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Minister's Message

On behalf of Indian and Northern Affairs Canada (INAC) and the Canadian Polar Commission, I am pleased to present the 2009–2010 Departmental Performance Report.

This past year, the Government has focused on ensuring that Canada returns to economic growth. In this broader context, as the Speech from the Throne and Budget 2010 reinforced, our Government remains committed to building a stronger, healthier relationship with Aboriginal people and to realizing the vast potential of Canada’s North. A special acceleration of these efforts came as a result of Canada’s Economic Action Plan as the Government invested an additional $1.9 billion over two years in Aboriginal skills and training, economic development, housing and infrastructure, as well as in support of the Northern Strategy. This year’s report speaks to the results these investments are achieving.

Over the past year, we have been busy working collaboratively with Aboriginal communities, the provinces and territories to put in place the necessary legislative foundation to make tangible progress in such priority areas as safe drinking water in First Nation communities, commercial real estate development on reserve land, matrimonial rights, gender discrimination in the Indian Act and modern treaties in British Columbia.

This report also speaks to how we are moving forward with the implementation of the Northern Strategy, including the progress in creating a world-class High Arctic Research Station and the improved science and research facilities thanks to the Arctic Research Infrastructure Fund. Furthermore, you will read about how we are actively reforming the northern regulatory regime to ensure the region’s resource potential can be developed while protecting the environment. One key innovation this past year was the creation of the Canadian Northern Economic Development Agency (CanNor), the first ever regional development agency for the North and the only federal agency headquartered in the North.

Our efforts and results over the last year demonstrate that we are committed to ensuring that Aboriginal people and people living in the North fully share in emerging opportunities as Canada’s economy strengthens.

 

Section I – Departmental Overview

Raison d’être and Responsibilities

Indian and Northern Affairs Canada (INAC), including the Office of the Federal Interlocutor for Métis and Non-Status Indians (OFI), is the federal department primarily responsible for meeting the Government of Canada’s obligations and commitments to Aboriginal peoples (First Nations, Inuit and Métis), and fulfilling the government’s constitutionally mandated role in the North. To this end, INAC helps Canada’s Aboriginal and northern peoples foster healthy and sustainable communities, and pursue economic and social development. More specifically, INAC works with 33 other federal departments and agencies in:

• promoting improved education for Aboriginal peoples;
• pursuing frameworks for effective governance and self-governance;
• helping to empower Aboriginal citizens and protect those who are most vulnerable;
• working to resolve outstanding land claims; and
• supporting sustainable economic development, which contributes to Aboriginal and northern employment and strengthens local communities.

These diverse and complex responsibilities flow from the department’s central mandates: Indian and Inuit Affairs, the Office of the Federal Interlocutor for Métis and Non-Status Indians, and Northern Development. [Note 1]

Indian and Inuit Affairs

INAC’s overall mandate derives from the Canadian Constitution, the Department of Indian Affairs and Northern Development Act, other legislation and numerous regulations under the responsibility of the Minister of Indian Affairs and Northern Development, and treaties. Evolving jurisprudence continues to shape the department’s mandate, policy decisions and program development.

INAC’s responsibilities for Indian and Inuit Affairs include:

• negotiating land claim and self-government agreements with members of Aboriginal communities, and overseeing the implementation of settled claims on behalf of the federal government;
• facilitating economic development opportunities for Aboriginal individuals, communities and businesses;
• funding the delivery of services to Status Indians on reserves usually delivered by the provinces, such as education, housing, community infrastructure and social support;
• addressing and resolving issues that arise from the legacy of Indian residential schools;
• liaising effectively between the Government of Canada and Inuit communities, governments and organizations in the implementation of policies and the delivery of services; and
• fulfilling duties prescribed by the Indian Act, including managing Indian reserve lands and financial resources belonging to First Nation communities, and approving or rejecting bylaws in First Nation communities.

The Office of the Federal Interlocutor

INAC’s Office of the Federal Interlocutor is the point of contact within the Government of Canada for Métis, Non-Status Indians and urban Aboriginal people. [Note 2] Its responsibilities include delivering improved federal services to Aboriginal people who do not live on reserves. Through the Office, the department maintains and strengthens government relations with organizations representing these groups.

Northern Development

INAC has a direct role in the political and economic development of the territories, as well as significant resource, land and environmental management obligations. [Note 3]

INAC’s responsibilities for Northern Development include:

• promoting political and economic development in Yukon, the Northwest Territories and Nunavut;
• negotiating the transfer of federal responsibilities for land and resource management to the territorial governments;
• managing the resources, land and environment of the North in places where federal responsibilities have not been transferred to territorial governments;
• co‑ordinating initiatives, for example, to manage contaminated sites or subsidize the delivery cost of nutritious perishable food; and
• advancing circumpolar interests, such as Canada’s Arctic sovereignty, climate change adaptation and environmental protection, Canadian representation at circumpolar forums, and scientific research in, and understanding of, the North.

INAC is the lead federal organization for the Government of Canada’s integrated Northern Strategy. The Strategy is founded on four equally important and mutually reinforcing priorities: exercising Canada’s Arctic sovereignty; promoting social and economic development; protecting Canada’s environmental heritage; and improving and devolving northern governance. In close partnership with other federal departments and agencies, INAC works to develop new initiatives for the North. With its well-established northern presence, INAC also provides ongoing oversight of the approved initiatives that it leads, as well as of initiatives led by its partners. The department is supporting implementation of the comprehensive Northern Strategy through such INAC-led initiatives as the Canadian High Arctic Research Station, which will contribute to Canada’s capacity for sound decision-making for the Arctic.

On August 18, 2009, the Government of Canada created the Canadian Northern Economic Development Agency (CanNor) as a regional economic development agency for the North. As a result, programs under INAC’s Northern Economy Program Activity were transferred to the new agency (see Program Activity Architecture below). CanNor is a partner in implementing the Northern Strategy and its performance information for 2009–2010 can be found under the Northern Economy Program Activity.

The Canadian Polar Commission, for which the Minister of Indian Affairs and Northern Development is also responsible, supports polar research and strengthens Canada’s international reputation as a leader among circumpolar nations. In addition to promoting knowledge of Canada’s polar regions and their importance to the country, the Commission provides polar science policy direction to government. [Note 4]

 

Program Activity Architecture

The Program Activity Architecture shown below provides an overview of the department’s strategic outcomes and supporting program activities.

[D]

When the Canadian Northern Economic Development Agency (CanNor) was established in August 2009, INAC transferred all programs under its Northern Economy Program Activity to CanNor. The Program Activity Architecture has not been modified to reflect this change for 2009–2010 but will be for 2010-2011. CanNor’s performance information for 2009–2010 can be found under the Northern Economy Program Activity of this report.

 

Performance Summary

2009-10 Financial Resources ($ millions)

Planned Spending	Total Authorities	Actual Spending
Indian and Northern Affairs Canada
7,336.8	7,915.1	7,439.5
Canadian Northern Economic Development Agency a
n/a	47.7	39.6
Canadian Polar Commission
1.0	1.0	1.0

2009-10 Human Resources (FTEs)

Planned	Actual	Difference
Indian and Northern Affairs Canada
4,805.4	5,186.5	381.1
Canadian Northern Economic Development Agency a
n/a	106	n/a
Canadian Polar Commission
5.0	5.0	0

a Order in Council P.C. 2009-1423 transferred from the Department of Indian Affairs and Northern Development to the Canadian Northern Economic Development Agency the control and supervision of the portion of the federal public administration in the Department of Indian Affairs and Northern Development known as the Northern Economic Development Branch, effective August 18, 2009. Actual spending of $39.6 million reflects expenditures for the period from August 18, 2009, to March 31, 2010. A reprofile request for the variance between Actual Spending and Total Authorities is pending.

The increase of 381.1 full-time equivalents (FTEs), from 4,805.4 planned to 5,186.5 actual FTEs, is partly due to new funding under the Supplementary Estimates for extra programming that was not part of the original planned amount.

Explanation of Variances

Indian and Northern Affairs Canada

Variances between Main Estimates, Planned Spending, Total Authorities and Actual Spending are largely attributable to the timing of key elements of the fiscal cycle. The Main Estimates as approved by Parliament in the initial appropriations are the first step in the fiscal cycle.

The Planned Spending column includes Main Estimates ($6,934 million), plus the planned spending on those initiatives known when the Report on Plans and Priorities was prepared in the January/February timeframe of the preceding fiscal year. Specifically, the difference between Main Estimates and Planned Spending for 2009–2010 (approximately $403 million) largely consists of funding earmarked for the following initiatives:

• Canada’s Economic Action Plan (i.e., investments in First Nation infrastructure and housing, Arctic research infrastructure, a new regional economic development agency for the North, the Strategic Investments in Northern Economic Development program, and First Nation child and family services);
• Budget 2008 announcements for a new framework for economic development;
• Federal Contaminated Sites Action Plan;
• Tsawwassen First Nation Final Agreement; and
• obligations under the Indian Residential Schools Settlement Agreement.

The Total Authorities represent Main Estimates plus Supplementary Estimates, plus adjustments to authorities approved by Treasury Board, such as the operating budget carry-forward. Specifically, the difference between Planned Spending and Total Authorities for 2009–2010 (an increase of $578.3 million) is largely due to:

• funding provided in Supplementary Estimates for:
  • out-of-court settlements;
  • claims negotiations and settlements;
  • fuel price increases;
  • the Food Mail Program;
  • health and safety pressures, for example, from fires, floods and other emergencies;
  • the First Nation Infrastructure Fund;
  • the Federal Contaminated Sites Action Plan;
  • obligations under the Indian Residential Schools Settlement Agreement
• the carry-forward from previous years of authorities for loans and guarantees of loans;
• operating budget carry-forward; and
• adjustments for collective bargaining.

These increases were partially offset by the transfer of funding to the Canadian Northern Economic Development Agency, as well as the deferral of some initiatives originally planned for (notably for water and wastewater projects, and projects under the Federal Contaminated Sites Action Plan). The deferred funds will be made available for their intended purposes in future years.

Actual Spending reflects spending activity during the fiscal year as per the Public Accounts of Canada. A number of factors contributed to the difference between Total Authorities and Actual Spending (a decrease of $475.6 million), including:

• the deferral of certain initiatives (notably the settlement of various specific claims, [Note 5] as well as projects under the First Nation Infrastructure Fund and the Federal Contaminated Sites Action Plan);
• carry-forward of resources (e.g., operating budget carry-forward) from fiscal year 2009–2010 to 2010–2011, as well as authorities for loans and guarantees of loans that were not used in 2009–2010, but that will be available for use in subsequent years; and
• reduced requirements for the Food Mail Program.

Section II provides additional details by program activity.

 

Strategic Outcome Summary Table – Indian and Northern Affairs Canada

The Government Strategic Outcome: Good governance, effective institutions and co‑operative relationships for First Nations, Inuit and Northerners

Performance Indicators	Targets	2009-10 Performance
Scores on the income and labour force components of the Community Well-Being (CWB) Index a for First Nations and Inuit	Departmental target to be determined	CWB income scores in First Nation communities improved significantly from 1981 to 2001 before levelling off in the 2001–2006 period. Income scores in Inuit communities increased significantly in both the 1981–1991 and 2001–2006 periods. Moderate increases were observed over the two five-year periods in between. Although a one-point drop from 1981 to 1991 was observed in First Nation communities, CWB average scores for labour force activity have not changed much, particularly over the 1996–2006 period. Meanwhile, the average scores in Inuit communities improved steadily over the 1981–1996 period before levelling off from 1996 to 2006. b

Note: Due to rounding, figures

($ millions)

Program Activity	2008-09 Actual Spending c	2009-10				Alignment to Government of Canada Outcomes d
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Governance and Institutions of Government	619.1	632.7	641.2	656.7	654.8	A diverse society that promotes linguistic duality and social inclusion
Co‑operative Relationships	210.7	267.5	270.5	228.2	207.6	A diverse society that promotes linguistic duality and social inclusion
Claims Settlements	627.8	815.6	828.0	1,068.1	754.5	Strong economic growth
Total	1,457.6	1,715.8	1,739.7	1,953.0	1,617.0

may not add to totals shown.

 

The People Strategic Outcome: Individual and family well-being for First Nations and Inuit

Performance Indicators	Targets	2009-10 Performance
Scores on Community Well-Being (CWB) Index for First Nations and Inuit a	Departmental target to be determined b	First Nation and Inuit communities made significant progress in CWB from 1981 to 1996, reducing the gap in well-being relative to other Canadian communities. In the 2001–2006 period, however, there was little progress of the CWB of First Nation and Inuit communities. c

($ millions)

Program Activity	2008-09 Actual Spending d	2009-10				Alignment to Government of Canada Outcomes e
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Education	1,666.1	1,705.6	1,705.2	1,741.1	1,738.5	A diverse society that promotes linguistic duality and social inclusion
Social Development	1,483.8	1,451.8	1,458.3	1,558.6	1,557.1	A diverse society that promotes linguistic duality and social inclusion
Managing Individual Affairs	22.1	30.2	30.2	27.9	27.7	A diverse society that promotes linguistic duality and social inclusion
Total	3,172.0	3,187.6	3,193.7	3,327.6	3,323.3

Note: Due to rounding, figures may not add to totals shown.

 

The Land Strategic Outcome: Sustainable management of lands, resources and environment by First Nations and Inuit

Performance Indicators	Targets	2009-10 Performance
Percentage of First Nation communities that apply sustainable land-use strategies	Conduct a review to identify baseline data on number of communities developing sustainable land management strategies. a	A review is currently underway; the baseline data will not be available until its completion. To date, 141 of Canada’s 584 First Nation communities with a land base have been identified as having developed or being in the process of developing tools to support sustainable land-use strategies.

($ millions)

Program Activity	2008-09 Actual Spending b	2009-10				Alignment to Government of Canada Outcomes c
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Clarity of Title to Land and Resources	10.4	10.9	10.9	11.4	11.1	Strong economic growth
Responsible Federal Stewardship	105.6	57.9	76.0	135.7	126.9	A clean and healthy environment
First Nations Governance over Land, Resources and the Environment	14.2	25.5	25.2	15.7	15.7	Strong economic growth
Total	130.2	94.4	112.2	162.9	153.7

Note: Due to rounding, figures may not add to totals shown.

 

The Economy Strategic Outcome: Economic well-being and prosperity of First Nations, Inuit and Métis people

Performance Indicators	Targets	2009-10 Performance
Employment, income, education and housing components of the Community Well-Being (CWB) Index for First Nations and Inuit	Departmental target to be determined a	First Nation and Inuit communities made significant progress in CWB from 1981 to 1996, reducing the gap in well-being relative to other Canadian communities. In the 2001–2006 period, however, there was little progress of the CWB of First Nation and Inuit communities. b Targets for Aboriginal business development and community investments were met in 2009–2010. Targets for infrastructure improvements have been set for 2010–2011 and a review of economic development programming is under way.

($ millions)

Program Activity	2008-09 Actual Spending c	2009-10				Alignment to Government of Canada Outcomes d
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Individual and Community Business Development	189.8	45.6	45.6	59.5	58.4	Strong economic growth
Community Investment		122.2	172.2	170.1	88.9	Strong economic growth
Community Infrastructure	1,087.7	1,075.5	1,327.6	1,299.9	1,294.7	Strong economic growth
Total	1,277.5	1,243.4	1,545.4	1,529.5	1,442.0

Note: Due to rounding, figures may not add to totals shown.

 

The North Strategic Outcome: The people of the North are self-reliant, healthy, skilled and live in prosperous communities

Performance Indicators	Targets	2009-10 Performance
Employment rates for Aboriginal people and Northerners in Yukon, Northwest Territories and Nunavut	Yukon — from 70.7% in 2007–2008 to 71% by 2010–2011 Northwest Territories — from 72.7% in 2007–2008 to 70% by 2010–2011 Nunavut — 60.3% in 2007–2008 to 58% by 2010–2011 * The targets were set based on forecasted slow down of economic factors (e.g. slow down in mining activity in N.W.T.).	Employment rates in 2009-10 are lower than average when compared to 2007-08 for all three territories. This is mainly due to the combined effects of the global economic downturn and the previously forecasted slow down of economic factors. 2009-10: Yukon — 67.4% Northwest Territories — 65.6% Nunavut — 52.9% a

($ millions)

Program Activity	2008-09 Actual Spending b	2009-10				Alignment to Government of Canada Outcomes c
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Northern Governance	7.6	22.0	22.0	17.1	16.8	A diverse society that promotes linguistic duality and social inclusion
Healthy Northern Communities	120.0	94.1	133.2	129.2	121.0	Healthy Canadians
Northern Land and Resources	158.7	176.0	169.8	224.9	222.0	A clean and healthy environment
Northern Economy d	23.8	1.9	22.0	15.1	1.9	Strong economic growth
Total	310.1	294.1	347.0	386.2	361.7

Note: Due to rounding, figures may not add to totals shown.

 

Office of the Federal Interlocutor (OFI) Strategic Outcome: Improved socio-economic conditions of Métis, Non-Status Indians and urban Aboriginal people

Performance Indicators	Targets	2009-10 Performance
Socio-economic conditions of Métis, Non-Status Indians and urban Aboriginal people	Between 2001 and 2011, increase of 2 percentage points for high school attainment, employment and average total income for urban Aboriginal people in Urban Aboriginal Strategy (UAS) designated cities a	OFI programs are progressing well with the majority of programs on target. OFI anticipates meeting the 2-percent increase by 2010-2011.

($ millions)

Program Activity	2008-09 Actual Spending b	2009-10				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Urban Aboriginal Strategy	40.3	13.3	13.3	16.6	16.6	Income security and employment for Canadians
Métis and Non-Status Indian Organizational Capacity Development		14.6	14.6	17.6	16.2	A diverse society that promotes linguistic duality and social inclusion
Métis Rights Management		11.9	12.1	8.5	8.0	A diverse society that promotes linguistic duality and social inclusion
Total	40.3	39.8	40.0	42.8	40.8

Note: Due to rounding, figures may not add to totals shown.

 

Internal Services Program Activity: An effective and responsibly managed and operated department positioned to achieve its strategic outcomes

($ millions)

Program Activity	2008-09 Actual Spending a	2009-10
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Internal Services	604.9	358.9	358.8	513.1	501.1
Total	604.9	358.9	358.8	513.1	501.1

a Starting in the 2009–2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. This has affected the comparability of spending and FTE information by program activity between one fiscal year and another. For this table, the 2008–2009 actuals have been adjusted from what was published in the Departmental Performance Report to show Internal Services as a separate program activity to provide comparable figures for the 2009–2010 financial information.

 

Canadian Northern Economic Development Agency (CanNor) a

Strategic Outcome: Developed and diversified territorial economies that support prosperity for all Northerners

($ millions)

Program Activity	2008-09 Actual Spending	2009-10				Alignment to Government of Canada Outcomes b
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Business Development	n/a	n/a	n/a	2.2	1.3	Strong economic growth
Community Development	n/a	n/a	n/a	35.3	33.1	Strong economic growth
Policy, Advocacy and Co‑ordination	n/a	n/a	n/a	3.6	2.4	Strong economic growth c
Total	n/a	n/a	n/a	41.2	36.8

Note: Due to rounding, figures may not add to totals shown.

 

Performance results for the Canadian Northern Economic Development Agency are discussed in Section II under the Northern Economy Program Activity.

 

CanNor Internal Services Program Activity

($ millions)

Program Activity	2008-09 Actual Spending	2009-10
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Internal Services	n/a	n/a	n/a	6.6	2.8
Total	n/a	n/a	n/a	6.6	2.8

 

Canadian Polar Commission

Strategic Outcome: Increased canadian polar knowledge

($ millions)

Program Activity	2008-09 Actual Spending a	2009-10				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Research Facilitation and Communication	0.7	0.8	0.8	0.8	0.7	A clean and healthy environment
Total	0.7	0.8	0.8	0.8	0.7

a Starting in the 2009–2010 Estimates cycle, the resources for the Internal Services program activity are displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. This has affected the comparability of spending and FTE information by program activity between one fiscal year and another. For this table, the 2008–2009 actuals have been adjusted from what was published in the Departmental Performance Report to show Internal Services as a separate program activity to provide comparable figures for the 2009–2010 financial information.

 

Strategic Outcome: Canadian Polar Commission Internal Services Program Activity

($ millions)

Program Activity	2008-09 Actual Spending	2009-10
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
Internal Services	0.3	0.2	0.2	0.2	0.3
Total	0.3	0.2	0.2	0.2	0.3

 

Contributions of Priorities to Strategic Outcomes

The following methodology has been used to determine the status of each priority, based on INAC’s progress against plans set out in the 2009–2010 Report on Plans and Priorities:

• exceeded: above 100% of expectations,
• met all: 100% of expectation,
• mostly met: 80–99% of expectations,
• somewhat met: 60–79% of expectations,
• not met: below 60% of expectations.

In its 2009–2010 Report on Plans and Priorities, [Note 6] INAC identified five priority areas:

• education — improving education outcomes;
• reconciliation, governance and self-government — strengthening Canada’s relationship with Aboriginal peoples;
• economic development — improving economic well-being, prosperity and self-reliance;
• empowering citizens and protecting the vulnerable — contributing to better health outcomes and safer communities; and
• resolution of land claims — addressing, resolving and implementing claims.

A sixth operational priority was added when the Northern Strategy priority was formally announced in July 2009. INAC also committed to a management priority to improve its management practices. Progress made in 2009–2010 on these seven priorities is detailed in the following table.

Operational Priorities	Type	Status	Progress Made and Linkage to Strategic Outcome
Education Improving education outcomes	Ongoing	Somewhat met	The People Strategic Outcome (Education Program Activity) INAC remains committed to improving education outcomes for Aboriginal learners through partnerships.  These partnerships are important because they are helping partners share expertise, develop joint plans, and ensure that students can move between band-operated and public schools without academic penalty. Action on this priority  is building the foundation for structural reform to improve First Nation students’ educational outcomes. In 2009–2010, INAC: provided $25.5 million for the first round of the First Nation Student Success Program (FNSSP) to help First Nation schools develop success plans, conduct learning assessments and evolve performance measurement systems, and launched the second round of the FNSSP; provided $4.4 million for the first round of the Canada-wide Education Partnerships Program (EPP), for the development of tripartite partnerships with First Nation communities and provinces, and launched the second round of the EPP; established tripartite education partnerships in Manitoba (October 2009) and Alberta (February 2010), supported in the case of Manitoba by approximately $1.4 million invested for joint activities in the areas of early childhood learning, virtual schools, shared professional development, and student transition protocols. co-signed the Inuit Education Accord with the Inuit Tapiriit Kanatami; and made investments in education infrastructure.
Reconciliation, governance and self-government Strengthening Canada’s Relationship with Aboriginal peoples	Ongoing	Overall: Somewhat met Strengthening Canada’s Relationship with Aboriginal peoples: Mostly met	The Government Strategic Outcome INAC remains committed to a new relationship with Aboriginal peoples based on respectful partnerships, reconciliation and healing. Examples of this new relationship in 2009–2010 include: the unprecedented level of Aboriginal participation at the Vancouver 2010 Olympic and Paralympic Games; the Common Experience Payments ($1.6 billion) and Independent Assessment Process payments ($571.7 million) provided to former students of residential schools; and INAC’s collaboration with the Truth and Reconciliation Commission for its first national event.
		Strengthening Aboriginal governance and self-government: Mostly met	The Government Strategic Outcome INAC remains committed to strengthening Aboriginal governance and self-government by advancing negotiations and reaching settlement agreements (please see the Government strategic outcome for related accomplishments.)
		Northern Governance: Somewhat met	The North Strategic Outcome (Northern Governance Program Activity) In the North, INAC continued its efforts related to devolution of typically provincial responsibilities (e.g., land, natural resources), including: re-engaged with the Government of the Northwest Territories and regional Aboriginal groups on devolution agreement-in-principle discussions; and continued to meet with Government of Nunavut and Nunavut Tunngavik Inc. for exploratory discussions on challenges and opportunities associated with devolution, such as capacity challenges in the territory, including within government operations.
Economic Development Improve economic well-being, prosperity and self-reliance	Ongoing	Mostly met	The Economy Strategic Outcome INAC is committed to fostering the conditions and developing the tools required to help Aboriginal people and their communities attain economic well-being, prosperity and self-reliance. In June 2009, INAC announced the launch of the new Federal Framework for Aboriginal Economic Development, the government’s new results-oriented approach to enable Aboriginal people in Canada to enjoy the same opportunities for employment, income and wealth creation as other Canadians. [Note 7] The department began developing a new suite of programs to align with the framework’s priorities. Under Canada’s Economic Action Plan, INAC spent $301.2 million. Investments amounting to $225.6 million supported the creation of Aboriginal jobs and procurement opportunities for Aboriginal business. These investments dovetailed with other priorities. For example, First Nation workers devoted 64,280 hours to water and wastewater projects in 2009–2010.
Empowering citizens and protecting the vulnerable Contributing to better health outcomes and safer communities	Ongoing	Somewhat met	The People Strategic Outcome (Social Development Program Activity) Those in greatest need are served through INAC initiatives such as the provision of child and family services, improved housing, and greater access to health programs and to safe drinking water. The Economy Strategic Outcome (Community Infrastructure Program Activity) This year, INAC renewed the First Nations Water and Wastewater Action Plan and developed a legislative framework for drinking water and wastewater in First Nation communities. Internal Services The department also introduced legislation to support matrimonial real property rights on reserves. [Note 8]
Resolution of land claims Addressing, resolving and implementing claims	Ongoing	Mostly Met	The Government Strategic Outcome Resolving land claims creates certainty, clarity and predictability over the ownership and use of land and resources within a settlement region. INAC made some progress in addressing 141 land claims in 2009–2010 and marked some notable successes, including: the enactment of the Tsawwassen First Nation Final Agreement, which took effect on April 3, 2009, as planned; the March 2010 ratification of the Eeyou Marine Region Land Claims Agreement by the Crees of Eeyou Istchee; the initialling of the Yale Final Agreement by Canada, British Columbia and the Yale First Nation to launch the ratification process; the announcement of a forum to address the overlapping claims for the Quebec and Labrador Innu; and the signing of two agreements by Canada, the Algonquins of Ontario and the Province of Ontario to facilitate modern-day treaties.
Northern Development (new priority) Including ongoing leadership of the government’s integrated Northern Strategy, formally announced in July 2009	Ongoing	Exceeded	The North Strategic Outcome INAC works to balance support for the North’s economic potential with sustainable development and environmental protection. During 2009–2010, INAC moved forward on legislation, including: the development of Bill C-25, to introduce the Nunavut Planning and Project Assessment Act in the House of Commons; the undertaking of a tripartite review of the Yukon Environmental and Socio-economic Assessment Act; the development of water regulations for Nunavut; and amendments to the Mackenzie Valley Resource Management Act Regulations. To further strengthen and diversify the economies of the three territories, the government renewed the Strategic Investments in Northern Economic Development program. Each territory established investment plans for the renewed program and are now implementing them. INAC assisted the Canadian Northern Economic Development Agency (CanNor) to set up the Northern Project Management Office. The office acts as a hub for stakeholders in northern development, a direct response to recommendation 18 of Neil McCrank’s report, Road to Improvement, which proposed a project office for the North as a single point of entry. [Note 9]

Management Priority	Type	Status	Links to Strategic Outcome(s)
Improvement of INAC’s management practices and organizational capacity	Ongoing	Met	Internal Services The following commitments are reported on under the Internal Services program activity in Section II: advance human resources development by emphasizing recruitment and further expanding the Centre for Integrity, Values and Conflict Resolution; strengthen information and resource management in direct support of strategic outcome planning and enhanced stewardship of resources; and focus on communications activities that raise public awareness about Aboriginal and northern realities and opportunities.

 

Emphasis on Partnerships

For more effective partnerships, INAC continued to work closely with Inuit organizations to ensure their key concerns and priorities are considered in the development of federal policies. Successes in 2009–2010 included:

• the signing of an Inuit Education Accord, [Note 10] bringing together federal, provincial, territorial and Inuit representatives to develop an Inuit education strategy for improving educational outcomes for Inuit students;
  
  
• the inclusion of CanNor in the National Economic Development Committee for Inuit Nunangat; [Note 11]
  
  
• research initiatives pursued through the Inuit Relations Secretariat, including the Inuit Knowledge Project, which gives Inuit organizations and researchers online access to an electronic library of Inuit-related research; and
  
  
• the updating of the Aboriginal Canada Portal’s Aboriginal Funding Tool, [Note 12] which lists federal programs available to Inuit and all Aboriginal peoples.

Focus on Sustainable Development and Environmental Stewardship

Aboriginal people and Northerners have a fundamental relationship with the land and its resources. INAC’s efforts in protecting and preserving Canada’s natural heritage included:

• investing over $35 million in assessing and remediating contaminated sites on reserves, under the Federal Contaminated Sites Action Plan and the Accelerating Action on Federal Contaminated Sites component of Canada’s Economic Action Plan;
  
  
• updating the Federal Contaminated Sites Inventory and completing the three-year Contaminated Sites Management Program Strategy and Program Review to improve administration and program efficiency;
  
  
• improving access to safe drinking water through continued partnerships with First Nations via the renewed First Nations Water and Wastewater Action Plan, and developing a legislative framework with Health Canada for drinking water and wastewater in First Nation communities; and
  
  
• registering 630 completed environmental assessment screenings in the Canadian Environmental Assessment Registry and reporting 599 others in progress. (The Registry helps the public find information and records related to current environmental assessments conducted under the Canadian Environmental Assessment Act. It also provides timely notice regarding the start of an environmental assessment and opportunities for public participation.)

 

Risks, Issues and Challenges

INAC faces many challenges and opportunities as it strives to deliver on its mandate and contribute to the Government of Canada’s strategic outcomes. The department’s legal and operating environments are complex and continually evolving. It delivers or funds programs and services to diverse groups of people (First Nations, Inuit, Métis and Northerners) who have varied and distinct priorities and needs, and who live in a vast range of communities throughout the country — from remote settlements with extreme climates to metropolitan urban areas. Most of INAC’s services are delivered through partnerships with Aboriginal communities, the provinces and territories, Aboriginal organizations, and organizations in the North. INAC’s success is therefore highly dependent on strong and productive relationships and partnerships.

In the North, INAC’s operating environment is marked by rapidly increasing opportunity. Past achievements in the areas of comprehensive claims, resource development, devolution and scientific advances have opened the way for exceptional new growth. It is in this context that the Government of Canada announced its Northern Strategy, with four primary objectives: exercising Canada’s Arctic sovereignty; promoting economic and social development; protecting Canada’s environmental heritage; and improving and devolving northern governance.

INAC’s responsibilities are shaped not just by unique demographic and geographic challenges, [Note 13] but also by centuries of Canadian history. At the same time, the nation’s changing social, economic and political landscape strongly influences INAC’s priorities, performance and delivery of services. A major factor in Canada’s changing demographic landscape is the increasing Aboriginal population, which is young and growing at twice the rate of the Canadian population overall. While this growth brings the challenge of ever-increasing demands for services — Aboriginal people in Canada continue to have lower levels of education, poorer health and quality of life, and higher levels of unemployment than Canadians overall — it also presents an unprecedented opportunity for capable, educated Aboriginal youth to fill crucial labour shortages in the future. In addition, the department requires an integrated set of plans, policies and programs in order to foster and build on the economic advances resulting from the increasing employment opportunities and wealth being created by Aboriginal businesses and communities.

Supreme Court and other court rulings on Aboriginal and treaty rights also continue to have a major impact on INAC’s mandate and the way the department works to fulfil the Crown’s legal obligations. Canada’s historical relationship with Aboriginal peoples and the ongoing refinement of constitutional concepts and questions adds to the complexity of litigation and exposes the Government of Canada to landmark court decisions and significant financial liabilities.

To achieve its expected results, the department must effectively manage these risks. Since 2006, INAC has been focusing on management practices that foster and reinforce a culture of accountable decision-making. As a priority, the department is putting in place a program to integrate comprehensive and consistent risk analysis into decision-making and oversight at all levels of the department. With senior management’s guidance, the program will establish a unified approach to risk mitigation and monitoring that facilitates the sharing of risk information.

Over the past two years, the personal involvement of the Deputy Minister, Associate Deputy Minister, Risk Champion (Senior ADM — Regional Operations) and Chief Risk Officer has helped the entire department rapidly adopt integrated risk management. The INAC Risk Management Framework and Corporate Risk Profile are up to date. After the Departmental Operations Committee and Senior Executive Committee reviewed the framework and profile, the Deputy Minister approved them in September 2009. For 2009–2010, INAC integrated risk into the corporate priority setting, operational plans, and numerous decision-making processes. Major projects now have an increased emphasis on using risk information.

Given the varied nature of INAC’s programming and services, the department must also maintain many unique skill-sets and expertise and a representative and culturally sensitive workforce. More than 60 percent of the department’s spending is committed to giving First Nations access to provincial-type services, including education, social services and community infrastructure. As a result, one of INAC’s most significant challenges and risks relates to effective recruitment, development and retention of qualified, experienced, representative employees. The department has developed and is implementing an Integrated Human Resources Management Strategy and Plan to address human resources challenges proactively. To complement these efforts, the regions and sectors develop and implement their respective human resources plans, monitor results and report quarterly to senior management.

Another challenge relates to service delivery. Many of INAC’s services are delivered by independent, community-based service providers that have differing levels of capacity to carry out the department’s mandate effectively. The third-party nature of this service delivery presents inherent challenges for results reporting and performance measurement. INAC relies on access to timely, pertinent and accurate information to support planning, resource allocation and programming decisions, as well as to fulfil its accountability obligations. To mitigate the risk of inadequate information being available for decision-making, INAC is better defining the expected results of its programs and is improving data collection processes and systems.

Of the eight corporate risks identified in the 2009–2010 Report on Plans and Priorities, the information for decision-making, program alignment, legal and implementation risks materialized. The first two risks require continuous vigilance by the department, but some legal and implementation risks required specific action on their mitigation. For example:

• Legal risk: On April 6, 2009, the Court of Appeal for British Columbia ruled in the case of McIvor v. Canada that certain registration provisions of the Indian Act are unconstitutional because they discriminate between men and women with respect to registration as Status Indians. To comply with the Court’s decision, on March 11, 2010, the Government of Canada introduced Bill C-3, Gender Equity in Indian Registration Act, to respond to the Court's decision by enhancing gender equity in the Indian Act. [Note 14]
  
  
• Implementation risks:
  
  
  1. In September 2009, INAC suspended the application process for the Secure Certificate of Indian Status program because of technical issues. INAC worked with independent assessors to ensure the security and reliability of the technological and processing components of the certificate. INAC is phasing in the new application process that was developed. [Note 15]
     
     
  2. In 2009–2010, the Policy on Transfer Payments (PTP) completed its first year of a two-year implementation plan. Several targets originally had deadlines ending March 31, 2010, but three of six streams fell slightly behind. The risk was based on uncertainty about whether First Nation communities would accept the new model agreement, assessment tools, default prevention and management policy. To mitigate this, the department arranged for significant engagement directly with First Nations and First Nation organizations. INAC will continue to work with partner departments to develop a consistent approach and a final product that will meet all parties’ needs.

 

Expenditure Profile

 

Three-Year Spending Trend

[D]

INAC’s Actual Spending for 2009–2010 was $7.4 billion. Overall, departmental spending has increased by about $0.1 billion or 2 percent over the past two years. This net increase is primarily due to the following major items:

• transfer to INAC of responsibility for the Office of Indian Residential Schools Resolution of Canada;
  
  
• incremental funding through Canada’s Economic Action Plan for First Nation housing, infrastructure, and child and family services; Arctic research infrastructure; remediation of contaminated sites both on reserves and across several northern areas; and promoting energy development in the North;
  
  
• incremental funding provided in Budget 2008 for education, child and family services, water and wastewater systems, and economic development;
  
  
• incremental funding to meet the demand for ongoing First Nation and Inuit programs and services (2‑percent allowance for inflation and population growth); and
  
  
• incremental funding provided for the First Nation Infrastructure Fund (Budget 2003, Budget 2007).

These increases were partly offset by spending reductions arising from:

• a one-time payment to the Quebec Cree in 2008–2009 to settle implementation issues respecting the James Bay and Northern Quebec Agreement and related litigation; and
  
  
• the expiration of Budget 2003 funding for the First Nations Water Management Strategy.

The following spending trend graph illustrates the department’s Main Estimates, Planned Spending, Total Authorities and Actual Spending for the last three years of actuals, as well as spending for Canada’s Economic Action Plan.

Spending Trend

[D]

Note: Actual Spending of $7.4 billion in 2009–2010 includes Canada’s Economic Action Plan spending of $0.3 billion.

See Performance Summary section for an explanation of variances between Main Estimates, Planned Spending, Total Authorities and Actual Spending

 

Percentage of Actual Spending by Strategic Outcome for 2009–2010

[D]

 

Canada’s Economic Action Plan (CEAP)

 

($ millions)

	2009–2010 Planned Spending a	2009–2010 Actual Spending
Indian and Northern Affairs Canada a
Water and Wastewater Systems	82.5	68.6 b
Housing	75.0	75.0
Schools	95.0	81.8 c
Arctic Research Infrastructure	35.0	30.1
High Arctic Research Station Feasibility	1.0	1.1
First Nations Child and Family Services	7.0	4.0 d
Accelerating Action on Contaminated Sites — South of 60th Parallel	n/a	15.8
Accelerating Action on Contaminated Sites — North of 60th Parallel	n/a	11.1
Promoting Energy Development in the North	n/a	13.7
Sub-Total (Indian and Northern Affairs Canada)	295.5	301.2
Canadian Northern Economic Development Agency (CanNor)
Recreational Infrastructure Canada Program	n/a	0.4
Community Adjustment Fund	n/a	14.0
Strengthening Economic Development in the North e	n/a	3.4
Strategic Investments in Northern Economic Development e	n/a	7.9
Sub-Total (CanNor)	n/a	25.7
Total	295.5	326.9

 

Canada’s Economic Action Plan is a $62-billion initiative to create and maintain jobs, and stimulate the economy. The majority of the Plan’s investments are designated for 2009–2010 and 2010–2011, including $1.9 billion in investments for programming specifically for Aboriginal people. These investments support the Prime Minister’s commitment to promote greater participation by Aboriginal men and women in the economy and to address specific opportunities and the challenges they face. Programs include skills and training, health, child and family services, housing, education, police facilities, and water and wastewater systems. (For further details by initiative)

INAC is responsible for a number of initiatives under Canada’s Economic Action Plan, including funding the construction and renovation of First Nation schools and water and wastewater facilities on reserves; the remediation of contaminated sites both on reserves and across the North; and the upgrade and development of research infrastructure through the Arctic Research Infrastructure Fund and the feasibility study for the Canadian High Arctic Research Station. The department is also working alongside Canada Mortgage and Housing Corporation, undertaking complementary housing activities such as lot servicing, creating new high-density developments, renovating existing housing units and assisting in the transition of band-owned units to market-based units.

CanNor delivered two key programs this year under Canada’s Economic Action Plan. The first is the Recreational Infrastructure Canada Program (RInC), which aims to mitigate the impacts of the economic downturn on communities by supporting the development and improvement of recreational infrastructure. The second is the Community Adjustment Fund (CAF), a stimulus program focusing on short-term job creation in communities. The government allocated $31.0 million to CanNor for CAF and $1.7 million for RInC — both over two years. CanNor supported 19 RInC projects and 25 CAF projects in the North.

In 2009–2010, in collaboration with several other departments, INAC produced four consecutive progress reports to provide an overview of Aboriginal and northern projects under Canada’s Economic Action Plan. They are available to all Canadians online. [Note 16]

 

Voted and Statutory Items

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2007-08 Actual Spending	2008-09 Actual Spending	2009-10 Main Estimates	2009-10 Actual Spending
Indian and Northern Affairs Canada ($ millions)
1	Operating expenditures	671.4	1,108.4	937.7	1,225.4
5	Capital expenditures	0.8	0.8	44.4	0.3
10	Grants and contributions	6,330.8	5,571.8	5,657.9	5,802.3
15	Payments to Canada Post Corporation	44.0	56.1	27.6	58.3
20	Office of the Federal Interlocutor for Métis and Non-Status Indians — Operating expenditures	7.5	9.3	9.0	8.4
25	Office of the Federal Interlocutor for Métis and Non-Status Indians — Contributions	27.1	30.3	29.9	31.4
(S)	Contributions to employee benefit plans	52.1	55.7	61.1	70.0
(S)	Minister of Indian Affairs and Northern Development — Salary and motorcar allowance	0.1	0.1	0.1	0.1
(S)	Grassy Narrows and Islington Bands Mercury Disability Board	—	—	—	—
(S)	Liabilities in respect of loan guarantees made to Indians for Housing and Economic Development	0.1	1.3	2.0	1.9
(S)	Indian Annuities Treaty payments	1.4	1.9	1.4	2.2
(S)	Transfer payments in connection with First Nations infrastructure for on-reserve housing (Budget Implementation Act, 2009)	—	—	—	75.0
(S)	Grants to Aboriginal organizations designated to receive claim settlement payments pursuant to Comprehensive Land Claims Settlement Acts	89.0	54.0	65.5	60.6
(S)	Grant to the Nunatsiavut Government for the implementation of the Labrador Inuit Land Claims Agreement pursuant to the Labrador Inuit Land Claims Agreement Act	39.0	39.0	18.0	36.8
(S)	Payments to comprehensive claim beneficiaries in compensation for resource royalties	3.3	7.4	1.5	6.0
(S)	Payment from the Consolidated Revenue Fund of guaranteed loans issued out of the Indian economic development account	—	—	—	—
(S)	Court awards	0.3	2.3	—	1.0
(S)	Refunds of amounts credited to revenues in previous years	0.4	0.6	—	1.1
(S)	Spending of proceeds from the disposal of surplus Crown assets	1.3	0.2	—	0.1
	Total budgetary	7,268.7	6,938.9	6,856.1	7,380.7
L20	Loans and guarantees of loans through the Indian economic development account	—	—	—	—
L30	Loans to native claimants	27.1	26.1	47.4	32.7
L35	Loans to First Nations in British Columbia for supporting their participation in the British Columbia Treaty Commission Process	26.0	27.7	30.4	26.1
	Total non-budgetary	53.1	53.8	77.8	58.8
	Total Department	7,321.8	6,992.7	6,933.9	7,439.5
Canadian Northern Economic Development Agency
37	Operating expenditures	n/a	n/a	n/a	7.1
39	Contributions	n/a	n/a	n/a	17.9
(S)	Community Adjustment Fund	n/a	n/a	n/a	14.0
(S)	Contributions to employee benefit plans	n/a	n/a	n/a	0.7
	Total Agency	n/a	n/a	n/a	39.6
Canadian Polar Commission
40	Program expenditures	0.9	0.9	0.9	0.9
(S)	Contributions to employee benefit plans	0.1	0.1	0.1	0.1
Total Agency		1.0	1.0	1.0	1.0

Note: Due to rounding, figures may not add to totals shown.

 

Explanation of Trend — 2008–2009 to 2009–2010

Indian and Northern Affairs Canada

The net increase of approximately $447 million in actual spending from 2008–2009 to 2009–2010 primarily reflects:

• incremental funding provided through Canada’s Economic Action Plan for First Nation housing, infrastructure, and child and family services; Arctic research infrastructure; remediation of contaminated sites both on reserves and across several northern areas; and promoting energy development in the North;
  
  
• an increase for obligations related to the implementation of the Indian Residential Schools Settlement Agreement;
  
  
• an increase for the Quebec Cree to settle implementation issues for the James Bay and Northern Quebec Agreement;
  
  
• incremental funding to meet the demand for ongoing First Nation and Inuit programs and services (2‑percent allowance for inflation and population growth); and
  
  
• a decrease in funding provided for out-of-court settlements, as well the deferral of various specific claims to future years.

Canadian Northern Economic Development Agency

Order in Council P.C. 2009-1423 transferred from the Department of Indian Affairs and Northern Development to the Canadian Northern Economic Development Agency the control and supervision of the portion of the federal public administration in the Department of Indian Affairs and Northern Development known as the Northern Economic Development Branch, effective August 18, 2009. Actual spending of $39.6 million reflects expenditures for the period from August 18, 2009, to March 31, 2010.

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