BETWEEN: THE GOVERNMENT OF CANADA, as represented by the President of the Queen's Privy Council for Canada, Minister of Infrastructure, Communities and Intergovernmental Affairs ("Canada")

AND: THE GOVERNMENT OF NUNAVUT, as represented by the Minister of Community and Government Services ("Nunavut")

1. PURPOSE

This Administrative Agreement sets out the roles and responsibilities of Canada and Nunavut for the administration of the Gas Tax Fund (GTF).

2. CONTEXT

With this Administrative Agreement, Canada and Nunavut wish to help communities build and revitalize their public infrastructure that supports national objectives of productivity and economic growth, a clean environment and strong cities and communities, building on:

• The success of the First Agreement;
• Section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24, under which the Government of Canada makes up to $2 billion per year available for allocation by the Government of Canada for the purpose of municipal, regional and First Nations infrastructure starting in 2014-2015;
• Economic Action Plan 2013, through which the Government of Canada announced a renewed GTF which included the indexation of the gas tax funding at two per cent (2%) per year, with increases to be applied in $100 million increments (confirmed through section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24 as amended by section 233 of the Economic Action Plan 2013 Act, No. 1, S.C. 2013, c. 33);
• Economic Action Plan 2013 which encouraged provinces, territories, cities and communities to support the use of apprentices in infrastructure projects receiving federal funding. Canada recognizes that Nunavut has developed and implemented its own initiatives with regards to the use of apprentices in infrastructure projects;
• Economic Action Plan 2013, through which the Government of Canada announced an expanded list of GTF eligible project categories and encouragement for asset management planning.

3. PRINCIPLES

Canada and Nunavut acknowledge that this Administrative Agreement is based on the following principles:

• Principle 1 – Respect for jurisdiction: The GTF was designed to leverage the strengths of each level of government and is based on the principle that each has areas of jurisdiction and is accountable to its population. Canada respects the jurisdiction of provinces and territories over municipal institutions.
• Principle 2 – A flexible approach: In recognition of the diversity of Canadian provinces, territories, regions and communities, the GTF recognizes the need for a flexible approach to program delivery. Wherever possible, the GTF aims to employ regionally adapted delivery mechanisms, including the leveraging of existing delivery mechanisms and reporting structures.
• Principle 3 – Equitable allocations: The GTF recognizes the importance of supporting meaningful infrastructure investments within the least populated jurisdictions, including Nunavut. To that end, any GTF allocation that may be made to Nunavut will be a base amount rather than a per-capita allocation.
• Principle 4 – Long-term solutions: The GTF provides predictable, long-term funding for communities, where communities choose projects locally and prioritize them according to their needs, while respecting the principle of incrementality and not displacing current infrastructure investments.
• Principle 5 – Transparency: The GTF is administered via an open and transparent governance process which recognizes and communicates Canada's contribution to communities' infrastructure priorities and includes regular program evaluations and progress reporting to Canadians.

4. ANNEXES AND SCHEDULES

The following annexes and schedules are attached to and form part of this Administrative Agreement:

• Annex A: Definitions
• Annex B: Terms and conditions, including:
  • Schedule A: Ultimate Recipient Requirements
  • Schedule B: Eligible Project Categories
  • Schedule C: Eligible and Ineligible Expenditures
  • Schedule D: Reporting
  • Schedule E: Communications Protocol
  • Schedule F: Asset Management

5. DEFINITIONS

Unless defined elsewhere in this Administrative Agreement, capitalized words used throughout this Administrative Agreement are defined in Annex A (Definitions).

6. FEDERAL GAS TAX FUND

6.1 Any GTF funding that may be transferred by Canada to Nunavut, when transferred, will be administered by Nunavut in accordance with this Administrative Agreement, including the terms and conditions set out in Annex B (Terms and Conditions).

6.2 Any Unspent Funds, and any interest earned thereon, will be subject to the terms and conditions of this Administrative Agreement and will no longer be governed by the terms and conditions of the First Agreement.

7. OVERSIGHT COMMITTEE

7.1 An Oversight Committee established by Canada and Nunavut will monitor the overall implementation of this Administrative Agreement, and will serve as the principal forum to address and resolve issues arising from the implementation of this Administrative Agreement.

7.2 The Oversight Committee will be co-chaired by two (2) members, one of whom is to be appointed by Canada, and designated as Federal Co-Chair, and one of whom is to be appointed by Nunavut, and designated as Territorial Co-Chair. Replacement members from either Canada or Nunavut may, from time to time, be appointed. Canada and Nunavut agree to keep each other informed in writing of new appointments.

7.3 The Co-Chairs will examine together any issue that arises, and will, in good faith and reasonably, attempt to resolve potential disputes.

7.4 Canada and Nunavut agree that, in addition to the requirements set out in Section 2.3 of Schedule E (Communications Protocol), any communications working group or subcommittee that is established by the Co-Chairs will report on the working group or subcommittee's plans and achievements to the Oversight Committee throughout the year.

7.5 The Oversight Committee may seek the advice of the Nunavut Community Infrastructure Advisory Committee (NCIAC) on matters related to the delivery of the GTF in Nunavut, and through the NCIAC, the Oversight Committee may seek input from Municipalities on matters related to the Delivery Mechanism of this Administrative Agreement (Annex B, Terms and Conditions, Section 2).

7.6 The NCIAC, when acting as a technical sub-committee to the Oversight Committee, will:

• provide advice to the Oversight Committee as requested by that body;
• consult with Municipalities and develop plans in accordance with the NCIAC's terms of reference;
• identify and prioritize Eligible Projects in a manner that is equitable and transparent, drawing upon the advice and services of experts as needed, applying ranking and funding criteria; and
• recommend to the FMB priority Municipal Infrastructure and Community Capacity Building Projects in Non Tax-Based Municipalities to be considered for funding under the GTF.

8. DISPUTE RESOLUTION

8.1 Canada and Nunavut will work together to resolve any issues which may arise in relation to this Administrative Agreement.

8.2 It is understood that failure by Canada or Nunavut, as appropriate, to meet the following requirements are of particular interest and will be addressed as a priority:

• ensuring that Ultimate Recipients comply with Schedule B (Eligible Project Categories) and Schedule C (Eligible and Ineligible Expenditures) of Annex B (Terms and Conditions);
• submitting an Annual Report to Canada by September 30 of each year and an Outcomes Report, as outlined in Schedule D (Reporting) of Annex B (Terms and Conditions);
• conducting communications activities in accordance with the requirements outlined in Schedule E (Communications Protocol) of Annex B (Terms and Conditions).

8.3 An escalating dispute resolution approach would begin with an Oversight Committee discussion followed by senior official-level discussions.

8.4 Any issue that cannot be resolved at the Oversight Committee or by senior officials will be submitted to the Canada and Nunavut Ministers for resolution, within a reasonable timeframe.

8.5 In the event of any unresolved issue, if the above resolution mechanisms fail to achieve a resolution it is understood that the final decision with respect to such issue will rest solely with Canada.

9. AUDITS AND EVALUATION

9.1 Canada may, at its expense, carry out any audit in relation to this Administrative Agreement. Nunavut will provide Canada and its designated representatives with reasonable and timely access to all documentation, records and accounts that are held by Nunavut, Ultimate Recipients, their respective agents or Third Parties and that are related to this Administrative Agreement and the use of GTF funding, and any interest earned thereon, and to all other relevant information and documentation requested by Canada or its designated representatives for the purposes of audit and evaluation.

9.2 Canada may, at its expense, complete a periodic evaluation of the GTF to review the relevance and performance (i.e., effectiveness, efficiency and economy) of the GTF. Nunavut will provide Canada with information on program performance and may be asked to participate in the evaluation process. The results of the evaluation will be made publicly available.

9.3 Nunavut will keep proper and accurate accounts and records in respect of all Eligible Projects for at least six (6) years after completion of the Eligible Project and will, upon reasonable notice, make them available to Canada.

9.4 Sections 9.1 to 9.3 will remain in effect beyond the expiration or termination of this Administrative Agreement until such time as may be determined by Canada and Nunavut.

10. DURATION, TERMINATION, REVIEW AND AMENDMENT

10.1 This Administrative Agreement will be effective April 1, 2014 and will be in effect until March 31, 2024 unless Canada and Nunavut agree to renew it. In the event where this Administrative Agreement is not renewed, any GTF funding and Unspent Funds, and any interest earned thereon held by Nunavut or Ultimate Recipients, that have not been expended on Eligible Projects as of March 31, 2024 will nevertheless continue to be subject to this Administrative Agreement until such time as may be determined by Canada and Nunavut.

10.2 This Administrative Agreement will be reviewed by Canada and Nunavut by March 31, 2018 and may be amended to incorporate changes, if any, agreed to by Canada and Nunavut.

10.3 This Administrative Agreement may be amended at any time in writing as agreed to by Canada and Nunavut.

10.4 This Administrative Agreement may be terminated at any time and for any reason by either Canada or Nunavut on two (2) years written notice. In the event where this Administrative Agreement is so terminated, any GTF funding and Unspent Funds, and any interest earned thereon held by Nunavut or Ultimate Recipients, that have not been expended on Eligible Projects as of the date of termination will nevertheless continue to be subject to this Administrative Agreement until such time as may be determined by Canada and Nunavut.

10.5 If Canada concludes an Administrative Agreement with respect to the GTF for similar purposes with any other province or territory of Canada, and that Administrative Agreement taken as a whole is materially different from this Administrative Agreement, Nunavut may ask Canada to agree to amend this Administrative Agreement so that, taken as a whole, it affords similar treatment to Nunavut as the other Administrative Agreement to the other province or territory. In the event of any such request, Canada, and Nunavut agree to discuss the request and any agreement reached between them to amend this Administrative Agreement will be effected in accordance with Section 10.3 (Duration, Termination, Review and Amendment).

11. CORRESPONDENCE

Any correspondence under this Administrative Agreement may be delivered in person, sent by electronic mail, sent by facsimile, or sent by mail addressed to:

Canada:

Assistant Deputy Minister
Program Operations
Infrastructure Canada
1100-180, Kent Street
Ottawa, Ontario K1P 0B6
Facsimile: (613) 960-9423

or to such other address or facsimile number or electronic address or addressed to such other person as Canada may, from time to time, designate in writing to Nunavut; and

Nunavut:

Deputy Minister
Community and Government Services
Government of Nunavut
P.O. Box 1000 – Station 700
Iqaluit, Nunavut X0A 0H0
Facsimile: (867) 975-5305

or such other address or facsimile number or electronic address or addressed to such other person as Nunavut may, from time to time, designate in writing to Canada.

Signatures

CANADA

The Honourable Denis Lebel
Minister of Infrastructure, Communities and Intergovernmental Affairs

Date

NUNAVUT

The Honourable Tom Sammurtok
Minister of Community and Government Services

Date

ANNEX A
DEFINITIONS

"Annual Report"

means the duly completed annual report to be prepared and delivered by Nunavut to Canada, as described in Schedule D (Reporting).

"Asset Management"

supports integrated, lifecycle approaches to effective stewardship of infrastructure assets in order to maximize benefits, and manage risk, as described in Schedule F (Asset Management).

"Capacity Building Projects"

means investments related to strengthening the ability of Municipalities to develop long-term planning practices, in accordance with Schedule B (Eligible Project Categories) and Schedule C (Eligible and Ineligible Expenditures).

"Capital Funding Agreement"

means a multi-year capital funding agreement between Nunavut and a Tax Based Municipality for the construction of municipally owned infrastructure, duly authorized by the mayor and council of the Tax Based Municipality, the Minister of Community Government Services and the Nunavut Financial Management Board.

"Community Capital Plan"

means a document created by a Municipality through a public process, with approval from locally elected officials, providing a detailed understanding of anticipated investments into tangible capital assets (Municipal Infrastructure) that are considered priorities along with a rationale for their priorities.

"Contract"

means an agreement between an Ultimate Recipient and a Third Party whereby the latter agrees to supply a product or service to an Eligible Project in return for financial consideration.

"Eligible Expenditures"

means those expenditures described as eligible in Schedule C (Eligible and Ineligible Expenditures).

"Eligible Projects"

means projects as described in Schedule B (Eligible Project Categories).

"Financial Management Board" or "FMB"

means the statutorily-established subcommittee of the Nunavut Cabinet, chaired by Nunavut's Minister of Finance and subject to direction from the Executive Council, and deriving its authority from Nunavut's Financial Administration Act.

"First Agreement"

means the Canada Nunavut Agreement on the Transfer of Federal Gas Tax Revenues 2005-2015 entered into on August 3, 2005, by the Government of Canada and the Government of Nunavut, with an expiry date of August 3, 2015, as amended in 2008 and 2010.

"GTF"

means the Gas Tax Fund, a program established by the Government of Canada setting out the terms and conditions for the administration of funding that may be provided by Canada to recipients under section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24 as amended by section 233 of the Economic Action Plan 2013 Act, No. 1, S.C. 2013, c. 33, or any other source of funding as determined by Canada.

"Ineligible Expenditures"

means those expenditures described as ineligible in Schedule C (Eligible and Ineligible Expenditures).

"Integrated Community Sustainability Plans" or "ICSP"

means a long-term plan, developed in consultation with a Municipality or group of Municipalities to realize sustainability objectives a Municipality has for the environmental, cultural, social and economic dimensions of its identity.

"Municipality" or "Municipalities"

means municipal government in Nunavut incorporated under the Cities, Town and Villages Act RSNWT 1988, c.C.8 or the Hamlets Act RSNWT, 1988, c H-1.

"Municipal Infrastructure"

means municipal or regional, publicly or privately owned, tangible capital assets primarily for public use or benefit in Canada.

"Municipal Taxing Authority"

" means a city, town or village established under the Cities, Towns and Villages Act R.S.N.W.T, 1988, c.C-8 or the Hamlets Act, R.S.N.W.T, 1988, c. H-1 that has been designated as a municipal taxing authority pursuant to s.108 of the Property Assessment and Taxation Act (Nunavut), R.S.N.W.T 1988, c.P-10.

"Non-Tax Based Municipality"

means a Municipality that is not a Municipal Taxing Authority.

"Nunavummi Nangminiqaqtunik Ikajuuti Policy" or "NNI Policy"

means policy developed by the Government of Nunavut in consultation with Nunavut Tunngavik Inc., which came into effect April 1, 2000. The policy objectives set out in Section 7 of the NNI Policy include a preference in Government of Nunavut and municipal contracting for Inuit beneficiaries of the Nunavut Land Claims Agreement, and community based Inuit-owned businesses. The NNI Policy implements the Government of Nunavut's commitments under Article 24 of the Nunavut Land Claims Agreement, including commitments to support Nunavut based businesses.

"Nunavut Association of Municipalities" or "NAM"

means the association that represents Nunavut Municipalities, registered under the Nunavut Societies Act R.S.N.W.T. 1988, c.S-11.

"Nunavut Community Infrastructure Advisory Committee" or "NCIAC"

means the committee comprised of representatives from the NAM and the Government of Nunavut that is responsible for developing the long range plans for all municipal infrastructure and capacity building requirements funded through the Nunavut Department of Community and Government Services. The NCIAC is co-chaired by a representative of Nunavut and a representative of the NAM, and may act as a subcommittee to the Oversight Committee under this Administrative Agreement.

"Outcomes Report"

means the report to be delivered by March 31, 2018, and again by March 31, 2023, to Canada which reports on how GTF investments are supporting progress towards achieving the program benefits in Nunavut, more specifically described in Schedule D (Reporting).

"Tax Based Municipality"

means a Municipality that is a Municipal Taxing Authority.

"Third Party"

means any person or legal entity, other than Canada, Nunavut or an Ultimate Recipient, who participates in the implementation of an Eligible Project by means of a Contract.

"Ultimate Recipient"

means:

1. a Municipality or its duly authorized agent (including its wholly owned corporation); and
2. a non-municipal entity on the condition that the Municipality has indicated support for the Eligible Project through a formal resolution of its council. A non-municipal entity includes:
   • for profit organization;
   • not-for-profit organizations; and
   • non-governmental organizations.
3. Government of Nunavut entities in the form of departments, corporations, or agencies where they provide core municipal services in Municipalities, which includes the provision of Municipal Infrastructure and Capacity Building Projects.

"Unspent Funds"

means the amount reported as unspent by Nunavut and by Eligible Recipients (as defined under the First Agreement) in the 2013-2014 Annual Expenditure Report (as defined under the First Agreement).

ANNEX B
TERMS AND CONDITIONS

1. ALLOCATION FORMULA

1.1 Any Unspent Funds held by Nunavut and any GTF funding that may be received by Nunavut from Canada, will be distributed in accordance with the following formula:

1.1.1 TAX BASED MUNICIPALITIES FUND

Based on the Capital Funding Agreement negotiated between Nunavut and Tax Based Municipalities, and approved by the FMB, Nunavut will allocate directly to Tax Based Municipalities fifteen per cent (15%) of any GTF funding that may be transferred to it from Canada annually. This percentage is subject to the provisions of section 1.1.2, below.

1.1.2 NON-TAX BASED MUNICIPALITIES FUND

1.1.2 (a) Based on the recommendations and priorities of the NCIAC, and the decision of the FMB, Nunavut will allocate eighty-two point nine per cent (82.9%) of the GTF funding transferred to it from Canada annually for Eligible Projects in Non-Tax Based Municipalities. Nunavut will administer the Non-Taxed based Municipalities Fund and will undertake Eligible Projects (i.e. capital projects) on behalf of Non-Tax Based Municipalities.

1.1.2 (b) If during the term of this Administrative Agreement, a Non-Tax Based Municipality becomes a Tax Based Municipality, the percentage available under 1.1.2 (a) may be reduced and the percentage available under section 1.1.1 may be increased by the equivalent amount.

1.1.3 CAPACITY BUILDING FUND

Over the duration of this Administrative Agreement, Nunavut will allocate two point one per cent (2.1%) of the GTF funding transferred to it from Canada annually for Capacity Building Projects. Nunavut will ensure that these projects are undertaken according to the priority order determined by the NCIAC, and upon approval by the FMB. Nunavut will administer the Capacity Building Fund on behalf of Municipalities.

1.2 Interest earned on any Unspent Funds held by Nunavut, or interest earned on any GTF funding that Nunavut may receive from Canada, may be applied by Nunavut to the Non-Tax Based Municipalities Fund or the Capacity Building Fund, or to administration expenses (Annex B section 5).

1.3 Nunavut agrees to provide to Canada, upon request, a table detailing the Ultimate Recipient allocations, and promptly provide to Canada updates to the table upon any revision to the allocations.

2. DELIVERY MECHANISM

2.1 TAX BASED MUNICIPALITIES FUND

The Nunavut FMB will consider a Capital Funding Agreement for each Tax Based Municipality and will confirm the eligibility of a range of Eligible Projects included therein. Tax Based Municipalities will decide which Eligible Projects included in the Capital Funding Agreement will receive GTF funding in accordance with the allocation as set out in section 1.1.1 of the Allocation Formula.

2.2 NON-TAX BASED MUNICIPALITIES FUND

Non-Taxed Based Municipalities will submit their infrastructure priorities to the NCIAC for review and consideration. The Nunavut FMB will consider the recommendations and priorities of the NCIAC and available GTF funding, and will decide which Eligible Projects will receive GTF funding through the Non-Tax Based Municipalities Fund. Nunavut will act as Ultimate Recipient.

2.3 CAPACITY BUILDING FUND

The Capacity Building Fund will be administered by Nunavut based on guidelines that will be established by the NCIAC and submitted to the Oversight Committee for approval by July 31, 2014.

3. USE AND RECORDING OF FUNDS

3.1 Nunavut will ensure that any GTF funding that may be transferred to it by Canada, Unspent Funds, and any interest earned thereon, are used solely in accordance with the terms and conditions set out in this Administrative Agreement.

3.2 Nunavut will ensure that that any GTF funding that may be transferred to it by Canada, Unspent Funds, and any interest earned thereon is used by Ultimate Recipients in accordance with this Administrative Agreement and specifically to Schedule A (Ultimate Recipient Requirements).

3.3 Pending payment to Ultimate Recipients in accordance with the terms and conditions of this Administrative Agreement, Nunavut will record into a separate and distinct account any GTF funding it may receive from Canada and any interest earned thereon.

3.4 Any GTF funding that may be transferred by Canada to Nunavut, will be treated as federal funds with respect to other federal infrastructure programs.

4. INCREMENTALITY

Any GTF funding that Nunavut may receive from Canada is not intended to replace or displace existing sources of funding for Municipality tangible capital expenditures. As such, the average annual tangible capital expenditures by Nunavut will not be less than the following base amount.

The base amount means the average annual amount budgeted by Nunavut for spending on Municipal Infrastructure as of Fiscal Year 2005-2006, the said annual amount being equal to $16 million, reflecting non-federal investments in infrastructure and against which Gas Tax Fund investments will be measured to ensure that Gas Tax Fund investments are incremental.

5. ADMINISTRATION EXPENSES

Upon the review and acceptance by Canada of a detailed business case, which must be submitted by April 1, 2015, Nunavut may apply a portion of any GTF funding it may receive from Canada for administration expenses related to program delivery and implementation of this Administrative Agreement, including audit related expenditures, ICSP coordination, expenditures associated with communication activities such as public project announcements and signage.

6. ELIGIBLE PROJECT CATEGORIES

Eligible Project categories under the GTF will continue to include: public transit, local roads and bridges, wastewater, water, solid waste and community energy infrastructure and non-capital investments in capacity building initiatives. As announced in Economic Action Plan 2013, new eligible project categories have been added to include highways, local and regional airports, short-line rail, short-sea shipping, disaster mitigation, broadband and connectivity, brownfield redevelopment, culture, tourism, sport, and recreation infrastructure. Further details regarding Eligible Project categories in Nunavut are provided in Schedule B (Eligible Project Categories).

7. ELIGIBLE EXPENDITURES

Eligible Expenditures are those associated with: the acquiring, planning, designing, constructing, or renovating a tangible capital asset; the strengthening of the ability of Municipalities to improve local and regional planning and asset management as well as joint federal communication activities and federal signage. Schedule C (Eligible and Ineligible Expenditures) sets out specific requirements for eligible and ineligible expenditures.

8. REPORTING

Nunavut will provide to Canada an Annual Report reporting on expenditures as well as project-level information. Furthermore, Nunavut will provide to Canada periodic Outcomes Reports indicating progress and results of the GTF in order to demonstrate overall GTF progress toward the national objectives. Schedule D (Reporting) sets out specific reporting requirements.

9. COMMUNICATIONS

This Administrative Agreement formalizes clear requirements to support federal communications objectives. Schedule E (Communications Protocol) sets out specific communications requirements, including:

• providing upfront project information on an annual basis for communications purposes;
• including the federal government in local project communications; and
• installing federal project signs.

10. ASSET MANAGEMENT

Asset Management will be undertaken in accordance with the approach agreed upon between Canada and Nunavut, as set out in Schedule F (Asset Management), and Nunavut will report to Canada on progress made on asset management, as set out in Schedule D (Reporting).

SCHEDULE A – Ultimate Recipient Requirements

Ultimate Recipients, including Nunavut when acting as an Ultimate Recipient, will be required to:

1. Be responsible for the completion of each Eligible Project in accordance with Schedule B (Eligible Project Categories) and Schedule C (Eligible and Ineligible Expenditures).
2. Comply with all Ultimate Recipient requirements outlined in Schedule E (Communications Protocol).
3. Develop and/or implement Asset Management in Nunavut in accordance with Schedule F (Asset Management).
4. Invest any GTF funding it may receive in a distinct account, in advance of it paying Eligible Expenditures.
5. With respect to Contracts, award and manage all Contracts in accordance with their relevant policies and procedures, including the Nunavummi Nangminiqaqtunik Ikajuuti Policy (NNI Policy), and, if applicable, in accordance with the Agreement on Internal Trade and applicable international trade agreements, and all other applicable laws.
6. Invest into Eligible Projects, any revenue that is generated from the sale, lease, encumbrance or other disposal of an asset resulting from an Eligible Project where such disposal takes place within five (5) years of the date of completion of the Eligible Project.
7. Allow Canada reasonable and timely access to all of its documentation, records and accounts and those of their respective agents or Third Parties related to the use of GTF funding and Unspent Funds, and any interest earned thereon, and all other relevant information and documentation requested by Canada or its designated representatives for the purposes of audit, evaluation, and ensuring compliance with this Administrative Agreement.
8. Keep proper and accurate accounts and records in respect of all Eligible Projects for at least six (6) years after completion of the Eligible Project and, upon reasonable notice, make them available to Canada.
9. Ensure their actions do not establish or be deemed to establish a partnership, joint venture, principal-agent relationship or employer-employee relationship in any way or for any purpose whatsoever between Canada and the Ultimate Recipient, or between Canada and a Third Party.
10. Ensure that they do not represent themselves, including in any agreement with a Third Party, as a partner, employee or agent of Canada.
11. Ensure that no current or former public servant or public office holder to whom any post-employment, ethics and conflict of interest legislation, guidelines, codes or policies of Canada applies will derive direct benefit from GTF funding, Unspent Funds, and interest earned thereon, unless the provision or receipt of such benefits is in compliance with such legislation, guidelines, policies or codes.
12. Ensure that they will not, at any time, hold the Government of Canada, its officers, servants, employees or agents responsible for any claims or losses of any kind that they, Third Parties or any other person or entity may suffer in relation to any matter related to GTF funding or an Eligible Project and that they will, at all times, compensate the Government of Canada, its officers, servants, employees and agents for any claims or losses of any kind that any of them may suffer in relation to any matter related to GTF funding or an Eligible Project.
13. Continue to use the Integrated Community Sustainability Plans that were initiated and developed under the First Agreement.
14. Agree that the above requirements which, by their nature, should extend beyond the expiration or termination of this Administrative Agreement, will extend beyond such expiration or termination.

SCHEDULE B – Eligible Project Categories

Nunavut acknowledges that the list of Eligible Project categories included in the GTF has been expanded by the Government of Canada through the Economic Action Plan 2013.

Canada and Nunavut agree to limit the Eligible Project categories included in this Administrative Agreement, based on the priorities expressed by Nunavut, and communicated to Canada by Nunavut on behalf of the NCIAC and all Municipalities.

Canada and Nunavut agree to review the list of Eligible Project categories by March 31, 2018; however, at any time over the life of this Administrative Agreement, to meet changes in priorities Canada and Nunavut may agree, through a written amendment, to expand the list of Eligible Project categories included in this Administrative Agreement according to the GTF program parameters.

In Nunavut, Eligible Projects include investments in Municipal Infrastructure for its construction, renewal or material enhancement in each of the following categories:

1. Drinking water – infrastructure that supports drinking water conservation, collection, treatment and distribution systems.
2. Wastewater – infrastructure that supports wastewater and storm water collection, treatment and management systems.
3. Solid waste – infrastructure that supports solid waste management systems including the collection, diversion and disposal of recyclables, compostable materials and garbage.
4. Capacity building – includes investments related to strengthening the ability of Municipalities to develop long-term planning practices

SCHEDULE C – Eligible and Ineligible Expenditures

i. Eligible Expenditures

1.1 Eligible Expenditures of Ultimate Recipients will be limited to the following:

• the expenditures associated with acquiring, planning, designing, constructing or renovating a tangible capital asset, as defined by Generally Accepted Accounting Principles (GAAP), and any related debt financing charges specifically identified with that asset;
• for capacity building category only, the expenditures related to strengthening the ability of Municipalities to improve local and regional planning including capital investment plans, integrated community sustainability plans, life-cycle cost assessments, and Asset Management. The expenditures could include developing and implementing:
  
  • studies, strategies, or systems related to asset management, which may include software acquisition and implementation;
  • training directly related to asset management planning; and,
  • long-term infrastructure plans.
• the expenditures directly associated with joint communication activities and with federal project signage for GTF-funded project.

1.2 Employee and Equipment Costs: The incremental costs of the Ultimate Recipient's employees or leasing of equipment may be included as Eligible Expenditures under the following conditions:

• the Ultimate Recipient is able to demonstrate that it is not economically feasible to tender a contract;
• the employee or equipment is engaged directly in respect of the work that would have been the subject of the contract; and
• the arrangement is approved in advance and in writing by Nunavut, or when Nunavut is acting as the Ultimate Recipient, is approved in advance and in writing by Canada.

1.3 Administration expenses of Nunavut related to program delivery and implementation of this Agreement, including audit, in accordance with Section 5 (Administration Expenses) of Annex B (Terms and Conditions).

ii. Ineligible Expenditures

The following are deemed Ineligible Expenditures:

• project expenditures incurred before April 1, 2005;
• the cost of leasing of equipment by the Ultimate Recipient, any overhead costs, including salaries and other employment benefits of any employees of the Ultimate Recipient, its direct or indirect operating costs of Ultimate Recipients, or administrative costs of Ultimate Recipients, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by its staff, except in accordance with Eligible Expenditures above;
• taxes for which the Ultimate Recipient is eligible for a tax rebate and all other costs eligible for rebates;
• purchase of land or any interest therein, and related costs;
• legal fees; and
• routine repair and maintenance costs.

SCHEDULE D – Reporting

Reporting requirements under the GTF consist of an Annual Report and an Outcomes Report which will be submitted to Canada for review and acceptance. The reporting year is April 1 to March 31.

In the case of Ultimate Recipients with a year-end other than March 31, and with the prior approval of Nunavut, the Annual Report may include information in respect of Eligible Projects related to that Ultimate Recipient to the year end of that Ultimate Recipient (e.g. December 31).

1. Annual Report

By September 30 of each year, Nunavut will provide to Canada an Annual Report in an electronic format deemed acceptable by Canada consisting of the following:

1.1 Financial Report Table: The financial report table will be submitted in accordance with the following template.

Annual Report Financial Table	Annual	Cumulative
	20xx - 20xx	2014 - 20xx
Nunavut in aggregate
Opening Balancefootnote 1	$xxx
Received from Canada	$xxx	$xxx
Interest Earned	$xxx	$xxx
Administrative Cost	($xxx)	($xxx)
Transferred to Ultimate Recipients	($xxx)	($xxx)
Closing Balance of unspent funds	$xxx
Ultimate Recipients in aggregate
Opening Balancefootnote 2	$xxx
Received from Nunavut	$xxx	$xxx
Interest Earned	$xxx	$xxx
Spent on Eligible Projects	($xxx)	($xxx)
Closing Balance of unspent funds	$xxx

1.2 Independent Audit or Audit Based Attestation:

Details of the audit approach will be discussed by the Oversight Committee. Nunavut will provide an independent audit opinion, or an attestation based on an independent audit and signed by a senior official designated in writing by Nunavut, as to:

• the accuracy of the information submitted in the Financial Report Table; and
• that GTF funding and Unspent Funds, and any interest earned thereon, were expended for the purposes intended.

1.3 Project List:

Nunavut will maintain, and provide to Canada a project list submitted in accordance with the following template.

Annual Report – GTF Project List Template

Project ID	Ultimate Recipient/ or Municipality in which the project occurs	Project Title	Project Description	Investment category	Total Project Cost	Funds (GTF) Spent	Completed
							Yes or No

2. Outcomes Report

By March 31, 2018 and March 31, 2023, Nunavut will provide to Canada and make publicly available, an Outcomes Report that will report in aggregate on the degree to which investments are supporting the progress in Nunavut towards achieving the following program benefits:

• Beneficial impacts on communities of completed Eligible Projects;
• Enhanced impact of GTF as a predictable source of funding including incrementality; and
• Progress made on asset management as detailed in Schedule F (Asset Management).

The Outcomes Report will present performance data and a narrative on how each program benefit is being met. Performance measurement methodology in respect of each program benefit will be approved by the Oversight Committee Co-Chairs.

SCHEDULE E – Communications Protocol

1 Purpose

1.1. The provisions of this Communications Protocol apply to all communications activities related to any GTF funding, including allocations, and Eligible Projects funded under this Administrative Agreement. Communications activities may include, but are not limited to, public or media events, news releases, reports, web articles, blogs, project signs, digital signs, publications, success stories and vignettes, photo compilations, videos, advertising campaigns, awareness campaigns, editorials, awards programs, and multi-media products.

1.2. Through collaboration, Canada and Nunavut agree to work to ensure clarity and consistency in the communications activities meant for the public.

2 Joint communications approach

2.1. Canada and Nunavut agree to work in collaboration to develop a joint communications approach that identifies guiding principles, including those related to the provision of upfront project information, project signage, and planned communications activities throughout the year. This joint communications approach will have the objective of ensuring that communications activities undertaken each calendar year communicate a mix of Eligible Project types from both large and small communities, span the full calendar year and use a wide range of communications mediums.

2.2. Canada and Nunavut agree that the initial annual joint communications approach will be finalized and approved by the Oversight Committee Co-Chairs within 60 working days following the inaugural meeting of the Oversight Committee.

2.3. Canada and Nunavut agree that achievements under the joint communications approach will be reported on to the Oversight Committee once a year, or more frequently as requested by the Oversight Committee.

2.4. Canada and Nunavut agree to assess the effectiveness of the joint communications approach on an annual basis and, as required, update and propose modifications to the joint communications approach. Any modifications will be brought to the Oversight Committee Co-Chairs for approval.

3 Inform Canada on allocation and intended use of GTF funding for communications planning purposes

3.1. Nunavut agrees to provide to Canada upfront information on planned Eligible Projects and Eligible Projects in progress on an annual basis, prior to the construction season. Canada and Nunavut will agree, in the joint communications approach, on the date this information will be provided. The information will include, at a minimum:

Municipality or Nunavut, as appropriate; Eligible Project name; Eligible Project category, a brief but meaningful Eligible Project description; amount of GTF funding being used toward the Eligible Project; and anticipated start date.

3.2 Canada and Nunavut agree that the above information will be delivered to Canada in an electronic format deemed acceptable by Canada. This information will only be used for communications planning purposes and not for program reporting purposes.

3.3 Canada and Nunavut agree that the joint communication approach will define a mechanism to ensure the most up-to-date Eligible Project information is available to Canada to support media events and announcements for Eligible Projects.

4 Project signage

4.1 Canada, Nunavut and Ultimate Recipients may each have a sign recognizing their contribution to Eligible Projects.

4.2 At Canada's request, Nunavut or Ultimate Recipients will install a federal sign to recognize federal funding at Eligible Project site(s). Federal sign design, content, and installation guidelines will be provided by Canada and included in the joint communications approach.

4.3 Where Nunavut or an Ultimate Recipient decides to install a permanent plaque or other suitable marker with respect to an Eligible Project, it must recognize the federal contribution to the Eligible Project(s) and be approved by Canada.

4.4 Nunavut or the Ultimate Recipient is responsible for the production and installation of Eligible Project signage, or as otherwise agreed upon.

4.5 Nunavut agrees to inform Canada of signage installations on a basis mutually agreed upon in the joint communications approach.

5 Media events and announcements for Eligible Projects

5.1 Canada and Nunavut agree to have regular announcements of Eligible Projects that are benefiting from GTF funding that may be provided by Canada. Key milestones may be marked by public events, news releases and/or other mechanisms.

5.2 Media events include, but are not limited to, news conferences, public announcements, official events or ceremonies, and news releases.

5.3 Canada, Nunavut or an Ultimate Recipient may request a media event.

5.4 Media events related to Eligible Projects will not occur without the prior knowledge and agreement of Canada, Nunavut and the Ultimate Recipient.

5.5 The requester of a media event will provide at least 15 working days notice to other parties of their intention to undertake such an event. The event will take place at a mutually agreed date and location. Canada, Nunavut and the Ultimate Recipient will have the opportunity to participate in such events through a designated representative. Parties to this Administrative Agreement and the Ultimate Recipient will choose their own designated representative.

5.6 The conduct of all joint media events and products will follow the Table of Precedence for Canada.

5.7 All joint communications material related to media events must be approved by Canada and recognize the funding of the parties.

5.8 All joint communications material must reflect Canada's policy on official languages and the federal identity program.

6 Program communications

6.1 Canada, Nunavut and Ultimate Recipients may include messaging in their own communications products and activities with regard to the GTF.

6.2 The party undertaking these activities will provide the opportunity for the other parties to participate, where appropriate, and will recognize the funding of all contributors.

6.3 Canada and Nunavut agree that they will not unreasonably restrict the other parties from using, for their own purposes, public communications products related to the GTF prepared by Canada, Nunavut or Ultimate Recipients, or, if web-based, from linking to it.

6.4 Notwithstanding Section 5 of Schedule E (Communications Protocol), Canada retains the right to meet its obligations to communicate information to Canadians about the GTF and the use of funding through communications products and activities.

7 Operational communications

7.1 Nunavut or the Ultimate Recipient is solely responsible for operational communications with respect to Eligible Projects, including but not limited to, calls for tender, construction, and public safety notices. Operational communications as described above are not subject to the federal official language policy.

7.2 Canada, Nunavut or the Ultimate Recipient will share information promptly with the other parties to this Administrative Agreement should significant emerging media or stakeholder issues relating to an Eligible Project arise. Canada and Nunavut will advise Ultimate Recipients, when appropriate, about media inquiries received concerning an Eligible Project.

8 Communicating success stories

Nunavut agrees to facilitate communications between Canada and Ultimate Recipients for the purposes of collaborating on communications activities and products including but not limited to Eligible Project success stories, Eligible Project vignettes, and Eligible Project start-to-finish features.

9 Advertising campaigns

Recognizing that advertising can be an effective means of communicating with the public, Canada, Nunavut or an Ultimate Recipient may, at their own cost, organize an advertising or public information campaign related to the GTF or Eligible Projects. However, such a campaign must respect the provisions of this Administrative Agreement. In the event of such a campaign, the sponsoring party or Ultimate Recipient agrees to inform the other parties of its intention, and to inform them no less than 21 working days prior to the campaign launch.

SCHEDULE F – Asset Management

In the case of an Ultimate Recipient that is a Tax Based Municipality on April 1, 2014, (i.e., Iqaluit) the Ultimate Recipient (i.e., the Municipality) will undertake Asset Management and will report to Nunavut by December 31, 2017 on progress made toward objectives agreed to between Nunavut and the Ultimate Recipient.

Nunavut, in its capacity as Ultimate Recipient acting on behalf of Non-Tax Based Municipalities, will consult with these Municipalities on Asset Management. Nunavut will complete asset management planning on their behalf by March 31, 2018.

Asset Management supports integrated, lifecycle approaches to effective stewardship of infrastructure assets in order to maximize benefits, and manage risk. In Nunavut, these will incorporate the ICSPs and will include:

• an inventory of assets
• an assessment of infrastructure condition
• life cycle management, and
• cost analysis of replacement.