HANDBOOK FOR THE INDIGENOUS ECONOMIC DEVELOPMENT FUND. January 2018
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1 HANDBOOK FOR THE INDIGENOUS ECONOMIC DEVELOPMENT FUND January 2018 (WHAT YOU NEED TO KNOW BEFORE YOU APPLY) Before completing an Indigenous Economic Development Fund (IEDF) application, please read the entire Handbook. or telephone enquiries about the IEDF may be directed to: Tim Sim, Program Lead Telephone:
2 Table of Contents A. INTRODUCTION TO THE INDIGENOUS ECONOMIC DEVELOPMENT FUND... 3 A.1. BACKGROUND... 3 A.2. OBJECTIVES... 3 A.3. IEDF Programs... 3 A.4. IEDF REQUIREMENTS... 4 A.4.1 Contribution to Program Objectives... 5 A.4.2 Eligibility Criteria... 5 A.4.3 Demonstrated Need... 5 A.4.4 Promising Projects... 6 A.4.5 Value for Money... 6 A.4.6 Sound Budget... 6 A.4.7 Compliance with Project Management Requirements... 7 A.4.8 Promoting Diversity... 7 A.4.9 Environmental Considerations... 7 A.4.10 Promoting Partnerships... 7 A.4.11 Promoting Procurement & Employment... 8 A.4.12 Conflict of Interest... 8 A.5. THE APPLICATION PROCESS... 8 A.6. APPLICATION EVALUATION PROCESS... 9 A.7. MANAGING PROJECTS A.7.1 Monitoring and Reporting A.7.2 Record Keeping A.7.3 Acknowledgement A.7.4 Procurement A.7.5 Corrective Action B. DISCLAIMER... 12
3 A. INTRODUCTION TO THE INDIGENOUS ECONOMIC DEVELOPMENT FUND A.1. BACKGROUND The Indigenous Economic Development Fund (IEDF) is investing $95 million over ten years in Indigenous businesses and communities. It is a program of the Jobs & Prosperity Fund, a 10-year, $2.5 billion fund that helps Ontario compete to attract new business and form partnerships to secure investments that focus on job-creating innovation, productivity and going global. The IEDF is designed to break down economic barriers for Indigenous people across Ontario and close the socio-economic gap between Indigenous and non-indigenous people by improving access to financing, training and planning supports. The IEDF achieves this through three funding programs: Business and Community Fund Program Economic Diversification Grant Program Regional Partnership Grant Program Eligible applicants may submit one application per Program per year. The IEDF has a competitive application process and a limited number of awards. A.2. OBJECTIVES The IEDF is designed to provide support for business financing, skill development training and strategic economic planning. The IEDF is intended to achieve the following objectives: Increase economic activity by promoting the diversification of Indigenous economies and strategic planning. Increase participation of Indigenous people in the labour market by improving access to jobs and training opportunities. Increase the success and competitiveness of Indigenous businesses by improving access to financing for start-up and small- and medium-sized companies. Promote partnerships in business, employment and community development. A.3. IEDF PROGRAMS Projects are funding through the following IEDF Programs: Business & Community Fund Program Promotes local economic development through grants for economic capacity-building and loans to ensure viable business initiatives proceed when other sources of funding have been exhausted. This 3
4 program intends to improve the ability of Indigenous entities to leverage other sources of funding for promising business initiatives. Economic Diversification Grant Program Assists communities and organizations to identify new areas of economic opportunity. This is achieved through supporting planning activities for promising economic opportunities within and around the community. All initiatives funded must contribute to economic diversification, jobs, training and the start-up or expansion of businesses. Regional Partnership Grant Program Support projects focused on improving access to business financing and accredited skills training opportunities. For more information on these programs refer to their individual guidelines or contact the Aboriginal Financial Institution which delivers the Business and Community Fund Program to your area. A.4. IEDF REQUIREMENTS In order to be eligible for funding under the IEDF, a project must meet the following conditions: Meet relevant eligibility criteria of the program; Demonstrate a clear need for assistance to successfully deliver the project; Demonstrate a market need and/or gap related to addressing barriers to economic development; Demonstrate high potential to provide jobs, training and business opportunities for Indigenous people; Demonstrate high potential to be sustainable; Demonstrate acceptable value for money in terms of outputs and results; Provide a detailed budget with eligible funding activities and, where applicable, verify match funding from other public and/or private sources; and Where appropriate and applicable, projects should also: Increase participation of Indigenous people in the workforce; and/or Facilitate access for Indigenous suppliers to procurement opportunities. (An Indigenous supplier is an Indigenous-owned business that provides a product or service for an IEDF-funded project). Contribute towards demographic and economic diversity; Have a positive environmental impact; Contribute to building new partnerships and fostering positive relationships; 4
5 Applications will be assessed on the above requirements. Each program may have additional requirements, which are outlined in their application guides. These guides should be reviewed before submitting an application. IEDF requirements are explained in detail below. Information provided in this section should be considered when applicants prepare their business case, project details and business plan. A.4.1 Contribution to Program Objectives Applicants must show how their project will meet one or more objectives of the IEDF and the relevant program. A.4.2 Eligibility Criteria All projects must comply with eligibility requirements outlined in the application guides for each program. Applicants should review the application guide for the program they are applying to for funding. For all programs, mandatory eligibility requirements include: Legal status of applicant (i.e., established by or under legislation, federally or provincially incorporated, or a First Nation in the Province of Ontario). Applicant is not in default of the terms and conditions of any grant or loan agreement with any ministry or agency of the Government of Ontario. Information provided in the application is true, correct and complete (as verified by an authorized official). All areas of the application form are completed, including work plans and budgets which coincide with work plan activities. A.4.3 Demonstrated Need Generally, IEDF funding should not replace funding available through other provincial or federal sources. IEDF funding should add value to existing provincial, national, local and private sector supports or leverage funding from other sources. The goal is to ensure the success of promising projects with the potential to deliver tangible benefits to Indigenous people and/or communities, including jobs, training and business opportunities. Projects must respond to a gap or barrier to Indigenous economic development, either at the local or regional level. Gaps and barriers include the failure of the market to provide sufficient financing and training to Indigenous people as well as the inability of existing public and private sector funders to support projects contributing to jobs, training and business opportunities for Indigenous people. Projects must demonstrate the need for government funding to address the identified gap and/or market need. Need and gaps might relate to: 5
6 Barriers that prevent Indigenous businesses and entrepreneurs from accessing adequate financing to develop a new product, service or process. Barriers that prevent Indigenous businesses from bringing a promising product or service to market. Barriers that prevent a project from being fully funded. Barriers to accessing on-reserve training leading to provincially-recognized qualifications. Lack of supports to assist Indigenous communities strategic plans in a variety of sectors. Additional information on demonstrating need is included in the application guides for each program. A.4.4 Promising Projects Applicants must show how projects will contribute to new and/or sustained jobs, training and business opportunities for Indigenous people. High-potential or promising projects are those where there is a reasonable anticipation of indirect or direct benefits to Indigenous people and/or communities, such as meaningful jobs, training and business opportunities. Where possible, projects should be linked to planned or existing economic development strategies or projects. In these cases, applicants should demonstrate how IEDF funding will contribute to the success of applicable strategies and/or projects. A.4.5 Value for Money A project must demonstrate value for money. Specifically, applicants must show that the project will generate sufficient benefits (e.g., jobs, training, business opportunities) to justify the costs associated with implementing the project. Value for money is an important component in assessing whether or not to fund a project. As such any costs should be necessary for achieving desired results of the project. A.4.6 Sound Budget A project must have a sound financial plan with a viable budget and eligible funding activities. Where resources are shared with other projects and activities (e.g., office space, equipment and staff resources), it is permissible to include these costs in the project budget. These overhead costs must be allocated in a fair and transparent manner (e.g., using a flat rate or pro rata allocation) and linked directly to project activities. IEDF funding is designed to fill funding gaps for promising projects. As such budgets must show how other sources of funding will support a project (i.e., match funding). For the purposes of the IEDF, match funds may include any money from a government program, a First Nation, Métis or Inuit community or Indigenous organization, a charitable organization, a private business, Economic Development Corporations, co-operatives, financial institutions, and individual investors. Other sources of provincial funding may be explored here: 6
7 In-kind contributions are considered as match funding. The project budget must identify any in-kind contributions, including the total cash value of donated goods, commodities or services provided for the project at no cost. The contributions should be valued at the lesser of demonstrated fair market value or actual cost to the donor. Applicants are discouraged from incurring any costs for activities to be funded by the IEDF until an application has been approved. Any expenses incurred prior to the agreed effective date or after the agreed end date in the Funding Agreement will be ineligible. A.4.7 Compliance with Project Management Requirements Funding recipients must adhere to the compliance requirements outlined in A.7. in the use of IEDF funding. As part of the evaluation process, applicants will be assessed as to whether they have the capacity to deliver the project and understand all requirements and obligations. As such an application must provide details on how a project will be managed and delivered. Funding recipients are required to ensure any delivery partners also adhere to the compliance requirements. A.4.8 Promoting Diversity All projects should make reasonable efforts to promote equal opportunities to on- and off-reserve Indigenous populations, where appropriate. Although the IEDF restricts certain activities to only eligible Indigenous persons and organizations, projects must not discriminate on the basis of age, gender, sexual orientation, religion or belief, or disability. All projects must also comply with provincial accessibility requirements and regulations under the Ontario Human Rights Code and French Language Services Act. For more information on these subjects, IEDF applicants are encouraged to visit the following site: A.4.9 Environmental Considerations Where appropriate, applicants must make reasonable efforts to identify and consider potential environmental impacts their project may have, including identifying positive environmental impacts and how any negative impacts would be addressed, mitigated or avoided. Applicants must identify whether their project will impact a protected area, such as a national or provincial park. A.4.10 Promoting Partnerships Applicants should consider partnerships in the delivery of projects in the same geographical area involving the same purpose funding, jobs, training and planning. Such partnerships often assist with overcoming common operational challenges as well as pooling resources. Funding incentives are offered to applicants who partner on a project in each program. Additional information is available in the guides for each program. 7
8 A.4.11 Promoting Procurement & Employment Applicants will be assessed on how their projects promote jobs for Indigenous people and procurement opportunities for Indigenous suppliers. A.4.12 Conflict of Interest A successful applicant shall carry out the project without an actual, potential or perceived conflict of interest. A conflict of interest includes any circumstances where the applicant or any person who has the capacity to influence the applicant s decisions has outside commitments, relationships or financial interests that could, or could be seen to interfere with the applicant s objective, unbiased and impartial judgment relating to the use of IEDF funds. The applicant must disclose to the Ministry, without delay, any situation that a reasonable person would interpret as either an actual, potential or perceived conflict of interest. The applicant must also comply with any terms and conditions that the Ministry may prescribe as a result of the disclosure. A.5. THE APPLICATION PROCESS Eligible applicants must submit applications online through Grants Ontario at Grants Ontario is the Province of Ontario s online application system for grant funding. It is important that you understand the steps for registering with Grants Ontario prior to submitting your IEDF application. Applicants using Grants Ontario for the first time must create a ONe-key account and be enrolled in the Transfer Payment Common Registration system. If an applicant has previously submitted an application for funding from other programs through Grants Ontario, a new ONe-key account is not required, but you may be still be required to enroll in the Transfer Payment Common Registration system. For more details regarding the ONe-key account, Transfer Payment Common Registration, or Grants Ontario, please refer to the Grants Ontario registration web page. Since applicants must register with Grants Ontario in order to access Economic Diversification Grant and Regional Partnership Grant application forms, most of the information requested in the first few sections of the application form (such as address, contact information, etc.) will be automatically filled in using data from the registration process. Business and Community Fund application forms are available directly from the appropriate Aboriginal Financial Institution delivering the Business and Community Fund. Please note that the ONe-key account is registered at the individual level and not the organization level. If someone in your organization has an account that is used for a different grant application, an individual account is still required if you are the one submitting the application. Once an application has been started it may be saved or downloaded at any point and returned to later. Please refer to the Grants Ontario System Reference Guide for Applicants for instructions on how to save and submit the application. 8
9 Technical questions regarding Grants Ontario may be directed to the Grants Ontario Customer Service Line at or by telephone at or , Monday to Friday from 8:30 a.m. to 5:00 p.m. Eastern Standard Time. All applications will be assessed, evaluated and approved using requirements outlined in this handbook and the application guides for the programs. Applications must be made to a specific IEDF program and projects must comply with the eligibility criteria of that program. A.6. APPLICATION EVALUATION PROCESS Applications for IEDF funding will undergo a two-stage review process: A preliminary assessment; and A full assessment. A preliminary assessment will be undertaken by the Ministry to ensure each application is complete. This assessment will determine compliance and suitability with the IEDF. The Ministry will: Confirm eligibility and undertake background checks on applicants and partners to ensure eligibility. Undertake a risk assessment and financial review on applicants and partners to confirm that they have the capacity to undertake and complete the proposed project. Applicants will be informed in writing whether the application will/will not proceed to the full assessment stage. The Ministry may request additional information if an application is deemed incomplete. Applicants must provide the requested documentation within the time provided or the application will be deemed ineligible. A full assessment involves a complete review of the project to determine if it fits with the criteria of the funding program applied to. The review committee will assess each application using the criteria outlined in Section 4 below and within the guides for each program. The review committee will also consider: The business plan, including the project management approach and governance structure. The business case, including overall need and demand for the project. The anticipated results of the project within the proposed timeframe. Applicant s history on managing projects funded by the Government of Ontario. Each applicant will be informed of the funding status of their application and provided with copies of the Funding Agreement to sign. Applicants will be advised of any changes required to the project prior to finalizing a Funding Agreement. Applicants of unsuccessful projects will be informed in writing and 9
10 provided with a brief explanation as to why the project wasn t funded. The applicant may request a debrief on why their proposal was not approved. A.7. MANAGING PROJECTS Funding recipients must adhere to project management requirements when using IEDF funds. The following section outlines how projects should be managed to ensure compliance. A.7.1 Monitoring and Reporting Funding recipients are legally responsible for ensuring the delivery of the approved project. Funding recipients must provide any financial reports and other documentation as requested by the Ministry and as outlined in the Funding Agreement. Compliance may be checked at any point during the life of the project by the Ministry. Checks may also be undertaken after project completion. Checks may include the review of financial information and other documentation related to the project. During the life of a project, a funding recipient can expect at minimum the submission of annual activity and financial reports to the Ministry. Reporting requirements for these reports will be outlined in the Funding Agreement. A final report is required at the end of the project. The final report includes audited financial information on the use of funds as well as information on outputs and results of the project, as outlined in the Funding Agreement. Reporting requirements for the final report are outlined in the Funding Agreement. The Ministry is responsible for analyzing reports for accuracy and eligibility of expenditures. During the review of any reports or visits, the Ministry will verify that expenditures and outputs are eligible and compliant with the IEDF. Funding recipients may be asked to provide copies of invoices or other documentation for any expenditure item. A.7.2 Record Keeping The Ministry may request documentation as part of its reporting and monitoring processes. Funding recipients must maintain records to support expenditures and prove compliance with the IEDF. For joint projects the Funding Recipient is responsible for maintaining an accurate audit trail and ensuring that all delivery partners maintain adequate records. Examples of documentation that should be maintained include: Documents related to work carried out during project development, the application process, and during and after the project. Any invoices and bank statements to show payments were made for work done. Records of eligible beneficiaries and the steps taken to determine their eligibility, including proof that a beneficiary is eligible. 10
11 Evidence of match funding, such as copies of funding acceptance letters and bank statements showing receipt of match funding. Copies of all promotional and publicity materials, including press releases and marketing to demonstrate the correct use of the IEDF identifier logo and any required text. The Funding Agreement including any amendments. Correspondence between the Ministry and the funding recipient. Claim forms for IEDF-related expenditures and financial reports Documentation showing how IEDF-related expenditures were calculated, including any flat rate and pro rata methodologies for indirect overhead costs and salaries allocated to the project. Documentation related to any procurement undertaken for the IEDF project, such as proof of invitation to suppliers to bid or advertising of procurement opportunities, procurement submissions received from suppliers and the scoring methodology used for selecting a supplier. Documentation and evidence related to any claims made on results of an IEDF-funded project, such as evidence of the number of jobs created as a result of support from the IEDF. A.7.3 Acknowledgement Support through the IEDF must be acknowledged through all stages of a project s life. The acknowledgement requirements are outlined below as well as in the Funding Agreement. All printed and electronic documents and publications produced in relation to IEDF-funded projects must acknowledge and reference the IEDF. Documents must display the IEDF identifier provided by the Ministry in a prominent position. Where applicable, the IEDF identifier and any related text must be included in promotional material, media releases, job and procurement advertisements, reports, application forms for beneficiaries and funding agreements with beneficiaries. The identifier must appear on the homepage for project-specific websites and on relevant pages within the funding recipient s website. If it is not possible to display the IEDF identifier on materials due to space and size restrictions, a text reference indicating the support received should be used. The Ministry will assist funding recipients in the development of promotional material, announcements or media releases, as needed. Quotes to show the support for the project from the Funding recipients must use the following text for project-related media releases: The [INSERT NAME] project is funded by the [INSERT NAME OF PROGRAM] of the Indigenous Economic Development Fund. An initiative of the Government of Ontario, the Indigenous Economic Development Fund supports promising projects that lead to employment, training and business opportunities for Indigenous people. Minister of Indigenous Relations and Reconciliation may also be available for media releases or other publicity. Funding recipients should contact the Ministry for quotes. Any conference, seminar, exhibition or event related to an IEDF-funded project should promote the support of the IEDF. Materials and documents produced for the event must acknowledge and reference 11
12 funding and include the IEDF identifier. Funding recipients may contact the Ministry to inquire about the attendance of the Minister or a representative from the Ministry for the event. For media interviews related to an IEDF-funded project for print, radio, television or other media, as well as any advertisement to promote the project, reference should be made to the IEDF and the support provided. A.7.4 Procurement Funding recipients are encouraged to select suppliers of goods and services through an open and transparent tendering process. Value for money must be sought when purchasing any good or service. Funding recipients are encouraged to promote the participation of Indigenous suppliers in their projects. Funding recipients may accomplish this through the use of evaluation criteria or competitive processes involving eligible Indigenous suppliers (i.e., a set aside ). A set aside competition is a procurement process for only Indigenous suppliers and should only be undertaken when sufficient capacity exists among suppliers to successfully deliver procurement requirements, as determined by the funding recipient. A.7.5 Corrective Action When a project is found to be non-compliant with IEDF requirements, the Ministry may take action in accordance with the Funding Agreement. This may include requiring funding recipients to take corrective action to resolve any breach in funding conditions, poor management, or inadequate control of the project. B. DISCLAIMER Applicants should note that: Consideration of an application by the Ministry does not guarantee funding. Funding is dependent on the availability of funds, the Ministry s review of the application, and on the recipient s entering into a Funding Agreement. Funds received in a given funding year may only be spent on eligible activities carried out during that funding year and specified in the budget and work plan as approved schedules of the Funding Agreement. All projects must comply with relevant Canadian and Ontario laws, regulations, standards and policies. All applications submitted to the Ministry are subject to the access to information provisions of the Freedom of Information and Protection of Privacy Act (the Act ). The Act provides all persons with a legal right of access to information in the custody and/or control of the Ministry, subject to a limited set of exemptions. One such exemption is information that reveals a trade secret or scientific, technical, commercial, financial or labour relations information supplied in confidence, where disclosure could reasonably be expected to result in certain harms. If an applicant believes that any of the information it submits in connection with its application is 12
13 confidential and wishes to protect the confidentiality of such information, the applicant should clearly mark the information confidential. If the Ministry receives a request for access to the information marked confidential, the Ministry will contact the applicant so that it may, if it wishes, make representations concerning the release of the requested information. Marking the information confidential does not mean that the information will not be released if and as required under the Act. 13
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