Executive summary

Context
Umbrella Terms and Conditions are used by Environment and Climate Change Canada (ECCC) to transfer
funds from the federal government to individuals, organizations (e.g., academic institutions, community
organizations, non-governmental organizations, international organizations), or other levels of
government (e.g., provincial governments), with the purpose of advancing government policy and
departmental objectives.

It is true that some grants and contributions programs (Gs&Cs) support specific program areas or
initiatives, but this “umbrella” approach enables ECCC to support a wide range of contribution funding
programs/initiatives aligned to broad areas or themes within its Program Alignment Architecture (PAA)
by using a common set of terms and conditions for each umbrella authority.

With this approach, the department will be able to manage contribution funding programs more
efficiently and respond to new opportunities in a timely manner without having to develop separate
terms and conditions for each contribution funding initiative.

To replace the old system with four classes of authorities, ECCC developed umbrella terms and
conditions (UTCs). Treasury Board approved six umbrella authorities, which are for contributions only, in
June 2010, with the purpose of allowing all contribution programs to eventually use these umbrella
authorities. The following are their names:

 Contributions in support of Biodiversity – Wildlife and Habitat

 Contributions in support of Water Resources
 Contributions in support of Sustainable Ecosystems
 Contributions in support of Weather and Environmental Services for Canadians
 Contributions in support of Substances and Waste Management
 Contributions in support of Climate Change and Clean Air

Over half of the department's contribution agreements are established under one or more of the six
umbrella authorities. UTCs encompass both application-based programs (which solicit and evaluate
funding applications) and non-application-based programs (which do not require applications). The
umbrella authorities do not require formal approval to continue.

This evaluation assessed the relevance and performance of the six umbrella terms and conditions. From
2010-2011 to 2014-2015, this evaluation was conducted. An evaluation was conducted as requested by
Treasury Board Secretariat and as a complement to other evaluations of specific Gs&Cs programs. A
five-year evaluation of all ongoing Gs&Cs programs is required under the Financial Administration Act.

During the evaluation, the relevant and performance of projects funded under the UTCs were examined
in order to draw conclusions about the UTCs in general. In addition, the evaluation incorporated an
assessment of the UTC approach as an enabling mechanism for Gs&Cs funding.
Findings and conclusions
Relevance

Each of the six UTCs is aligned with the federal priorities to protect the environment and the strategic
outcomes of the department. UTCs also align with federal responsibilities specified in legislation such as
the Department of the Environment Act. As such, each funded project is aligned with the objectives of
an ECCC program and with a departmental strategic outcome.

Performance – efficiency and economy

The UTCs are designed sensibly so they are aligned with a PAA program and associated ECCC strategic
outcome, and they specify the expected results (see Annex C) they will contribute to. The contribution
agreement for each funded project also specifies the UTC expected results for the funded activities.
Most program managers interviewed felt that UTC was a necessary mechanism, as it provided
consistency across the department's program areas in terms of funding and flexibility for timely
response to new project opportunities, as well as reducing the number of Terms & Conditions
management must maintain, update and report on, as a result.
.

UTCs use department-wide governance mechanisms, including an ADM Committee on Grants and
Contributions, a structured approval process and clear roles and responsibilities for both program and
finance managers. The department has developed detailed guidelines and standardized materials to
facilitate effective contributions funding under the UTCs, such as templates for the contribution
agreement and final project report.
.

Funding recipients express high levels of satisfaction with key design features of the UTCs Gs&Cs
application, funding and reporting processes
.

The UTCs appear to support efficient management based on a number of factors. As an example, the
UTC approach provides support for a wide range of funding programs and initiatives aligned to PAA
programs using a common set of terms and conditions for each umbrella authority, thereby reducing the
number of individual Ts&Cs to manage.

According to recommendations made by a previous evaluation and internal audit, and as part of the
department's earlier reform process for Gs&Cs (for example, standardized templates for agreements
and project reports were developed, and measures were taken to streamline the approval process),
efficiency improvements have been made to Gs&Cs in general.Additionally, the department prioritizes
projects to be sponsored by Gs&Cs, including those under UTCs, which should help to ensure that
project funds and activities are allocated appropriately.

Several partners contribute resources to most funded projects, leveraging collaboration and leveraged
resources. According to the file review sample, ECCC contributed 36% of the resources to the projects
and partners contributed 64%. Results of the survey and file review indicate that funding recipients are
highly satisfied with the delivery and efficiency of UTC contribution programs; however, they have
concerns about the timeliness of notification and receipt.

The department collects and reports performance information on most, but not all, projects financed
through UTCs. The main focus of project reports is the completion of funded project activities and
outputs, rather than the achievement of environmental outcomes. Corporate Services and Finance
maintains a Gs&Cs database, which focuses on financial aspects of funded projects, but there is no
overall management system to track project performance. The evaluation found that no evidence was
found of performance reporting against the UTC expected results and performance indicators, which are
incorporated into each contribution agreement.

Performance – effectiveness
There is evidence that UTC-funded projects contribute to environmental outcomes. Despite limited
evidence for the latter, the evaluation findings indicate that the planned activities and intended short-
term outcomes of funded projects are in most cases being achieved. The latter is based on the views
expressed by program managers and funding recipients. File review and survey evidence further indicate
that projects are contributing to UTC's expected results; however, due to a lack of objective
performance data, definitive conclusions cannot be drawn. In terms of UTC, there have been no
unintended outcomes.

Recommendation:
 According to the evaluation, there was no evidence that UTC was reporting performance against
expected results and indicators. As part of current efforts to develop or refine program
performance indicators for Performance Information Profiles (PIPs), the expected results and
indicators in the UTCs should be reviewed and considered for inclusion in measurement
strategies for Gs&Cs.

 As a result, performance information on the effectiveness of Gs&Cs under umbrella authorities

in contributing to program outcomes would be improved. Further, the evaluation found that for
a significant number of the contribution projects and files examined, the recipients' final project
reports were not available.

 Based on the evaluation's findings and conclusions, the following recommendation is made. The
recommendation is addressed to the Assistant Deputy Minister of Corporate Services and
Finance Branch, who is the senior official responsible for the Treasury Board Policy on Results
and Gs&Cs, including UTCs.

 In consultation with the ADMs responsible for the related programs, review the performance
measurement and reporting process for Gs&Cs under the UTCs in order to help ensure that

(i) UTC expected results are considered as part of the development of the corresponding Performance
Information Profiles under the new TB Policy on Results; and
(ii) UTC contribution project files are fully documented and include the funding recipients’ final project
or contribution reports.

The ADM Corporate Services and Finance Branch agrees with the recommendation and has developed a
management response that appropriately addresses it (see section 6 of the report).