First Nations and Inuit Youth Employment Strategy Skills
- Slides: 9
First Nations and Inuit Youth Employment Strategy – Skills Link program (NP-21), Mentored Work Placements activities – 2016/2017 Funding and Surplus Management. April, 2017
Table of Contents – Mentored Work Placements Funding • Background – Increase of the 2016/2017 funding compared the 2015/2016 fiscal year – Reinvestment of surplus • Concept of services rendered and acceptance by the Department that First Nations may record deferred revenues for two years (transition) • Recommended accounting presentation including examples • Conclusion and reference 2
Background • INAC significantly increased funding for Mentored Work Placements in 2016/2017. • FNHRDCQ and First Nations received the official confirmation of the funding increase only during the 2016/2017 fiscal year. • It is possible that many First Nations will not be able to spend all of the 2016/2017 funding before March 31, 2017. • Important: no surplus / unexpended funds can be retained by the beneficiary to improve its financial health. 3
Concept of services rendered and acceptance by the Department that First Nations may record deferred revenues for two years (transition) • Where the expenditures exceed 85% of the funding provided by the FNHRDCQ, we will consider that the service has been rendered. The surplus, if any, will be treated as an unexpended fund to be reinvested in the same activity in the following year. In addition, recipients must confirm by e-mail to the FNHRDCQ that the surplus will be reinvested in Mentored Work Placements in the following year. • Where expenditures will totalize less than 85% of funding provided by the FNHRDCQ, the service will not be considered as being completely rendered. The Recipient (First Nation) will be required to record a deferred revenues to the following year in its financial statements and must submit a detailed Reinvestment Plan to the FNHRDCQ • FNHRDCQ and INAC will agree that First Nations will record deferred revenues for services not completely rendered for a period of two years (maximum carry-over until 2018 -2019); 4
Suggested accounting presentation (examples) 5
Example: ABC First Nation 6
Example: XYZ First Nation 7
Example: JKL First Nation 8
Conclusion and reference • Important to share this information with your Band Councils and the Finance Sector of each of your organizations. • For more information - contact the FNHRDCQ • No SGGID: 1529513 9
