PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. 1760 , Approved and Ordered !II 4 4AAA). Iietitenentor AfidpntnistI4tvr Executive Council Chambers, Victoria On the recommendation of the undersigned, the_ Aeutenant or, by and with the advice and consent of the Executive Council, orders that on the recommendation of the Minister of Finance and Corporate Relations, the attached Small Loan Criteria apply for the purposes of

section 45 of the Financial Administration Act to the making of small loans under the Human Services Providers Financing Program. Pr Member of the Executive Council I dif Minister of Finance and Corpor e Relations Minister 10 Chi en end Families (This

part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section:- Financial Administration Act, s. 45 Other (specify):- Human Resource Facility Act November 30, 2000 Resub: 1427/2000/13

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) SMALL LOAN CRITERIA 1.0 Purpose: 1.1 To provide loans in order to stimulate investment in efficiencies and innovation to person(s), under contract to the Ministry for Children and Families (MCF), and who are providing services, under contract to MCF.

Funds are available for projects that will produce efficiencies and innovations, and net cost reductions, for the agencies and the government, including: • information technology initiatives or new systems that improve agency operations • specific equipment modifications or renovations that improve the safety and well being of ministry clients • administrative and procedural innovations that that improve the service delivery to ministry clients. 1.2 Loans will be provided only for the financing of initiatives listed in

Section 1.1 that are consistent with MCF objectives. 2.0

Definitions: 2.1 In these criteria the terms "agencies", "agency", "applicant(s)", "individual(s)", and "person(s)" are used interchangeably and all have the same meaning. 2.2 "Person" means a corporation, partnership or party, and the personal or other legal representatives of a person to whom the context can apply according to law. 3.0 General Requirements: 3.1 Loans will not normally exceed 10% of the value of all contracts that the applicant(

s) have with MCF, to a maximum of $50,000. 3.2 Preference will be given to those applications that directly lead to direct net cost reductions tbr the agencies and the government. 3.3 First priority will be given to information technology projects which are consistent with the ministry's plan for information systems such as providing networking solutions and electronic data interchange. 3.4 System projects should improve efficient and effective client service or administrative support and be capable of evaluation based on reasonable outputs or, where possible, outcomes. 3.5 The project must not adversely impact ministry services or services provided by other ministry contractors. 1.

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HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) SMALL LOAN CRITERIA 3.6 The project must be viable without ongoing government support, and the project must have demonstrable benefits to government and its direct clients and/or other persons who depend on services funded indirectly by government. 3.7 Unless otherwise stated, loans provided under this program will be interest free. 4.0 Application Procedures: 4.1 Applications for loans can only be made by any person(

s) already providing services, under contract, to MCF. 4.2 All applications must be made to the Senior Financial Officer, MCF. Submission of an eligible application is not a guarantee of funding. 4.3 All loans are subject to the availability of government funding, as specified in

Section 28 of the Financial Administration Act (FAA). 4.4 All loan applications must contain the information found in the attached

Schedule A, and be submitted in a format specified by MCF to facilitate evaluation and decision- making. 4.5 All information contained in an application or provided to MCF (Schedule A), will be held in strict confidence subject to applicable laws including the Freedom of Information and Protection of Privacy Act. 4.6 The minimum loan amount allowable is $ 5,000 due to the cost of administering the Human Services Providers Financing Program (HSPFP) loan. 5.0 Loan Application Review and Evaluation: 5.1 Factors to be considered in assessing applications include: • the applicants' ability to repay the loan and the pay back period • a well documented plan which supports ministry programs and objectives 5.2 For incomplete applications, applicants will be informed in writing of the missing information in the submitted application and will be permitted to resubmit a fully completed application. 5.3 The Financial Services Branch, MCF, will conduct an initial review for completeness, feasibility, and adherence to government legislation, regulation and policy, for MCF. 'ContnIct/Project/Small Loan Cnteria (HSPFP) Page 2 of 6 00/11/29

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) SMALL LOAN CRITERIA 5.4 A MCF Evaluation Committee comprised of no less than 4 members will carry out a final in-depth review and analysis.

The committee will consist of: • the Senior Financial Officer(SFO), MCF • a representative of the Community Services and Program Support, MCF • a representative of the Systems Services Branch, MCF • the Senior Manager, Finance and Contract Policy, MCF • any other person deemed appropriate by the SFO, MCF for a particular application. 5.5 The applicant may be required to make a presentation, in support of the application, to the MCF Evaluation Committee or a representative of the committee.

The MCF Evaluation Committee will recommend approval, conditional approval, or rejection to the ministry's Senior Financial Officer, who will either approve or reject the application. 5.6 If an application is rejected, a written explanation will be provided of the reasons for it not being accepted.

A rejected application may be re-submitted for consideration upon the agency satisfactorily addressing the itemized shortcomings outlined in the rejection notice. 5.7 The MCF Evaluation Committee will review all new applications within sixty (60) days of being received. 6.0 Loan Advances 6.1 Unless otherwise stated in the loan agreement, funds will be paid as a lump sum payment. 6.2 If at any time, the cost to complete the project exceeds remaining funds available under the loan, MCF will be under no obligation to advance additional funds. 7.0 Loan Repayment Period 7.1 Loans will be rtTayable within five years.

Applications that have a shorter time frame will be given preferential consideration. 8.0 Annual Repayment Amount 8.1 The annual repayment amount, of not less than 1/n (n = approved loan years) of the original loan balance, is to be paid by way of cheque to the Minister of Finance and Corporate Relations, Province of British Columbia, no later than January 3 i st of the fiscal year (April 1St to March 31st) to which the payment relates. 1/Contract/Project/Small Loan Criteria (HSPFP) Page 3 of 6 00/12/01

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) SMALL LOAN CRITERIA 8.2 If the annual repayment amount is not received by February 1, arrears will be deducted at an amount equal to the loan repayment amount, from the person's regular monthly/annual MCF contracted payments, unless otherwise approved by the Senior Financial Officer, MCF. 8.3 If the contract(

s) upon which the application is based terminate(

s) prior to the end of the repayment period, any outstanding loan balances will be deducted from the final contract payment(s). 9.0 Security 9.1 Where collateral is required to be held or assigned as security, a security agreement will be entered into and registered in accordance with general statutes and regulations of the province of British Columbia, and in accordance with procedures that may be specified by, the Ministry of the Attorney General. 9.2 Collateral will be required on all loans in excess of $30,000. 10.0 Interest On Overdue Payments 10.1 In the event that the payment(

s) fall into arrears, interest will be charged at an annual rate that is equal to the prime lending rate of the banker to the government, unless otherwise approved by the Senior Financial Officer, MCF. J:/Contact/Project/Small Loan Criteria (HSPFP) Page 4 of 6 00/11/29

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) SMALL LOAN CRITERIA

Schedule A Application Format All HSPFP loan applications must contain the following information and be submitted in a format specified by the Ministry for Children and Families (MCF) to facilitate evaluation and decision-making. To ensure this program is accessible to as many agencies as possible within funding limitations, evaluation will also consider the applicant's ability to obtain funding from other sources (either private or other government programs), the ability to repay the loan and the pay back period. The application must include: a. the applicant's legal name, and address b. the name, and telephone number of the applicant's contact person c. the name(

s) of the applicant's accountant(s), and financial institution(

s) d. a list of loans, mortgages (and their payback schedules), liens, encumbrances, and restrictions against assets owned by the applicant e.

MCF contract and component number(s), region(s), and other funding sources for the specific program areas affected by the application the applicant's most recent audited financial statements, if any, and/or the applicant's most recent (current) year to date financial statements (either audited or unaudited) g. a detailed repayment plan that demonstrates how the loan will be paid back within a maximum five year period h. if an incorporated applicant, a certified copy of the applicant's Board of Directors Resolution authorizing the loan application i. a detailed description of the project (information management system, improvements, or equipment, including specifications and brochures for all equipment or systems), its use and purpose j. a written endorsement by local Region Executive Director, Contractor Manager or Regional Financial Officer.

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HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) SMALL LOAN CRITERIA k. a list of any guarantees already provided by the applicant to third parties 1. proof of insurance on the premises and contents m. names and address of other parties guaranteeing the loan n. a list of unencumbered assets owned by the applicant o. a detailed costing of project, including: • capital expenditures (including quotes from third party suppliers) • initial training costs and other start up costs • a cost/benefit analysis detailing how net cost reductions will be achieved and the results measured • amount required to complete the information management system, improvements and equipment P. a written undertaking by the applicant that they shall: • assume full responsibility for any deficit arising as a result of development and operation of the proposed information management system, improvements, and equipment • not expend any excess funds received from any source for the cost of the proposed system without the prior written consent of MCF • provide audited financial statements on an annual basis or on the request of MCF until the loan is paid in full • immediately advise MCF, in writing, of any adverse changes to operating objectives, such as insufficient funding, with which to repay the loan q. any other information MCF considers necessary or appropriate. 1:'ContractiProject/Small Loan Criteria (HSPFP) Page 6 of 6 00/11/29