A key government
principle outlined in the Offshore Oil and Gas Branch (Branch) work plan states:
British Columbians must have access to accurate and understandable information
about the potential benefits and risks associated with offshore oil and gas. As
one avenue of information dissemination the Division engaged First Nations and
community organizations to develop and make available factual information
regarding offshore development.
Through a grant or
contribution as described in chapter 9.14 of the Financial Management Policy of
the Office of the Comptroller General the division may, from time to time, enable
not-for-profit organizations or societies to provide a public service. Proposals
for such agreements are subject to review criteria.
Contribution
agreements are similar to a grant in that funding is directed to not-for-profit
societies, organizations, agencies, or other governments that are able to assist
the Province in reaching its objectives.
Unlike a grant, the
Province can specify more directly how the funds are to be used through the
agreement; however, the recipient is still able to operate in an “arms-length”
manner that would not be possible through a contract for services.
An “arms length”
relationship is considered by the Offshore Oil and Gas Division to be the best means
to carry out the project as opposed to contracting a specific service directly,
and under the control of, the Offshore Oil and Gas Division.
The organization is
in a unique position to carry out the work required due to its expertise,
membership, or status (e.g., First Nations government, academic institution,
professional organization).
The project or
proposal must fit with the Offshore Oil and Gas Branch Project Plan, and advance
the Province’s objectives for offshore oil and gas development.
The proposal or
project must contain well-defined deliverables. Although the Province will not
be a direct recipient of any services as a result of the Contribution Agreement,
it may receive copies of any reports or materials produced.
The proposal must
contain a detailed budget with proposed expenditures that are reasonable and in
line to achieve the proposed deliverables.
Recipient must
provide an acceptable accounting of expenditures, copies of any materials
produced as appropriate, and a summary of results upon completion of the project
prior to release of final payment (in most cases).
The organization
must have the administrative capacity to manage the budget and carry out the
work.
Contribution Agreement Audit
The Provincial Internal Audit & Advisory Services
Branch examined agreements between the BC Offshore Oil and Gas Branch,
stakeholders and First Nations in order to determine:
