Appendix A to the FNCFS Terms and Conditions: Reformed FNCFS Program in Ontario
Effective date: May 29, 2026
This Appendix supports the implementation of the reformed First Nations Child and Family Services (FNCFS) program in Ontario and applies only to program services, funding approaches, and related initiatives in that province. This Appendix is to be read in conjunction with, and forms part of, the FNCFS Terms and Conditions: Contributions to provide children, youth, young adults, families and communities.
Table of contents
- A.1 Context
- A.2 Program services, funding strategies and initiatives in Ontario
- A.3 Eligible FNCFS funding recipients in Ontario
- A.4 Type and nature of eligible expenditures in Ontario
- A.5 Application requirements and assessment criteria in Ontario
- A.6 Program funding in Ontario
- A.6.1 Method for determining the amount of funding
- A.6.1.1 Prevention services
- A.6.1.2 Post-majority support services
- A.6.1.3 First Nation Representative Services
- A.6.1.4 Child Protection Services (Baseline Funding)
- A.6.1.5 Information Technology Funding Strategy
- A.6.1.6 Results funding strategy
- A.6.1.7 Emergency funding strategy
- A.6.1.8 Household supports funding strategy
- A.6.1.9 Funding adjustments
- A.6.1.10 Supporting initiatives
- A.6.2 Maximum amount payable
- A.6.3 Funding mechanism approach
- A.6.4 Basis for payment
- A.6.1 Method for determining the amount of funding
- A.7 Program planning and reporting in Ontario
- A.8 Effective date
Appendix A: Reformed FNCFS Program in Ontario
The following elements of this Appendix are only applicable to FNCFS Program services, funding strategies, and initiatives in Ontario.
A.1 Context
On February 26, 2025, Canada, the Chiefs of Ontario (COO) and Nishnawbe Aski Nation (NAN) reached a Final Agreement on Long-Term Reform of the First Nations Child and Family Services (FNCFS) Program in Ontario. This agreement came into effect on May 29, 2026. This Appendix supports the implementation of the Reformed FNCFS Program in Ontario to:
- support the well-being and safety of First Nation children, youth, young adults, families and communities;
- support First Nations designed models and service delivery;
- address and mitigate structural drivers that could place children, youth and families at risk of child maltreatment;
- provide predictable and flexible funding to First Nations and FNCFS Agencies; and
- support First Nations and FNCFS Agencies in working collaboratively together to address the overrepresentation of First Nations children in care by supporting prevention focused delivery models.
A.2 Program services, funding strategies and initiatives in Ontario
The Reformed FNCFS Program in Ontario funds services that promote the cultural safety and well-being of First Nations children, youth, young adults and families, including legislated services that are prevention-focused, support early interventions and build protective factors to prevent and mitigate family involvement with child and family services.
The Reformed FNCFS Program strategies provide for the delivery of enhanced FNCFS Program services, which acknowledge the unique needs, strengths, and priorities of First Nations communities and account for the cultural, historical, and geographical circumstances and needs.
The Reformed FNCFS Program in Ontario prioritizes the allocation of funding to First Nations to support their autonomy to develop, plan, invest, and deliver services based on First Nation needs, circumstances, and priorities.
FNCFS Program services
Prevention services are evidence-informed and culturally appropriate services intended to support healthy child development, strengthen families, and promote wellbeing. Prevention needs are defined by First Nations, and services are implemented based on the well-being priorities identified by the community. Prevention services can divert families from unnecessary contact with protection services and prevent child maltreatment and harm through early and ongoing intervention and First Nation-based services that support family wellness.
Eligible activities support:
- Targeted services and activities that address structural drivers in order to mitigate the risks factors that could place children at risk of harm and reduce the likelihood of children being taken into care.
- Services and activities that support children and families at risk in the home and community.
- Activities and access to programming and services that promote physical, cultural, mental and emotional safety and well-being.
- Classes, workshops, and outreach to support family preservation and well-being.
- Coordination efforts and referrals with other relevant federal or provincial programs to support individual, family, and community well-being.
- Group, family, and individual interventions services or supports to promote community-based prevention, family well-being, family reunification and/or preservation.
- Interventions that are identified to support the child's best interests including cultural, communal and other activities to build self-esteem, resilience and healing.
Post-majority support services support First Nations youth in care approaching the age of majority and young adults who have transitioned out of care at the age of majority up to their 26th birthday or to the age as defined in provincial legislation (whichever is greater).
- Eligible activities support the self-identified best interests of the youth leaving care or young adult formerly in care in:
- learning, education and professional development opportunities,
- financial supports to further physical, mental & social wellbeing and safe, stable, housing, such as rent, household necessities and utilities or to ensure basic needs are addressed, and
- (re)connection with land, culture, language, family, and community.
- Interventions are provided on the basis of the youth or young adult's self-identified best interests, and other activities to promote protective factors as well as family and community preservation, repatriation, and/or reunification.
- Direct support services to implement a youth or young adult's transition plan, including services and supports not eligible through other federal or provincial programs or where funding from other sources was or will not be received, in whole or in part, to support that activity.
First Nation Representative Services (sometimes referred to as Band Representative Services or Band Designate) support First Nations when children, youth, young adults, and families from their community are involved, or at risk of involvement, with the child and family services system.
First Nation Representative Services will be First Nations-defined and may include engaging with child and family services providers and participating in child and family service matters as set out in provincial, territorial and federal child and family services laws.
First Nation Representative Services supports programming that is substantively equal and culturally-informed and that helps families access supports that foster the connection of First Nations children, youth, and families with the lands, languages, cultures, practices, customs, traditions, ceremonies and knowledge of their First Nation.
Eligible activities support:
- Serving as the main liaison, on behalf of families or communities, between First Nations, FNCFS agencies and/or the Government of Ontario on the basis of the child's best interests (defined by the First Nation) including interventions that mitigate risks and build protective factors, and activities that promote the child's safety, and the child's connection to their community and culture, family preservation, reunification and/or permanency planning.
- Support discussions, planning, and/or coordinating and advocacy when a child and family is involved with child and family services, including Indigenous dispute resolution approaches and court proceedings.
- Ensuring that the cultural needs of a child are being addressed, which includes participating in the development of a child and family's plan of care.
- Collaborative service planning and delivery with other FNCFS Service Providers.
- Serving as a point of contact and responding to notices and performing the functions of a First Nation Representative as set out under federal and provincial legislation and as laid out in An Act respecting First Nations, Inuit and Metis children, youth and families.
Child protection services that form part of Child and Family legislation and are to be delivered in accordance with the national principles and minimum standards set in An Act Respecting First Nation, Inuit and Métis children, youth and families, and applicable provincial or First Nation legislation, regulations, policies and standards and as outlined below.
Child protection services are linked to an assessment of risk, conducted by personnel delegated by the provincial or First Nation child and family services legislation, to ensure identified children and youth are safe, well, healthy, and living free of harm or child maltreatment.
Child protection services include:
Maintenance and care services associated with placing and maintaining the care of children in out-of-home or alternate care arrangements.
Least disruptive measures that flow from a child maltreatment assessment or investigation and are critical to safety planning for children and families involved with child and family services and include:
- targeted actions or services that meet the threshold of risk for involvement with an FNCFS agency. These actions or services seek to prevent separating children or youth from their families or support reunification of families, while ensuring supports are in place that mitigate the risk of child maltreatment or harm; and
- supports to children, youth and families who have been identified by an FNCFS agency as being at risk and is undergoing an assessment of child maltreatment or harm.
Operations resources used by an organization to deliver child and family services in line with provincial and First Nation legislation, regulation, and policies as well as planning activities.
Eligible activities support:
- Intake, intervention, planning, implementation, evaluation, assessment, and investigation to address reports of identified risks to children, including after-hours services, and the continuation of services to facilitate the transition of youth into adulthood.
- Alternative dispute resolution services and coordination with a child and family's network of support.
- Legal services, child representation, or other activities related to child protection proceedings.
- A range of alternate custody, and kin care arrangements, agreements, and/or orders to ensure the safety and wellbeing of the child(ren) and supports for the family and care providers.
- Placement services include recruiting, assessing, training, educating, supporting, monitoring and evaluating alternate care providers.
- Interventions that are identified on the basis of the child's best interests include cultural, land-based, communal and other activities and access to programming to promote protective factors and family preservation or reunification.
- Collaborative service delivery planning, implementation, evaluation and assessment with other service provider(s).
- Direct mandated services and support are not eligible through other federal or provincial programs or where funding from other sources was or will not be received, in whole or in part, to support that activity.
- Other activities that support the delivery of the legislated mandate of child protection services in accordance with applicable provincial or First Nation legislation, and the national principles and minimum standards set in An Act Respecting First Nation, Inuit and Métis children, youth and families.
Reformed FNCFS Program funding strategies
Information technology funding supports recipients with their IT needs to implement and deliver services and activities listed in the FNCFS Program Services outlined in Section A.2 of this appendix above.
Results funding supports recipients in implementing the performance measurement, framework as outlined in Section A.8.2 of this appendix, to support the FNCFS Program Services outlined in Section A.2 of this appendix above.
Emergency funding supports recipients in responding to unanticipated circumstances or situations affecting activities funded by the FNCFS Program. Emergency funding supports First Nations and FNCFS Service Providers with unexpected situations (wildfire evacuations, the introduction into care of a few children with very high needs, a community crisis) that might make it difficult for a First Nation or an FNCFS Service Provider to deliver the FNCFS Program Services outlined in Section A.2 of this appendix above.
Household support funding supports First Nations in meeting the basic needs of families, particularly those needs that, if left unmet, could lead to children being placed in care, may result in a family being involved in the child welfare system or that may prevent a family from reuniting. Funding supports service-delivery and activities to help mitigate effects that may lead to involvement of a child in the child welfare system.
Other FNCFS Program initiatives
Supporting initiatives support the governance and implementation of the Reformed FNCFS Program in Ontario.
Eligible activities support:
- Promotion of the governance of and access to evidence-based data and tools to support and inform the delivery of FNCFS programming.
- Developing and designing supports and structures to support the purpose and objective including the implementation of the Reformed FNCFS Program in Ontario.
A.3 Eligible FNCFS funding recipients in Ontario
While the Reformed FNCFS Program in Ontario considers First Nation children, their families, and the First Nation community to be the ultimate beneficiaries of these funds, a funding recipient is an entity that has met the eligibility, and the application and assessment criteria outlined in these terms and conditions and has signed a funding agreement with Indigenous Services Canada (ISC) to deliver an eligible child and family service, funding strategy or initiative.
Consistent with the recipients defined for the FNCFS Program in Section 4 of these terms and conditions, the eligible recipients in Ontario are:
- First Nation(s), meaning a "band" as defined in subsection 2(1) of the Indian Act, RSC, 1985, C 1-5, as amended, and which is delivering services and receives funding under the FNCFS Program
- FNCFS Service Providers
- FNCFS agency, meaning an agency established by and affiliated with one or more First Nations and fully or partially delegated or authorized pursuant to provincial or other authorities to provide legislated child welfare services on reserve.
- First Nation Service Provider, meaning an entity authorized by the First Nation to support the implementation of the FNCFS Program, and the delivery of services, on reserve, including non-delegated service providers, not-for-profit First Nation organizations, and mandated organizations (i.e., Tribal Councils or regional Indigenous organizations).
- National, Regional and Local Organizations, meaning an organization representing First Nations in Canada on a local or regional basis, and has a mandate to protect and promote the social and cultural interests of First Nations as they relate to the implementation and delivery of the FNCFS Program.
- The Government of Ontario, meaning the provincial government responsible for delivering and/or delegating the authority to deliver legislatively mandated child and family services (i.e., child protection and intervention services) in accordance with the respective jurisdiction and child and family services law.
Eligible FNCFS funding recipients by service
FNCFS Program services
Prevention services:
- First Nation
- First Nation Service Provider, if requested by the First Nation(s)
- FNCFS agency
Post-majority support services:
- First Nation
- First Nation Service Provider, if requested by the First Nation(s)
- FNCFS agency, if requested by the First Nation(s)
First Nation Representative Services:
- First Nation
- First Nation Service Provider, if requested by the First Nation(s)
- FNCFS agency, if requested by the First Nation(s)
Child protection services:
- FNCFS agency
- First Nation Service Provider (pursuant to applicable child and family legislation)
- The Government of Ontario
Reformed FNCFS Program funding strategies
Information Technology Funding:
- First Nation
Results Funding:
- First Nation
Emergency Funding:
- First Nation
- FNCFS agency
Household Support Funding:
- First Nation
Other FNCFS Program initiatives
Supporting initiatives:
- First Nation
- First Nation Service Provider
- Regional and Local Organizations
Where a First Nation receives funding for services pursuant to a jurisdictional agreement, including a coordination agreement related to An Act Respecting First Nations Inuit and Metis children, youth and families, S.C. 2019, c. 24, that First Nation and its affiliated FNCFS Service Providers and the Government of Ontario shall not receive FNCFS Program funding under the Reformed FNCFS Program Funding Approach in Ontario outlined in Section A.6.1 for the services for which they are receiving funding under the jurisdictional agreement.
A.4 Type and nature of eligible expenditures in Ontario
Eligible expenditures are those direct costs necessary to support the activities as outlined in Section A.2 under Program Services and Initiatives, which can include the following:
- Salaries, employee benefits, and costs related to supporting recruitment, training or professional development.
- Consultants, qualified professionals, paraprofessional services and fees, including honoraria for Elders, Knowledge Keepers, and others.
- Insurance, legal, banking, audit and evaluation fees.
- Purchase, installation and maintenance of IT hardware and software and internet services, subscriptions or upgrades.
- Operation and administrative costs, including transportation, necessary to support the implementation and the delivery of child and family services, as outlined in Section A.2. International travel may be an eligible expenditure and is subject to ISC pre-approval.
- Costs that support the Reformed FNCFS Program Planning and Reporting in Ontario, as outlined in Section A.7, including the capture, analysis and reporting of data.
- Consultation and engagement to support the development, implementation and evaluation of plans, service delivery models and standards.
- Other costs that support the purpose and objective of the FNCFS Program may be considered eligible based on the direct link to supporting the FNCFS Program Services and Initiatives, subject to FNCFS Program approval.
- Capital assets that support the delivery of Program Services outlined in Section A.2 and pre-approved by ISC through the plans as outlined in Section A.7, including unexpended funding plans.
- The Government of Ontario is not eligible to receive capital funding under the FNCFS Program.
A.5 Application requirements and assessment criteria in Ontario
Before entering into a funding agreement or initiating an amendment, ISC will confirm eligibility and entitlement of recipients in accordance with the Reformed FNCFS Program in Ontario terms and conditions and the departmental directives by conducting risk assessments, including an assessment of the recipient’s accountability and capacity to administer and manage FNCFS funding in alignment with the Directive on Transfer Payments. The risk assessment will cover elements such as:
- governance structure;
- organization for purposes of program management, financial and administrative experience, and capacity to deliver programs;
- processes and procedures for program management and financial control;
- accountability mechanisms for transparency, disclosure, responsibility and redress; and
- financial position.
General Program Requirements:
Information required by ISC for all funding recipients includes:
- Legal entity's name, address and telephone number.
- First Nation legislated delegation documentation or certification, when applicable.
- Incorporating documents (articles of incorporation or Patents letters), when applicable, and by-laws.
- FNCFS Program Plan as outlined in Section A.7.1 of this appendix below.
- Band Council Resolution (or comparable documentation) for each First Nation being represented or served by the First Nation Service Provider, when applicable.
- Disclosure of any involvement of former public servants who are subject to the Conflict of Interest and Post-Employment Code for Public Office Holders or the Conflict of Interest and Post-Employment Code for the Public Service.
Additional documentation may be requested by ISC to assess new funding recipients for the purpose of determining funding eligibility and approaches under the FNCFS Program. Based on the assessment criteria and requirements outlined above in Section A.5 of this appendix, ISC will conduct ongoing reviews prior to issuing funding to ensure recipients continue to meet the FNCFS Program's eligibility. As applicable, ISC will also conduct annual reassessments of funding recipients' accountability and capacity, including their funding entitlement. This reassessment may result in adjustments, offering either more or less flexibility to the funding approach used and the manner in which funds are provided.
A.6 Program funding in Ontario
A.6.1 Method for determining the amount of funding
As part of the method for determining the amount of funding, the Reformed FNCFS Program in Ontario funding contains a number of adjustments, including remoteness, inflation and population. Any references included in these terms and conditions should be read in accordance with the funding adjustment details outlined in Section A.6.1.9 of this appendix.
A.6.1.1 Prevention services
Starting in fiscal year 2025-2026, funding for prevention services will be calculated by multiplying the amount of $2,655.62 by the total population, plus the amount necessary to provide to each First Nation a minimum of $75,000. This funding will be adjusted annually for inflation and to account for the increased costs of delivering services in remote First Nations in Ontario.
As of May 29, 2026, a First Nation may give a written notice to ISC directing the manner in which to allocate the prevention funding attributable to the First Nation. Such notice needs to be submitted to ISC by the September 30th prior to the fiscal year to which the prevention funding is applicable. Until and unless a First Nation provides such written notice to ISC, prevention funding will continue to be split based on the approach to allocating prevention funding among First Nations and FNCFS Service Providers for 2025-2026.
Non-affiliated First Nations:
First Nations that are not served by a FNCFS agency will receive all prevention funding attributable to that First Nation.
A.6.1.2 Post-majority support services
As of May 29, 2026, funding to support post-majority support services will be directed to First Nations, or, as otherwise requested by the First Nation(s) as outlined in Section A.3 of this appendix. This funding will be adjusted annually to account for the increased costs of delivering services in remote First Nations.
A First Nation's funding is determined using the following calculation:
- Multiply 80% by the post-majority segment of the individual First Nation's population data based on ISC's Indian Registration System (IRS), as outlined in Section A.6.1.9, the post-majority segment being comprised of youth and young adults between the age at which a youth can voluntarily exit care and the age at which a young adult's eligibility for post-majority support services ends;
- Estimate the number of individuals eligible for post-majority support services for the First Nation and in Ontario, and divide the First Nation's estimate by Ontario's estimate, the estimates being projections based on children in care data recorded in ISC's Information Management System / Data Management System;
- Multiply (a) by 1 + (b);
- Divide (c) by the sum of (c) for all First Nations in Ontario eligible to receive funding under the Reformed FNCFS Program in Ontario;
- Multiply $75,000, adjusted for inflation, by the number of First Nations in Ontario eligible to receive funding under the Reformed FNCFS Program in Ontario, and subtract that amount from the total annual funding available for post-majority support services;
- Multiply (d) by the difference in (e);
- Add $75,000, adjusted for inflation, to (f).
A.6.1.3 First Nation Representative Services
Starting in fiscal year 2026-2027, funding will be provided to each First Nation at its highest annual amount of First Nation Representative Services funding received between fiscal year 2019-2020 to fiscal year 2023-2024. This amount will be adjusted annually for inflation and to account for the increased costs of delivering services in remote First Nations.
A.6.1.4 Child Protection Services (Baseline Funding)
Starting in fiscal year 2026-2027, baseline funding will be provided to eligible FNCFS funding recipients as outlined in Section A.3, and based on:
- For FNCFS agencies, baseline funding will be based on 2022-2023 actual expenditures funded directly by ISC and incurred for intake and investigation, legal fees, and building repairs. Funding will be adjusted for population and inflation. In subsequent years, baseline funding will continue to be adjusted annually for population and inflation; and,
- For the Government of Ontario, operations and maintenance expenditures will be reimbursed for services on reserve further to the federal-provincial agreement.
A.6.1.5 Information Technology Funding Strategy
Funding for information technology (IT) equals 6% of a FNCFS agency's baseline funding or the provincial baseline funding. This funding will be adjusted to account for the increased costs of delivering services in remote First Nations.
A.6.1.6 Results funding strategy
Funding for results equals 5% of a FNCFS agency's baseline funding, or the provincial baseline funding. This funding will be adjusted to account for the increased costs of delivering services in remote First Nations.
A.6.1.7 Emergency funding strategy
Funding for emergency equals 2% of a FNCFS agency's baseline funding or the provincial baseline funding.
For First Nation served by an FNCFS agency, funding will be shared equally with 50% being provided to the FNCFS agency and 50% proportionally allocated among the First Nations affiliated with that FNCFS agency.
First Nations not served by an FNCFS agency will receive 100% of this funding.
This funding will be adjusted to account for the increased costs of delivering services in remote First Nations.
A.6.1.8 Household supports funding strategy
As of May 29, 2026, funding for household supports will be provided to First Nations. This funding will be adjusted annually for inflation, and to account for the increased costs of delivering services in remote First Nations.
A First Nation's household supports funding is determined using the following calculation:
- The First Nation's population
- Multiplied by
- The percentage of the First Nation's population below the Low-Income Measure-After Tax (LIM-AT)
- Divided by
- The total population below the LIM-AT of all First Nations eligible to receive funding under the Reformed FNCFS Program in Ontario
- Multiplied by
- The Reformed FNCFS Program in Ontario's total annual funding for household supports
A.6.1.9 Funding adjustments
The Reformed FNCFS Program in Ontario funding contains a number of adjustments for specific components of the program. These adjustments are calculated and applied as follows:
Remoteness adjustment funding where a First Nation's 2021 Index of Remoteness score is 0.40 or greater, funding will be upwardly adjusted based on the Remoteness Quotient Adjustment Factor methodology.
Inflation funding will be adjusted for inflation annually, in accordance with the Consumer Price Index (CPI) measured over the twelve-month period ending September 30th of the applicable fiscal year. In no event shall any such adjustment be less than zero.
Population
The population of a First Nation will be determined as follows:
- The registered on-reserve or on Crown land population will be drawn from the Indian Registration System (IRS), as of September 30th of the year preceding the year in respect to which the population adjustment will apply. For example, ISC will use the IRS population on September 30, 2024, to adjust funding for the 2025-26 fiscal year.
- For the purpose of an FNCFS agency or First Nation Service Provider, population will be the sum of the populations of the First Nations to which it is affiliated.
- The approach to calculating population described herein may vary where a First Nation has a self-government agreement or a modern treaty.
- Where a component of the Reformed FNCFS Funding Approach is to be adjusted for population but is not calculated on a per capita basis, funding will be adjusted annually by an amount proportional to the previous fiscal year's change in the First Nation's or the FNCFS Agency's population. For clarity, the previous fiscal year's change in population will be measured over a one-year period to September 30th of the fiscal year preceding the fiscal year in respect to which the population adjustment will apply.
A.6.1.10 Supporting initiatives
Funding may be approved and provided based on detailed plan(s) or proposal(s) and budget which support the FNCFS Program's purpose and objective.
A.6.2 Maximum amount payable
The maximum amount payable will be based on the FNCFS recipient's funding allocation, pursuant to the Reformed FNCFS Funding Approach in Ontario as outlined in Section A.6, and shall not exceed $150,000,000 per recipient per fiscal year.
A.6.3 Funding mechanism approach
Funding will be provided using the flexible funding approach, in accordance with the Directive on Transfer Payments, and in alignment with the principles of the FNCFS Program.
Where an eligible recipient as identified in Section A.3 does not qualify for the flexible funding approach, ISC will use a fixed funding approach, and inform and work with the recipient to assist them in meeting the requirements for a flexible funding approach based on the results of the assessment completed.
A.6.3.1 FNCFS funding mechanism ("Flexible Funding Approach")
In alignment with Section A.6.3, when eligible for the Flexible Funding Approach, ISC will enter into multi-year(s) flexible agreement. Within the Flexible Funding Approach:
- Recipients may redirect funding in year between the funded Program Services, Funding Strategies and Initiatives as outlined in Section A.2, with the following exceptions:
- Redirection of prevention services funding to child protection services is not permitted, except to fund least disruptive measures; and
- Redirection of child protection services funding is not permitted given that funding is provided to support mandated legislative services which include operations, maintenance and least disruptive measures.
- Recipients may retain unexpended funding at year end to continue to support the implementation of the Reformed FNCFS Program in Ontario and the delivery of child and family services in the following year(s), subject to ISC's review and approval of unexpended funding plans submitted by funding recipients. FNCFS agencies, in working with their First Nation, may identify all or a portion of unexpended funding to support First Nation(s) in addressing housing adequacies as one of the structural drivers leading First Nations children into care.
- ISC will support recipients in the transfer of funds to ensure accountability and compliance with the funding obligations and reporting requirements outlined below in Section A.7.
- As required, ISC may amend flexible funding agreements, prior to expiry, to align with the timelines identified in the unexpended funding plans.
A.6.3.2 Fixed funding approach
Where an eligible recipient is not eligible for the Flexible Funding Approach, ISC will provide funding through a fixed funding approach. Fixed funding agreements are one-year agreements that support recipients in delivering the Reformed FNCFS Program in Ontario. Within the fixed funding approach:
- Recipients may only spend funding on the Reformed FNCFS Program in Ontario Service, Funding Strategy or Initiative for which it was received, meaning it may not redirect funding in year to other Reformed FNCFS Program in Ontario Services, Funding Strategies or Initiatives outlined in Section A.2.
- Recipients may retain unexpended funding to support the objectives of the FNCFS Program in the following year, based on an ISC approved unexpended funding plan and provided that unexpended funds are used for the purpose of which they were originally intended for, as outlined in Section A.2.
A.6.4 Basis for payment
Payments will be issued to recipients based on the eligibility to receive funding under the Reformed FNCFS Program in Ontario terms and conditions outlined in this Appendix, and in alignment with the terms and provisions of the funding agreement. Accordingly, and in line with the Directive on Transfer Payments, payments may be based on one or a combination of the following, as specified in the funding agreement:
- Reformed FNCFS Funding Approach in Ontario outlined in Section A.6.1;
- reimbursement of eligible expenditures;
- proposal, plan and budget supporting eligible activities and services as outlined in Section A.2; or,
- achievement of predetermined performance expectations or milestones.
A.6.4.1 Advance and progress payments
Advance Payments are permitted, based on the cash flow requirements, as forecasted by the recipient and supported by the FNCFS Program Plan.
Progress Payments are subject to periodic reports of activities and expenditures incurred. ISC will process payments in accordance with funding agreement provisions, including cash flow requirements, and as applicable, funding recipient's planning and reporting obligations.
A.6.4.2 Holdbacks
Holdbacks may be up to 20% of the total FNCFS Program funding allocated within the funding agreement. Final payment will be contingent on the receipt and approval by the department of the final activity, performance, and financial reports, as specified in the funding agreement.
A.7 Program planning and reporting in Ontario
Planning is intended to provide a better understanding of how the Reformed FNCFS Program in Ontario is addressing child, youth, family and community well-being priorities through a collaborative and coordinated approach to service delivery.
Reporting requirements and frequency will be outlined in funding agreements and will be based on departmental practices and FNCFS Program Assessment criteria. All recipients will be required to report on funding, including Unexpended Funding Plans.
A.7.1 First Nation Multi-Year Plan
Who: First Nations
First Nation Multi-Year Plan outlines the details regarding the implementation of activities or specific initiatives for which funding is provided for, in alignment with the FNCFS Program's Purpose and Objectives, and includes the planned expenditures for each funded services as outlined in Section 4.
A.7.2 Child and Community Wellbeing Plan
Who: FNCFS agencies and First Nation Service Providers
Child and Community Wellbeing Plan: FNCFS agencies and First Nation Service Providers will develop their plan in consultation with their affiliated First Nation(s). The plan must include environmental scans for each First Nation served, identification of the First Nation's needs, activities, planned expenditures for the provision of each child and family services for which funding is provided, concrete objectives that align with the purpose and objectives of the FNCFS Program, risk management strategies, performance measures and reporting requirements. and include how service delivery will address the unique factors of the First Nation, be coordinated with other service providers and how it contributes to the Expected Results outlined in Section 10.2.
A.7.3 FNCFS Program plan
Who: Regional and local organizations
The FNCFS Program plan and budget includes the activities to be undertaken over the course of the agreement. Plans must include activities that support the FNCFS Program objectives and outline the results to be achieved.
A.7.4 FNCFS unexpended funding plan
Who: All
In addition to the plans listed above all recipients must submit, when an unexpended balance remains at the end of the fiscal year, an unexpended funding plan. The plan must include key child and family well-being, services and strategic priorities on which the unexpended funding will be spent and how it contributes to the Outcomes outlined in Section 3.3 of these terms and conditions.
A.8 Effective date
This Appendix is effective as of May 29, 2026.
In order to support the transition to the Reformed FNCFS Program in Ontario, ISC will continue to meet its obligations until March 31, 2026 for funding agreements in place, including actual costs for operations and maintenance and First Nation Representative Services incurred by March 31, 2026, which are subject to the FNCFS Terms and Conditions: Contributions to provide children, youth, young adults, families and communities, with prevention and protection services.
ISC will also continue to meet its obligations until May 29, 2026, for funding agreements in place, including actual costs for post-majority support services incurred by May 29, 2026, which are subject to the FNCFS Terms and Conditions.