The Department began funding Tribal Councils in the mid-1980s to provide for the aggregated delivery of programs and services to affiliated bands, the management and administration of Tribal Councils as well as for the delivery of advisory services and programs to affiliated First Nations.
In addition to delivering aggregated programming such as economic development, 78 Tribal Councils have responsibility for providing advisory services in the areas of economic development, financial management, community planning, technical services and band governance. In 2011-2012, AANDC provided a total of $46.9 million to 78 Tribal Councils serving 475 First Nations. The Band Advisory Services program provided $2.4 million in funding in 2011-2012 to 19 of the largest First Nations with an on-reserve population of 2,000 Status Indians or more, and which are not affiliated with Tribal Councils.
In the almost 30 years since AANDC began funding tribal councils, the institutional landscape and the needs of First Nations have changed. An increasing number of specialized institutions such as the Aboriginal Financial Officers' Association, the First Nations Financial Management Board and the Aboriginal Economic Development Board now provide expert advisory services to First Nations, that were once provided exclusively through Tribal Council or Band Advisory Services.
Changes to Tribal Council and Band Advisory Services Funding:
AANDC is shifting the focus of funding for Tribal Councils and Band Advisory Services away from the requirement to deliver specific advisory services, in order to ensure that resources are directed toward the more efficient and effective delivery of essential programs and services. This will also mean placing a greater emphasis on performance in determining funding allocations.
Effective in 2014-2015, AANDC will implement a new funding formula for Tribal Councils. To accommodate the reduced level of funding, the Tribal Council Funding program's design will change to include: a simpler funding formula; incentives for First Nations to aggregate program delivery through tribal councils; reduced administrative burden and more flexibility with regard to advisory services.
The emphasis will be on core funding for major program delivery through a simplified system with incentives based on the number of First Nations represented and the number of major programs delivered.
Changes to the Funding Formula:
As of April 1, 2014, a revised funding formula will contribute towards core funding for aggregate program delivery through a tiered system. The tiers provide incentives to encourage aggregation in the size of populations served by tribal councils and in the range of major AANDC programs they deliver.
Tier 1 – Base of $200,000
Tier 1 tribal councils will receive a base amount of $200,000 per year. A Tier 1 tribal council has the following characteristics:
- Serves an on-reserve population less than 2,000 AND
- Serves 2 to 5 member First Nations AND
- Delivers fewer than 3 major AANDC programs
Tier 2 – Base + Incentive of $150,000 (total of $350,000)
Tier 2 tribal councils will receive the base amount of $200,000 plus an incentive amount of $150,000 for a total of $350,000 per year. A Tier 2 tribal council has one or more of the following characteristics:
- Serves an on-reserve population of between 2,000 and 5,500; or
- Serves 6 to 8 member First Nations; or
- Delivers 3 to 5 major AANDC programs
Tier 3 – Base + Incentive of $300,000 (total of $500,000)
Tier 3 tribal councils will receive a base amount of $200,000 plus an incentive of $300,000 for a total of $500,000 per year. A Tier 3 tribal council has one or more of the following characteristics:
- Serves an on-reserve population over 5,500; or
- Serves 9 or more member First Nations; or
- Delivers 6 or more major AANDC programs
Tribal Councils will no longer be required to deliver the five specific advisory services required under the existing funding formula, and, as such, Band Advisory Services funding will also be eliminated in 2014-2015. Tribal Councils may continue to provide advisory services if mandated by their members, provided that the requirements of the program have been satisfied.
Tribal Council funding will be provided through multi-year funding agreements with a minimum two-year term and will include streamlined and reduced reporting requirements.
