The National Child Benefit Progress Report 2006

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Chapter 3
The First Nations National Child Benefit Reinvestment Initiative

Canada ’s First Nations have markedly diverse traditions, expectations, needs, opportunities, and community settings, and they constitute the youngest, fastest-growing segment of Canada ’s population. In comparison to other Canadian communities, however, there are significant social, health and economic problems in many of the 600-plus First Nation communities. The First Nations National Child Benefit Reinvestment (NCBR) initiative targets these problems by supporting the operation of locally created and managed projects that provide opportunities for children from low-income families to fully develop their potential as healthy, active, and contributing members of their communities.

The First Nations NCBR initiative has the same objectives as those of the provinces and territories, and similarly works to reduce the effects of child poverty by: 1) providing income benefits to eligible low-income families with children, and, 2) reinvesting program funds in services that are specifically designed to promote the independence and self-sufficiency of these families and children.

Like other Canadian families, families with children in First Nations communities who meet eligibility requirements receive the Canada Child Tax Benefit (CCTB) and the National Child Benefit (NCB) Supplement.

First Nation governments that deliver income assistance, like provincial and territorial governments, reinvest savings from adjustments to income assistance into programs and services that are designed to meet the needs of people in their communities and support the objectives of the national initiative. First Nations base their reinvestment decisions on consultations with their people, or include such consultations as part of the overall redesign of their income support programs. The approach generally taken is to prioritize the service needs, identify services that are under-supplied relative to those needs, assess developmental possibilities in terms of available funding and staffing resources, and create the service structures that will deliver the needed benefits to the targeted population.

The projects funded under the NCBR initiative vary from First Nation to First Nation, and they cover a wide range of services, according to the needs and preferences determined by the communities themselves. This flexibility is an important feature of the initiative, as it permits First Nations to implement projects that not only are targeted at alleviating the effects of child poverty but are also culturally relevant and responsive to the unique characteristics of each community.

First Nations NCBR initiatives are categorized in five broad activity areas: child care; child nutrition; support to parents; home-to-work transition; and cultural enrichment. Descriptions of each activity and related quantitative data are available in Appendix 2.

Table 5 shows the total First Nations NCB reinvestment and investment envelope since the program was implemented in 1998.

Table 5
First Nations: NCB Reinvestments and Investments ($ millions)

Year	Total ($ millions)
1998-1999	30.1
1999-2000	50.2
2000-2001	54.3
2001-2002	57.0
2002-2003	56.0
2003-2004	53.2
2004-2005	55.1
2005-2006 (estimate)	58.0
2006-2007 (estimate)	48.3

Table 6 outlines the First Nations reinvestments and investments by region from 2003-2004 through to 2006-2007.

Table 6
First Nations: NCB Reinvestments and Investments by Region

Region	2003-2004	2004-2005	2005-2006	2006-2007
	Expenditures ($000)	Expenditures ($000)	Estimates ($000)	Estimates ($000)
Atlantica	757	3,908	2,574	n/a
Quebec	6,202	3,315	3,134	2,257
Ontario	7,344	8,856	9,168	9,431
Manitobab	1,764	0	0	0.0
Saskatchewan	18,816	19,763	22,710	22,161
Alberta	10,174	9,423	10,080	6,452
British Columbia	6,269	6,919	6,604	6,577
Yukon	439	565	345	467
Sub-total	51,763	52,748	54,614	47,344
Additional Investment Envelopec	1,414	2,379	3,434	960
Total	53,177	55,127	58,048	48,304

^aFigures for the Atlantic region only includes First Nations in Nova Scotia and Prince Edward Island.

^bEffective January 2004, Manitoba fully discontinued the practice of recovering the NCB Supplement from families receiving income assistance, including First Nations families. As a result of flowing through the NCB Supplement to families, funds are no longer being recovered for reinvestment.

^cThe additional investment envelope includes funding to reimburse Saskatchewan and the Yukon for the portion of provincial/territorial children's benefits paid on reserve.

Note: n/a indicates that data is not available. Totals may not add due to rounding.

Monitoring and Reporting – First Nation Component

All NCB Partners share the commitment to accountability expressed in the NCB Governance and Accountability Framework. The Treasury Board Secretariat requires that Indian and Northern Affairs Canada (INAC) prepare and distribute annual reports on the progress being made by First Nations in implementing the NCB in their communities. These annual reports provide background information on the purposes and structure of the First Nations NCB. They also give examples of the kinds of projects that are enabled by NCB reinvestment funding. The reports present expenditure and impact data and review the achievements of First Nations. The information for these reports comes from First Nations project administrators and INAC records. First Nations NCB annual reports are available at the NCB Reinvestment Initiative in First Nations Communities website.

Proposal Development and Reporting Guide

First Nations report annually to INAC on activities and results related to NCB reinvestment funding. In 2004, First Nation NCB administrators in collaboration with INAC developed a resource guide to assist First Nation communities with the proposal process for approval of reinvestment projects as well as to outline annual reporting requirements.

National Child Benefit Reinvestment Initiative – National Manual

This program manual was developed to provide further direction to INAC regional officials and First Nation NCB administrators on the interpretation and implementation of program terms and conditions. The manual is an ongoing document which is updated as necessary; the latest version is available at the INAC NCB website www.ainc-inac.gc.ca.

Review of Activities in First Nation Communities

A review of NCB reinvestment activities by an independent consulting firm was released in March 2005. The report was based on interviews with administrators from thirty-seven communities. It examined community consultation processes, project administration and evaluation strategies, levels of community awareness and satisfaction with the NCB reinvestment initiative, resource distribution between target groups, the flexibility of NCB design parameters, and suggestions for improvement to the NCB reinvestment initiative.

First Nations NCB Reinvestment Conference

In November 2006, First Nations NCB reinvestment administrators from all regions of Canada attended a national gathering in Toronto. The goals were to share information on reinvestment success stories, provide opportunities to network with colleagues from across the country, discuss the potential to enhance/revise the NCB reinvestment activity area definitions, and obtain feedback on a draft resource/tool for a longer-term approval of NCB reinvestment projects.

Conclusions

First Nations have achieved many successes by capitalizing on NCBR resources to establish programs that would otherwise not be available in their communities. The goals of reducing the extent of child poverty and giving low-income parents opportunities to participate more fully in the work force and in the life of the community are being met as a result of the efforts and leadership of First Nation governments, organizations, and individuals.

The adaptability of the NCBR initiative offers First Nations wide-ranging opportunities to prioritize, develop, and deliver services specifically designed to help families with limited incomes. As long as funded projects and services are consistent with NCB objectives, First Nations are able to direct their efforts to particular activities based on their own needs. It is largely due to the scope and flexibility of the NCBR that First Nations have successfully used reinvestment funds for a variety of projects and services.

Reinvestments of funds made possible by the First Nations NCBR initiative have produced significant benefits for communities:

1. Funding provides services that that have been shown to improve the conditions of life for low-income families and their children. The services enable them to contribute more fully to community economic, social, and cultural activities.
2. The flexible nature of the NCBR initiative allows First Nations to respond to self-identified priorities and needs in addressing unemployment, child poverty, and other social ills.
3. The initiative reinforces the thrust of the Government of Canada and First Nations governments, organizations, and individuals to develop self-governing, self-determining, and self-reliant communities.
4. By establishing and operating NCBR–funded projects, local officials and administrators develop managerial knowledge and abilities that are transferable to other undertakings for the betterment of their communities.
5. Cultural enrichment activities raise awareness of community social, economic and environmental traditions and values, fostering a sense of pride and individual self-esteem.

The success of the NCB initiative stands as an example of the progress that is being made by the Government of Canada and First Nations in their shared effort to improve the quality of life for Aboriginal peoples.