Commissioner's Directive 543
CCRA Section 81 Agreements

Authorities

• Corrections and Conditional Release Act (CCRA), sections 2, 2.1, 3, 3.1, 4, 5, 6, 81 and 84
• Corrections and Conditional Release Regulations (CCRR), section 5
• Financial Administration Act, subparagraph 34(1)(a)(i)

Purpose

To provide a framework for the negotiation, management and delivery of correctional services and programs to offenders, and the monitoring of financial information relating to CCRA section 81 agreements

Applications

Applies to staff and offenders involved in and/or affected by CCRA section 81 agreements

Responsibilities

1. The Senior Deputy Commissioner will:
1. ensure that section 81 agreements adhere to relevant legislative authorities, including the CCRA and CCRR
2. establish and revise the process governing the application, negotiation, and implementation of section 81 agreements
3. oversee and evaluate the performance management of section 81 agreements, including planning, monitoring, and reviewing
4. establish a National Management Committee (NMC)
5. serve as the Chair of the NMC
6. establish, as the Chair of the NMC, a regionally led negotiating team that will organize the negotiations of the section 81 agreements with Indigenous governing bodies or any Indigenous organization
7. provide advice and guidance on the appropriate use of financial resources from a national policy perspective, as required.
2. The Assistant Commissioner, Corporate Services, and Chief Financial Officer will:
1. ensure that section 81 agreements take into account the program, policy, legal and financial considerations of CSC and the federal government, and adhere to Treasury Board policies and other instruments
2. seek incremental resources through Treasury Board for section 81 agreements, when required
3. develop submissions to obtain Treasury Board approval of financial limits in accordance with the Treasury Board Directive on the Management of Procurement, the Financial Directive 350-3 ‒ Contracting and the Delegation of Spending and Financial Authorities Instrument, as required
4. allocate resources for section 81 agreements
5. provide recommendations to the Commissioner on resource requirements for section 81 agreements
6. participate in, and contribute to, the work of the NMC.
3. The Regional Deputy Commissioner responsible for managing CSC operations in the geographic area to be covered by the services provided for in current or prospective section 81 agreements will:
1. inform the Indigenous governing body or Indigenous organization that wishes to pursue a section 81 agreement with the Minister of Public Safety about the process governing the application, negotiation, and implementation of a section 81 agreement
2. foster and maintain relationships with Indigenous governing bodies, Indigenous organizations, and existing section 81 agreement holders, and ensure ongoing engagement and regular exchange of information
3. conduct an initial analysis of statements of interest submitted by Indigenous governing bodies or Indigenous organizations based on regional plans, priorities, and population management needs
4. provide recommendations to the Senior Deputy Commissioner, as the Chair of the NMC, on statements of interest received
5. report to the NMC on mutually agreeable terms and conditions as well as those terms and conditions where consensus cannot be reached
6. assign and monitor, upon execution of the agreement, the completion of required tasks prior to full operation of the services provided for in section 81 agreements
7. oversee the strategic planning and managing of resources, and ensure that they are applied toward attaining CSC’s objectives with regard to section 81 agreements
8. establish a performance measurement strategy and maintain a monitoring system specific to section 81 agreements
9. monitor financial information, prepare annual reports, conduct periodic audits of section 81 agreements, and provide additional information requested by senior management
10. report issues to the Director General, Indigenous Initiatives Directorate, pertaining to the management of section 81 agreements in their region, as they arise
11. where electronic information sharing is a component of a section 81 agreement, consult with CSC’s Chief Information Officer, Designated Official for Cyber Security, Access to Information and Privacy Office, and Deputy Chief Security Officer to ensure all security requirements are assessed and incorporated within the scope of the agreement
12. ensure appropriate and timely planning with respect to section 81 agreement extensions, renewals, negotiations, and notification requirements.
4. The NMC will:
1. include the following members:
1. Senior Deputy Commissioner
2. Regional Deputy Commissioner responsible for managing CSC operations in the geographic area to be covered by the services provided for in the current or prospective section 81 agreement
3. Assistant Commissioner, Corporate Services, and Chief Financial Officer
4. Assistant Commissioner, Correctional Operations and Programs
5. Deputy Commissioner for Women, when the section 81 application or agreement pertains to women offenders
6. Director General, Indigenous Initiatives Directorate
7. Legal Services counsel
8. any other participation deemed necessary by the Senior Deputy Commissioner
2. meet as required, but no less than once annually
3. review and assess section 81 applications, including statements of interest and formal proposals
4. oversee and direct the work of the negotiating team and, if necessary, resume negotiations where terms, conditions, or issues are unresolved
5. make recommendations on applications and the management of section 81 agreements biannually or as needed
6. review, assess, and recommend whether to accept or reject the termination, renewal, renegotiation, or amendment of section 81 agreements.
5. The Director General, Indigenous Initiatives Directorate, will provide support in the corporate management of section 81 agreements. They will:
1. review formal proposals and prepare all relevant documentation to facilitate the NMC’s assessment thereof
2. prepare a briefing note to advise the Minister of the assessment and recommendation for the Minister’s decision
3. draft a letter for the Minister’s signature to inform the applicant of the Minister’s decision if the Minister provides an approval-in-principle to proceed with negotiations
4. draft a letter for the Commissioner’s signature to inform the applicant of the Minister’s decision if the Minister rejects the formal proposal
5. support the NMC through the application and negotiation stages
6. establish and maintain a system to monitor and track national bed utilization and any other data, as determined by senior management
7. ensure compliance with operational protocol and policy elements of section 81 agreements
8. provide content to develop submissions to obtain Governor-in-Council approval for section 81 agreements
6. The Director General, Security, will:
1. serve as the subject matter expert on departmental security procedures in facilities managed pursuant to section 81 agreements, if and when required
2. liaise closely with regional Facilities on aspects of section 81 agreements involving physical security procedures and facility standards
3. approve and oversee operational feasibility for electronic security and surveillance systems on a site-specific basis, in conjunction with regional Facilities.
7. The Director General, Technical Services and Facilities, will advise, as the subject matter expert, on the CSC technical security requirements in facilities managed pursuant to section 81 agreements.
8. The Regional Comptrollers will review the financial information provided by the applicant and provide advice to the applicant regarding financial operations and billing procedures to be used with CSC.
9. The Director, Financial Strategies and Analysis, will:
1. assist with the development of the Treasury Board submission for section 81 agreements, as required, in the case where departmental spending on an agreement is anticipated to exceed CSC’s financial limits outlined in the Treasury Board Directive on the Management of Procurement, the Financial Directive 350-3 ‒ Contracting and the Delegation of Spending and Financial Authorities Instrument
2. assist in the quasi-statutory funding mechanism process to adjust for incremental funding as required, ensuring a funding decision is secured before committing to agreements, and avoiding financial pressures for the department
3. provide recommendations to the Deputy Chief Financial Officer on resource requirements for section 81 agreements.
10. The Regional Administrator, Indigenous Initiatives, of the region that encompasses the location subject to a section 81 agreement application or negotiation, or to a section 81 agreement that is in effect, will ensure the following responsibilities are carried out during Stage 1, Phase 2 – Formal Proposal Development:
1. support the applicant in developing a formal proposal with CSC
2. report on progress of the proposal to the Regional Deputy Commissioner
3. ensure that a formal proposal mutually developed by the applicant and CSC is presented to the Regional Deputy Commissioner for consideration.
11. The offender is responsible for initiating the request for a transfer, pursuant to Guidelines (GL) 710‑2-1 – CCRA Section 81: Transfers.

Enquiries

12. Strategic Policy Division
National Headquarters
Email: Gen-NHQPolicy-Politi@CSC-SCC.GC.CA

Annex A- Cross-References and Definitions

Cross-References

CD 541 – Interjurisdictional Exchange of Service Agreements
GL 541-1 – Interjurisdictional Exchange of Service Agreements
CD 701 – Information Sharing
CD 710-2 – Transfer of Inmates
GL 710-2-1 − CCRA Section 81: Transfers

Definitions

Indigenous governing body: a council, government or other entity that is authorized to act on behalf of an Indigenous group, community or peoples that hold rights recognized and affirmed by section 35 of the Constitution Act, 1982.

Indigenous organization: an organization with predominately Indigenous leadership.

National Management Committee (NMC): a committee comprised of national, regional and legal senior management representatives that supports the negotiation, management and maintenance of section 81 agreements.

Section 81 agreement: an agreement under section 81 of the CCRAentered into by the Minister, or a person authorized by the Minister, with an Indigenous governing body or any Indigenous organization for the provision of correctional services to Indigenous offenders and for payment by the Minister, or by a person authorized by the Minister, in respect of the provision of those services.

Pursuant to subsection 81(2) of the CCRA, notwithstanding subsection (1), an agreement entered into under that subsection may provide for the provision of correctional services to non-Indigenous offenders and for payment by the Minister, or by a person authorized by the Minister, in respect of the provision of those services.

Pursuant to subsection 81(3) of the CCRA, the Commissioner may transfer an offender to the care and custody of an appropriate Indigenous authority, with the consent of the offender and of the appropriate Indigenous authority.

The provision of correctional services pursuant to section 81 may include but it is not limited to:

• a facility (e.g., a healing lodge) that provides accommodation, programs, and services for the offenders who live there. While the facility can serve offenders exclusively, it may also provide services to other clients. Thus a facility that brings together resources from various places to serve the needs of different groups serves a valuable function
• an open setting. In certain circumstances, an offender can be transferred to the care and custody of an Indigenous governing body or any Indigenous organization without the designation of a specific residential facility. This will most often be the case on reserve land, wherein the boundaries of the reserve, or some other area specified within it, define the offender's "place of confinement". A custody plan that clearly establishes appropriate controls, programs, and services is required to ensure public safety, as is a high degree of support from the community and a high level of commitment by the offender.

Working day: a day of the week that is not a statutory holiday or weekend.

Annex B- Objectives and Principles of a Section 81 Agreement

Objectives of a Section 81 Agreement

1. The objectives of a section 81 agreement are to:
1. promote the engagement of Indigenous communities in providing for the care and custody of Indigenous offenders
2. provide a safe, supportive, and holistic healing environment for Indigenous offenders
3. provide Indigenous-specific interventions that enhance Indigenous offenders’ potential for rehabilitation and wellness, through inherent cultural and spiritual traditions found within Indigenous communities
4. facilitate the administration of culturally responsive correctional services, in a manner that ensures public safety, and provides support for effective case management
5. provide opportunities for Indigenous offenders’ personal growth and development
6. support offenders in developing skills in accessing the broader Indigenous social and community services network that can support their reintegration as law-abiding citizens
7. enhance Indigenous offenders’ access to their home communities, recognizing the value of family and community relationships and connections
8. provide a high quality of care, custody, and supervision of offenders, thereby supporting the Government of Canada’s priorities, Public Safety’s mandate, as well as CSC’s Mission and Values and Ethics Framework, corporate priorities, and Strategic Plan for Aboriginal Corrections.

Linkages Between Section 81 Agreements and Corporate Planning and Management Systems

2. National coordination is required to link the planning and development of section 81 agreements with CSC’s corporate planning and management systems. Agreements should be negotiated or amended based on requirements identified in CSC’s long range accommodation planning process, ensuring a balance between program needs and accommodation planning needs.
3. Accommodation and operations planning at the regional and national levels should include plans and forecasts for section 81 transfers. These plans should take into consideration the objectives established for section 81 agreements, the target population and selection criteria.
4. Corporate planning and management plans should be in line with the objectives of the Strategic Plan for Aboriginal Corrections, the National Indigenous Plan and the Government’s commitments of the Truth and Reconciliation Commission Calls to Action. The Indigenous Initiatives Directorate at National Headquarters will inform corporate planning activities to ensure they are guided by traditional ways of knowing and being.

Principles of a Section 81 Agreement

5. Pursuant to subsection 81(1) the CCRA, the Minister of Public Safety or a person authorized by the Minister “may enter into an agreement with an Indigenous governing body or any Indigenous organization for the provision of correctional services to Indigenous offenders and for payment by the Minister, or by a person authorized by the Minister, in respect of the provision of those services.” Under subsection 81(2) of the same statute, “[n]otwithstanding subsection (1), an agreement entered into under that subsection may provide for the provision of correctional services to a non-Indigenous offender.”
6. Pursuant to section 81(3) of the CCRA, the Commissioner “may transfer an offender to the care and custody of an appropriate Indigenous authority, with the consent of the offender and of the appropriate Indigenous authority.”
7. The section 81 agreement holder will provide a high quality of care and custody of Indigenous offenders, thereby supporting the spirit of the CCRA, the mandate of the Department of Public Safety, as well as CSC’s Mission and Values and Ethics Framework, corporate priorities, and Strategic Plan for Aboriginal Corrections.
8. Section 81 agreements will provide individuals with access to opportunities for personal growth, including program assignments, to enhance their successful reintegration into society and enable a supportive environment.
9. Section 81 agreements are opportunities for horizontal collaboration between CSC and Indigenous communities and governing bodies. To ensure the holistic healing and reintegration of Indigenous offenders, CSC must pursue existing expertise and knowledge of Indigenous communities and governing bodies.
10. Whereas a section 81 agreement may include a facility that operates with unique Indigenous cultural approaches to the care and support of offenders in the community, the provision of services envisioned within a section 81 agreement is not limited to the establishment of a physical facility, nor is any associated infrastructure defined as a CSC facility or operation.
11. The Protocol, Procedures, and Standards document annexed to a section 81 agreement will outline the services provided and procedures to be followed by the section 81 agreement holder.

Annex C- Stage 1: Application and Endorsement Process

1. Prior to commencing the Stage 1 – Application and Endorsement Process, it is presumed that informal consultations have taken place between the Indigenous governing body or Indigenous organization and the Regional Deputy Commissioner of the respective geographic area to be covered by the services provided for in the current or prospective section 81 agreement. The reception of a statement of interest formally initiates the three-stage process towards finalizing a section 81 agreement. Those stages being: application, negotiation, and implementation.
2. The Application and Endorsement Process consists of two distinct phases, namely the statement of interest phase and the formal proposal development phase. Neither of these phases will be interpreted as negotiations of a section 81 agreement, but rather the foundation to support potential negotiations.
3. CSC is committed to supporting section 81 applicants in their pursuit of section 81 agreements and throughout the application process. The Regional Deputy Commissioner will inform Indigenous governing bodies and Indigenous organizations who wish to pursue a section 81 agreement with the Minister about the processes set out herein.

Phase 1: Statement of Interest

4. The purpose of this phase is for the Regional Deputy Commissioner and the NMC to review and evaluate the applicant’s statement of interest in order to determine the viability of the proposal in meeting the objectives of the section 81 agreement.
5. The initial statement of interest should contain essential information addressing the applicant’s interest and capacity to enter into a section 81 agreement. The following list illustrates the information that should be included:
1. the name of the applicant Indigenous governing body or Indigenous organization and their corporate or legal structure
2. the applicant’s vision, mission, goals, and objectives
3. the description of services and interventions to be provided
4. a description of the applicant’s previous experience in the criminal justice field
5. demographics of offenders who can apply for their services and the intended number of offenders to receive services
6. implementation and operational funding requirements/needs
7. financial requirements of the applicant to further develop their statement of interest and formal proposal
8. capacity to deliver and provide access to Indigenous and community programs and services
9. partnerships that the applicant has or could establish to meet the needs of their clients
10. support from the surrounding communities, including letters of recommendation
11. time and legal constraints related to the applicant’s participation, or the participation of any of their partners, in the proposed agreement
12. the statement of interest, which should contain, where applicable: physical infrastructure, building plans, layouts (interior and exterior design), geographic location, and proof of legal ownership of property and land where the infrastructure is or will be located.
6. The Regional Deputy Commissioner will confirm receipt of the statement of interest to the applicant within 15 working days.
7. Within 90 working days of confirming receipt of the statement of interest, the Regional Deputy Commissioner will complete a regional analysis of the statement of interest based on regional plans, priorities, and population management considerations, and will recommend approval or rejection of the statement of interest to the Senior Deputy Commissioner as the Chair of the NMC.
8. Within 90 working days of receiving the Regional Deputy Commissioner’s analysis and recommendations, under the direction and instructions of the Senior Deputy Commissioner as the Chair of the NMC, the Indigenous Initiatives Directorate at National Headquarters will complete a separate review and assessment of the applicant’s statement of interest and will submit all relevant documentation to the Senior Deputy Commissioner.
9. Within 30 working days of the Indigenous Initiatives Directorate’s review and assessment of the statement of interest, the Senior Deputy Commissioner as the Chair of the NMC will convene a NMC meeting to consider the Regional Deputy Commissioner’s recommendations, as well as the Indigenous Initiatives Directorate’s review and assessment, and any additional issues as they arise.
10. Within 15 working days of the NMC meeting, the NMC will notify the Regional Deputy Commissioner of the Senior Deputy Commissioner’s recommendation to initially accept or reject the applicant’s statement of interest. The NMC will forward the Senior Deputy Commissioner’s recommendation to the Commissioner and the Minister of Public Safety for decision.
11. The Regional Deputy Commissioner will notify the applicant within seven working days of the decision being rendered.
12. If the Minister decides that CSC should further investigate the statement of interest, the Regional Deputy Commissioner will initiate Phase 2 of the application by way of jointly developing a formal proposal with the applicant.

Phase 2: Formal Proposal Development

13. The purpose of this phase is to:
1. conduct a more extensive analysis of the details of the applicant’s statement of interest and develop a formal proposal
2. provide advance notice of issues which may eventually require ministerial and/or Treasury Board approvals
3. allow appropriate consultation and community involvement to take place.
14. The Regional Administrator, Indigenous Initiatives, will support the applicant throughout this phase and will report on progress to regional senior management as needed.
15. A formal proposal will be developed by the applicant in consultation with CSC, which must address the following key elements, at a minimum:
1. an analysis of all costs related to the section 81 proposal, including initial start-up costs and ongoing financial requirements
2. a detailed overview of the management framework of the proposal and staffing levels required, if applicable
3. a description of the proposed services and interventions
4. an assessment of community capacity and services.
16. CSC will provide the following information to be included in the formal proposal:
    1. how the proposal meets statutory requirements
    2. whether the proposed section 81 agreement will be cost-effective
    3. options for effective and appropriate payment structures for the ongoing operations of the proposed section 81 agreement, in consideration of payment structures contained in existing section 81 agreement, and their applicability to the proposal under review
    4. specific national and regional operational needs
    5. if applicable, custodial arrangements such as health care, food, accommodation, and security
    6. where the formal proposal has the potential to impact Indigenous rights as protected by section 35 of the Constitution Act, 1982, the results of consultations with Indigenous communities whose rights may be impacted, regarding the formal proposal, and an assessment of municipal, provincial, and territorial legal requirements, such as First Nations land usage, ongoing treaty negotiations, and comprehensive claims.
17. The applicant and CSC must present a jointly developed proposal to the Regional Deputy Commissioner for consideration within 90 working days of receipt of the notification that the parties will proceed to Phase 2 of the application process.
18. Within 15 working days of receipt of the proposal, the Regional Deputy Commissioner will forward the proposal to the Senior Deputy Commissioner as the Chair of the NMC.
19. Within 15 working days of receiving the proposal from the Regional Deputy Commissioner, the Indigenous Initiatives Directorate at National Headquarters will, under the direction of the Senior Deputy Commissioner as the Chair of the NMC, complete a review thereof, and will prepare all relevant documentation to facilitate the NMC’s assessment and recommendation process.
20. Within 20 working days of receipt of the formal proposal and supporting materials from the Indigenous Initiatives Directorate, the NMC will complete an assessment considering information gathered from consultations it conducts with relevant internal and external stakeholders, and submit recommendations to the Commissioner for consideration and recommendation to the Minister.
21. The surrounding communities’ support for, or opposition to, the proposal will be documented throughout this stage, as it may impact the Minister’s ultimate decision whether to enter into a section 81 agreement with the applicant.

Endorsement

22. If the NMC supports the formal proposal, the Senior Deputy Commissioner as the Chair of the NMC will advise the Commissioner and recommend that the Commissioner endorse the formal proposal.
23. Within 15 working days of CSC’s endorsement of the proposal, the Commissioner will advise the Minister and recommend an approval-in-principle to advance to negotiations with the applicant.
24. In seeking ministerial approval to proceed to negotiations, the Commissioner will provide the following documentation to the Minister:
1. the applicant’s statement of interest
2. the applicant’s final formal proposal
3. a needs analysis
4. a briefing note outlining the rationale for CSC’s endorsement.
25. If the Minister provides an approval-in-principle to proceed to negotiations, within 15 working days, the Indigenous Initiatives Directorate will draft a letter for the Minister’s signature, addressed to the applicant, proposing that the parties move to Stage 2: Negotiations.
26. The Commissioner will inform the Treasury Board of Canada Secretariat of the impending negotiations in order to provide advance notice and to allow for appropriate consultation and involvement, as required. The Treasury Board of Canada Secretariat will be kept informed as the negotiations continue, as required.
27. If the Minister rejects the formal proposal, within 15 working days, the Indigenous Initiatives Directorate will draft a letter for signature by the Senior Deputy Commissioner as the Chair of the NMC, addressed to the applicant, informing them of the Minister’s decision.

Funding

28. As required, the Assistant Commissioner, as the Chief Financial Officer of CSC, will coordinate the submissions to obtain Treasury Board approval for CSC to advance to Stage 2: Negotiations.

Annex D- Stage 2: Negotiations

Negotiating Team

1. Within 15 working days of receipt of the Minister’s approval-in-principle to advance to the negotiations stage, the Chair of the NMC will establish a regionally led negotiating team who will organize the negotiations between CSC and the applicant.
2. The Senior Deputy Commissioner as the Chair of the NMC will collaborate with the Regional Deputy Commissioner to determine the appropriate Chair and membership of the negotiating team. Consideration will be given to Finance, Indigenous Initiatives Directorate, Legal Services Unit, Correctional Operations and Programs, and regional representatives.
3. The NMC will oversee and direct the work of the negotiating team.
4. The negotiating team will establish a framework for negotiations, and will endeavour to reach consensus on the terms and conditions of the proposed section 81 agreement with the applicant within 90 days.

Mandate of the Negotiating Team

5. The negotiating team will:
1. liaise with the applicant’s representative(s) to ensure that the community’s interests are reflected in the negotiating framework
2. review the proposal and assess the program, policy, and legal requirements of CSC as well as federal government and Treasury Board policies
3. ensure all offices of primary interest and stakeholders implicated in the negotiation of the section 81 agreement are consulted
4. establish mutually agreeable terms and conditions to support the development of a section 81 agreement.

Negotiating Framework

6. The Chair of the negotiating team and the applicant will establish a negotiating framework that will include the following components:
1. negotiation objectives and components
2. project authority – who is accountable for the delivery of the end product(s)
3. project organization – key CSC players, their roles and responsibilities, as well as liaison with relevant external agencies
4. proposed process, preliminary work plan and major milestones/expected results
5. approval process
6. communication plan – who will be informed of what, by what method, and status reports
7. resource allocation for conducting the negotiation – number and type of personnel, number of work days and project budget
8. potential financial support to the applicant
9. performance management objectives and reporting plan
10. other components according to the requirements of the operational plan.

Financial Framework

7. During negotiations, the negotiating team will review and analyze the financial requirements associated with a new section 81 agreement or an extension of a current agreement, using the “Eligible Expenditures” and “Financial Framework for Section 81 Agreements” tools.
8. These tools provide a list of eligible expenditures that are permitted during the negotiation of an agreement. Furthermore, they identify key elements of a financial framework to be discussed at the time of negotiating an agreement and assist in determining whether the agreement provides value for money for CSC and the Government of Canada.

Reporting

9. As the negotiations proceed, the Chair of the negotiating team will report to the NMC on the terms and conditions for which consensus has been achieved by the parties, and on areas where the parties have reached an impasse.
10. If the parties have reached consensus on all terms and conditions of the proposal, the negotiating team will submit the results of the negotiations to the NMC for consideration and recommendation.
11. If consensus cannot be reached on all terms and conditions of the proposal, the negotiating team will advise the NMC of the terms which remain unresolved. The NMC will conclude the negotiation where the negotiating team could not reach agreement.
12. The Chair of the negotiating team will forward the final draft agreed upon by both parties to the Senior Deputy Commissioner as the Chair of the NMC and to the Regional Deputy Commissioner.
13. Within 45 working days of receipt of the final draft of the section 81 agreement, the NMC will review the draft and prepare all necessary documentation and its recommendation to be forwarded to the Minister’s office for decision.

Elements of a Section 81 Agreement

14. The section 81 agreement must contain the following information and provisions, at a minimum, and these will form the basis of the negotiations:
1. preamble/introduction
1. legal basis and authority for the agreement
2. proposed principles of the agreement
2. terms, conditions, and provisions
1. definitions (where terms contained in the agreement are defined in the CCRA, those definitions will apply to the agreement)
2. objectives
3. authority, accountability, and responsibilities of management and staff
4. roles of CSC and the agreement holder, respectively, in managing the agreement
5. transfer of offenders, where applicable
6. residency as a condition of parole or statutory release
7. suspension of parole or statutory release
8. confinement of boundaries
9. safety and security operations
10. case management, documentation and file maintenance
11. programs, services, and environment
12. medical, psychiatric, psychological, and other special services
13. return of offenders upon withdrawal of support
14. access of CSC employees to files and/or facilities
15. access to information
16. emergency situations
17. funding arrangements
18. insurance
19. joint review and investigations
20. dispute resolution procedures
21. financial reporting and systems
3. legal and policy considerations
1. jurisdiction
2. liability
3. documentation and records
4. agreement to adhere to all relevant statutes, regulations, policies, treaties and comprehensive claims
5. termination of or amendment to the agreement, including the return of offenders upon termination of the agreement
6. duration of agreement
7. references to related agreements and to attached schedules (Expenditure Plans)
8. indemnification
9. representations
10. operational protocols
11. statement of limitation specifying that:
1. staff are not Government of Canada employees
2. the section 81 agreement is not a joint venture
3. the agreement represents the entire agreement, and there are no written or oral presentations other than those expressly set out therein
4. the agreement holder will not assign the section 81 agreement without written approval from the Minister
5. no Member of Parliament will benefit from any part of the section 81 agreement
6. the agreement holder will not assign this agreement, sub-delegate or sub‑contract any of their responsibilities under the agreement, without the written approval of the Minister
7. it is a term of every agreement providing for the payment of any money by Her Majesty that payment under that agreement is subject to there being an appropriation for the particular service for the fiscal year in which any commitment under that contract would come in course of payment
4. financial administration
5. amendments
6. notices.
15. The section 81 agreement may contain the following information and provisions, as applicable:
1. transportation
2. confinement and residency.

Section 81 Agreement Funding

16. All aspects related to financing, including payments of allowances to inmates under section 81 agreements (billing only for “in-custody” offenders and based on approved rates), will be in line with legislation, Treasury Board standards and CSC policy.
17. Funding for a section 81 agreement may require an approved Treasury Board submission.
18. The Financial Strategies and Analysis Division of the Corporate Services Sector will serve as the portal to the Treasury Board of Canada Secretariat for the negotiation and submission of the initial Treasury Board submission.
19. The Treasury Board of Canada Secretariat will be informed and consulted by the Financial Strategies and Analysis Division during the course of the negotiations to ensure that the content and format of the submissions meet the criteria and requirements.
20. The annual review of funding of and approval for incremental funding of section 81 agreements are primarily conducted through consultation with Corporate Services. In unusual situations, funding approval may be obtained through Supplementary Estimates.

Protocol, Procedures and Standards Documents

21. Section 81 agreements will have annexes including a Protocol, Procedures and Standards document.

Communication Plan

22. As part of the preparation of the Treasury Board submission for an agreement, a decision is made on the need for a communication plan. If required, the Assistant Commissioner, Corporate Services, will create the communication plan, which may include the following:
1. environmental factors
2. key audiences
3. proposed messages
4. steps to be taken to make the information available to the public.

Official Languages

23. Section 81 agreements will comply with legislation and policy on official languages.

Security

24. Section 81 agreements will comply with legislation and both Treasury Board and CSC policies on departmental security.

Contracts

25. Contracts for community correctional services authorized under section 81 agreements will comply with the requirements of CSC and federal government policy, guidelines, and statutory requirements.

Section 81 Agreement Coming Into Effect

26. The section 81 agreement comes into effect when the Minister or designate and the representative of the Indigenous governing body or Indigenous organization (such as the Chief Executive Officer or Community Chief) sign the document.

Annex E- Stage 3: Implementation of a Section 81 Agreement

1. The implementation stage is the transition between negotiations and the commencement of the operation of a section 81 agreement and involves:
1. reinforcing the intent of the agreement to ensure the objectives and philosophy as well as legal and financial considerations of the agreement are implemented in a way that is consistent with the spirit in which they were negotiated
2. transferring the lead role from National to Regional Headquarters which will coordinate and monitor the implementation stage to ensure that the necessary actions are taken as specified in the agreement
3. integrating the requirements of the agreement into appropriate corporate management accountabilities as stipulated in the agreement as well as planning and reporting processes.

Implementation Committees

2. Representatives from the agreement holder and CSC Regional Headquarters will establish an implementation committee when the agreement is signed.
3. Contact information regarding the members will be shared and updated on a regular basis.
4. Once the agreement is executed, a number of developmental tasks must be carried out in accordance with the terms and provisions of the agreement before full operation is realized (e.g. establish committees set out in the agreement).
5. The implementation committee will be responsible for carrying out all necessary developmental tasks.

Annex F- Management, Monitoring and Reporting of Section 81 Agreements

Managemnet of Section 81 Agreenents

1. The Regional Deputy Commissioner will establish a process to ensure ongoing effective management of section 81 agreements, including maintaining a record of minutes and action plans of all committee meetings at the regional office and sharing these documents with the Indigenous Initiatives Directorate at National Headquarters.
2. During the term of the agreement, the NMC will be involved in recommendations on amendments, reviews, renewals, negotiations, and terminations as required, and ensure that a record of these matters is maintained.

Joint Committee

3. Agreements may include the reference to tripartite or joint committee meetings with representatives from CSC, the agreement holder, provincial counterparts, and any other party the Regional Deputy Commissioner deems necessary for an efficient review of the ongoing management, operations, monitoring, and evaluation of section 81 agreements.
4. CSC and the section 81 agreement holder will establish a joint committee.
5. The joint committee will be convened annually for the efficient review of the ongoing management, operations, monitoring and evaluation of the agreement, including a thorough review of the Protocol, Procedures, and Standards document, for the purpose of maximizing benefits to offenders and facilitating the agreement’s efficient administration.

Monitoring and Reporting on Section 81 Agreements

6. In collaboration with the Performance Measurement and Management Reports Division, the Indigenous Initiatives Directorate at National Headquarters will maintain monitoring systems to track bed utilization in accordance with corporate priorities.
7. In collaboration with the Corporate Services Sector, the Indigenous Initiatives Directorate will maintain financial expenditure data to support the timely review of section 81 agreement performance.
8. Regional Headquarters will maintain corresponding regional monitoring systems.
9. In addition to the financial monitoring system, Regional Headquarters will report on an annual basis (by January 15th) to the Chair of the NMC on the operational activities and performance measures of section 81 agreements within the respective region to ensure integration into the overall CSC corporate reporting framework.
10. National Headquarters will facilitate a five-year cyclical evaluation of bed space capacity and utilization of Healing Lodges, including those established in accordance with section 81 agreements and CSC-operated Healing Lodges.

Monitoring of Financial Information

Reports – General

11. As per the agreement, the agreement holder will provide CSC with the following reports:
1. Monthly Utilization Reports indicating total utilized beds by resident’s name, Fingerprint System (FPS) number and gender, if applicable
2. Monthly Living Allowance Report by resident’s name, FPS number and gender, if applicable
3. Annual Audited Financial Statements.

Billing and Payment Procedures

12. As per the agreement:
1. the agreement holder will invoice CSC on a monthly basis for fixed and variable per diems based on negotiated funding arrangements
2. any additional services agreed by both parties (e.g., transportation, remuneration, etc.) will be invoiced in accordance with the financial administration provisions of the agreement.
13. Monthly invoices will include the following information:
1. date
2. billing period
3. number of bed days used on total reserved capacity, if applicable
4. billing rate per bed day, occupied and unoccupied
5. allotments or remunerations, if applicable (number and total for each).
14. For each offender, the following information will be required:
1. name and FPS number
2. status of offender (inmate in custody or offender on conditional release)
3. date of arrival
4. number of days of residency, if applicable, for the billing period
5. starting date, if any
6. other reimbursable sums, if any (e.g, medical, psychiatric and psychological services, etc.)
7. a detailed description of the services rendered (e.g. community assessments, addiction treatment program, etc.)
8. total invoice
9. signature of the person duly authorized by the agreement holder.

Financial Statements

15. As per the agreement:
1. the agreement holder will provide CSC annually with their financial statements within the timeframe stipulated in the agreement
2. the financial statements should be prepared in accordance with the Generally Accepted Accounting Principles by an independent certified accountant, licensed in the province in which the section 81 agreement holder operates.

Records

16. As per the agreement:
1. records and accounts of all financial transactions must be kept by the agreement holder in accordance with Generally Accepted Accounting Principles
2. all financial records must be maintained by the agreement holder for seven years from the end of the fiscal year on which they report, unless there is a written mutual consent between the Minister and the agreement holder that the records may be destroyed. This record keeping requirement remains in effect after the agreement ends.

Audits

17. As per the agreement:
1. CSC may audit the accounts and records of the section 81 agreement, during the term and after the expiry of the agreement. This is to ensure compliance with the terms and conditions of the agreement
2. without limiting the scope, audits may be carried out to substantiate any financial transactions, to validate budgets, estimates, rates charged to CSC and to ensure funds have been spent in accordance with the agreement. This may be done whether the records are directly or indirectly related to the agreement.
18. Audits will be administered at CSC’s expense.
19. The timing of the audit must be agreed upon by both parties.
20. The scope and coverage of the audit will be determined by CSC and may be carried out by employees or agents of CSC.
21. The agreement holder will:
1. ensure that records are available for CSC to audit upon reasonable notice
2. provide reasonable workspace for the auditors
3. permit CSC to inspect, audit, take extracts and make copies of the records
4. provide CSC with all of the information necessary to understand the records.
22. CSC will conduct a minimum of one financial audit of section 81 agreements every two years and will also conduct a financial audit whenever requested by the Chair of the NMC or the Regional Deputy Commissioner.

Insurance

23. As per the agreement, the agreement holder must maintain adequate fire, automobile and liability insurance for the duration of the agreement.
24. The agreement holder will maintain proof of coverage and will produce copies thereof to CSC upon request.

Evaluations

25. Once per year, the agreement holder will conduct a self-evaluation on the scope of services and administrative requirements identified in the agreement, as well as prepare a summary of staff training activities completed during the preceding fiscal year.

Amendments, Renewals, and Termination

26. The termination of an agreement will be in accordance with the terms stipulated within the agreement.
27. Substantive amendments to agreements must be approved by the Minister. Amendments that have cost implications may require Treasury Board approval.
28. After consultation with the agreement holder, the Commissioner may make amendments in accordance with the terms of the agreement to ensure allowances for operational flexibility. Detailed operational provisions of the agreement can be amended without a formal ministerial and Treasury Board approval process, thus providing operational flexibility in agreements approved by the Minister.
29. Renewals of section 81 agreements must be done in close partnership with the agreement holder, and are subject to the process laid out in this Commissioner’s Directive.