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SECTION I - INTRODUCTION

The allocation of funds to First Nations for many INAC programs is influenced by factors such as geographic location, distance from major population centres, and the local climatic condition. First Nations are classified according to these factors and assigned remoteness and environmental indices which are used incalculating funding allocations. These indices affect funding for the following programs:

! Facilities operation and maintenance (O&M);
! Education;
! Social assistance; and
! Indian Government Support.

The Band Classification Manual provides a listing of First Nations and their remoteness and environmental indices, as well as the city centre, the service centre, and the most populated reserve that is used to determine the indices. The classification in the manual is based on definitions in a 1987 departmental publication entitled Classification and Housing Economic Categorization of Indian Bands by Zone and the latest information provided by regions.

It should be emphasized that the intent of these indices is to provide a sense of geographic and economic reality in the funding process and, as such, must not be interpreted as a reflection of where a First Nation prefers to conduct its business.

Band Classification Review Process

Since changes in band classification are infrequent, there is no scheduled review and publication of this manual. It is however the responsibility of regions to submit requests for updating the classification as changes occur.

As a band classification change can affect funding in many program areas, regions must ensure that an update request has been reviewed by the responsible person for each of the programs. Moreover, because the classification process and any subsequent review are based on the fixed criteria that are defined in the Band Classification Manual, regions must submit all relevant details that support an amendment. In addition, all requests for review or updating of band classification must be approved by the Regional Director General and submitted in writing to the:

Chairperson
Band Classification Committee
Corporate Information Management Directorate
Indian and Northern Affairs Canada
Les Terrasses de la Chaudière
Room 530, North Tower
Ottawa, Ontario, K1A 0H4

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The Chairperson is responsible for forwarding all material to the Band Classification Committee and coordinating the review process for timely response to the regions.

The Band Classification Committee comprises representatives from:

Corporate Information Management (Chair)
Real Property Services for INAC
Program Governance
Resource Management and Reporting

Committee members are responsible for reviewing all band classification submissions against the criteria listed in the Band Classification Manual and determining the correct classification. Based on the assessment of the Committee, the Chairperson recommends classification changes to the Assistant Deputy Minister for final approval.

If the approved changes are numerous and significant, a revised edition of this manual will be published. Between official releases of the manual, approved classification changes are issued in a loose leaf format as an addendum to the manual.

It is to be noted that, since program funding is acquired and allocated based on the band classification at the start of a fiscal year, interim funding adjustments are not made for classification changes that occur during the fiscal year. All funding changes are reflected only in the allocations for subsequent fiscal years.

SECTION II - GENERAL DEFINITIONS

The following definitions are used by the Headquarters Band Classification Committee for classifying all the bands.

City Centre

A major population centre where various economic indices can be defined for calculating operation and maintenance (O&M) funding requirements for departmentally funded capital assets. Each First Nation is assigned a city centre based on the proximity of the city centre to the most populated site of the First Nation. In cases where two city centres are located approximately the same distance from the most populated site, the city centre that best reflects the economic activities of the most populated site shall be chosen.

Service Centre

The nearest community to which a First Nation can refer to gain access to government services, banks and suppliers. The nearest community would have the following services available:

(a) suppliers, material and equipment (i.e., for construction, office operation,etc.);
(b) a pool of skilled and semi-skilled labour; and
(c) at least one financial institution (i.e., bank, trust company, credit union, etc.);
as well, the following services would typically be available:
(d) provincial services (such as health services, community and social
services, environment services); and
(e) federal services (such as Canada Post, Employment Centre).

Road Access

Road access includes surface transportation on year-round paved or gravelled roads linking a First Nation community with the nearest service centre. Under this definition, ferry service forming part of the provincial road network and capable of transporting adequate quantities of required material, equipment and supplies, constitutes road access. Temporary disruptions (such as during spring thaw) are not considered to constitute a break in normal access.

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Geographic Zones

Zone 1: A geographic zone where the First Nation is located within 50 km of the nearest service centre with year-round road access.
Zone 2: A geographic zone where the First Nation is located between 50 and 350 km from the nearest service centre with year-round road access.
Zone 3: A geographic zone where the First Nation is located over 350 km from the nearest service centre with year-round road access.
Zone 4: A geographic zone where the First Nation has no year-round road access to a service centre and, as a result, experiences a higher cost of transportation.

Notes:

1. The distance used to classify First Nations is calculated from the appropriate (nearest) service centre to the most populated site of the First Nation and the accessibility to that centre is determined based on the above definitions.

2. Some First Nations meet the criteria for Zones "1 or 2" except that they require access other than by road (e.g. rail, boat, or other means over a short distance) which does not substantially affect the total cost. In such cases, the First Nations shall be regarded as Zone "1 or 2", but an adjustment to funding levels for some services may be made to compensate for the extra cost incurred due to the lack of road access.

3. Geographic zone and city centre are the two factors governing the allocation of O&M funds.

SECTION III - TERMS USED FOR FUNDING OF INDIAN GOVERNMENT SUPPORT,
EDUCATION AND SOCIAL ASSISTANCE

A remoteness index and an environmental index are required for calculating the level of funding for indian government support, education and social assistance.

Both indices are derived based on a combination of the remoteness classification and the environmental classification of a First Nation. Table 1 lists the remoteness and environmental indices for all possible combinations of remoteness and environmental classifications. Definitions for remoteness and environmental classifications are provided below.

Remoteness Classification

Zone 1: Same definition as Geographic Zone 1 (First Nations located within 50 km of a service centre).
Zone 2: Same definition as Geographic Zone 2 (First Nations located between 50 km and 350 km of a service centre).
Zone 3: Same definition as Geographic Zone 3 (First Nations located over 350 km from a service centre).

First Nations classified in any of the above three geographic zones will have year-round access by a paved or gravelled road. The distances referred to are road distances by the shortest practical route, including vehicular ferries operating on normal schedule as part of the provincial highway system.

Zone 4: Same definition as Geographic Zone 4 (First Nations with either air, rail or boat access to the service centre). This geographic zone is divided into the following sub-zones, according to their distance directly measured from the service centre.

Sub-Zones of Zone 4

0: distance < 50 km (classified as Zone 2)
1: 50 km # distance < 160 km
2: 160 # distance < 240 km
3: 240 # distance < 320 km
4: 320 # distance < 400 km
5: 400 # distance < 480 km
6: distance $ 480 km
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Environmental Classification

The environmental classification relates the geographic location of a First Nation to the local climate.

A: geographic location < 45 o latitude
B: 45 o latitude # geographic location < 50 o latitude
C: 50 o latitude # geographic location < 55 o latitude
D: 55 o latitude # geographic location < 60 o latitude
E: 60 o latitude # geographic location < 65 o latitude
F: geographic location $ 65 o latitude

Example: A First Nation which must travel between 320 and 400 km by air to its nearest service centre, and which is located between the 50 o latitude and the 55 o latitude is classified as 4-C-4.