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(Report dated June 19, 1998, addressed to the Strategic Policies and Priorities Committee, from the Commissioner, Economic Development, Culture and Recreation, Chief Financial Officer & Treasurer)

Subject:Province of Ontario Support for the 1998 Caribana Festival and Parade

Purpose:

To inform Council of the proposed cooperative arrangements between the Province of Ontario and the City of Toronto regarding mutual support for the 1998 Caribana Festival and Parade, and to obtain authority to enter into an agreement with the Province regarding the administration and disbursement of the provincial funding for this event.

Funding Sources, Financial Implications, Impact Statement:

City Council has approved $353,500.00 to support the 1998 Caribana Festival and Parade. The Province of Ontario wishes to provide financial support for the Festival and Parade in an amount of $353,000.00. The total municipal and provincial support available will be $706,500.00. Respecting its funding support, the Province wishes to use the same conditions and accountability mechanism as adopted by City Council. It has therefore proposed that, in order to avoid duplication of effort, its funding support be paid to and administered by the City. An agreement between the City and the Province setting out the responsibilities of the parties including how the funds are to be disbursed has been prepared. This is a positive development as it aligns the City and Provincial governments on the same direction in supporting this major festival.

Recommendations:

It is recommended that:

1) authority be granted for the City to enter into agreement with the Province of Ontario with respect to the administration and disbursement by the City of the Provincial funding for the purposes of receiving a grant in the amount of $353,000.00 for the 1998 Caribana Festival and Parade;

2) the effective date of the agreement be June 15, 1998; and 3) the appropriate City officials be authorized and directed to give effect thereto.

Council Reference/Background/History:

At its meeting on April 16, 1998, City Council adopted, as amended, Report No. 5 of the Strategic Planning and Priorities Committee, entitled "Financial Support to the Caribbean Cultural Committee and Caribana". This report recommended allocating a grant in the amount of $353,500.00 for Caribana Festival and Parade subject to specific conditions aimed at ensuring sound financial controls, management practices and accountability for the use of public funds by the Caribbean Cultural Committee. It also recommended examining approaches for multi-year funding to stabilize this annual Festival.

Further, the report recommended establishing the Caribana Festival Support Group to act as an oversight body for:

i) the development and implementation of policies and programs by the CCC;

ii) the financial administration and control of public and private sector funding dedicated to the CCC;

iii) the process of organizational restructuring and change being developed by the CCC;

iv)the allocation of appropriate financing to the mas bands and cultural producers by the CCC; and

v) the meeting of conditions stipulated by the City of Toronto in its support for the Caribana Parade and Festival.

The CFSG is now chaired by the Honourable Lincoln Alexander and includes representation from the CCC executive, the CCC Advisory Board (including its chair, MPP Alvin Curling), representatives of the mas bands and cultural producers and the Province of Ontario. It is also supported by City staff, particularly the Commissioner, Economic Development, Culture and Recreation, the Finance Department and the Access and Equity Centre.

As a member of the CFSG, the Province of Ontario has approached the City seeking a common approach to supporting the Caribana Festival and Parade. Since it wishes to use the same conditions for its funding support as are being used by the City, the Province has proposed that its funding for Caribana be paid to and administered by the City. Meetings have taken place between City and Provincial staff and an agreement has been drafted which sets out the details of the administration and disbursement of the Provincial funding by the City. The term of the agreement is June 15, 1998 to March 31, 1999.

Once signed, the Province will pay the amount of $353,000.00 to the City of Toronto and the City will have the authority to release these funds to the CCC and the mas bands/cultural producers upon compliance with the conditions for disbursement and in accordance with the disbursement schedule attached to the agreement.

Terms and Conditions Applied to Receipt of the Provincial Grant:

As stated above, the Province wishes to use the same conditions Council adopted in providing funding to the Caribana Festival and Parade. These conditions require the CCC to implement sound financial controls and management practices, undertake a debt retirement strategy and initiate a process for organizational change. To ensure implementation of Council conditions, the CCC is required to report monthly on through its Chief Executive Officer on its financial status, indicating cash-flow projections and variances, in order to receive installments on the grant approved by Council. These reports are submitted to the CFSG which must be satisfied with the CCC's performance before authorizing the release of any funding.

The agreement between the City and the Province of Ontario will set out the same process in addition to the three separate conditions previously established by the Ministry of Economic Development, Tourism and Trade. These conditions required the CCC to:

1) appoint a Chief Executive Officer to administer and manage the day-to-day operations of the Caribana Festival;

2) produce a business plan, through its CEO, that is satisfactory to the Advisory Board; and

3) establish a mechanism or structure for the clear accountability for the use of the provincial grant.

The CCC has met these conditions and, as a result, the Province of Ontario will release funding for the 1998 Caribana to the City.

Administration of the Grant:

To ensure adherence to the conditions applied by City Council and which relate specifically to the third condition adopted by the Province, the Province has proposed that its funding for the the 1998 Caribana Parade and Festival be paid to and administered by the City. This will reinforce the City's approach to working with the CCC and will underscore the importance of the CCC having sound financial management practices and initiating organizational restructuring activities.

As such, the Province is satisfied with the CFSG as a mechanism of accountability and financial control. In this context, the records and reports required by the Province to provide evidence of due diligence are the same as those which the City requires the CCC to provide to the CFSG. In addition to ensuring financial controls and organizational accountability, it provides a common mechanism for demonstrating success in meeting conditions applicable to funding. This will eliminate dual reporting requirements on the CCC and enable the Province and the City to work together to support this year's Caribana activities. Given both the Ministry of Economic Development, Tourism and Trade and the City's interest in providing multi-year funding commitments to the annual Caribana Parade and Festival, this is a timely partnership which may help to develop a common approach to future funding for this activity.

Conclusion:

Toronto City Council has adopted recommendations to provide funding in the amount of $353,000.00 to the 1998 Caribana Parade and Festival. To ensure accountability in the use of these funds, City Council authorized the establishment of the Caribana Festival Support Group which is accountable to Council for the administration of funds to the CCC. The City has been approached by the Province of Ontario through the Ministry of Economic Development, Tourism and Trade which wishes to provide funding in the amount of $353,000.00 for Caribana. Should the City agree to administer these funds on behalf of the Province, this will increase the funds available for Caribana to $706,500.00.

An agreement setting out the terms and conditions on which the Provincial funding will be administered has been drafted by the Province and reviewed by staff in legal, finance and the Access and Equity Centre. The Chief Administrative Officer has also been consulted on the development of this report and concurs with the recommendations.

Contact Name and Telephone Number:

Charles Smith 392-5581

 

   
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