British Columbia Order in Council — Order under Farm Income Insurance Approval given to the Minister of Agriculture, Food and Fisheries to sign the Canada-British Columbia Assistance Program Agreement (O.C. 780/2001)

O.C. 780/2001

British Columbia — Orders in Council

ArAn) aster of Agriculture, Food and heries PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in CouncTNo. 7 3 , Approved and Ordered AUG 2 4 2001 _Lieut nant Graviaabor Administrator Executive Council Chambers, Victoria 'Administrator On the recommendation of the undersigned, the Lteatetwinaoyernm by and with the advice and consent of the Executive Council, orders that approval is given to the Minister of Agriculture, Food and Fisheries, on behalf of the Province, to sign the Canada-British Columbia Assistance Program Agreement, substantially in the form attached.

Presi the Executive Council (This pan is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section: Farm Income Insurance Act (RSBC 1996, c. 130, s. 5) Other (specify): t'c

Draft July 31, 2001 CANADA-BRITISH COLUMBIA ASSISTANCE PROGRAM AGREEMENT THIS AGREEMENT made this day of , 2001. BETWEEN THE GOVERNMENTS OF: CANADA (referred to as "Canada"), as represented by the Minister of Agriculture and Agri-Food, OF THE FIRST PART; -and- BRITISH COLUMBIA (referred to as "the Province") as represented by the Minister of Agriculture, Food and Fisheries, OF THE SECOND PART;

WHEREAS Canada and the Province have agreed that the economic situation of many agricultural producers warrants additional investment by governments within the principles and objectives of the Framework Agreement on Agricultural Risk Management dated June 27, 2001 ("Framework Agreement");

WHEREAS Canada and the Province have agreed to provide up to $24.3 million in federal contributions to a program to compensate producers for their economic hardships experienced in 2000; and

WHEREAS the Province's contribution for the Program will be offset by credits accumulated from provincially funded programs; and

WHEREAS Canada and the Province have the appropriate authorities to enter into this Agreement. THEREFORE, THE PARTIES agree as follows: 1.0

DEFINITIONS 1.1 "Administrative Expenses" means the eligible costs incurred by British Columbia, as identified in Annex A, in carrying out the responsibilities under the terms of this Agreement. Canada-British Columbia Assistance Agreement

2 1.2.

"Agreement" means the Canada-British Columbia Assistance Program Agreement. 1.3 "Application" means any form prescribed by the Province to be completed by Eligible Producers for the purpose of receiving benefits under this Program. 1.4 "Eligible Area" means an Eligible Producer's area under production to an Eligible Commodity in 2000.Eligible Commodities" means grains, oilseeds, tree fruits, field vegetables, processing vegetables, raspberries, strawberries, cranberries, other berries, greenhouse vegetables, flowers, nursery products, sod, herbs and spices, potatoes, mushrooms, swine and honey produced in 2000. 1.5 "Eligible Producer" means an individual or entity that filed or will file a required income tax return for Canada and British Columbia for 2000 and that produced an Eligible Commodity in British Columbia in 2000; it excludes landlords on a cash rent or a crop share basis.) 1.6 "Fiscal Year" means the period of April 1, 2001, to March 31, 2002. 1.8 "Program" means the 2anada-British Columbia Assistance Program established pursuant to this Agreement. 1.9 "Program Payments" means the payments made to Eligible Producers pursuant to this Agreement. 1.10 "Qualifying Sales" means the sales of Eligible Crops during the Fiscal Year, excluding sales of Eligible Crops by landlords received under crop share arrangements and sales of Eligible Crops bought for resale as reported for income tax purposes.

Canada-British Columbia Assistance Program Agreement

3 "Responsible Officer" means the persons identified by British Columbia to be responsible for submitting the records and information required by this Agreement. 2.0 PURPOSE 2.1 The purpose of the Agreement is to provide federal contributions of $24.3 million to the Program during the Fiscal Year to compensate Eligible Producers for their economic hardship in 2000. 3.0 APPLICATION Application Deadline 3.1 The Province shall establish Application procedures for the Program.

An Eligible Producer, by signing an Application, is agreeing to abide by the terms and conditions of the Program. 3.2 The Province shall establish the deadline by which producers must apply for a payment under the Program. 4.0 CALCULATION OF PRODUCERS' PAYMENTS Calculation Offsets of other Crown debts 4.1 A Program Payment shall be calculated by the Province for each Eligible Producer and shall be based on Qualifying Sales or Eligible Area as determined by the Province for an Eligible Commodity. 4.2 A Program Payment may be used to offset amounts due from Eligible Producers to Canada or the Province.

Crown debts to be offset against Program Payments shall be identified through an exchange of letters between Canada and the Province prior to payments being issued to Eligible Producers. Canada-British Columbia Assistance Program Agreement

4 5.0 FINANCIAL PROVISIONS Program account 5.1 The Province shall establish and maintain an account: (

a) into which shall be credited contributions from Canada and any interest earned therefrom, (

b) to which shall be charged Administrative Expenses, and (

c) to which shall be charged Program payments and repayments to Canada. Appropriation of funding 5.2 Canada's funding under this Agreement for the Fiscal Year is subject to an appropriation of funding by Parliament for General Risk Management Programming as provided for in the Framework Agreement. Total funding 5.3 Canada's contribution for the Program shall be funded out of the Province's allocation for General Risk Management Programming as set out under paragraph 6.2(

a) of the Canada-British Columbia Framework Agreement on Agricultural Risk Management and shall not exceed $24.3 million. Basis of Canada's 5.4 Canada's contributions for Program Payments and contribution Administrative Expenses shall be made in the form of monthly advances to the Province based on quarterly cash flow projections. Accounting for advances shall be done on a quarterly basis. Prior quarters shall be updated using actual Program Payments and Administrative Expenses supported by a detailed

schedule of actual Program and actual incremental Administrative Expenses as certified by the Responsible Officer. Upcoming quarters shall be updated using the most recent estimates. At no time shall more than one quarter's advances be outstanding and unaccounted for. Canada-British Columbia Assistance Program Agreement

5 Provincial credits 5.5 In lieu of a direct contribution to the Program, the Province shall meet its cost-sharing commitment for General Risk Management Programming under the Framework Agreement through the following provincially-funded programs: (

a) Provincial Social Service Tax Exemptions; (

b) Farm Distress Operation Loan Guarantee Program; (

c) Stable Funding Initiative; (

d) Vancouver Island Chicken Adjustment Initiative; (

d) Grain Transportation Infrastructure Initiative; (

e) Open Learning Institute Agriculture Training; (0 Agri-Food Futures Fund; (

g) Okanagan-Kootenay Sterile Insect Release Program; (

h) Gypsy Moth Eradication Program; (

i) British Columbia Weed Control Program; 0) Grazing Enhancement Fund; (

k) Integrated Pest Management Program; (

I) Sustainable Demonstration Farm; (

m) Forest Encroachment Control Initiative; (

n) Animal Disease Monitoring Program; (

o) Animal Health Management Program; Canada-British Columbia Assistance Program Agreement

6 (

p) Crop Protection Program; (

q) Plant Disease Diagnostic Program; and (

r) On-Farm Food Safety Program. 5.6 The Province shall provide Canada with quarterly estimates of its contributions to each provincial program named in

section 5.5 and credited to the Province. 5.7 For each provincial program credited to its share pursuant to

section 5.5, the Province shall forward to Canada an annual financial audit report or an excerpt from the Province's Public Accounts setting out expenditures under these programs, no later than eight months after the end of the relevant fiscal year. Administrative costs Final reconciliation 5.8 Administrative Expenses shall be shared 60:40 by Canada through its direct contribution to the Program, and the Province, through its provincial program credits.

Administrative Expenses include those direct expenses outlined in Annex A and incurred as a result of incremental activity and dedicated resources related to the delivery of the Program. 5.9 A final reconciliation shall be made of both parties' funding and credits to the Program relative to advances and actual Program Payments prior to the audit to be performed pursuant to subsection 7.3. The Province shall return to Canada any overpayment made by Canada within 30 days after receipt of the final reconciliation. Canada-British Columbia Assistance Program Agreement

7 6.0 PROGRAM ADMINISTRATION Province's responsibilities 6.1 The Province shall be responsible for the administration of the Program, including but not limited to the following: (

a) developing and distributing Applications; (

b) determining producers' eligibility for payments under the Program, including processing Applications; (

c) determining the portion of the economic hardship experienced by each Eligible Commodity; (

d) establishing the methodology to calculate Program Payments relative to each Eligible Commodity; (

e) calculating and issuing Program Payments to Eligible Producers under the Program; (

f) collecting Crown debts in accordance subsection 4.2; (

g) responding to producer enquiries related to the administration of the Program; (

h) accounting for Canada's contribution to Program Payments and Administrative Expenses; (

i) providing information to Canada on Program activities, including but not limited to a list of Eligible Producers with applicable Social Insurance Number or Business Number, the Qualifying Sales and Eligible Acres per Eligible Producer, and Program Payments issued; 0) establishing a payment review process; and Canada-British Columbia Assistance Program Agreement

8 (

k) having a financial audit conducted by the provincial auditor or an independent accredited auditor. Delegation of authority 6.2 It is understood that the Province may delegate to producer associations any or all authority to administer the terms and conditions of this Agreement as it relates to the Province, including identifying the Responsible Officer. This delegation of authority from the Province to the producer associations shall be done by a letter or agreement that binds the associations to the terms of this Agreement. The Province shall provide to Canada a certified copy of that letter or agreement.

However, any such delegation does not affect the Province's obligations under this Agreement. Review committee 6.4 The Province shall establish a committee to review and make recommendations on Eligible Producers' payment amounts.

The Province shall determine the review process, and the amounts paid out through this process shall be subject to the federal funding limit outlined in subsection 5.3. 7.0 AUDIT, EVALUATION AND REVIEW Access to documentation 7.1 The Province shall allow representatives of Canada to access any records, information, databases and documentation for the purpose of Program audit and evaluation, and for the verification of invoices with respect to Program Payments to Eligible Producers and Administrative Expenses.

The Province shall retain all documentation for a minimum of six (6) years after issuing the final Program Payment. Canada-British Columbia Assistance Program Agreement

9 Compliance audit Financial audit Evaluation 7.2 Canada shall reserve the right, at its expense, to conduct an independent compliance audit to determine that the Program has been administered in accordance with the terms and conditions set out in this Agreement.

Where practical and to avoid any duplication, Canada will coordinate this audit with any similar audit undertaken by the with respect to its share of the Program 7.3 The Province shall ensure that a financial audit is completed for the Fiscal Year and that a copy of the audited financial statement and management letter is forwarded to Canada by November 30, 2002. 7.4 The audit conducted pursuant to subsection 7.3 shall be carried out by a recognized, independent accredited auditor approved by the Province.

The audit shall be conducted in accordance with an audit scope to be mutually agreed upon by Canada and the Province. Financial information related to this Program shall be presented separately in the audited financial statements. 7.5 The Province shall make available to the auditor all relevant documents required for the completion of the financial audit. The Province shall repay to Canada any monies not used in accordance with the terms and conditions of this Agreement. 7.6 The Province shall complete, at its expense, an evaluation of the Program by November 30, 2002.

The evaluation shall be conducted in accordance with an evaluation framework to be mutually agreed upon by Canada and the Province. Canada-British Columbia Assistance Program Agreement

10 Environmental review 7.7 Canada shall, if deemed necessary by Canada, review, at Canada's expense, the elvironmental impact of this Agreement and identify the circumstances and conditions under which federal benefits under the Program may be withheld, restricted or enhanced for the purposes of protecting the environment.

The terms of reference for the review shall be formulated in consultation with the Province. 8.0 PUBLIC INFORMATION AND COMMUNICATIONS Joint contribution 8.1 All public information and advertising activities in connection with this Agreement by either or both parties shall clearly make reference to this Agreement and fully and fairly reflect the contribution of each party. Language of 8.2 Press releases, announcements and other communication information related to the Program shall be available in both official languages upon request.

The availability of this information in the other official language shall be clearly stated in that official language. Canada's 8.3 Canada's participation shall be identified as participation follows: the Government of Canada wordmark prominently placed on all communications products, including but not limited to brochures, handbooks, cheques and posters. The size of the wordmark shall in no case be smaller than the Province's wordmark. 9.0 GENERAL PROVISIONS Canada-British Columbia Assistance Program Agreement

11 Indemnification of the Crown Representation by a party Eligibility of Members of the House of Commons Eligibility of Members of the Legislative Assembly Eligibility of former federal public office holders or servants Registration of lobbyists Duration 9.1 The Province, as administrator of the Program, shall indemnify and save harmless Canada, its Minister, his or her officers, servants and agents against all claims, demands, losses, damages, actions and other proceedings made by any third party arising out of the administration of the Program. 9.2 Nothing in this Agreement is to be construed as authorizing one party to contract or incur any obligation on behalf of the other party, unless specifically provided for in this Agreement. 9.3 No Member of the House of Commons shall be allowed to derive any financial advantage resulting from Canada's contribution under this Agreement. 9.4 Members of the Legislative Assembly of the Province shall be governed by the provincial conflict of interest guidelines in effect during the Agreement. 9.5 Eligible Producers who are not in compliance with the federal Conflict of Interest and Post- Employment Code for Public Office Holders or the federal Conflict of Interest and Post-Employment Code for the Public Service shall not derive a direct benefit from Canada's contribution under this Agreement. 9.6 The Province, an administrator of the Program, shall ensure that a person lobbying, as defined in the federal Lobbyists Registration Act, on behalf of an applicant in that province is registered pursuant to the Act.

For greater clarity, this Act excludes from registration, among others, members of the legislature of a province or territory or their staffs and employees of provincial and territorial governments. 9.7 This Agreement comes into effect once signed by both parties and provides for expenditures for the Fiscal Year. Canada-British Columbia Assistance Program Agreement

12 Termination 9.8 Unless otherwise agreed to by Canada and the Province, this Agreement shall terminate on March 31, 2003, or the obligations of both parties under this Agreement have been fulfilled. 9.9 Any surplus funds, including interest, shall be within thirty (30) days after receipt of the final reconciliation required under subsection 5.9. Amendment 9.10 This Agreement may be amended by written agreement executed by Canada and the Province.

IN WITNESS WHEREOF, this Agreement has been executed on behalf of Canada by the Minister of Agriculture and Agri-Food and on behalf of British Columbia by the Minister of Agriculture, Food and Fisheries. Signed in counterpart; all counterparts taken together shall constitute one Agreement. WITNESS SIGNATURE DATE Minister of Agriculture and Agri-Food Canada Minister of Agriculture, Food and Fisheries British Columbia Canada-British Columbia Assistance Program Agreement

13 Annex A ADMINISTRATIVE EXPENSES AND REQUIREMENTS 1.

Definitions (a) "Out-of-pocket cost" means the actual amount incurred by the Province in respect of an employee or supplier of materials and services. This means that, if a material or service is provided to the provincial Ministry of Agriculture, Food and Fisheries by another department or branch of the provincial government or a provincially-owned agency, the Out-of-pocket cost shall be the actual amount which that department, branch or agency paid to an employee or supplier of material and services.

There shall not be any profit margin built into this amount. (b) "Charged directly to" means that the Province shall identify all expenses which are specific to each Program or Programs it administers at the time the expense is incurred and shall record expenses which are clearly identifiable with a specific Program or group of Programs in separate general ledger expense accounts. Such amounts shall not be included in Common or shared costs. (c) "Reasonable allocation" means that portion of expenses consumed by the Program.

The Province may only allocate expenses to the Program for which it can provide verifiable documentation or independent studies which support that the amount allocated reflects the Program's share of the cost. (d) "Common or shared costs" means those Administrative Expenses which cannot be specifically identified as relating to the Program. 2. No charges shall be made for services or materials provided free of charge to or by the Province. Administrative Expenses eligible for contributions by Canada are limited to: (

a) the Out-of-pocket cost to the Province of amounts charged directly to the Program for: Canada-British Columbia Assistance Program Agreement

14 (

i) payroll and benefits of provincial personnel working solely on the administration of the Program, including severance payments made in accordance with collective agreements or with employment contracts or which are consistent with the established policy of the Province and where the termination is to further the operational needs of the Province; (ii) travel, postage, freight, express and long distance communications; (iii) advertising, publishing, printing, audio-visual and public relations; (iv) legal expenses, computer system development, actuarial services, association dues, audit and evaluation; (

v) rental of office accommodation and equipment; and (vi) utilities, materials and supplies; (vii) repair and maintenance of equipment; and (viii) other expenditures; (

b) a Reasonable allocation of the Out-of-pocket cost to the Province of common or shared costs for: (

i) payroll and benefits of territorial personnel working in part on the administration of the Program; (ii) payroll and benefits of other territorial personnel working in part on the administration of the Program; (iii) travel, postage, freight, express and long distance communications; (iv) advertising, publishing, printing, audio-visual and public relations; (

v) legal expenses, computer system development, actuarial services, audit and evaluation; (vi) rental of office accommodation and equipment; (vii) utilities, materials and supplies; Canada-British Columbia Assistance Program Agreement

15 (viii) repair and maintenance of equipment; and (ix) other expenditures; (

c) charges representing the fair market value of accommodations which are specifically authorized in writing by Canada; and (

d) such other amounts as are specifically authorized in writing by Canada. Claims should include, for the goods and services listed above, federal GST net of any applicable input tax credits and/or rebates. 3. Capital expenditures, meaning expenditures towards physical assets providing use over more than a one-year period, are specifically excluded from eligible Administrative Expenses. 4.

Prior to Canada issuing its contribution to the Province, the Province shall be responsible for submitting, in writing, for Canada's approval, a description of the methodology to be used to apportion Administrative Expenses and revenues between the various Programs to be administered by the provincial Ministry of Agriculture, Food and Fisheries. Verifiable documentation or independent studies should be available to support the methodology. 5.

Where there is a disagreement between a payer and a claimant concerning contributions towards a claimant's administrative costs, payer contributions towards the portion of the costs in dispute may be withheld or denied until the issues related to their eligibility under the Agreement have been resolved. 6. Payroll benefits (e.g., severance pay, holiday pay or living allowances) for claimant staff pertaining to their service prior to the start-up of the Program, unfunded superannuation costs and unfunded insurance plan costs shall not he eligible for reimbursement. 7.

If access to a claimant's records is denied to a payer's staff or its appointed external auditors, all submitted amounts so affected by this denial shall not be eligible for reimbursement. Canada-British Columbia Assistance Program Agreement

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 780/2001
Type	order_in_council
Volume / chapter	arc oic 0780 2001
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	0c99915d36e5341621e48880e0ff88cdf6056f82

Source file is stored in the law ingest library (pdf).