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9. CORPORATE GRANTS AND CONTRIBUTIONS – ADMINISTRATIVE
FRAMEWORK – RESPONSE TO 2008 GRANTS AND CONTRIBUTIONS AUDIT SUBVENTIONS
ET CONTRIBUTIONS MUNICIPALES – CADRE ADMINISTRATIF - RÉPONSE AU RAPPORT
DE VÉRIFICATION DES SUBVENTIONS ET CONTRIBUTIONS POUR 2008 |
That Council:
1.
Approve the City of Ottawa Corporate
Grants and Contributions Policy, attached as Document 1.
2.
Approve the Corporate Grants and Contributions
Policy Implementation Plan, attached as Document 2.
Recommandation du ComitÉ
Que le Conseil :
1.
approuve la Politique sur les subventions et les contributions
municipales de la Ville d’Ottawa jointe en Document 1.
2.
approuve le Plan de mise en œuvre de la Politique sur les subventions et
les contributions municipales joint en Document 2.
DOCUMENTATION
1.
Deputy
City Manager’s, City Operations’ report dated 26 July 2010
(ACS2010-COS-DCM-0005).
Report to/Rapport au:
Corporate Services and Economic Development
Committee
Comité des services organisationnels et du développement économique
and Council / et au Conseil
26 July 2010 / le 26
juillet 2010
Submitted by/Soumis par:
Steve Kanellakos, Deputy City Manager/Directeur
municipal adjoint,
City Operations/Opérations
municipales
Aaron
Burry, General Manager/ Directeur général,
Community
and Social Services / Services communautaires et sociaux
(613) 580-2424 x x23666, Aaron.Burry@ottawa.ca
Johanne Levesque, Director/Directrice,
Community Sustainability Services/Services de
viabilité des collectivités
(613) 580-2424 x 12257,
johanne.levesque@ottawa.ca
|
SUBJECT: |
CORPORATE
GRANTS AND CONTRIBUTIONS – ADMINISTRATIVE FRAMEWORK – RESPONSE TO 2008 GRANTS
AND CONTRIBUTIONS AUDIT |
|
OBJET: |
SUBVENTIONS ET
CONTRIBUTIONS MUNICIPALES – CADRE ADMINISTRATIF - RÉPONSE AU RAPPORT DE
VÉRIFICATION DES SUBVENTIONS ET CONTRIBUTIONS POUR 2008 |
That
the Corporate and Economic Development Committee recommend that Council:
1. Approve the City of Ottawa Corporate
Grants and Contributions Policy, attached as Document 1.
2. Approve the Corporate Grants and
Contributions Policy Implementation Plan, attached as Document 2.
RecommandationS
du rapport
Que le
Comité des services organisationnels et du développement économique recommande
au Conseil :
1. d’approuver
la Politique sur les subventions et les contributions municipales de la Ville
d’Ottawa jointe en Document 1.
2. d’approuver
le Plan de mise en œuvre de la Politique sur les subventions et les contributions
municipales joint en Document 2.
The Purpose of this report is to obtain approval of a high level Corporate Grants and Contributions Policy and the accompanying implementation plan.
The total value of grants and contributions administered by the City of Ottawa in 2009 was approximately $67 Million. Of this total, programs funded wholly by the City represented $37 Million (55%) of the transfers, and programs funded wholly or in part by other funders (typically the Provincial or Federal Governments) represented $30 Million (45%).
This report is coming forward to satisfy recommendations made by auditors in 2003 and 2008, and builds on the 2004 Coflin Report which served as the basis for the Community Funding Framework.
Grants and contributions are transfers of money, goods, services or assets to individuals or organizations without the City receiving goods and services directly in return. Examples include the Protective Plumbing Program, Reimbursement of Development Related Fees, and contributions to Community Houses under the Community Funding Program.
The proposed Policy provides an overarching administrative framework that will guide the development, management and review of grants and contributions programs across the Corporation to ensure that they are aligned with Council objectives and administered so as to achieve transparency, accountability, fairness, efficiency and responsiveness.
Existing agreements/contracts
will not be revised in 2010 as a result of the adoption of this policy. Going
forward, grants and contributions that are funded wholly by the City may only
be transferred to recipients as part of a Council approved program, pursuant
to report recommendations carried by Council, or to individually identified recipients by Council motion. All grant
programs will be required to have a formal policy that sets out how funds will
be allocated and administered.
Grants and
contributions that are funded in whole or in part by an external funder (e.g.
Provincial or Federal Government), are necessarily governed by an agreement
with the funder, thus the application of this policy would create duplication.
These programs will therefore continue to be administered as they have been in
the past.
Almost all of the current City-funded Grant and Contribution Programs presently meet the requirements of the proposed Corporate Policy, or can meet the requirements with modest adjustments to the programs. All programs that have existing policies and that will continue into 2011 are listed in Document 2 with an implementation plan outlining when they will be reviewed and revised as required to ensure compliance.
A few programs do not presently have formal program policies. These include some type of major and special event funding, economic development project funding, and non-profit leases. Such programs will operate under existing informal controls, respecting the goals and objectives of the proposed policy, until formal policies are brought forward for approval in keeping with the timelines outlined in Document 2.
The proposed Corporate Policy and implementation plan has been developed with the participation of the City Manager’s Office (Finance and Legal), both the City Operations and ISCS Portfolios and the nine operating Departments that administer grants and contributions programs within the Corporation.
RÉSUMÉ
L’objet du présent rapport est
d’obtenir à un niveau élevé l’approbation de la Politique sur les subventions
et les contributions municipales et le Plan de mise en œuvre connexe.
La Ville d’Ottawa a administré des
subventions et contributions d’une valeur totale de 67 millions de dollars
environ en 2009. Les programmes que la Ville a financés entièrement atteignent
37 millions de dollars (55 %) du total des transferts et les
programmes que d’autres bailleurs de fonds (le gouvernement provincial ou
fédéral habituellement) ont financé en tout ou en partie totalisent
30 millions de dollars (45 %).
Ce rapport est formulé en réponse
aux recommandations des vérificateurs en 2003 et 2008 et il optimise le Rapport
Coflin 2004 qui a servi d’assise au Cadre stratégique sur le financement
communautaire.
Les subventions et contributions sont
des transferts d’argent, de biens, de services ou d’éléments d’actif à des
particuliers ou des organismes sans que la Ville obtienne directement des biens
et services en retour. Voici des exemples : Programme d’installation de
dispositifs protecteurs sanitaires résidentiels, remboursement des droits liés
à l’aménagement et contributions aux logements sociaux à l’aide du Programme de
financement communautaire.
La politique proposée comprend une
structure administrative générale qui orientera l’élaboration, la gestion et
l’examen des programmes de subventions et contributions de l’organisme pour garantir
qu’ils sont harmonisés avec les objectifs du Conseil et administrés aux fins de
la transparence, de l’obligation de rendre compte, de l’équité, de l’efficience
et de la réceptivité.
Les ententes – contrats actuels
ne seront pas révisés en 2010 après l’adoption de cette politique. À l’avenir,
les subventions et contributions que finance entièrement la Ville seront
transférées aux bénéficiaires seulement si elles font partie d’un programme
approuvé au Conseil, conformément aux recommandations du rapport adoptées au
Conseil, ou à des particuliers identifiés bénéficiaires dans une motion du
Conseil. Tous les programmes de subventions devront avoir une politique
officielle qui détermine comment les fonds seront attribués et administrés.
Les subventions et
contributions que finance un bailleur de fonds à l’externe (p. ex., le
gouvernement provincial ou fédéral) en tout ou en partie sont nécessairement
régies par entente avec le bailleur de fonds et l’application de cette
politique constituerait un chevauchement. Ces programmes continueront donc
d’être administrés comme ils l’étaient auparavant.
Presque tous les programmes actuels
de subventions et contributions que finance la Ville répondent aux exigences de
la Politique municipale proposée ou peuvent le faire après modifications
minimes des programmes. Tous les programmes ayant actuellement des politiques
et qui continueront en 2011 sont énumérés au Document 2 et un plan de mise
en œuvre précisera quand ils seront examinés et révisés au besoin pour garantir
la conformité.
Quelques programmes n’ont pas de
politiques officielles actuellement. Ils comprennent le financement
d’événements majeurs et spéciaux, de projets de développement économique et de
baux à des organismes sans but lucratif. Ces programmes fonctionneront selon
les contrôles non officiels actuels, ils respecteront les buts et objectifs de
la politique proposée jusqu’à ce que des politiques officielles soient
formulées pour approbation, compte tenu de l’échéancier précisé au
Document 2.
La Politique municipale proposée et le plan de
mise en œuvre ont été élaborés avec la participation du Bureau du directeur
municipal (Service des finances et Services juridiques), des portefeuilles des Opérations
municipales et du SIVC, ainsi que des neuf Services fonctionnels qui
administrent les programmes de subventions et contributions municipales.
BACKGROUND
The purpose of this report is to address the 2003 and 2008 Grants and Contributions Audit recommendation to establish a clear and comprehensive corporate policy framework governing all mechanisms for funding to external organizations.
In 2003, the former Audit and Consulting Services Branch of the City presented a report to Council entitled “Audit of the Corporate Grants and Funding Programs – Corporate Policy and Management Framework”. The 2003 audit was focused on assessing the extent to which harmonization of the funding programs had been achieved and the adequacy of the Corporate-wide framework and approach to the use and management of these programs.
The 2003 audit recommended that Management establish a clear and comprehensive corporate policy framework governing all mechanisms for funding to external organizations. As a result, in 2003 a Request for Proposals (RFP) was developed in order to seek third-party expertise to conduct a review of the community funding process in Community and Protective Services. In December 2003, the RFP was awarded to J. Coflin and Associates.
The objective of the process review was to recommend a new accountability framework that would guide the allocation and monitoring funding provided to agencies delivering health, recreation and social services.
Even though the scope of the Community Funding Review was limited to funding provided for the delivery of health, recreation and social services, the report put forward comprehensive recommendations that are applicable corporate wide.
In February 2006, Council approved the Community Funding Framework Policy; however, this policy does not apply to the entire corporation, only to the Community Funding envelope. Likewise, between 2002 and 2008, Council approved a series of cultural funding framework policies. Together, these funding policies govern more than 75% of the municipal funds granted to external individuals and agencies.
In November 2009, the Auditor General tabled the 2008 Audit of Grants and Contributions. The 2008 audit concluded:
“Although initiatives have been undertaken in some areas of the City to establish more formal frameworks with respect to specific funding programs, no action has yet been taken to address the 2003 recommendation for a corporate-wide framework for grants and contributions. As a result many of the same issues and risks identified in that audit remain.”
The main recommendation of the 2008 Audit therefore re-emphasized the need for a corporate wide policy:
“As was recommended in 2003, that the City establish a clear and comprehensive corporate policy framework governing all mechanisms for funding to external organizations, to ensure:
a) An appropriate control environment exists for funding programs;
b) Corporate consistency in the use of funding mechanisms;
c) Clear roles and responsibilities are established across the City administration;
d) Clear direction and guidance is provided to departments in establishing, managing and monitoring these programs;
e) The timely, accurate and complete capture of all related information;
f) The identification and resolution of any systemic problems; and,
g) That funding allocations accurately reflect Council priorities.”
The development of a corporate grants and contributions policy also supports the City Strategic Plan Governance Priority which commits that the “City will work to improve processes that support a responsible and responsive government. It will take steps to make appropriate delegations of authority, conduct ongoing strategic monitoring and adjustments, and that ensure the City conducts business in an open and transparent manner.”
DISCUSSION
This report’s recommendations establish a clear and comprehensive corporate policy governing all mechanisms for funding to external organizations, and implement that policy through a schedule for program review.
Recommendation 1: Corporate
Grants and Contributions Policy
Policy Statement
The intent of the Grants and Contributions policy is to achieve effective, consistent, risk-management-based approaches to the design and delivery of City of Ottawa grant and contribution programs that strikes the appropriate balance between control and flexibility and ensures accountability and value for money.
The proposed policy is consistent with recommendations put forward by the City of Ottawa Community Funding Process Review Report, J. Coflin & Associates, May 2004; as well as best practices, including the directive on Transfer Payments, Government of Canada Treasury Board, October 2008. The policy is also consistent with the Municipal Act, 2001.
Purpose
The objective of this Policy is to ensure compliance with the seven elements outlined by the Auditor as cited on the previous page.
The application of these objectives should result in the following principle-driven goals:
Application
As found during the 2008 Audit of Grants and Contributions, the City does not currently have a definition of ‘grants’ or ‘contributions’, and this causes difficulty in ensuring consistent and appropriate management and financial coding. Therefore, the first step in creating a policy is to define what a ‘grant’ and a ‘contribution’ is.
Section 107 of the Municipal Act, 2001 gives the City the authority to give grants for “any purpose that the Council considers to be in the interests of the municipality”. The grant may take the form of in-kind benefits such as the provision of City services or the use of City facilities. The recipient cannot be commercial in nature; it must be non-profit or not-for-profit.
The Canadian Institute of Chartered Accountants (CICA) uses the term ‘transfer payment’ to describe such allocations. Transfer payments are defined as “transfers of money, goods, services or assets to individuals, organizations or other levels of government, without the [City] government directly receiving goods or services in return.”
Grants and contributions (conditional grants) are types of transfer payments.
The CICA defines grants as “transfer payments to an individual or organization which are not subject to being accounted for or audited, but for which eligibility and entitlement may be verified or for which the recipient may need to meet pre-conditions. Should the individual or organization meet all eligibility or other entitlement requirements at the outset and, if required, throughout the term covered by the grant, the government does not expect to receive any goods or services directly in return, to be repaid or to receive a financial return.”
Grants are appropriate where the amount of funding to be provided can be determined in advance and eligibility criteria and information obtained before payment provide assurance that the grant will be used for the purpose for which it is provided.
Examples of grants include transfer payments made through the following programs:
The CICA defines contributions as “conditional transfer payments to an individual or organization for a specified purpose pursuant to a contribution agreement that is subject to being accounted for and audited. Should the individual or organization use the transfer payment in the manner specified by the contribution agreement, the government does not expect to receive any goods or services directly in return, to be repaid or to receive a financial return.”
Contributions are appropriate where it is necessary to monitor progress and results, receive an accounting of the use of funds from the recipient, and have the right to carry out a recipient audit or to request some other type of certification or audit assurance from the recipient. Contributions may provide one-time project funding or one-year operating funding where the beginning and end of the work is identifiable; they may also provide multi-year funding where the demonstrated financial stability of the recipient is a necessary condition for the recipient to meet objectives involving the implementation of longer-term plans, undertaking multi-year commitments, or matching leveraged funding from the public and private sectors.
Examples of contributions include transfer payments made through the following programs:
The proposed policy would apply to both financial and in-kind grants and contributions made by the City of Ottawa under Section 107 of the Municipal Act, 2001. It establishes definitions for grants and contributions that are consistent with those used by the auditor in the 2003 Audit of Corporate Grants and Funding Programs, Colflin and Associates in the 2004 Community Funding Process Review Report, the Independent Blue Ribbon Panel on Grant and Contribution Programs in 2006, the Treasury Board of Canada in 2008, and the Auditor General of the City of Ottawa in his Audit of Grants and Contributions 2008, tabled in November, 2009.
The proposed Policy does not apply to transfer payments made under legislation other than section 107 of the Municipal Act, 2001. For example, Conservation Authority Levies, and transfers made under the Day Nurseries Act, would not be subject to the proposed policy.
Further, this Policy does not apply to purchases of service, professional development, public private partnerships, or other costs associated with the delivery of City programs or the development of new facilities.
As noted in both the 2003 and 2008 audits, purchases of service are often referred to as ‘grants’. Purchases of service are conditional payments for services delivered by non-governmental organizations for services that are part of a City program, or for which the City has some other form of direct responsibility. Examples include payments made under agreements with Community Associations and Recreation Boards to provide services to the City, and/or to the public on behalf of the City.
Policy Requirements
Currently
management has the authority, under the Delegation of Authority By-law, to make
grants and contributions through agreements, provided the agreements:
a) are in accordance with the applicable City
policies approved by Council;
b) are related to approved departmental
programs and objectives;
c) are within approved budget limits; and,
d) contain appropriate insurance, termination,
workplace safety and indemnification provisions.
Going forward, grants
and contributions that are funded wholly by the City may only be transferred to
recipients as part of a program approved by Council, pursuant to report
recommendations carried by Council,
or to individually identified recipients(s) by Council motion.
Grants and
contributions that are funded in whole or in part by an external funder (e.g.
Provincial or Federal Government), are necessarily governed by an agreement
with the funder, and therefore will continue to be administered as they have
been in the past.
For example, the
‘Smoke-Free Ontario High School Grants’ program is 100% provincially funded and
is subject to an agreement between the province and the City that sets out detailed
administration and reporting requirements.
Such programs do not benefit from additional levels of policy approval
or administrative requirements and therefore the provisions of the proposed grants
and contributions policy will not apply.
The Corporate
Grants and Contributions Policy sets out what must be considered in the design
or review of a new City-funded program, and what must be included in policies
for all City-funded programs.
Given the range
in scale and complexity of grant and contribution programs managed by the City,
the proposed policy is flexible in its application. A policy element may be omitted where the
goals of transparency, accountability, fairness, efficiency, and responsiveness
are not compromised without it.
Further, the
policy strives to ensure that grant and contribution programs minimize
administration by requiring the following consideration during the development
of a new funding program or the review of an existing program:
“12. The administrative
requirements on applicants and recipients and a strategy to ensure these are no
more than is needed to meet the Department’s control, transparency and
accountability requirements. In
particular, monitoring, reporting and auditing should reflect the risks
specific to the program, the value of funding in relation to administrative
costs, and the risk profile of the recipient.
For example, the Community Funding Framework policy allows an agency
receiving less than a certain amount, $25,000 during the 2010 budget year, to
use a Letter Agreement as opposed to a full length Agreement.”
The optimal balance between ease of administration and accountability will vary, and the method used to achieve that balance is best tailored for individual programs. The proposed policy therefore provides direction, but does not prescribe specific procedures.
The proposed policy provides for the establishment of a Corporate Grants and Contributions Coordination and Oversight Committee, responsible for ensuring: compliance with the proposed policy; that any issues of non-compliance are addressed, and; that the policy and its appendices are kept up-to-date. This Committee will include grant and contribution program administrators as well as staff from Legal and Financial Services. It will be established and chaired by the Organizational Development and Performance Department.
Monitoring will be accomplished through the reporting of all grants and contributions made each year including the authority (approved program or Council motion), the recipient, and the amount. This list will be made available through Ottawa.ca. Programs that provide grants to individual households will be reported in aggregate (Number of Households, Sum of all Grants under the program). In-kind grants and contributions will not be included on Ottawa.ca until a formal method for reporting has been established.
Appendices
In addition to the policies, two checklists and one template are attached
as appendices that provide a comprehensive list of requirements resulting from
audit recommendations and Council motions:
Appendix A: Grant and Contribution Programs Application Component
Checklist
Appendix B: Monitoring Template for Contribution Programs
Appendix C: File Completeness Checklist for Grants and Contributions
These appendices serve as convenient references for staff to ensure that
grants and contributions applications packages, monitoring functions and file
completeness responsibilities are thorough and in accordance with best
practices and the recommendations of the City’s Auditor General.
Last, Appendix D sets out the terms of reference for the Grants and
Contributions Oversight and Coordination Committee.
Recommendation 2: Implementation Plan
All internal stakeholders have been consulted and are supportive of the policy and implementation plan.
The majority of the Grant and Contribution Programs currently meet the requirements of the proposed Policy, or are in the process of making small technical adjustments.
The few programs without formal policies are recommended to operate under existing controls, respecting the goals and objectives of the Corporate Grants and Contributions Policy, until formal policies are brought forward for approval.
One of the requirements of the proposed Policy is “a plan for regular review of a program for relevance and effectiveness”. Some programs already have reviews planned, and most regularly adjust their programs (with Council approval) to ensure that criteria are appropriately lined up with the strategic priorities of the Corporation. The proposed policy would make this periodic review mandatory for all programs. Typically, the review should coincide either with an annual report / budget exercise or as part of a larger strategic review or planning exercise. For example, the 2012 review of Arts Investment Strategy & Museum Sustainability Plan funding will be completed taking the Arts and Heritage Plan Refresh into account.
The implementation plan, attached as Document 2, establishes timelines for both the review of all existing City-funded program policies, and the approval of new policies for programs that will be formally established in the near future. Programs that are not wholly municipally funded are subject to terms and conditions established by the funder, typically the Provincial or Federal Governments, and do not require any review or changes in relation this program.
There
are no implications specfic to the rural area associated with this report.
No
specific public consultations were undertaken in the production of the report.
The overarching policy is administrative in nature and in keeping with the
recommendations of the Auditor General, already agreed to by management and
reviewed and received by CSEDC on February 4, 2010 and Council on February 24,
2010.
Going
forward, when programs are reviewed they will be required to use the proposed policy
to ensure alignment with corporate, departmental and branch objectives, and to
achieve transparency, accountability, fairness, efficiency, and
responsiveness.
Any
reports regarding new or substantive changes to existing programs, will be
presented to the appropriate Standing Committee and Council and be subject to
public consultation.
LEGAL/RISK MANAGEMENT
IMPLICATIONS
There
are no legal risk management impediments to implementing any of the
recommendations in this report.
CITY
STRATEGIC PLAN
The development of a corporate grants and contributions policy also supports the City Strategic Plan Governance Priority which commits that the “City will work to improve processes that support a responsible and responsive government. It will take steps to make appropriate delegations of authority, conduct ongoing strategic monitoring and adjustments, and that ensure the City conducts business in an open and transparent manner.”
There
are no financial implications associated with this administrative report. Programs amended and developed pursuant to
the Implementation Plan set out in this report will be undertaken within
existing resources.
Document 1: Corporate
Grants and Contributions Policy
Document 2: Corporate
Grants and Contributions Policy - Implementation Plan
Staff will implement any direction received as part of consideration of this report.
Approved
By: City Council
Section:
Approval
Date:
Effective
Date: January 1, 2011
Revision
Date:
The City of Ottawa is committed to achieving effective, consistent, risk management-based approaches to the design and delivery of grant and contribution programs that strikes the appropriate balance between control and flexibility and ensures accountability and value for money.
The objective of this Policy is to ensure:
· An appropriate control environment exists for funding programs
· Corporate consistency in the use of funding mechanisms
· Clear roles and responsibilities are established across the City administration
· Clear direction and guidance is provided to departments in establishing, managing and monitoring grant and contribution programs
· The timely, accurate and complete capture and storage of all related information
· The identification and resolution of any systemic problems
· That funding allocations accurately reflect City Council priorities.
The application of these objectives should result in the following principle-driven goals:
Transparency: Potential recipients have ready access to information about funding programs. Descriptions of funding programs are available to the public, including application and eligibility requirements and the application assessment criteria. People are informed, in a timely manner, of any decision that affects them, the individual or body that makes such decisions, the reasons for the decision and any steps they can take if they wish to dispute the decision. In the case of funding programs, transparency requires, among other things, that applicants are fully informed of the factors that will be considered by the funding authority and that the public have ready access to information about who receives funds, for what purposes and in what amounts.
Accountability: Individuals and organizations involved in a shared venture such as public funding for community services agree to undertake clearly defined responsibilities, to openly demonstrate how they have fulfilled their obligations and to accept reasonable consequences if they fail to fulfill the obligations.
Fairness: Funding decisions are based on known criteria so that organizations applying for funding have a reasonable opportunity to present their case to the decision-maker and that they are assured that their submission will be treated on its merits. Fairness also requires that the City is assured that the information provided by the applicant is complete and accurate.
Efficiency: The resources invested in the process, by both the applicant and the funding authority, must be reasonable and proportionate to the benefits each expects to gain from the process.
Responsiveness: The City of Ottawa involves the community in an ongoing review of community needs and ensures that its grant and contribution programs are able to meet existing, new, and emerging needs.
This Policy does not apply to legislated entitlements which are transfers of money to an organization or individual over which the City has no discretion. The transfers are typically regulated through Federal or Provincial Legislation and Regulations and are not subject to Section 107 of the Municipal Act. Transfers of funds under the Conservation Authorities Act, and the Day Nurseries Act are examples of legislated entitlements.
This Policy does not apply to purchases of service. These are conditional payments for services delivered by non-governmental organizations for services that are part of a City program, or for which the City has some other form of direct responsibility. Payments made under Community Association/Recreation Board Program, where non-profit community partners provide services to the City and/or to the public on behalf of the City, are examples of purchases of service.
This Policy does not apply to Public Private Partnerships (P3s).
Grants and contributions that are funded wholly by the City may
only be transferred to a recipient as part of a program established by Council
or as line-item transfer payments authorized by Council by motion. (See
Definitions)
Grants and contributions that are funded in whole or in part
by an external funder, for example the Provincial or Federal Government, may be
transferred to a recipient as part of a program established by staff or as
line-item transfer payments as permitted by the Delegation of Authority By-law,
provided the goals and objectives of this Policy are met.
Grant and Contribution Programs
Design and Review Considerations
The following elements shall be considered during the design
or redesign of all grant and contribution programs funded wholly by the City,
and evidence of their consideration shall be documented.
1. The objectives and expected outcomes, with linkages to the goals, objectives and priorities of the City, Department, and Branch.
2. The relevance and effectiveness of the program in meeting demonstrated needs, or how a redesigned program addresses the results of an evaluation or review of relevancy and effectiveness, including a review of existing, new and emerging needs.
3. The appropriate time frame over which the program will apply.
4. The budget needed to sustain the program over the recommended time frame, reporting and taking into account non-municipal sources of funding and any upward or downward pressures over this time.
5. The feasibility of harmonizing (aligning or integrating) the program being created or redesigned with other City programs.
6. The identification of eligible recipients or categories of recipients, the nature and type of initiatives that will be considered eligible under the program, and the method to be used to determine the amount a recipient will be eligible to receive under the program.
7. The engagement of potential recipients and other interested parties in the design of the program.
8. A performance measurement strategy for ongoing performance management of the program, including the performance measures and indicators and the supporting data requirements and data collection strategy.
9. The risks specific to the program, the potential risks associated with applicants and recipients and the measures that will be used to manage these risks.
10. The rationale used in the selection of the appropriate type of transfer payment, grant or contribution, taking into account the specific program objective or outcome, the level of funding, the type of recipients, and the nature and level of risks (See 13). In particular, the following should be considered:
a) Grants are appropriate when the amount of funding to be provided can be determined in advance and eligibility criteria and information obtained before payment provide assurance that the grant will be used for the purpose for which it is provided. Grants are not appropriate where funding provided to a recipient is to be further distributed to one or more persons or entities.
b) Contributions are appropriate when the Department deems it necessary to monitor progress and results, receive an accounting of the use of funds from the recipient, and have the right to carry out a recipient audit or to request some other type of certification or audit assurance from the recipient.
i. A contribution that provides one-time project funding or one-year operating funding is usually only appropriate where the beginning and end of the work is identifiable.
ii. A contribution that provides multi-year funding is usually only appropriate where the demonstrated financial stability of the recipient is a necessary condition for the recipient to meet objectives involving the implementation of longer-term plans, undertaking multi-year commitments, or matching leveraged funding from the public and private sectors.
11. The
conditions that determine the amount and timing of repayment, where the program
provides for contributions that are or may be wholly or partially repayable.
12. The administrative requirements on applicants and recipients and a strategy to ensure these are no more than is needed to meet the Department’s control, transparency and accountability requirements. In particular, monitoring, reporting and auditing should reflect the risks specific to the program, the value of funding in relation to administrative costs, and the risk profile of the recipient.
For example, the Community
Funding Framework Policy allows an agency receiving less than a certain amount,
$25,000 during the 2010 budget year, to use a Letter of Agreement as opposed to
a full length Agreement.
13. Where contributions are to be used, the basis on which final payments and any progress payments are to be made, which is to be one or a combination of the following:
a) Achievement of pre-determined performance expectations or milestones
b) Reimbursement of eligible expenditures
c) A costing formula
d) A predetermined annual amount.
The choice of approach should
reflect the risk associated with the program and the known capacities of the
recipients.
14. The feasibility of standardizing the processes, systems and procedures to be used in delivering the funding program being designed or redesigned with those that support existing funding programs within the Department and with those of other departments.
15. Whether there is a need to establish any rights to the use of intellectual property created by recipients through their use of City of Ottawa grants and/or contributions and, if so, the basis for establishing such rights.
16. The application of City policies related to Bilingualism and Equity and Diversity, specifically considering:
a) Fostering the bilingual character of the City as well as equality of rights and privileges for both French and English linguistic groups in light of services offered.
b) Fostering an environment that respects people’s dignity, ideas and beliefs, thereby ensuring equity and diversity in employment and ensuring customers and others have access to City facilities, products, services, and grants as defined by human rights legislation.
Required Core Policy Elements of
Grant and Contribution Programs
The administration of grant and contribution programs funded wholly by the City shall be governed by program policies that include the elements listed below; however, one or more of these elements may be excluded where documentation is provided that the goals and objectives of this Policy can be met without them.
The administration of line-item grants and contributions funded wholly by the City of Ottawa shall be guided by the elements listed below, as applicable, to ensure consistency in the administration of grants and contributions, and the attainment of the goals and objectives of this Policy.
The administration of grants and contributions that are funded in whole or in part by an external funder, such as Provincial or Federal Governments, shall be governed by the terms of the agreement with the funder. Inclusion of the elements listed below is only required where necessary to meet the goals and objectives of this Policy.
1. The specific legal and policy authorities for the program.
2. The purpose and objectives of the program, with clear linkage to City, Department and Branch goals and objectives.
3. The identification of expected results with performance measures and indicators for monitoring and reporting, resulting in standardized terms and conditions under which the funds will be released to the recipient.
The complexity of the terms and conditions shall balance the City’s accountability and control requirements with the level of risk specific to the transfer payment program, the value of the funding, and the risk profile of the recipient.
Where possible, conditions for funding shall be accepted by the applicant at the time that the application is submitted, or a Letter of Agreement shall be used.
Where this is not possible, a more detailed standard agreement shall be used. Additional or special conditions to address issues identified in the assessment of the organization’s application shall be included by the City as appropriate.
Existing transfer payment (grant or contribution) agreements shall be renewed prior to their date of expiry. If that is not possible, a letter of extension, as approved by Legal Services, may be used to extend approval for a reasonable time period, until such time as a new Transfer Agreement can be signed. Funding shall not be allocated to agencies in the absence of a binding Agreement.
4. Identification of the recipient or the category of recipients, including eligibility and entitlement criteria. In the case of a program this will typically result in a documented solicitation process that disseminates information about the goals, deadlines, application requirements and other policies and procedures to the individuals or organizations that might be eligible to apply for the funding. A program’s goals and the number and type of potential applicants help determine the nature and scope of the communications effort needed.
5. The nature and type of initiatives or projects that are considered eligible.
6. Expenditures that are considered eligible in determining the amount of a grant. Eligible expenditures may be described either generally as those expenditures necessary to support the purpose of the funding or specifically in terms of the type and nature of expenditures that are to be funded. For example, funding may be applied to core operating costs of an organization, or to specific projects.
7. Identification of a formula, or other method, that determines the amount of any grant or contribution.
The objective of the formula is to ensure the proposed grant or contribution is at the minimum level required to further the attainment of the objectives of the grant or contribution program and the results expected from the recipient, taking into account other sources of funding available.
8. The maximum amount payable to any recipient annually or in total or the maximum payable with respect of any initiative or project, as applicable.
9. A description of the information required in a request for funding from an applicant and the criteria that will be used to assess funding applications in the case of a program. In most cases this will result in:
a) An application form that is straightforward, comprehensive and structured so that applicants can easily relate the information they are supplying to the assessment criteria, and results in complete and comprehensive information from applicants that enables fair and accountable decision making. Applications shall be developed using the Application Component Checklist (Appendix A).
b) A documented application/renewal submission screening and assessment process, which may include the preparation of formal assessment reports and/or recommendations for consideration by decision-makers.
c) A decision-making model, whether the authority to approve the transfer of funds is retained by elected officials, delegated to an “independent” body, or delegated to staff. Conflict of interest procedures appropriate to the nature of the program shall be documented.
10. A description of the information that will be requested from recipients to ensure they continue to meet eligibility criteria. Reporting procedures may be limited to the following year’s application, or may include separate financial reporting or reporting relating to what the program has achieved.
11. Where any legal or policy authorities establish a time frame, the number of years over which the program or individual grant or contribution will apply.
12. An indication of whether project, single-year, or multi-year funding agreements will be used. This assessment shall consider risk.
Organizations that are assessed as having relatively higher risk should not be eligible for multi-year/sustaining funding. City staff will monitor and support community groups to make progress on identified areas that require improvement.
Organizations that are assessed as having low-risk
should be subject to a review of the organization and its operations by the
City, generally every three to five years, to the satisfaction of interim
reporting requirements. The required
content and frequency of reporting shall be defined in a policy for grant/contribution
programs (See Definition) or by staff or Council for line-item grants /
contributions (See Definition).
13. A description of any information that may be requested from a recipient on results achieved through the use of the grant or contribution to support a program's performance measurement strategy and departmental reporting.
The level of monitoring of recipients and the reporting required from recipients, including the degree of certification or audit assurance required from the recipient on any reports, shall reflect an assessment of the risks specific to the program, the value of the funding in relation to administrative costs, and the risk profile of the recipients.
14. The basis for establishing rights to the use of intellectual property created by recipients through their use of grants or contributions.
15. A plan for regular review of a program, where it is expected to run over a prolonged period of time, for relevance and effectiveness.
16. A requirement to recognize the City’s contribution (or the contribution of funders other than the City) on any public/promotional materials.
17. A requirement for official files to be maintained, in accordance with the City’s Records Management Policy, and their completeness ensured through the use of a file completeness checklist, that shall be developed using Appendix C.
Additional
Required Core Policy Elements of Contribution Programs
18. Identification of the basis on which contribution final payments and any progress payments are to be made, which is to be one or a combination of the following:
· Achievement of pre-determined performance expectations or milestones
· Reimbursement of eligible expenditures
· A costing formula
· A predetermined annual amount.
19. The nature and frequency of contact with each recipient, as determined by an assessment of the level and nature of the risk associated with the particular organizations or programs. The risk assessment shall consider governance, financial stability, level of City funding, years in operation, complaints received, operational and program capacity, and level of collaboration and partnership with other community agencies.
Monitoring procedures, regardless of complexity, shall be documented to ensure they are consistent and equitable for all recipients, and shall be developed using the Standardized Monitoring Template (Appendix B).
20. When contributions are to be further distributed by a recipient to one or more persons or entities, a description of the steps to be taken to ensure a recipient has independence in the choice of those persons or entities, with minimal guidance from the City and will not be acting as an agent of the City in making distributions.
21. Where contributions are to be repayable, conditionally or unconditionally, the factors that determine whether repayment is to be made and the amount of the repayment, the terms of repayment, and a description of the processes to be used to monitor funding agreements and establish when repayments are due.
City Council
· Establishing, renewing, or deleting grant and contribution programs wholly funded by the City
· Establishing line-item grants or contributions when deemed appropriate
Departments managing Grant and
Contribution Programs
· Designing and regularly evaluating grant and contribution programs in compliance with this Policy
· Administering grants and contributions in compliance with this Policy
Finance Department
· Ensuring the City’s financial coding structure is used appropriately and consistently
· Providing support to departments in reviewing financial information where complex situations exist
· Assisting departments in the budget reconciliation and payment processes
Legal Services
· Providing support to departments where complex situations exist
· Preparing new agreement templates, and revising existing agreement templates
· Providing support to departments in the preparation, review, approval and execution of all agreements
Organizational Development and
Performance Department
· Promoting and facilitating collaboration among departments for city-wide harmonization of grant and contribution programs, the standardization of administrative processes, procedures and requirements, and the sharing of best practices
The Grants and Contributions Oversight and Coordination Committee (See Appendix D for Terms of Reference) shall be responsible for monitoring compliance with this Policy.
Should it be determined that a grant or contribution program or individual grant or contribution payment is not in compliance with this Policy; the Grants and Contributions Oversight and Coordination Committee shall inform the General Manager or Director responsible.
The Grants and Contributions Oversight and Coordination Committee shall ensure information regarding Grants and Contributions is maintained on Ottawa.ca and updated annually to enable the public and staff to see grants and contributions awarded and available across the corporation.
Bilingualism Policy
Equity and Diversity Policy
Multiple Formats Policy
Records Management Policy
Delegation of Authority By-law 2009-231
Municipal Act, 2001, S.O. 2001, c. 25
Canadian Human Rights Act [H-6] Human Rights Code, R.S.O. 1990, c. H.19
Municipal Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c. M.56 Occupational Health and Safety Act, R.S.O. 1990, c. O.1 Insurance Act - O. Reg. 776/93 Canada Corporations Act (1970, c. C-32)
Accessibility for Ontarians with Disabilities Act, 2005, S.O. 2005, c. 11
Grant / Contribution Programs - Programs that allocate individual grant and/or contribution funding to organizations or individuals to meet established program objectives.
Line-item Grants / Contributions - Grants or contributions made to an organization outside of a program.
Project Funding
Funding
Purchase of Service
For more information on this Policy, contact the:
Manager, Corporate Business Services Branch
Organizational Development and Performance Department
Tel: 613-580-2424, ext. 22658
Appendix A: Grant and Contribution Programs Application Component Checklist
Appendix B: Monitoring Template for Contribution Programs
Appendix C: File Completeness Checklist for Grants and Contributions
Appendix D: Terms of Reference for the Grants and Contributions Oversight and Coordination Committee
Appendix A
Grant and Contribution Programs Application Component Checklist
This checklist is provided as a guide, some items may not be applicable or appropriate for all programs.
q Organization’s Name, Sponsoring Non-Profit Incorporation’s name (if any), and Contact Person’s Name, title and Contact Information
q Other sources and amounts of City funding received by applicant and/or requested for the project.[1]
q If the applicant is acting on behalf of a property owner for the grants program, authorizing documentation from the property owner must be provided.[2]
q Annual Meeting minutes that are properly signed by the signing authority of the organization.[3]
q Governance (Membership list of current Board of Directors, list of key officials and their titles, Organizational Chart, legal status, number of members (if applicable), etc.)
q Financial Statements (Example, generally audited for organizations receiving more than $25K)
q Declaration of accuracy of information
q Signature/Authorization for signatories to bind the organization (Certificate of Authority)
q MFIPPA Clause
Appendix B
Monitoring Template for Contribution Programs
This template is provided as a guide, some items may not be applicable or appropriate for all programs.
Submitted by the funded organization:
Monitored by City Staff:[5]
Appendix C
File Completeness Checklist for Grants and Contributions
This checklist is provided as a guide, some items may not be applicable or appropriate in all cases.
q Evidence of checking of documentation including follow-up notes, additional commentary, etc[6].
q This checklist identifies all requirements and lists mandatory documents. Staff indicate whether those requirements have been met and initial the checklist. Staff note on the checklist any follow-up actions that have been taken. The checklist is included on file with each application/funding submission form[7].
q Narrative summaries of follow-up undertaken including site visits, attendance at meeting, telephone calls and e-mail correspondence.[8] (Typically applicable in the case of contributions)
q Risk assessment of all proponents[9],. (Typically applicable in the case of contributions)
q All documentation related to allocation determination.[10]
q When someone acts on behalf of a property owner for the grants program, authorizing documentation from the property owner
q All necessary documentation shall be collected and retained on file[11].
Appendix D
Grants and Contributions Oversight and Coordination Committee Terms of
Reference
The Grants and Contributions Oversight and Coordination Committee will report to Executive Committee, and be comprised of the following City of Ottawa staff persons, as appointed by the Organizational Development and Performance Department:
· Representatives from French Language Services, Corporate Communications (responsible for information posted to Ottawa.ca), and the Diversity and Employment Equity Branch shall be invited to support the Committee.
The Grants and Contributions Oversight and Coordination Committee will be responsible for:
Document 2
Corporate Grants and Contributions Policy Implementation Plan
|
Programs funded 100% by the City of
Ottawa with Existing City Policies |
||
|
Dept |
Program Name, Description, 2009 Value |
Implementation |
|
FD |
Home Dialysis
Program Water bill relief for patients ($3,579) |
Subject to Annual
Review; substantive changes brought forward to Council (last April 2007) |
|
FD |
Farm Grant Program
Deferral of June tax instalment to December
of same year - interest owing is cancelled when paid ($24,258) |
Subject to Annual
Review and brought forward to Council as part of Tax Policy Report |
|
CSS |
Child Care Capital
Grant Program Funding to child care agencies for
renovations or purchasing of equipment ($511,000) |
Subject to Annual
Review and brought forward to Council as part of the Childcare Service Plan |
|
CSS |
Supports in Social
Housing Contribution to services that support
chronically homeless people to live in social housing ($653,014) |
Review scheduled
for 2012 |
|
EPS |
Annual Grant to
the ByWard Market Standholders Association Grant to the association that is equivalent
to 4.5% of the Council approved stand fees ($25,578) |
Review scheduled
for 2011 |
|
PRC |
Non-Profit Rentals at Centrepointe / Ben Franklin In-kind assistance to local not-for-profit
organizations that have a history of using Centrepointe Theatre and would not
otherwise be able to continue presenting their events in this venue ($5,254) |
Review scheduled
for 2011 |
|
PW |
Tree Planting
Grant Program Assisting community groups in tree planting
initiatives in schoolyards, parks and greenspaces ($70,247) |
Subject to Annual
Review; substantive changes brought forward to Council (last July 2010) |
|
PW |
BIA Parking
Initiatives Grant Program Support to BIAs for initiatives in keeping
with the Parking Management Strategy such as bicycle parking and promotional
materials ($5,000) |
Review scheduled
for 2011 |
|
CS |
Community
Environmental Projects Grant Program Funding to non-profit organizations to manage
small-scale initiatives that support City's environmental objectives
($46,118) |
Review scheduled
for 2011 |
|
ES |
Protective
Plumbing Program Grant to residents who experienced basement
backups caused by blockages or surcharging of city sewers for the installation
of protective plumbing devices ($828,295) |
Subject to Annual
Review; substantive changes brought forward to Council (last March 2010) |
Programs funded 100% by the City of
Ottawa with Existing City Policies |
||
|
Dept |
Program Name, Description, 2009 Value |
Implementation |
|
ES |
High Volume User
Program Grant to Ottawa businesses and institutions
for implementation of water efficiency measures such as water efficient
toilets, waterless urinals, low-flow showerheads, and commercial dishwashers
and washing machines ($404,335*) *Value includes Toilet Replacement Program
which was terminated in June 2010. |
Subject to Annual
Review; substantive changes brought forward to Council (last June 2010) |
|
PGM |
Program for
Responding to Requests for Reimbursements of Development-Related Fees New program- going forward $200,000 annual budget |
Program requires a
three-year relevancy review. First review
scheduled for 2013 |
|
PGM |
Rural Association
Partnership Program Project based funding for rural business
organizations, fairs and farmers markets $71,638 |
Review scheduled
for 2012 |
|
PGM |
Nutrient
Management Grant for Building Permits Grant to offset the cost of building permit
fees to Ottawa farmers for any building or structure needed to conform to the
provincial Nutrient Management Act $6,807 |
Review scheduled
for 2012 |
|
PW |
Snow Go Program Support to a snow removal coordination
program that provides financial assistance to eligible low income seniors for
snow removal costs $96,874 |
Subject to Annual
Review; substantive changes brought forward to Council (last July 2010) |
|
PGM |
Heritage Grant
Program for Building Restoration Funding on a matching basis to assist
owners of heritage buildings with restoration work $102,837 |
Subject to Annual
Review; substantive changes brought forward to Council. |
Programs funded 100% by the City of
Ottawa with Existing City Policies |
||
|
Dept |
Program Name, Description, 2009 Value |
Implementation |
|
PRC |
Cultural Funding $8,023,436 Funding for arts and culture aims to support
the development of a vibrant, artistic city Cultural Funding Includes: Arts Funding Program Arts Service Agreements Program Arts Capacity Building Program Ethno-Cultural Performing Arts and
Multi-Disciplinary Events Heritage Funding Program Museum Service Agreements Program Heritage Service Organizations Agreement Festivals and Fairs Festival Service Agreement Rural Arts Initiative Ottawa Book Awards Karsh Award Rich Little Endowment Fund for the
Performing Arts Cultural Facilities – Minor Capital Funding
Program Firestone Collection of Canadian Art
Management Agreement 2009 Shenkman Start-Up Funding |
Subject to Annual
Review; substantive changes brought forward to Council. (last February 2007) |
|
CSS and PRC |
Community Funding
Framework 21,865,718* Support of viable non-profit community-based
organizations in order to sustain a strong social infrastructure of community
services that supports equal access to the basics. The Community Funding program has five
funding envelopes:
*Total includes purchases of service from
Community and Recreation Boards totalling $1,184,922 |
Review scheduled
for 2011 and 2012 |
|
Programs funded 100% by the City of
Ottawa - Formal Policy Pending |
||
|
Dept |
Program Description |
Implementation |
|
CS |
Economic
Development Major Events |
New Policy to
Council for Approval 2010 |
|
CS |
Economic
Development Projects |
New Policy to
Council for Approval 2010 |
|
REPDO |
Non-profit
rental/lease policy |
New Policy to
Council for Approval 2011 |
|
PRC |
Special Event
In-kind Services |
New Policy to
Council for Approval 2012 |
Note: No action is required for implementation of this policy with respect to programs funded in whole or part by Provincial and/or Federal Governments.
[1] 2008 Audit of Grants and Contributions -
Recommendation 3, “That Management ensure applicants identify all other sources
of City funding as part of their submissions.”
[2] 2008 Audit of Grants and Contributions -
Recommendation 13. “That Management ensure all required actions are performed
and that all necessary documentation is collected and retained on file.”
[3] 2008 Audit of Grants and Contributions - Recommendation 6, “That Management ensure all Board and Annual Meeting minutes are properly signed. Management agrees with this recommendation. All application forms and funding submissions for 2010 will specify that the Annual Meeting minutes must be properly signed by the signing authority of the organization. Staff will ensure that this is being done on a consistent basis.”
[4] 2004 05 31 Coflin Report Phase 2 – Policy Development
and Process Refinements Recommendation 17. That organizations entering into
multi-year sustaining funding arrangements be required to submit annual interim
reports consisting of a copy of their most recent audited or independently
reviewed financial statement, a copy of their most recent annual report, a copy
of the minutes of their most recent annual general meeting, a financial
statement for the year to date, a budget for the coming year and a program
performance report.
[5] 2009 11 25 2008 Audit of Grants and Contributions Recommendation 12 That Management ensure oversight and monitoring processes are consistent and equitable for all recipients. Management agrees with this recommendation. The Community Funding Policy and Procedures Manual ensures that there is appropriate oversight and monitoring and that these processes are consistent with all staff and all agencies (applicants and recipients). The new corporate-wide funding framework will ensure that clauses for insurance, audit and occupational health and safety are consistent in the various agreements across programs and will also establish a standardized monitoring template to be used by staff. The corporate-wide funding framework will be developed for Committee and Council consideration in Q3 2009.
[6] 2008 Audit of Grants and Contributions -
Recommendation 5, “That Management ensure all official files contain complete
evidence of checking of documentation including follow-up notes, additional
commentary, etc.”
[7] 2008 Audit of Grants and Contributions -
Recommendation 5, Management Response, “This checklist identifies all
requirements and lists mandatory documents.
Staff indicate whether those requirements have been met and initial the
checklist. Staff note on the checklist
any follow-up actions that have been taken.
The checklist is included on file with each application/funding
submission form.”
[8] 2008 Audit of Grants and Contributions -
Recommendation 11, “That all files retain narrative summaries of follow-up
undertaken including site visits, attendance at meeting, telephone calls and
email correspondence.”
[9] 2008 Audit of Grants and Contributions - Recommendation
4, “That Management carryout and retain on file a risk assessment of all
proponents.”
[10] 2008 Audit of Grants and Contributions -
Recommendation 9, “That all documentation related to allocation determination
be retained on file.”
[11] 2009 Audit of Grants and Contributions Recommendation 13, “That the City ensure all required actions are performed and that all necessary documentation is collected and retained on file.” Management Response, “Staff will develop a checklist identifying all of the required documentation that will be placed on each file in order to ensure compliance with the program requirements through the application and approval processes. Staff will also add a requirement to its processes that when someone acts on behalf of wner for the grants program, there is authorizing documentation from the property owner in place. These procedural changes will be completed prior to the end of Q1 2009.