Canada – Prince Edward Island Early Learning and Child Care Agreement - 2017-2020

On this page

• 1. Vision for Early Learning and Child Care
• 2. Early Learning and Child Care objectives and areas of investment
• 3. Period of agreement
• 4. Financial provisions
• 5. Accountability
• 6. Long-term collaboration
• 7. Communications
• 8. Dispute resolution
• 9. Equality of treatment
• 10. Amendments to the agreement
• 11. Termination
• 12. Notice
• 13. General
• Annex 1: Multilateral Early Learning and Child Care framework
• Annex 2: Prince Edward Island action plan

Between:

Her Majesty the Queen in right of Canada (hereinafter referred to as “Canada” or “Government of Canada”) as represented by the Minister of Employment and Social Development (herein referred to as “the federal Minister”)

And

The Government of Prince Edward Island (hereinafter referred to as “Prince Edward Island” or “Government of Prince Edward Island”) as represented by the Minister of Education, Early Learning and Culture herein referred to as “the provincial Minister”)

Referred to collectively as the “Parties”

Preamble

Whereas, Canada and Prince Edward Island agreed to a Multilateral Early Learning and Child Care Framework on June 12, 2017 which articulated their shared vision for early learning and child care and describes their approach to achieve this vision;

Whereas, the Department of Employment and Social Development Act authorizes the federal Minister to enter into agreements with the provinces and territories, for the purpose of facilitating the formulation, coordination and implementation of any program or policy within the mandate of the federal Minister;

Whereas, the Executive Council Act, RSPEI 1988, CAP. E-12 authorizes the provincial Minister to enter in to agreements with the Government of Canada under which Canada undertakes to provide funding toward costs incurred by the Government of Prince Edward Island for the provision of early learning and child care programs and services;

Whereas, Canada has, pursuant to its Policy on Transfer Payments, established a transfer payment program to provide funds to the provincial and territorial governments for the development and delivery of regulated early learning and child care programs and services for children under six years of age, with consideration for families more in need;

Whereas, Canada, in close collaboration with Indigenous peoples, is developing a separate framework on Indigenous early learning and child care.

Whereas, Prince Edward Island invests in early learning and child care for Indigenous children.

Now therefore, Canada and Prince Edward Island agree as follows:

1. Vision for Early Learning and Child Care

1.1 Canada and Prince Edward Island agree that the long term vision, principles and objectives for early learning and child care, which are set out in the Multilateral Early Learning and Child Care Framework (“Framework”) that is attached as Annex 1, will guide the investment of funds provided under this Agreement.

2. Early Learning and Child Care objectives and areas of investment

2.1 Objectives

2.1.1 Canada and Prince Edward Island agree that over the period of this Agreement, with financial support from Canada, Prince Edward Island will further build its early learning and child care system by addressing local, regional and system priorities that have an impact on families more in need by increasing the quality, accessibility, affordability, flexibility and/or inclusivity in early learning and child care, towards achieving the objectives of:

1. Increasing access for under-served children and children who are more vulnerable, including, infants, preschoolers, children whose parents work non-standard hours and / or seasonally, and children in Newcomer families.
2. Increasing early learning and child care supports for the more vulnerable children, including children with unique abilities and children in Acadian and Francophone communities.
3. Increasing the quality of early learning and child care experiences provided to children from staff by offering training supports to Early Learning and Child Care staff.

Prince Edward Island’s vision for early learning and child care and approach to achieving these objectives is set out in their Action Plan attached as Annex 2.

2.2 Eligible Areas of Investment

2.2.1 Prince Edward Island agrees to prioritize funds provided by Canada under this Agreement in regulated early learning and child care programs and services for children under the age of six where:

1. Regulated programs and services are defined as those that meet standards that are established and/or monitored by provincial/territorial governments.
2. Early learning and child care programs and services are defined as those supporting direct care and early learning for children in settings including, but not limited to, regulated child care centres, regulated family child care homes, early learning centres, preschools and nursery schools.

2.2.2 In developing and delivering its early learning and child care programs and services, Prince Edward Island agrees to take into account the needs of the official language minority community in Prince Edward Island.

2.2.3 Types of investments include: capital and operating funding for regulated early learning and child care, fee subsidies, training, professional development and support for the early childhood workforce, quality assurance, parents information and referral, and administration costs incurred by Prince Edward Island in implementing and administering this Agreement.

2.2.4 Canada and Prince Edward Island also agree to promote, define, and deliver identifiable innovative approaches to enhance the quality, accessibility, affordability, flexibility, and inclusivity of early learning and child care systems, with consideration for those more in need.

2.2.5 Canada and Prince Edward Island agree that funding will be targeted toward programs and activities, as described above, for children under the age of six, that will have an impact on families more in need such as lower-income families, Indigenous families, lone-parent families, families in underserved communities; those working non-standard hours; and/or families with children with varying abilities. Needs also include having limited or no access to early learning and child care programs and/or services in the children’s official language.

3. Period of agreement

3.1 This Agreement shall come into effect upon the last signature being affixed and will remain in effect until March 31, 2020, unless terminated in writing by Canada or Prince Edward Island in accordance with the terms hereof in section 10. Funding provided under this Agreement, in accordance with section 4, will cover the period from April 1, 2017 to March 31, 2020.

3.2 Renewal of Bilateral Agreements

3.2.1 Canada commits that the annual federal allocation for all provinces and territories for the period 2020-21 to 2027-28 will be no less than the federal annual allocation for all provinces and territories for the period 2017-2018 to 2019-2020. Funding for future years will be provided upon the renewal of bilateral agreements conditional on Canada’s acceptance of new action plans and informed by the assessment of the results achieved under the action plan set out in Annex 2.

3.2.2 The renewal will provide Prince Edward Island and Canada the opportunity to review and course correct, if required, and realign new priorities in future bilateral agreements based on progress made to date.

3.2.3. In the event this bilateral agreement is renewed in accordance with the terms of section 3.2.1, Prince Edward Island may continue to use funding provided thereunder to cover the same eligible areas of investment as those covered through funding received for the period 2017-2018 to 2019-2020 subject to the terms and conditions of that renewed agreement.

4. Financial provisions

4.1 These contributions are in addition and not in lieu of those that Canada currently pays to Prince Edward Island through the Canada Social Transfer in order to support early childhood development and early learning and child care within Prince Edward Island.

4.2 Allocation to Prince Edward Island

4.2.1 Canada has designated the following maximum amounts to be transferred in total to all provinces and territories under this initiative with a fixed base rate of $2 million per year for each province and territory and the balance of the funding on a per capita basis for the period starting on April 1, 2017 and ending on March 31, 2020.

1. $399,669,692 for the Fiscal Year beginning on April 1, 2017
2. $399,347,695 for the Fiscal Year beginning on April 1, 2018
3. $399,347,695 for the Fiscal Year beginning on April 1, 2019

4.2.2 Subject to annual adjustment based on the formula described in section 4.2.3, Prince Edward Island’s estimated share of the amounts described in section 4.2.1 will be:

Canada commits that the annual allocation for all provinces and territories for the period 2020-2021 to 2027-2028 will be no less than the annual allocation for all provinces and territories of this current agreement under the conditions set in section 3.2.1.

4.2.3 The final yearly amount to be paid to Prince Edward Island will be calculated using the following formula F x K/L, where:

F is the annual total funding amount transferred to provinces and territories minus the base funding;

K is the total population of Prince Edward Island, as determined using annual population estimates from Statistics Canada;

L is the total population of Canada, as determined using annual population estimates from Statistics Canada.

4.2.4 For the purposes of the formula in section 4.2.3, the population of Prince Edward Island for each Fiscal Year and the total population of all provinces and territories for that Fiscal Year are the respective populations as determined on the basis of the quarterly preliminary estimates of the respective populations on July 1 of that Fiscal Year. These estimates are released by Statistics Canada in September of each Fiscal Year.

4.3 In this Agreement, “Fiscal Year” means the period commencing on April 1 of any calendar year and terminating on March 31 of the immediately following calendar year.

4.4 Payment

4.4.1 Canada’s contribution will be paid in approximately equal semi-annual installments as follows:

The total payment for Fiscal Year 2017-2018 will be paid within 30 days of the Parties signing this Agreement.

The first installment for the Fiscal Years 2018-2019 and 2019-2020 will be paid on or about June 15 of each Fiscal Year. The second installment will be paid on or about November 15 of each Fiscal Year.

The amount of the first installment will be an amount equal to 50% of the notional amount of Canada’s maximum contribution to Prince Edward Island for the Fiscal Year, which will be calculated in the manner described in sections 4.2.3 and 4.2.4.

The amount of the second installment will be an amount equal to the balance of Canada’s contribution to Prince Edward Island for the Fiscal Year based on the actual amount of the contribution determined under sections 4.2.3 and 4.2.4 for the Fiscal Year.

Canada will notify Prince Edward Island at the beginning of the Fiscal Year of their notional amount. The notional amount will be based on the Statistics Canada quarterly preliminary population estimates on July 1 of the preceding Fiscal Year. Canada will notify Prince Edward Island of the actual increased or decreased amount of the second installment in each Fiscal Year as determined under the formula set out in section 4.2.3 as soon as possible following the release in September of each year of the Statistics Canada quarterly preliminary population estimates referred to in section 4.2.4.

For 2018-2019 and 2019-2020, Canada shall withhold payment of its second installment for the Fiscal Year if Prince Edward Island has failed to provide its annual audited financial statement for the previous Fiscal Year in accordance with section 5.2.1 (d) until such time as the annual audited statement is provided.

Payment of Canada’s funding for each Fiscal Year of this Agreement is subject to an annual appropriation by the Parliament of Canada for this purpose. Likewise, use of the funding by Prince Edward Island is subject to an annual appropriation by Prince Edward Island’s Legislature.

4.5 Maximum annual contribution in respect of administration costs.

4.5.1 Canada’s contribution in respect of Prince Edward Island’s administration costs referred to in section 2.2.3 shall not exceed:

In Fiscal Years 2017-2018, 2018-2019 and 2019-2020, an amount up to 10% of the maximum amount payable for those Fiscal Years.

4.6 Carry Forward

4.6.1 At the request of Prince Edward Island and subject to the approval of Canada’s Treasury Board, Prince Edward Island may retain and carry forward to Fiscal Year 2018-2019, an amount of up to 50% of the contribution paid to Prince Edward Island for 2017-2018 under section 4.2.3 that is in excess of the amount of eligible costs actually incurred by Prince Edward Island in that Fiscal Year, and may only use the amount carried forward to 2018-2019 for expenditures on eligible areas of investment under section 2.2 incurred in that Fiscal Year.

4.6.2 For greater certainty, the amount carried forward to Fiscal Year 2018-2019 under this section is supplementary to the maximum amount payable to Prince Edward Island under section 4.2.3 of this Agreement in 2018-2019.

4.6.3 The amount carried forward pursuant to section 4.6.1 must be spent by March 31, 2019. Prince Edward Island is not entitled to retain any such carried forward amounts that remain unexpended after March 31, 2019, nor is it entitled to retain any balance of Canada’s contribution for Fiscal Year 2018-2019 paid pursuant to section 4.2.3 that remains unexpended at the end of that Fiscal Year. Such amounts are to be repaid to Canada in accordance with section 4.7

4.6.4 At the request of Prince Edward Island and subject to the approval of Canada’s Treasury Board, Prince Edward Island may retain and carry forward to Fiscal Year 2019-2020, an amount of up to 10% of the contribution paid to Prince Edward Island for 2018-2019 under section 4.2.3 that is in excess of the amount of eligible costs actually incurred by Prince Edward Island in that Fiscal Year, and may only use the amount carried forward to 2019-2020 for expenditures on eligible areas of investment under section 2.2 incurred in that Fiscal Year.

4.6.5 For greater certainty, the amount carried forward to Fiscal Year 2019-2020 under this section is supplementary to the maximum amount payable to Prince Edward Island under section 4.2.3 of this Agreement in 2019-2020.

4.6.6 The amount carried forward pursuant to section 4.6.4 must be spent by March 31, 2020. Prince Edward Island is not entitled to retain any such carried forward amounts that remain unexpended after March 31, 2020, nor is it entitled to retain any balance of Canada’s contribution for Fiscal Year 2019-2020 paid pursuant to section 4.2.3 that remains unexpended at the end of that fiscal year. Such amounts are to be repaid to Canada in accordance with section 4.7.

4.7 Reconciliation of Payments

4.7.1 In the event payments made to Prince Edward Island exceed the amount to which Prince Edward Island is entitled under this Agreement, the amount of the excess is a debt due to Canada and shall be repaid to Canada upon receipt of notice to do so and within the period specified in the notice.

4.7.2 In the event that the second installment payment made to Prince Edward Island is determined to be less than the amount to which Prince Edward Island is owed under the terms of section 4, Canada agrees to pay to Prince Edward Island, as soon as feasible, the amount determined to be outstanding by mutual written agreement of the parties.

4.8 Use of Funds

4.8.1 Canada and Prince Edward Island agree that funds provided under this Agreement will only be used by Prince Edward Island in accordance with the areas for investment outlined in section 2.2 of this Agreement.

4.8.2 Canada and Prince Edward Island agree that, within each Fiscal Year of the period of this Agreement, Prince Edward Island may move funding between the individual programming categories outlined in its Action Plan in Annex 2 to ensure the maximum use of funding. Prince Edward Island agrees to notify Canada in writing of any such change in funding allocation, including the rationale for the change.

5. Accountability

5.1 Action Plan

5.1.1 Prince Edward Island has completed and shared its Action Plan for the years 2017-18 – 2019-20 of federal funding with Canada, as set out in Annex 2. Upon signature of this Agreement by both Parties, Prince Edward Island will publicly release their Action Plan which:

1. Identifies specific priority areas for investment and objectives, within the Framework’s parameters, based on an assessment of progress to date in the quality, accessibility, affordability, flexibility and/or inclusivity of their early learning and child care system, with consideration for those more in need;
2. Describes how Prince Edward Island plans to address the early learning and child care needs of its children/families more in need, including families that have limited access to programs and/or services in their official language;
3. Outlines their planned innovation spending;
4. Demonstrates that federal investments will be incremental, and will not displace existing Prince Edward Island early learning and child care spending, in particular spending dedicated to Indigenous populations;
5. Outlines the indicators that will be reported on annually according to their planned investments;
6. Identifies specific targets for each indicator that will be reported on annually for tracking progress in relation to the objectives of the Agreement;
7. Identifies additional jurisdiction-specific indicators for tracking progress in relation to the objectives of the Agreement;
8. Includes a description of consultation processes referred to in section 5.1.2, the type of groups consulted and annual priorities related to stakeholder feedback.

5.1.2 Prince Edward Island will consult with parents, child care providers, experts, Indigenous peoples, official language minority communities and other interested Canadians as an important step in developing and revising its Action Plan.

5.2 Reporting

5.2.1 By no later than October 1 of the subsequent Fiscal Year during the Period of this Agreement, Prince Edward Island agrees to:

1. Report to the people of Prince Edward Island and to Canada on the results and expenditures of early learning and child care programs and services attributable to the funding provided by Canada under this Agreement.
2. Continue to provide to Canada data required for the publication of the joint Federal-Provincial/Territorial report on Public Investments in Early Childhood Education and Care in Canada. This shall include the number of children receiving subsidies, number of licensed early learning and child care spaces broken down by age of child and type of setting.
3. Provide to Canada an Annual Report in the format and manner decided jointly by Canada and Prince Edward Island. The report shall show separately the results attributable to the funding provided by Canada under this Agreement and shall include:
   1. Brief description of the activities, expenditures and results of the Canada-Prince Edward Island Early Learning and Child Care Agreement as set out in Annex 2;
   2. Results achieved according to the indicators and targets referred to in Annex 2;
   3. Impact on families more in need, including families that have limited access to programs and services in their official language referred to in Annex 2;
   4. Results achieved on innovation referred to in Annex 2;
   5. Description of consultation processes, the type of groups consulted and annual priorities related to stakeholder feedback referred to in Annex 2; and
   6. Any additional results of evaluation activities undertaken in the Fiscal Year, as available.
   7. For Year 1, Prince Edward Island will provide all available data on the agreed-to indicators by no later than October 1, 2017.
4. Provide to Canada an audited statement of revenues and expenses received from Canada under this Agreement during the preceding Fiscal Year
   1. The revenue section of the statement shall show the amount received from Canada under this Agreement during the Fiscal Year.
   2. The total amount of funding used for early learning and child care programs and services under section 2.2.
   3. The administration costs incurred by Prince Edward Island in developing and administering early learning and child care programs under section 2.2.3.
   4. If applicable, the amount of any amount carried forward by Prince Edward Island under section 4.6.
   5. If applicable, the amount of any surplus funds that are to be repaid to Canada under section 4.7.

The financial statement shall be prepared in accordance with Canadian Generally Accepted Accounting Principles and the audit shall be performed by the Prince Edward Island Auditor General or his/her delegate, or by an independent public accounting firm registered under the laws of Prince Edward Island and shall be conducted in accordance with Canadian Auditing Standards.

5.2.2 Canada, with prior notice to Prince Edward Island, may incorporate all or any part or parts of the Annual Report referred to in section 5.2.1.(c) into any public report that Canada may prepare for its own purposes, including any reports to the Parliament of Canada or reports that may be made public.

5.3 Audit

5.3.1 Prince Edward Island will ensure that expenditure information presented in the annual report is, in accordance with Canadian Generally Accepted Accounting Principles, complete and accurate.

5.4 Evaluation

5.4.1 As per established policies and processes with respect to program effectiveness, Prince Edward Island will evaluate programs and/or services receiving funds provided under this Agreement and make public the results of any such evaluations.

6. Long-term collaboration

6.1 Canada and Prince Edward Island agree to share and release data as available, and knowledge, research and information on effective and innovative practices in early learning and child care, to further support the development of and reporting on quality and outcomes. Canada and Prince Edward Island agree to work together, and with stakeholders, towards the development of common quality and outcome measures that could be included in bilateral agreements in the future that could reinforce the Framework’s long-term vision.

6.2 Canada and Prince Edward Island agree to work together to improve data collection and dissemination on key early learning and child care information for children under age six.

7. Communications

7.1 Canada and Prince Edward Island agree on the importance of communicating with citizens about the objectives of this Agreement in an open, transparent, effective and proactive manner through appropriate public information activities.

7.2 Each government will receive the appropriate credit and visibility when investments financed through funds granted under this Agreement are announced to the public.

7.3 Canada agrees to give Prince Edward Island 10 days advance notice and advance copies of public communications related to the Framework, bilateral agreements, and results of the investments of this Agreement.

7.4 Prince Edward Island agrees to give Canada 10 days advance notice and advance copies of public communications related to the Framework, bilateral agreements, and results of the investments of this Agreement.

7.5 Canada reserves the right to conduct public communications, announcements, events, outreach and promotional activities about the Framework and bilateral agreements.

7.6 Prince Edward Island reserves the right to conduct public communications, announcements, events, outreach and promotional activities about the Framework and bilateral agreements.

8. Dispute resolution

8.1 Canada and Prince Edward Island are committed to working together and avoiding disputes through government-to-government information exchange, advance notice, early consultation, and discussion, clarification, and resolution of issues, as they arise.

8.2 If at any time either Canada or Prince Edward Island is of the opinion that the other Party has failed to comply with any of its obligations or undertakings under this Agreement or is in breach of any term or condition of the Agreement, Canada or Prince Edward Island, as the case may be, may notify the other party in writing of the failure or breach. Upon such notice, Canada and Prince Edward Island will endeavour to resolve the issue in dispute bilaterally through their Designated Officials, the Directors most responsible for early learning and child care.

8.3 If a dispute cannot be resolved by Designated Officials, then the dispute will be referred to the Deputy Ministers of Canada and Prince Edward Island most responsible for early learning and child care, and if it cannot be resolved by them, then the federal Minister and the provincial Minister shall endeavour to resolve the dispute.

9. Equality of treatment

9.1 During the term of this Agreement, if another province or territory, except the province of Quebec, which is not part of the Early Learning and Child Care Framework, negotiates and enters into an Early Learning and Child Care Agreement with Canada, or negotiates and enters into an amendment to such an agreement and if, in the reasonable opinion of Prince Edward Island, any provision of that agreement or amended agreement is more favourable to that province or territory than the terms set forth in this Agreement, Canada agrees to amend this Agreement in order to afford similar treatment to Prince Edward Island, if requested by Prince Edward Island. This includes any provision of the bilateral agreement except for the Financial Provisions set out under section 4.0. This amendment shall be retroactive to the date on which the Early Learning and Child Care agreement or the amendment to such an agreement with the other province or territory, as the case may be, comes into force.

9.2 Canada will make publicly available up-to-date Early Learning and Child Care agreements entered into with all provinces and territories, including any amendments, by posting them on a Government of Canada website.

10. Amendments to the Agreement

10.1 This Agreement, including all attached annexes, except Annex 1, may be amended at any time by mutual consent of the Parties. To be valid, any amendments shall be in writing and signed, in the case of Canada, by Canada’s Minister of Employment and Social Development, and in the case of Prince Edward Island, by Prince Edward Island’s Minister most responsible for early learning and child care.

11. Termination

11.1 Canada may terminate this Agreement at any time if the terms of this Agreement are not respected by Prince Edward Island by giving at least 6 months written notice of its intention to terminate. Prince Edward Island may terminate this Agreement at any time if the terms of this Agreement are not respected by Canada by giving at least 6 months written notice of its intention to terminate.

11.2 As of the effective date of termination of this Agreement under section 11.1, Canada shall have no obligation to make any further payments to Prince Edward Island.

12. Notice

12.1 Any notice, information or document provided for under this Agreement will be effectively given if delivered or sent by letter, postage or other charges prepaid. Any notice that is delivered will have been received in delivery; and, except in periods of postal disruption, any notice mailed will be deemed to have been received eight calendar days after being mailed.

The address for notice or communication to Canada shall be:

140 Promenade du Portage
Gatineau, Québec K1A 0J9

The address for notice or communication to Prince Edward Island shall be:

Department of Education, Early Learning and Culture
250 Water St., Suite 101
Summerside, PEI C1N 1B6

13. General

13.1 This Agreement, including Annexes 1 and 2, comprise the entire agreement entered into by the Parties with respect to the subject matter hereof.

13.2 This Agreement is based on the Multilateral Early Learning and Child Care Framework, Annex 1, concluded on June 12, 2017.

13.3 This Agreement shall be interpreted according to the laws of Canada and Prince Edward Island.

13.4 No member of the House of Commons or of the Senate of Canada or of the Legislature of Prince Edward Island shall be admitted to any share or part of this Agreement, or to any benefit arising therefrom.

13.5 If for any reason a provision of this Agreement that is not a fundamental term is found by a court of competent jurisdiction to be or to have become invalid or unenforceable, in whole or in part, it will be deemed to be severable and will be deleted from this Agreement, but all the other provisions of this Agreement will continue to be valid and enforceable.

13.6 This Agreement is drafted in English at the request of the Parties. Les parties ont convenu que le présent Accord soit rédigé en anglais.

Signed on behalf of Canada by the Minister of Employment and Social Development at Charlottetown this 29^th day of August, 2017.

The Honourable Jean-Yves Duclos, Minister of Employment and Social Development

Signed on behalf of Prince Edward Island by the Minister of Education, Early Learning and Culture at Charlottetown this 29^th day of August, 2017.

The Honourable Doug Currie, Minister of Education, Early Learning and Culture

Annex 1: Multilateral Early Learning and Child Care framework

Federal, Provincial and Territorial Ministers most responsible for Early Learning and Child Care agree^{Footnote 1} on the importance of supporting parents, families and communities in their efforts to ensure the best possible future for their children. For more details on this agreement, please consult the Multilateral Early Learning and Child Care Framework.

Annex 2: Prince Edward Island action plan