nations' Chiefs Committee on Education, technical experts from First Nation organizations and INAC have also been meeting since early 2017 to examine key issues, identify options and make recommendations to enhance First Nations education. Looking forward, the Department is providing funding in 2017–2018 for regional First Nation organizations to hold leadership dialogue events and/or technical discussions. By sitting down with First Nations and listening to their concerns and ideas, we will be able to determine together how to improve education outcomes for First Nation students and ensure First Nation control of education in their communities.

To help increase the number of Indigenous students accessing post-secondary education, over 100 projects were funded to design and deliver courses tailored to the needs of First Nations and Inuit students under the Post-Secondary Partnerships Program. Furthermore, through the Post-Secondary Student Support Program and the University and College Entrance Preparation Program, over 350 First Nations provided support to Indigenous students to continue their education in 2016–2017.

INAC also continued to work with partners to renew the First Nations and Inuit Youth Employment Strategy, which helps young people acquire essential employment skills and learn about various career options. To this end, the Department has been working closely with Employment and Social Development Canada to deliver the program and has participated in interdepartmental meetings on the implementation of recommendations to renew for the future of the Strategy. To further expand employment opportunities for young Canadians, Budget 2016 provided over $37 million for the First Nations and Inuit Youth Employment Strategy. As a result, more First Nations and Inuit youth will be able to acquire essential skills that will help them learn about job and career options, gain hands-on work experience, earn an income, and acquire the skills they will need to be successful in the workplace.

INAC worked with other federal departments and Indigenous peoples to determine the best approach to delivering high-quality early learning and child care for Indigenous children and their families by participating in the development of an Indigenous Early Learning and Child Care Framework. Engagement between the federal government and Indigenous organizations on a national framework began in the summer of 2016 through a series of conferences, engagement sessions, regional committees, as well as an online survey and a self-directed engagement toolkit developed by Employment and Social Development Canada (ESDC). The development of an Indigenous Early Learning and Child Care Framework has been led by ESDC; however, INAC, Health Canada, Status of Women Canada, and the Public Health Agency of Canada have actively participated in these engagement efforts, which will continue through July 2017.

Description

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

Results

The well-being of Indigenous people, on- and off-reserve, is a focus of INAC's varied social development programming.

In 2016–2017, INAC's Family Violence Prevention Program played a role in supporting the independent National Inquiry into Missing and Murdered Indigenous Women and Girls, including the development of an organizational process for departmental responses to the requests of the Inquiry commissioners and to report recommendations (anticipated for November 2018).

In addition, the Department worked with partners and stakeholders on projects on- and off-reserve to prevent family violence, and to support and protect Indigenous women and girls as set out in the 2014 Action Plan to Address Family Violence and Violent Crimes Against Indigenous Women and Girls. This includes ongoing work to support appropriate community-level services, and funding both new and continuing off-reserve family violence prevention projects. INAC also introduced multi-year funding for family violence prevention projects on-reserve and continued to seek opportunities to maximize flexibility for First Nations Child and Family Services Program funding to promote enhanced program delivery.

INAC continued to implement measures to address the 2016 orders of the Canadian Human Rights Tribunal that found the First Nations Child and Family Services Program was discriminatory, and began engagement with First Nations and other partners on program reform. This included re-establishing the National Advisory Committee on Program Reform, participating in regional tripartite/technical tables, supporting Indigenous regional organizations to undertake engagement in Quebec and Manitoba, and hosting an online survey. In addition, the Minister appointed a Special Representative who met with partners in each region to hear about wise practices and short- and long-term solutions.

The Department provided $924 million in income assistance funding to help eligible individuals and families on reserve meet their basic and special needs, while also continuing to invest in individual employment readiness through Enhanced Service Delivery. Since the implementation of increased case management and pre-employment services for income assistance clients aged 18 to 24, the dependency rate has decreased from 33.6% in 2013 to 30.2% in 2017. As of March 31, 2017, more than 10,400 on-reserve young adults received case management supports and more than 7,100 young people have exited income assistance. The percentage of First Nation communities participating in Enhanced Service Delivery has increased to 34%, from 32% last year, improving the capacity of communities to deliver social programming and achieving the expected target for performance.

The Department has supported Employment and Social Development Canada and the Canada Revenue Agency in their promotion of the Canada Child Benefit on reserve, as part of efforts to ensure that benefits are available to eligible families. INAC also provided $111 million in Assisted Living funding to over 500 First Nation communities to fund non-medical, social support services on-reserve to help maintain the independence of seniors, adults with chronic illness, and children and adults with disabilities (mental and physical).

Various departmental audits and evaluations were conducted of the Social Development Program's sub-programs. Based on the results of these studies, for 2017–2018 and beyond, INAC is strengthening its internal governance structure and control activities to help manage and guide program activities. Each program will also establish appropriate integrated management frameworks, as well as common procedures and guidance tools to improve program implementation.

Description

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

Results

In 2016–2017, the Department continued to register individuals entitled to Indian status. As of March 31, 2017, there were a total of 974,213 Registered Indians, 38,730 of whom were registered pursuant to the passage of the Gender Equity in Indian Registration Act in 2011. As well, in accordance with the provisions of the Agreement for the Recognition of the Qalipu Mi'kmaq Band, the Department and the Federation of Newfoundland Indians completed the enrolment process in January 2017, which included the review of 100,074 applications for membership. All entitlement applications were processed within service standards.

The Department has invested significant resources to date in simplifying the process to apply for the Secure Certificate of Indian Status, and continues to review and identify ways to make the Secure Certificate more accessible. The percentage of Registered Indians with an active Secure Certificate reached 19% in fiscal year 2016–2017. In order to achieve the targeted 80% by March 31, 2020, the Department will be focusing on increasing communications regarding the advantages of possessing a Secure Certificate, security features, as well as other positive aspects of the card. This is expected to result in increased demand for the Secure Certificate of Indian Status as more clients choose the Secure Certificate over the paper-laminated Certificate of Indian Status.

The Department also continued efforts to create a seamless, client-centric service delivery model for secure certificates. INAC has prepared for the implementation of a simplified application form in 2017–2018 that will replace multiple separate forms; the number of documents required will also be reduced, and aligned with those required for registration. These changes are expected to be completed in full by April 2021.

INAC also continued to make investments in information technology, such as the development of the Indian Registration and Estates Management System, and in training for staff, in order to support modernized service delivery and increase the Department's ability to reduce the inventory of registration applications within a reasonable time frame.

Under section 43(a) of the Indian Act, the Department has certain responsibilities for appointing executors and administrators of wills and estates. During 2016–2017, the Department handled 4,776 estates files for deceased First Nation individuals who were ordinarily resident on reserve; for 68% of these, non-departmental administrators were appointed. As of March 31, 2017, there were 3,725 active decedent estates files. The Department also undertook focused communications and education activities to enhance awareness of estates management among First Nation individuals and communities. In addition to holding information sessions in First Nation communities and distributing publications, a partnership with the National Aboriginal Land Managers Association was developed to support estates administration capacity.

In 2016–2017, the Department worked to review 1,500 estates with Independent Assessment Process claims under the Indian Residential School Settlement Agreement, and worked with estate beneficiaries, communities and other stakeholders to appoint administrators for estates requiring representation of a claim.

The Registration and Membership Program underwent a System under Development Risk Assessment of the Secure Integrated Registration and Certificate Unit in 2016–2017. Recommendations calling for increased clarity on unit outcomes and scope have been addressed, while approaches have been identified to address identified resourcing issues, the need for improved project documentation and a data governance plan.

Description

This Program supports a fair and lasting resolution to the legacy of Indian Residential Schools through implementation of the Indian Residential Schools Settlement Agreement (IRSSA) — a multi-party negotiated settlement monitored by the courts. The Program supports resolution of claims of abuse under the Independent Assessment Process (IAP) and promotes reconciliation with former students, their families and communities, and other Canadians. In addition to its legal obligations under IRSSA, INAC promotes reconciliation between the Government of Canada and Indigenous peoples, as well as between Indigenous and non-Indigenous peoples.

Results

Successful implementation of the Indian Residential Schools Settlement Agreement (the Settlement Agreement) is the responsibility of both INAC and the independent, arms-length Indian Residential Schools Adjudication Secretariat (Adjudication Secretariat).

INAC supported the Minister's mandate to work towards reconciliation through the implementation of the recommendations of the Truth and Reconciliation Commission. Consistent with the Prime Minister's statement in December 2016, the Department is preparing to transfer $10 million to the National Centre for Truth and Reconciliation, as recommended in Call to Action 78.

In 2016–2017, INAC attended 268 first claimant hearings, 113% of the Adjudication Secretariat's revised projection of 238 first claimant hearings. The hearing projection was adjusted down from 278 by the Adjudication Secretariat based on processing assumptions of the remaining unheard/unresolved admitted claims. Also in 2016–2017, 89% (976 of 1,092) of Independent Assessment Process payments were processed within the service standards (20 calendar days after the appeal period has expired, 85% of the time), 4% higher than the 85% target for 2016–2017.

INAC also continued to work with Health Canada to ensure that demand-driven mental health and emotional support services have been provided through all phases of the Settlement Agreement. This includes the Indian Residential School Crisis Line, which provides critical and culturally appropriate support to all areas of the country, including many isolated regions where alternate services are very limited. These services help to mitigate health risks such as substance abuse, depression, suicide and family violence, arising from the trauma experienced by this population.

The Adjudication Secretariat has worked with claimants, parties to the Settlement Agreement, and other stakeholders to resolve 2,142 claims this fiscal year, for a total of 36,725 (96.4% of all claims) since the commencement of the process. During the year, 1,641 Independent Assessment Process decisions were rendered by adjudicators, including both full decisions and claim dismissals; additionally, 133 claims were resolved through negotiated settlement and 368 applications were withdrawn by the claimant or determined to be ineligible for the process.

In 2016–2017, both INAC and the Adjudication Secretariat have focused on preparation for the gradual, responsible wind-down of operations that will come with the resolution of the small number of outstanding claims. The Adjudication Secretariat has begun development of the Chief Adjudicator's Completion Strategy for submission to the courts, as well as the Independent Assessment Process Final Report for the Oversight Committee, and also commenced working on a final administrative report.

In 2016–2017, INAC completed a study to examine the quality of the practices used by the Department in its role as trustee in implementing and delivering Personal Credits, which could be used for a wide range of educational programs and services. A number of challenges were identified for the use of these credits by Common Experience Payment recipients, including: tight deadlines that limited effective planning; an aging and transient target audience; outdated contact information; and a complex application and redemption process. INAC adjusted to these and other challenges through a proactive strategy to engage First Nations and Inuit community organizations, obtain up-to-date contact information, and support potential recipients.

Description

This Program supports and strengthens the long-term viability of Indigenous entrepreneurial business, greater participation in the economy, and improved economic prosperity for Indigenous peoples. This Program — guided by the Federal Framework for Aboriginal Economic Development — helps create and grow viable Indigenous businesses through increasing access to capital, capacity, networks, business development services and business opportunities.

Results

The transition of the Aboriginal Business Financing Program from INAC to the National Aboriginal Capital Corporations Association initiated in 2014–2015 continues to evolve with increased success. The recently concluded two-year funding agreement between INAC and the Association (2015–2017) has demonstrated the Association's capacity to effectively manage enhanced programming in support of Aboriginal Financial Institutions and Indigenous business development. In 2015–2016 — the most recent year for which data is available — Aboriginal Financial Institutions advanced $108.5 million in loans, supporting 1,364 businesses, while creating over 4,400 jobs and contributing approximately $391 million to the Gross Domestic Product. The 2% target for Indigenous businesses created and/or expanded has been achieved with a 6% increase in 2015–2016. The Association established an information management committee to guide the development and implementation of a comprehensive Reporting Framework, to more effectively facilitate the collection of appropriate performance data.

The Association appointed new executives with a strong understanding of the needs of entrepreneurs, the ability to create and foster an adequate business environment, and the drive to provide value-added support to the Aboriginal Financial Institutions network.

The five-year Métis Economic Development Strategy, announced in Budget 2016, is an innovative policy initiative that supported the diversification and enhancement of Aboriginal Financial Institutions' business lines. Through this initiative, INAC provided a total of $5 million in 2016–2017 to eight Métis organizations and capital corporations for the following: establishing and capitalizing the first Métis Capital Corporation in British Columbia; re-capitalizing three prairie-based Métis Capital Corporations; re-capitalizing and expanding the Métis Voyageur Development Fund's lending portfolio; and supporting the Métis National Council to develop an overarching economic development policy.

Federal procurement is a key mechanism to support Indigenous entrepreneurship. Figures for 2014, released in 2016, indicate that over $227 million in federal contracts were awarded to Aboriginal businesses under the Procurement Strategy for Aboriginal Business, representing an increase of 127% from 2013. The Department of National Defence's health care provider services also awarded a new contract, which included an Aboriginal participation component valued at $5.4 million over four years.

To support enhanced Indigenous participation in the public and private sector, INAC funded 23 projects totaling $6,327,025 in 2016–2017. These projects focused on partnership-based approaches to business and economic development strategies (i.e., the National Economic Development Strategy with the Canadian Council for Aboriginal Business and the Assembly of First Nations).

INAC also supported the development and implementation of the Aboriginal Tourism Association of Canada's National Aboriginal Tourism Strategy, "The Path Forward", which will assist in creating 50 export-ready Indigenous tourism businesses, 7,000 jobs and an additional $300 million contribution to Canada's Gross Domestic Product.

Description

This Program promotes conditions that will help improve community economic development and prosperity for Indigenous peoples. Guided by the Federal Framework for Aboriginal Economic Development — and its vision of "Enhancing the Value of Indigenous Assets" — this Program promotes greater self-reliance and participation in the mainstream economy and community well-being. This is achieved through supports to institutions and First Nations for land and environmental management and economic development.

Results

Budget 2016 committed the Government of Canada to public investments that support Indigenous economic development and infrastructure on reserve. INAC has made investments through economic development, additions to reserve, land use planning, land and environmental management, and the facilitation of business and community readiness. These investments have supported the conditions in Indigenous communities that support their pursuit of sustainable development and long-term prosperity.

In 2016–2017, INAC provided more than $50 million directly to First Nation and Inuit communities to enhance their delivery of economic development services as well as their land and environmental management capacity, while supporting activities that promote economic development. Targeted investments have been used to strengthen community capacity through institutions, such as the Council for the Advancement of Native Development Officers and the National Aboriginal Land Managers Association.

As of March 31, 2017, there were 100 active First Nations in the First Nations Land Management Regime (62 in the operational phase and 38 in the developmental phase), including 10 new Nations that were approved to join the Regime in 2016–2017. First Nations at the operational phase are able to respond to new business opportunities faster and more efficiently than those whose reserves remain under the Indian Act, which could increase the potential for economic development and private investments on reserve.

In 2016–2017, a further 131 First Nations were operating under the Reserve Land and Environment Management Program. Twelve First Nations received land and environmental management certification, supporting training, capacity development, and community readiness for transitions to other sectoral self-government opportunities outside of the Indian Act.

INAC advanced the Addition to Reserve process, through the completion of a toolkit, and four training sessions with First Nations between January and March 2017. As well, two external stakeholder engagement sessions were held to identify additional tools and process opportunities to continue improving the Addition to Reserve process.

A new land use planning initiative was undertaken in 2016–2017, funded in part by Budget 2016. A total of 30 First Nations signed on, commencing development of their land use plans under the new initiative. To support these First Nations, information and training sessions were held across the country, a land use planning toolkit was created, and a new accredited land use planning, survey and mapping curriculum is being developed by the Tulo Centre in partnership with Thompson Rivers University. The National Aboriginal Land Managers Association and Natural Resources Canada are collaborating with INAC on this initiative.

INAC has supported First Nations across Canada to develop partnerships with the private sector, and pursue small and large economic development opportunities through the Community Opportunity Readiness Program. In 2016–2017, INAC invested approximately $34.5 million in 32 projects with values over $250,000. For every dollar invested by INAC, over three dollars were leveraged from the private sector and other sources outside the Department. These investments are helping to meet the commitments outlined in the mandate letter by increasing community revenue and creating jobs for Indigenous people.

Exploration and development of oil and gas resources on First Nation lands resulted in $59.6 million collected by Indian Oil and Gas Canada on behalf of First Nations. While INAC had prepared draft Indian Oil and Gas regulations, concerns raised by First Nations during the consultation process have resulted in further dialogue and revision to the proposal.

Core funding has been and continues to be provided annually to the Inuit Art Foundation. The Foundation advocates for Inuit artists throughout Inuit Nunangat and in the South, provides support to Inuit artists through professional development, and has been working to take on full responsibility for administering the Igloo Tag program. The activities of the Foundation support Inuit economic development.

Under section 67 of the Canadian Environmental Assessment Act, INAC must review projects on reserve to determine whether or not they are likely to cause significant adverse environmental effects. INAC reviewed a total of 1,457 projects for their environmental impacts in 2016–2017; none of the projects were identified as likely to cause significant adverse environmental effects.

An evaluation of the Lands and Economic Development Services carried out in 2015–2016 recommended that more be done to maximize their efforts. As a result, commitments were made to strengthen current funding formulas, and prepare a strategy for continued capacity development to maximize community access to programs. A fulsome engagement for the Reserve Land and Environment Management Program will occur during 2017–2018. Pre-engagement sessions in 2016–2017 helped to formulate the engagement process, areas of concentration and a discussion guide. As part of the engagement sessions, electronic voting systems will be used to allow First Nations to identify key priorities and to answer questions anonymously.

Description

This Program supports Indigenous community preparedness activities to engage with partners in economic opportunities, including the Strategic Partnerships Initiative — an innovative, horizontal program intended to align federal efforts to support Indigenous participation in complex economic opportunities, particularly large regional opportunities and major resource developments. The Strategic Partnership Initiative provides a mechanism for federal partners to collectively identify emerging opportunities, target investment decisions and streamline program application and approval processes to support Indigenous communities at the early stages of large and complex economic opportunities. In doing so, closer partnerships with non-federal partners, including provincial and territorial governments, the private sector and Indigenous communities can be built. By addressing gaps in programming, this ensures that Indigenous peoples can participate in and benefit from priority regional opportunities and major resource developments.

Results

In 2016–2017, the Strategic Partnerships Initiative continued to support Indigenous community economic readiness activities that enable participation in major economic development opportunities. Activities included early engagement and partnership development, increasing community financial capacity, skills development and training, and the provision of information and resources to help communities engage with partners and stakeholders.

In 2016–2017, Strategic Partnerships Initiative's $14.45 million budget supported 19 initiatives across the country in a variety of sectors including clean energy, mining, forestry, fisheries, environmental assessment and monitoring, and tourism. Over 40 partnerships were created or maintained, and more than 213 communities participated directly or indirectly in these projects. The program also leveraged over $38 million in additional funding from federal and non-federal partners. Of the 19 initiatives that were supported, 13 were delivered by INAC regional offices in partnership with provincial ministries and federal departments, and six were delivered by other federal partners.

INAC also provided support to increase Indigenous participation in West Coast Energy infrastructure developments. Additionally, via Strategic Partnerships Initiatives, INAC invested $15.11 million to support projects centered on engagement and awareness, environmental participation, jobs and growth, and fish habitat restoration. This was accomplished by working through Natural Resources Canada's Major Projects Management Office — West with Western Economic Diversification, Environment and Climate Change Canada, Department of Fisheries and Oceans Canada, and Transport Canada.

Description

This Program provides funding and advisory assistance to First Nation communities for the construction, acquisition, operation and maintenance of community infrastructure assets on reserves. These assets include drinking water systems, wastewater systems and community buildings. The Program also includes support for emergency management assistance, climate change adaptation projects, and funding and advisory support for water and wastewater systems, education facilities, housing and other community infrastructure such as roads and bridges, electrification, and community buildings (these four sub-programs are collectively known as the Capital Facilities and Maintenance Program). Ultimately, this Program enables First Nations to participate more fully in the Canadian economy by establishing infrastructure that meets established standards, and the needs of First Nation communities.

Results

All Canadians expect access to clean, safe and reliable drinking water. INAC is committed to ending long-term drinking water advisories affecting INAC-funded public systems on-reserve by the end of 2021. Budget 2016 provided $1.8 billion over five years to First Nation communities to improve water and wastewater infrastructure. These investments will also ensure proper facility operation and maintenance, and will strengthen capacity by enhancing the training of water system operators.

INAC continues to enhance capacity building and operator training for water and wastewater systems by implementing the Circuit Rider Training Program. The percentage of operators certified to the level of their respective water and wastewater systems marks a slight increase from the previous year, to 68% and 59% respectively. These certified operators are better able to ensure that systems meet the Guidelines for Canadian Drinking Water Quality and Environment Canada's Wastewater Systems Effluent Regulations.

INAC invests an annual average of $146 million to work with First Nations to provide safe and affordable on-reserve housing across Canada. Budget 2016 announced an additional investment of $416.6 million over two years to address the most pressing housing needs on reserve, and support capacity development initiatives and innovative approaches that are beneficial to the entire community. Construction work on 993 housing units has been completed and the remaining 2,138 units are currently in construction, lot servicing, or renovations and additions. This will improve housing conditions for thousands of First Nation families, with additional construction targeting communities with urgent housing needs to follow.

An evaluation of the On-Reserve Housing Program completed in 2016–2017 found that housing conditions have seen limited improvement, as more support is required for long-term capacity development and governance, in addition to ongoing support for construction and repairs. In response to the evaluation, INAC, with support from the Canada Mortgage and Housing Corporation, is engaging First Nations and partners to seek input on the reform of the on-reserve housing programs to develop an effective long-term approach. Additionally, the Department is exploring options related to funding flexibility.

INAC continues to pursue new approaches for the management, financing and delivery of INAC-funded on-reserve assets. This includes working with regional offices to implement a national electrification strategy for First Nation communities currently off-grid, and working with First Nations to improve the efficiency of investments through such means as bundling school projects in northern Manitoba, Alberta and Ontario.

In 2016–2017, INAC continued to work with First Nations to improve infrastructure for their communities. With existing funding and investment made by Budget 2016 in INAC-funded infrastructure assets, the percentages of inspected water and wastewater, roads and bridges, as well as other operational community infrastructure assets that were projected to remain operational for their life-cycle met their targets ahead of time. The result for schools projected to remain operational throughout their life-cycle is slightly below the 2015 baseline. To ensure that school facilities remain operational, projects have been approved and are underway. The majority are now in either the feasibility study or design stages. As these projects are completed, results will continue to improve, on track to meeting the performance target outlined below by March 2019.

A Follow-up Audit of Infrastructure on Reserves, approved in March 2017 (the initial audit was completed in 2014–2015), assessed the adequacy and effectiveness of the Capital Facilities and Maintenance Program with a particular focus on increased funding from Budget 2016. To respond to the Audit's recommendations, INAC is using the transition to a new Departmental Results Framework to improve performance reporting, and is also collaborating with partners to streamline and improve data collection methods, and to support the integration of financial and project information from various systems in INAC.

2016–2017 was the first year of the First Nation Adapt program, which built on the past successes of the Climate Change Adaptation program. The Program hosted four regional workshops throughout Canada to discuss past projects, talk about new opportunities for funding, as well as identify regional adaptation priorities. A total of 123 participants from 91 First Nation communities attended these workshops. The Program also provided funding support to six risk and adaptation assessments in 17 First Nation communities, meeting its goal of six to eight projects in 2016–2017. In addition, work began on three tools designed to aid First Nations in identifying and mitigating the risks associated with the effects of climate change on infrastructure and emergency management.

Description

This Program supports participation of urban Indigenous individuals and communities in the economy. It is comprised of two streams: Community Capacity Support and Urban Partnerships. The Community Capacity Support stream provides funding to urban Indigenous community organizations to deliver programs and services that are designed to remove barriers and encourage innovative partnerships. The Urban Partnerships stream is comprised of a planning component and an implementation component. The planning component supports communities with multi-stakeholder engagement (private sector, municipalities, Indigenous groups) in the design and development of regional strategic plans and the identification of community priorities. These plans are then shared with the National Association of Friendship Centres which, in turn, implements the priorities through community projects.

Results

Closing the socio-economic gap between urban Indigenous and non-Indigenous Canadians remains a key priority for INAC and the Government of Canada. While the Urban Aboriginal Strategy sunsetted on March 31, 2017, significant investments will continue to be made in this area through the new Urban Programming for Indigenous Peoples (see highlight box).

As per Budget 2016, the Department held a comprehensive engagement process with First Nations, Inuit and Métis to review the Urban Aboriginal Strategy, and identify how programming can better meet the needs of urban Indigenous peoples. Activities included: 21 roundtables across Canada attended by 362 urban Indigenous peoples; 1,299 responses to an online survey; 30 written submissions; and two town hall meetings. This input, along with lessons from recent evaluations and audits and other considerations, led to the creation of Urban Programming for Indigenous Peoples, as well as the development of policy options.

In 2016–2017, INAC continued to support the National Association of Friendship Centres in their administration of the Community Capacity Support and the Urban Partnerships programs. The National Association of Friendship Centres provided funding to 129 urban Indigenous organizations across Canada, and 192 initiatives received project-based funding under the Urban Partnerships program. Funded projects vary in focus, with all partners working together to enhance the employability of urban Indigenous people. This included the focus on broader social and foundational barriers to economic participation, such as providing access to child care spaces, helping to address transportation issues, and by providing training for basic life skills (e.g. literacy, numeracy, financial literacy).

INAC also continued to coordinate and facilitate partnerships and enhance collaboration with provincial and municipal governments, federal departments, urban Indigenous organizations, and other key stakeholders, through the provision of its portion of the Urban Partnerships program funding. In total, 45 projects were funded that supported regional strategic planning, partnership development and research initiatives. Ultimately, this program aims to increase the participation of urban Indigenous people in the economy.

In 2016–2017, an audit of the Urban Aboriginal Strategy Programsxii identified gaps related to the management control framework that jeopardized the ability of the programs to meet their objectives. An evaluation entitled "The Final Report: Evaluation of the Urban Aboriginal Strategy" was conducted in 2016 and found that the Strategy continues to be relevant. However, there were limitations in determining early impacts due to internal capacity, data collection challenges, and a lack of detailed reporting from the National Association of Friendship Centres. Nevertheless, the evaluation concluded that impacts can be assumed to have been of a similar scope to previous programming. By reframing wherever possible, funding organizations continued to align their previous project activity with the new Strategy's economic outcome objectives. The issues identified are being addressed through the implementation of a new Urban Programming for Indigenous Peoples program — a redesign of the former Urban Aboriginal Strategy.

Description

This Program strengthens the North's communities and people by: devolving responsibilities for lands and natural resources to territorial governments; fostering effective intergovernmental relations with territorial and Inuit governments; collaborating with Inuit organizations and providing support to Territorial Commissioners; subsidizing the costs of nutritious perishable foods and other essential items in isolated northern communities; providing grants for hospital and physician services in Nunavut and the Northwest Territories; working with northern communities, governments, and organizations to address the risks and challenges posed by climate change and reduce reliance on diesel; and advancing Canadian and northern interests through circumpolar forums such as the international Arctic Council. Canadians and Northerners will benefit from territorial governments ultimately having more control over their own affairs.

Results

INAC contributed to lower food prices in Canada's isolated northern communities through the provision of the Nutrition North Canada food subsidy. On April 1, 2016, the Department implemented a point-of-sale system to demonstrate to Northerners how and when the Nutrition North Canada food subsidy is applied to their food purchases when they shop with northern retailers and suppliers registered with the program. On October 1, 2016, INAC also implemented revised community eligibility criteria to expand program coverage to all isolated northern communities that lack year-round surface transportation. As well, between March 2016 to March 2017, the Revised Northern Food Basket^{Footnote 2} index decreased slightly by 0.12%, compared to a decrease of 2.8% from April 2016 to March 2017 for the basket of "food purchased from stores" reported by Statistics Canada using their Consumer Price Index, suggesting the program continues to have an impact on the affordability of perishable, nutritious foods in these communities. To support the sharing of program information with the public, compliance reviews, shipping data and price reports were posted to the program website. In addition, the Department has developed an interactive map that provides users with information on where Nutrition North Canada subsidy dollars are spent, including the location of all 121 eligible communities, their community profiles and food data.

On July 9, 2016, the Minister announced the appointment of a Chief Federal Negotiator to reconvene negotiations on an Agreement-In-Principle for the devolution of management responsibilities for lands and resources in Nunavut, and negotiations were officially re-started in October 2016. Previous devolution negotiations were halted due to the 2015 federal election, leading to an expiration of the negotiating mandate prior to achieving an Agreement-In-Principle by the March 31, 2017 target. Following the October 2016 mandate renewal, the revised timeline for this milestone is October 2019, with implementation of devolution by March 31, 2023. INAC also signed a grant agreement with Nunavut Tunngavik Incorporated to fund fifty percent of their costs to participate in this negotiation process.

On February 9, 2017, the Prime Minister and Inuit leaders signed the Inuit Nunangat Declaration, creating the Inuit-Crown Partnership Committee to advance shared priorities between the Inuit and the Government of Canada. At the initial meeting, the President of the Inuit Tapiriit Kanatami identified reconciliation as one of many priorities that will be addressed. INAC engaged 12 interested parties regarding potential amendments to the Nunavut Act pertaining to Indigenous hunting for food game.

INAC implemented new approaches to climate change and energy in the North through two new programs. In its first year, the Climate Change Adaptation and Clean Energy program focused on engaging with stakeholders through a series of workshops on climate change adaptation, in support of the development of the Northern Adaptation Strategy (a commitment under the Pan-Canadian Framework on Clean Growth and Climate Change). The new Northern Responsible Energy Approach for Community Heat and Electricity (known as Northern REACHE) program supported 24 clean energy projects and engaged directly with northern communities, governments, and organizations on clean energy challenges and priorities. This engagement advances the goal of better understanding how to support community and regional efforts. Community input is also being used to inform the development of a federal plan and timeline for deploying innovative renewable energy and energy-efficient alternatives to diesel.

Multilateral work through the Artic Council and bilateral work with Canada's circumpolar neighbors on priority issues for the North also continued.

The evaluation of INAC's support for territorial and northern organizations affirmed that continued participation on the Arctic Council is crucial to the objectives in the Northern Strategy, and noted the important role of this forum in building healthy, safe, self-sufficient, and prosperous northern communities. A multilateral strategic planning exercise led by INAC has clarified guiding principles and priorities within the Arctic Council's Sustainable Development Working Group, in response to a recommendation from the evaluation. As well, another evaluation found a continuing need for INAC grants to the Government of Northwest Territories and the Government of Nunavut for health care of Indians and Inuit, and highlighted strong accountability and delivery mechanisms. The evaluation noted potential advantages to transferring administration of the grants into existing mechanisms that deliver funding to territorial governments.

Description

This Program supports scientific research and technology in the North through programs and infrastructure to ensure domestic and international policy on key northern issues is better informed by a scientific knowledge base. The focus of this Program is to: research and monitor contaminants and their impacts on the ecosystem and human health through the Northern Contaminants Program; assess, manage and communicate scientific data and results, and contribute expertise to help inform public policy making and international controls on certain contaminants; and support the construction of the Canadian High Arctic Research Station. Northerners and all Canadians will benefit from a knowledge base that supports health and sustainable development and the positioning of Canada as an international leader in Arctic science and technology.

Results

In 2016–2017, INAC contributed data and expertise to national and international initiatives aimed at monitoring, assessing, and reducing or eliminating contaminants from anthropogenic sources far from the Arctic that pose a potential health risk for wildlife and people. This included support for the Canadian Arctic Contaminants Assessment Report: Human Health Assessment 2017 and assessments produced under the Arctic Council's Arctic Monitoring and Assessment Programme on Chemicals of Emerging Arctic Concern and on Biological Effects of Contaminants. The Department's prior and ongoing contributions to the Minamata Convention on Mercury supported Canada's ratification of the Convention in early spring 2017.

In support of northern science and technology, the Government of Canada approved funding for construction of the Canadian High Arctic Research Station and implementation of the associated science and technology program in May 2014. Construction of the campus began in August 2014, and — as part of Canada's 150th anniversary — is on track for grand opening celebrations in the fall of 2017. The campus will be managed by INAC until construction is complete in 2017 and, leading up to the ownership transfer, Polar Knowledge Canada staff have been working closely with INAC on the critical path for implementation.

Over 2016–2017, collaboration between INAC and Polar Knowledge Canada allowed for creative and innovative approaches to partnerships, community integration and problem solving. Investments in community infrastructure that are beneficial to the Canadian High Arctic Research Station campus and to the rest of the community will have lasting positive effects on local community relations in Cambridge Bay. These include upgrades to the power and water treatment plants, and other activities such as those related to the integration of Inuit artwork into the Main Research Building.

Description

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

Results

Amendments to the Yukon Environmental and Socio-economic Assessment Act were proposed to Parliament in August 2016, via Bill C-17. These changes respond to an October 2015 petition by three Yukon First Nations following amendments to the Act made in 2015, and if passed by Parliament, will fulfill the terms of a March 2016 agreement to address the concerns of the First Nations.

The Department initiated consultations with First Nations and governments in the Northwest Territories on a draft legislative proposal to address the injunction preventing restructuring of the Mackenzie Valley Land and Water Board. The injunction was the result of a court challenge initiated by the Tlicho Government. The Department has also been working closely with the Government of the Northwest Territories and the Mackenzie Valley Environmental Impact Review Board to prepare for the eventual coming into force of the development certificate provisions of the Mackenzie Valley Resource Management Act.

INAC also completed policy work for the development of Administrative Monetary Penalties regulations, designed to remove the financial benefit of non-compliance, for the Mackenzie Valley Resource Management Act, the Territorial Lands Act, and the Nunavut Waters and Nunavut Surface Rights Tribunal Act.

The Department remained engaged in efforts to advance multiple land use planning initiatives in Canada's North, which will result in more sustainable development while providing more certainty and predictability for developers. INAC most notably contributed to the Sahtu Land Use Plan amendment process, coordinated federal review of the interim draft Dehcho Land Use Plan, and led federal involvement in the draft Nunavut Land Use Plan process. Additionally, INAC initiated, in partnership with Indigenous organizations, two Strategic Environmental Assessments to examine the environmental impacts of potential oil and gas activity in the Beaufort Sea and in Baffin Bay and Davis Strait. Initial engagement sessions began in the six Inuvialuit and ten Baffin Bay communities.

INAC completed remediation activities at four of the 23 contaminated sites in the remediation phase, and completed the required planning to proceed with remediation at three additional sites.

Care and maintenance, and risk mitigation work, was also conducted at the Giant Mine site, including the deconstruction and removal of infrastructure and buildings that were at risk of collapse. An innovative approach to investigations was completed by using remotely controlled drones to capture video and other data from otherwise inaccessible areas of the mine, in order to complete the plans for stabilizing certain portions. As well, multiple engagement requirements from the environmental assessment were implemented as part of the development of the updated remediation plan, and the first annual report was submitted to the Giant Mine Oversight Board in October 2016. The request for proposals for the Main Construction Manager contract was posted for public tendering in early 2017, and the annual public forum was held in Yellowknife and Ndilo in March 2017.

The Department also continued its work with the Government of Yukon to manage the Faro Mine site. Notable achievements were: the optimization of the Interim Water Treatment System, which permitted the reduction of the Faro pit water level by more than two metres; and the establishment of the Kaska Faro Secretariat, which provides the ability for the Kaska Nation to build capacity and be integrated as a project partner. Engineering designs for urgent works (North Fork Rose Creek Diversion and Down Valley Hydraulic Upgrades) are on schedule, with initiation of construction planned for 2018, while development of the conceptual full closure plan is well underway in preparation for the project proposal to be submitted for environmental assessment in 2018.

INAC also conducted a review of environmental protection and mine reclamation policies for various jurisdictions, and is evaluating both short- and long-term options to address the reclamation issues for mines under federal jurisdiction.

The Department continued its work to collect Crown revenues and royalties from petroleum and mining companies for Northerners and Indigenous peoples. In 2016–2017, the Department completed audits for the Norman Wells proven area (2014) and the Snap Lake (2010) and Diavik mine sites (2010 and 2011). Furthermore, significant progress was made with collecting records for ongoing audits, which will be completed over the course of the upcoming reporting cycle. INAC has also continued work on the development of an online map selection system for mineral claims in Nunavut and will continue this work into 2017–2018.

INAC continued to authorize and enforce land and water activities in the North that are under the Department's authorities, and to work with stakeholders and institutes of public government to ensure that any potential environmental risks are mitigated and stakeholder circumstances and concerns are considered.

In 2016–2017, the Department continued to support oil and gas decision making in Canada's Arctic with the successful implementation of a new Land Administration System, which modernizes our current northern lands and rights system, and the completion of a thorough review of the Canada Petroleum Resources Act. With the completion of the review of the Act, the Department has become better informed of the interests of northern oil and gas stakeholders, with information and recommendations provided greatly assisting during ongoing consultations on offshore Arctic oil and gas exploration. The goal of these consultations is to clarify the interests and plans of stakeholders, and to inform the development of options that will shape the future of offshore oil and gas exploration in the Beaufort Sea.

INAC also continued to advance the state of environmental knowledge in Nunavut by fully committing all research funding for 2016–2017, and collecting data from all projects funded in the previous year. Key research priorities were identified and approved for the Nunavut General Monitoring Plan, based upon 54 approved socio-economic and eco-systemic value components, and $700,000 in annual funding was delivered to 14 research projects that support identified research priorities.

Expenses by Type

Total expenses were $12,252 million in 2016–2017, representing a 28% increase from the previous year's expenses of $9,576 million. Transfer payments, the majority to Indigenous peoples and for claims and litigation, amounted to $9,354 million or 76% of total expenses. Other significant operating expenses included claims and litigation totaling $2,067 million (17%) and salaries and employee future benefit totaling $460 million (4%).

Revenues by Type

Total revenues for 2016–2017 amounted to $4.2 million, representing a 27% increase over the previous year's total revenues of $3.3 million. Respendable revenues from the provision of financial and administrative services represent $2.3 million (54%). Respendable revenues from the proceeds from the sale of surplus Crown assets, included in miscellaneous revenue, account for most of the remaining $1.9 million (46%).

Significant changes

The change in total expenses is due to an increase in the provision for claims and litigation of $3,500 million which resulted from claims with new legal risk assessment being added into the inventory.

The change in total revenues is mainly attributed to an increase in respendable revenues from the proceeds from surplus Crown assets of $1.1 million.

Liabilities by Type

Total net liabilities were $20,227 million at the end of 2016–2017, which is an increase of $3,062 million (18%) from the previous year's total net liabilities of $17,165 million. The provision for claims and litigation represents the largest portion of liabilities at $15,064 million (74%) of total liabilities. Other significant liabilities include environmental liabilities of $3,394 million (17%), accounts payable of $763 million (4%), trust accounts of $701 million (3%), and the liability for settled claims of $204 million (1%).

Net Financial Assets by Type

Total net financial assets at the end of 2016–2017 were $1,569 million, which represents a decrease of $71 million (4%) from the previous year's total net financial assets of $1,641 million. The asset due from the Consolidated Revenue Fund accounted for $1,502 million (96%) of total financial assets and accounts receivable accounted for the remaining $67 million (4%).

Non-Financial Assets by Type

Total non-financial assets were $213 million at the end of 2016–2017 which represents an increase of $36 million (21%) from the previous year's total non-financial assets of $177 million. Tangible capital assets represent $174 million (82%) of total non-financial assets while land held for future claims settlements represents the remaining $39 million (18%).

Significant changes

The change in total liabilities is attributed to an increase in the provision for claims and litigation due to an increase in the number of claims and in the estimate of the settlement amounts.

The change in total net financial assets is due to a decrease in monies held in trust for First Nations and a decrease in accounts receivable due to the repayment of resource royalties in accordance with the Northwest Territories devolution agreement.

The change in total non-financial assets results from an increase of the capitalization of expenditures for buildings in progress of construction related to the Canadian High Arctic Research Station.