Guidelines
Funding for Parties and Intervenors

Table of Contents

• Introduction
• Objectives and Expected Outcomes
• Applicants and Eligible Recipients
• Stacking Limits
• Supporting Material Required upon Application
• Type and Nature of Eligible Expenditures
• Maximum Amount Payable to a Recipient
• Method of Payment and Provision for Claims
• Audit Arrangements
• Refunds and Recovery - Provision for Claim
• Authorities
• Cost of Managing the Program
• Due Diligence
• Duration of Terms and Conditions

Introduction

The Commission of Inquiry into the Sponsorship Program and Advertising Activities (the Commission) was established on February 19, 2004 under Part I of the Inquiries Act, on the recommendation of the Prime Minister to investigate and report on questions raised, directly or indirectly, by Chapters 3 and 4 of the November 2003 Report of the Auditor General of Canada to the House of Commons with regard to the sponsorship program and advertising activities of the Government of Canada, including

• the creation of the sponsorship program,
  
  
• the selection of communications and advertising agencies,
  
  
• the management of the sponsorship program and advertising activities by government officials at all levels,
  
  
• the receipt and use of any funds or commissions disbursed in connection with the sponsorship program and advertising activities by any person or organization, and
  
  
• any other circumstance directly related to the sponsorship program and advertising activities that the Commissioner considers relevant to fulfilling his mandate.
  
  

The Commissioner is also mandated to make any recommendation that he considers advisable, based on the factual findings, to prevent mismanagement of sponsorship programs or advertising activities in the future.

Objectives and Expected Outcomes

To facilitate the work of the Inquiry, the government has agreed to provide assistance, in the form of contribution payments, with regard to the costs of certain parties and intervenors appearing before the Commission in accordance with the following principles and criteria, and subject to the Commissioner's recommendations.

        Principles

• Commission counsel has the primary responsibility for representing the public interest at the Inquiry, including the responsibility to ensure that all interests that bear on the public interest are brought to the Commissioner's attention.
  
  
• Parties with standing may be granted funding in accordance with the Commissioner's recommendations, and funding will be limited to the extent of the interest upon which standing was granted.
  
  
• Persons granted intervenor status for the purpose of ensuring that particular interests, perspectives or expertise are available to assist the Commissioner in the thorough conduct of the Inquiry may receive funding to the extent recommended by the Commissioner.
  
  
• The aim of such funding is to assist the Applicants to the extent of their interest where, in the Commissioner's view, the Applicant would not otherwise be able to participate in the inquiry, but is not for the purpose of indemnifying them for all costs incurred.
  
  

Applicants and Eligible Recipients

The following types of Applicants are considered to be included in the definition of "party" referred to in the Order in Council P.C. 2004-110 authorizing the Commissioner to recommend funding:

1.3.1 Applicants

• Party:
  Party with a substantial and direct interest in the subject-matter of the factual inquiry.
  
  
• Intervenor:
  Party with limited participation who would attend the hearings as required for particular aspects of the inquiry.
  
  

1.3.2 Eligible Recipients

• Legal counsel representing a party or an intervenor who qualifies for financial assistance in accordance with section 6 of these Terms and Conditions.
  
  

1.3.3 Values and Ethics Code for the Public Service

• Applicants and eligible Recipients who are current or former public office holders or public servants shall be in compliance with the Conflict of Interest and Post-employment Code for Public Office Holders or the Values and Ethics Code for the Public Service.
  
  

Stacking Limits

The Applicant and Recipient shall inform the Commissioner in writing as soon as possible of any other source of funds received or to be received by either in regard to services rendered to the Applicant with regard to the Commission. The Government contribution will be limited so that the payment (reimbursement) of eligible expenditures does not exceed 100% when taking into account the related funding from all sources.

Supporting Material Required upon Application

In accordance with the Commissioner's Rules of Procedure and Practice posted on the Commission's web site, those seeking funding for legal fees and expenses are instructed to apply to the Commissioner in writing, to establish that they would be unable to participate in the Inquiry without funding and the absence of an alternative means of funding; provide a satisfactory plan as to how they intend to use the funds and account for them; demonstrate sufficient interest and proposed involvement in the Inquiry; and establish a special expertise or experience with respect to the Commission's mandate.

The Commission's Rules of Procedure and Practice instruct those seeking funding to "...seek funding by way of a motion in writing, with supporting affidavits(s), to be filed with the Commission..." A contribution agreement will be required and signed by Recipients.

Type and Nature of Eligible Expenditures

These contribution payments are restricted solely to legal fees of Applicants such as: Counsel fees, disbursements and other expenses. They exclude the reimbursement of any other types of expenditures incurred by the Applicants.

Counsel fees shall be within the following criteria/limitations:

1. Counsel for parties and intervenors will only receive funding for attendance at hearings in which their interest, as identified by the Commissioner, is involved and, for any written submissions, as directed by the Commissioner.
   
   
2. Except in extraordinary circumstances identified by the Commissioner (i) no party or intervenor shall receive funding for more than one senior and one junior counsel; and (ii) no more than one counsel will receive funding for any one hearing day. Whether more than one counsel should be funded for any particular day of hearing will be at the recommendation of the Commissioner.
   
   
3. Maximum counsel fees will be set for the billing of preparation and hearing time of parties with full standing as follows: (i) 50 hours of preliminary preparation per party prior to the first day of public hearings, presently scheduled for September 7, 2004, except when a senior and a junior counsel have been authorized in which case it will be 50 hours for the senior counsel and 25 hours for the junior counsel, unless the Commissioner recommends otherwise; and (ii) thereafter 10 hours, to include both preparation for and attendance at the hearing, for each day counsel attends the inquiry.
   
   
4. Reasonable adjustments to preparation and hearing time shall be made for parties with limited standing, if the Commissioner so recommends.
   
   
5. Funding, if any, for intervenors will take into consideration recommendations made by the Commissioner.
   
   
6. The maximum counsel fee for the application for standing shall be 10 hours which includes both preparation for and attendance at the application.
   
   
7. Counsel fees will be eligible for funding in accordance with the fee guidelines for participant counsel at Commissions of Inquiry.
   
   
8. Counsel fees for intercity travel time will be eligible for funding at one-half the normal hourly rate.
   
   

Other Counsel expenditures:

1. Counsel will receive funding for disbursements in accordance with Department of Justice guidelines.
   
   
2. When intercity travel is necessary, counsel will receive funding for travel costs (including transportation, accommodation and meals) in accordance with the relevant Treasury Board policies, directives and rates.
   
   

Fee Guidelines for Participant Counsel at Commissions of Inquiry

Maximum Amount Payable to a Recipient

The maximum amount payable to a Recipient will be based on the Commissioner's recommendation based on the criteria outlined in section 6. above.

Until the Commissioner has released his decision on those with standing and the extent of their interest, the number of parties or intervenors and the extent of their identified interest remains unknown. In order to favor participation, no eligible Recipient/Applicant would be allowed to receive more than 50% of the funding made available to the Commission.

Method of Payment and Provision for Claims

The Commission will review accounts to ensure that the fees and disbursements incurred are consistent with the interests identified by the Commissioner and with the principles and criteria established for funding.

Recipients of a contribution must meet and continue to meet the specific terms and conditions of the contribution agreement prior to payments being made.

Payments will be issued, on behalf of the Applicant, directly to the relevant Recipient based on his/her statement of account, as validated by the Applicant.

Payments will be made in accordance with the Policy on Transfer Payments.

Advance payments will not be considered under this contribution program.

A statement of progress is not appropriate in this situation since payments are made on presentation of an invoice from legal counsel for a specific event.

Audit Arrangements

Contribution agreements and related payments, in accordance with the requirements of Treasury Board Transfer Payment Policy, are subject to audit to ensure that all conditions, both financial and non-financial have been met. Applicants and their Recipients will agree to provide the documentation to the auditors upon request.

The Commissioner is responsible for this Program and will determine whether a Recipient has complied with the requirements of the applicable contribution agreements.

Refunds and Recovery - Provision for Claim

The amount of any disallowed disbursements are debts due to the Crown, and must be repaid by the Recipient. Interest will be charged on overdue repayments.

Authorities

The Commissioner, who was appointed by Order in Council P.C. 2004-110 of February 19, 2004, was "authorized to recommend funding, in accordance with approved guidelines respecting rates of remuneration and reimbursement and the assessment of accounts, to a party who has been granted standing at the inquiry, to the extent of the party's interest, where in the Commissioner's view the party would not otherwise be able to participate in the inquiry".

The authority to initiate expenditures, commit, spend and make payments will be determined in accordance with the Privy Council Office's Delegation of Financial Signing Authority Chart.

Cost of Managing the Program

Costs associated with the management of these funds will be charged to the Commission's budget.

Due Diligence

The Commission, in tandem with the Privy Council Office, provides assurance that all departmental systems, procedures and resources for ensuring due diligence in approving payments under the contribution program and in verifying eligibility and for the management and administration of the contribution program are in place.

This contribution program excludes any advance payments. The Commission reviews accounts, to ensure that the fees and disbursements incurred are consistent with the interests identified by the Commissioner and with the principles and criteria established for funding.

Duration of Terms and Conditions

The duration of these terms and conditions is established from February 19, 2004 to December 31, 2005.