In case of any conflict between the following definitions and theFinancial Administration Act, the meaning intended in the Financial Administration Act prevails.

A Legislative Assembly enactment providing authority to incur expenditure. (All expenditures require the authority of an enactment.)

A funding agreement between the Government and a third party where funding is normally provided by a third party in support of an approved program, project or service that is within the Government's mandate and supported by approved appropriations. These agreements are usually not fully funded by the third party. Funding levels will vary depending on the agreement reached, but it is generally expected that the Government's investment is significant in relation to the funding provided by the third party. On rare occasions the Government of the Northwest Territories (GNWT) may choose to contribute (cost share) a program, project or service that is outside its mandate but this should only occur where the broad public benefit is very significant, the program, project or service would not occur without GNWT contributions, and no ongoing commitments fall to the GNWT.

4.1

Required Condition

Section 70 of the Financial Administration Act specifies that no disbursement shall be made from the Consolidated Revenue Fund unless it is in respect of an expenditure incurred pursuant to an appropriation.

Accordingly, any expenditure incurred in relation to a cost shared arrangement must be first be supported by an approved appropriation in accordance with Section 69 of the Financial Administration Act or any subsequent disbursement related to the expenditure will be in violation the Financial Administration Act .

4.2

Attributes Supporting the Cost Shared Arrangement

A proposed cost sharing arrangement must meet the following criteria when it is being assessed for consideration:

1. The expenditure is within the Government's mandate, or if not within its mandate significant broad public benefits will be realized;
2. The expenditure is consistent with overall Government policies, goals and objectives;
3. The expenditure will enhance the Government's ability to carry out its current strategies and plans of action and is considered a high priority;
4. Existing resources are available to meet the Government's share or new resources have been identified through a competitive resource allocation process (i.e. the business and capital planning process);
5. Economic or social gain is well substantiated and significant; and
6. The proportion of the cost being shared by the third parties is significant (i.e. fifty per cent).

Attributes Cautioning Against the Cost Shared Arrangement

If, during the assessment process, one of the following attributes is observed, the cost shared arrangement should not be considered:

1. The expenditure is outside the Government's mandate with limited public benefit;
2. The expenditure conflicts with Government policies, goals and objectives;
3. The expenditure transfers some or all of the third party's responsibilities onto the Government;
4. There is a risk that the Government will be committed to ongoing future expenditures without the guarantee of continued cost sharing;
5. There is a significant administrative burden;
6. There is an exposure to current or future liabilities;
7. Management of the expenditures is outside the Government's control or significant influence;
8. The Government's share of the resources has not been identified as part of a competitive resource allocation process;
9. Current or future expectations are raised beyond what the Government can meet; or
10. Economic or social gains are minimal or not substantiated.