Independent Blue Ribbon Panel to Advise on Grant and Contribution Programs

• Backgrounder - Independent Blue Ribbon Panel - Terms of Reference
• Backgrounder - Blue Ribbon Panel Member Biographies
• Fact Sheet - Grant and Contribution Programs

Federal government takes next step to restore accountability and to ensure effective and efficient program delivery

June 6, 2006

OTTAWA - The Honourable John Baird, President of the Treasury Board of Canada today announced the creation of an independent blue-ribbon panel to recommend measures to make the delivery of grant and contribution programs more efficient while ensuring greater accountability.

"People who work hard, pay their taxes and play by the rules want accountability from their government," Minister Baird said.  "With some $26 billion dollars going to grant and contributions each year, we owe taxpayers a thorough review of these programs as part of our ongoing efforts to restore accountability to government and to leave the legacy of political scandal in the past."

The government committed in its Federal Accountability Act and Action Plan to establish this independent panel.  It will have three main areas of focus:

• reviewing the administrative requirements individuals and organizations must meet in order to access government grant and contribution programs;
• examining the issues faced by government departments in managing these programs; and,
• assessing whether instruments other than grants and contributions are more appropriate for funding some programs. 

"A top priority of Canada's new government is to restore the public's confidence in government," Minister Baird added. "Examining grants and contributions is an important step in helping to ensure the effective and efficient delivery of these programs."

The three panellists were selected based on their extensive experience in the private or public sectors. They are Ms. Frances Lankin, President and Chief Executive Officer, United Way of Greater Toronto; Mr. Ian D. Clark, President and Chief Executive Officer, Council of Ontario Universities; and Mr. Marc Tellier, President and Chief Executive Officer of Yellow Pages Group.

"I am delighted these three distinguished individuals have agreed to provide informed and objective advice based on their knowledge of how government works and what Canadians need," Minister Baird concluded.  "Together, they bring a unique and valuable blend of political, not-for-profit, public sector and business experience.  I am confident that their recommendations will reflect their sound judgment and ability to get to the heart of the issues."

The government intends to issue a new policy on transfer payments that will reflect recommendations of both the blue-ribbon panel and the Auditor General's May 2006 report on the Management of Voted Grants and Contributions.

In addition, the government will undertake two other initiatives to help government work better for Canadians: strengthen and streamline management by reviewing its procurement and financial management policies and repeal policies and regulations that inhibit the effectiveness of the public service.

Attached is a backgrounder with information on the Terms of Reference of the panel, biographical information on the panel members, and a fact sheet on grants and contributions programs.

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For more information, contact:

Patrick Robert
Press Secretary
Office of the President of the Treasury Board
(613) 957-2666

Robert Makichuk
Media Relations
Treasury Board of Canada Secretariat
(613) 957-2391

If there is a discrepancy between any printed version and the electronic version of this news release, the electronic version will prevail.

TTY (Telecommunications device for the hearing impaired) - (613) 957-9090

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Backgrounder

Independent Blue Ribbon Panel
Terms of Reference

Introduction

Through the Federal Accountability Act and its Action Plan, the Government of Canada is bringing forward specific measures to help strengthen accountability and increase transparency and oversight in government operations. 

The Action Plan aims to strike an appropriate balance between oversight and flexibility.  The goal is to create a policy that helps ensure the achievement of desired outcomes, improves accountability, and encourages management efficiency.  Accordingly, the government is establishing an independent panel to review and make recommendations on the implementation of the draft Treasury Board Policy on Transfer Payments.

Mandate

An independent panel will be mandated to provide advice on how to achieve strong accountability for the funds spent on grants and contributions, under the draft Treasury Board Policy on Transfer Payments, while allowing for their efficient management and effective access to them.

This mandate will involve:

• Reviewing the draft Policy on Transfer Payments, along with its directives and related departmental practices;
• Identifying barriers to access for applicants for government grant and contribution programs and recommend changes to government-wide and departmental policies and practices to ensure that the government delivers those programs in a fair, cost-effective, and efficient manner;
• Giving consideration to eliminating legislative barriers and constraints to the effective and efficient delivery of grant and contribution programs;
• Assessing whether instruments other than grants and contributions can better achieve policy outcomes for Canadians in receipt of government support.

Duration of the Review

The panel will submit a written report outlining their recommendations on ensuring an appropriate balance between accountability and effective and efficient program delivery to the President of the Treasury Board by December 2006.

Conduct of Review

1) Draft Treasury Board Policy on Transfer Payments:

The panel will be expected to review the draft Policy on Transfer Payments and related directives, including relevant sections of the Financial Administration Act, to:

• Determine where there may be unproductive controls or ineffective reporting requirements respecting transfer payments that do not serve to strengthen accountability and may create an undue administrative burden on those managing grant and contribution programs as well as applicants seeking to access them;
• Determine whether the proposed direction provided to departments is likely to strengthen accountability and enhance management performance in the delivery of grant and contribution programs while contributing to the achievement of policy outcomes established by the government; and
• Identify opportunities to rationalize policy requirements that may impose an unnecessary burden on those administering grant and contribution programs in departments or those seeking access to them.

2) Departmental Practices:

The panel will also be expected to examine departmental management policies, procedures and practices with respect to grants and contributions in select departments to identify opportunities to rationalize requirements and reduce inefficiencies while ensuring strong accountability.  This aspect of the panel's work could include:

• Greater use of transparency to foster excellence in management practices (e.g. proactive disclosure);
• Enhancements to management of reporting information to support better program performance and decision-making; and
• Mechanisms to assess departmental management performance of grants and contributions on an ongoing basis to promote continuous improvement.

3) Other Considerations:

The panel will take into consideration related initiatives proposed in the Federal Accountability Act and Action Plan as well as other reviews conducted or underway over the past two years related to the development of the draft Treasury Board Policy on Transfer Payments.  The panel will also review the Auditor General's report on the management of grants and contributions, tabled on May 16, 2006.

4) Engagement:

The panel will hear from government officials, grants and contributions applicants and those organizations that deliver grants and contributions on behalf of the government.

Independent Panel

Three distinguished individuals have been selected to serve on this panel based on their knowledge of grant and contribution programs issues as well as their experience leading a private or public sector organization in the delivery of services to clients while ensuring effective accountability and control.  A committee of deputy ministers will support the work of the panel.

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Backgrounder

Blue Ribbon Panel Member Biographies

Frances Lankin
President and Chief Executive Officer, United Way of Greater Toronto

Frances Lankin has dedicated her life and career to some of the most important issues of the day. A passionate advocate for social justice, she has been a strong and respected voice for community and social issues related to children, youth, people with disabilities, seniors, women and health, and long-term care. Ms. Lankin was elected as a Member of Ontario's provincial legislature in 1990, and served as Minister of Government Services, Chair of the Management Board of Cabinet, Minister of Health, and Minister of Economic Development and Trade. Ms. Lankin has been President and Chief Executive Officer of the United Way of Greater Toronto since September 2001.

Ian D. Clark
President and Chief Executive Officer, Council of Ontario Universities

Mr. Clark received an Honours Bachelor of Science degree in Physics and Chemistry from the University of British Columbia (1966), a Doctor of Philosophy degree from the University of Oxford (1969), and a Master of Public Policy degree from Harvard University's Kennedy School of Government (1972). Before assuming the presidency of the Council of Ontario Universities, Mr. Clark worked in the Public Service of Canada for 22 years in a variety of positions, including Deputy Secretary to the Cabinet, Deputy Minister of Consumer and Corporate Affairs, and Secretary of the Treasury Board. He subsequently served on the executive board of the International Monetary Fund, and became a partner in the accounting and consulting firm KPMG. He is a Senior Fellow of Massey College and is the author of numerous articles on governance and management.

Marc P. Tellier
President and Chief Executive Officer of Yellow Pages Group

Mr. Tellier has served as President and Chief Executive Officer of Yellow Pages Group since October 2001 where he completed the largest-ever initial public offering in the income trust sector in Canada in 2003. He also led the $2.55B acquisition of Advertising Directory Solutions Holdings Inc. in 2005 as well as the acquisitions of Trader Media Corporation and Trader Canada in 2006. Prior to his current position, Mr. Tellier was an officer of Bell Canada and served as Senior Vice President - Partnership Development.  Mr. Tellier began his career at Bell Canada in 1990 after graduating from the University of Ottawa with a Bachelor's degree in Economics. Mr. Tellier is a member of the Board of Directors of National Bank of Canada, of the Yellow Pages Association (YPA) and the Ste-Justine Hospital Foundation. He is also a member of the Canadian Council of Chief Executives and serves on the Advisory Board of Students on Ice.

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Fact Sheet

Grant and Contribution Programs

What are grants and contributions?

Grant and contribution programs assist the government in meeting its public policy objectives by entering into funding partnerships with organizations that deliver important services and programs to Canadians - from health program delivery and research to funding for arts and heritage projects to employment and skills development programs.

Over 50 departments and agencies manage some $26  billion each year in grants and contributions to individuals, corporations, and non-government organizations who deliver important programs to Canadians.

Grants are unconditional transfer payments to support the activities of individuals or organizations that meet all program eligibility requirements.

Recipients of government contributions must meet performance conditions specified in a contribution agreement to receive funding. Over the life of the agreement, recipients must show they are meeting these conditions in order to be reimbursed for specific costs. The government can audit the recipients' use of funding.

Other types of grants and contributions:

• Conditional Grants (Foundations):  a transfer to an arms-length organization to cover expenses over a number of years.
• Repayable Contributions:  a contribution in which, all or part of which is repayable or conditionally repayable by the recipient according to the specific conditions set out in the funding agreement.
• Assessed Contributions to an international organization:  a transfer by the federal government required to fulfil Canada's obligation as a member of these organizations and to fund Canada's share of the cost of operations of these organizations.

Management, control and accountability for grants and contributions are governed by the Policy on Transfer Payments.  The recommendations of the independent blue ribbon panel will be considered as part of a review of this policy.