Memorandum of Understanding
(MOU) between The Minister of Agriculture, Food and Rural Affairs
and the Livestock Financial Protection Board
Table of Contents
- Purpose of MOU
- Information About the Agency
- Guiding Principles
- Accountability Relationships
- Roles and Responsibilities
- Applicable Statutes
- Applicable Government Directives and Policies
- Conflict of Interest
- Reporting Requirements
- Audit and Review Arrangements
- Financial Arrangements
- Appointments and Staffing
- Administrative Arrangements
- Liability and Indemnification
- Effective Date, Duration, Periodic Review
and Amendments to MOU
- Schedule "A" - Applicable Statutes
- Schedule "B" - Applicable Treasury Board/Management
Board of Cabinet and Ministry of Finance Directives/Policies
- Schedule "C" - The Communications Protocol
- Schedule "D" - Sections 26 and 27 of
the Trustees Act
- Schedule "E" - Investment Policy Components
- Schedule "F" - Form of Indemnity
In this MOU, the following terms shall have the meaning described
"Accessibility for Ontarians with Disabilities Act"
means the Accessibility for Ontarians with Disabilities Act,
2005, S.O. 2005, c. 11, as amended;
"AAD" means the Agency and Accountability Directive of
October 2015, , as amended from time to time;
"Agency" means the Livestock Financial Protection Board;
"Agency Liaison" means a representative of the Agency
selected to work with the Ministry on behalf of the Agency;
"Archives and Record Keeping Act" means the
Archives and Record Keeping Act, 2006, S.O. 2006, c. 34,
Schedule A, as amended;
"Chair" means the Chair of the Agency;
"CRF" means the Consolidated Revenue Fund;
"Deputy Minister" means the Deputy Minister of the Ministry
of Agriculture, Food and Rural Affairs or any other Deputy Minister
that may be designated from time to time;
"Emergency Management and Civil Protection Act"
means the Emergency Management and Civil Protection Act,
R.S.O. 1990, c. E. 9, as amended;
"Executive Council Act" means the Executive
Council Act, R.S.O. 1990, c. E. 25, as amended;
"Farm Products Payments Act" means the Farm
Products Payments Act, R.S.O. 1990, c. F. 10, as amended;
"Financial Administration Act" means the Financial
Administration Act, R.S.O. 1990, c. F. 12, as amended;
"Freedom of Information and Protection of Privacy Act"
means the Freedom of Information and Protection of Privacy Act,
R.S.O. 1990, c. F. 31, as amended;
"French Language Services Act" means the French
Language Services Act, R.S.O. 1990, c. F. 32, as amended;
"Fund" refers to the Fund for Livestock Producers;
"Legislature" means the Ontario Legislative Assembly;
"LGIC" means the Lieutenant Governor in Council;
"Livestock and Livestock Products Act" means
the Livestock and Livestock Products Act, R.S.O. 1990,
c. L. 20, as amended
"MBC" means Management Board of Cabinet;
"Minister" means the Minister of Agriculture, Food and
Rural Affairs or such other Minister who may be designated from
time to time as the responsible Minister in relation to this MOU
in accordance with the Executive Council Act;
"Ministry" means the Ministry of Agriculture, Food and
Rural Affairs or any successor to the Ministry;
"Ministry Liaison" means a Deputy Minister-approved Policy
advisor from the Ministry's Farm Finance Branch (or successor branch);
"MOU" means this Memorandum of Understanding entered
into between the Minister and the Agency, as amended from time to
"O. Reg. 560/93" means Ontario Regulation 560/93 - Fund
for Livestock Producers, as amended;
"Parties" means the Minister and the Agency collectively;
"Pay Equity Act" means the Pay Equity Act, R.S.O. 1990,
c. P. 7, as amended;
"Public Sector Salary Disclosure Act" means
the Public Sector Salary Disclosure Act, 1996, S.O. 1996, c. 1,
Schedule 1, as amended;
"Public Service of Ontario Act" means the Public
Service of Ontario Act, 2006, S.O. 2006, c. 35, Schedule A,
"TB" means Treasury Board;
"TB/MBC" means Treasury Board/Management Board of Cabinet;
"Trustee Act" means the Trustee Act,
R.S.O. 1990, c. T. 23, as amended; and
"Vice Chair" means the Vice Chair of the Agency.
2.0 Purpose of the MOU
The purpose of this MOU is to:
- Establish the accountability relationship between the
Minister and the Agency through the Chair.
- Clarify the roles and responsibilities of the Minister,
the Chair, the Deputy Minister and the Agency.
- Set out the expectations for the operational, administrative,
financial, auditing and reporting arrangements between the Agency
and the Ministry.
This MOU does not affect, modify, limit or interfere with the responsibilities
of any of its parties under any applicable law. In the event of
conflict between the provisions of the MOU and any applicable law,
the applicable law shall take precedence.
3.0 Information about the Agency
3.1 Legal Authority
The legal authority for the Agency is set out in the Farm Products
3.2 Agency's Mandate
The Agency's mandate is set out in subsection 4 (1) of the Farm
Products Payments Act. According to subsection 4(1) of the
Farm Products Payments Act, the Agency is to:
- Administer its Fund;
- Investigate all claims made to it under the Farm Products Payments
Act and to determine the extent of their validity;
- Grant or refuse the payment of all claims or any part thereof
and determine the amounts and manner of payment; and
- Recover any money to which it is entitled under the Farm
Products Payments Act by suit in a court of competent jurisdiction
3.3 Agency Classification
The Agency is classified as a Trust Agency by the TB/MBC under
3.4 Corporate Status
The Agency is incorporated as a corporation without share capital
responsible to the Minister. The Corporations Act does
not apply to the Agency.
4.0 Guiding Principles
The Parties to this MOU agree that they will adhere to the following
principles in their relationship:
- The Minister acknowledges that the Agency exercises
powers and performs duties in accordance with its mandate under
the Farm Products Payments Act and its Regulations.
- The Minister recognizes and acknowledges that the Agency
has an adjudicative role when determining whether any claims against
the Fund should be paid and therefore those decisions must be
made and be seen by the public to be made independently and impartially.
The Agency acknowledges that its decisions in these areas must
also be in compliance with all applicable legislation and, if
applicable, Government of Ontario's and Minister's directives
- The Minister acknowledges that the Agency plays a meaningful
role in the development of the policies and programs of the government,
as well as the implementation of those policies and the delivery
- The Chair acknowledges that accountability is a fundamental
principle to be observed in the management, administration and
operations of the Agency. The Agency acknowledges that it is accountable
to the government through the Minister. The Agency further acknowledges
that accountability to the Government of Ontario means accountability
to the Minister through the Chair.
- As an agency of the Government, the Agency shall conduct
itself according to the management principles of the Government.
These principles include ethical behavior; prudent, efficient
and lawful use of public resources; fairness; high quality service
to the public and openness and transparency to the extent allowed
- The Minister and Chair are committed to a strong Agency
that is empowered to fulfill its statutory mandate efficiently
and effectively. They share the goal of establishing and maintaining
a co-operative relationship that facilitates the efficient administration
of the Agency and fulfillment of its statutory responsibilities.
- The Minister and Chair acknowledge that the timely
exchange of information and effective consultation, both between
them and between the Ministry and the Agency, are essential in
discharging their respective responsibilities under this MOU.
- The Agency and the Ministry agree to avoid duplication
of services wherever possible.
- The Ministry and the Agency will work together in a
mutually respectful manner.
5.0 Accountability Relationships
The Parties to this MOU agree that the accountability relationships
are as follows:
- The Minister is accountable to the Legislature for
the Agency's fulfillment of its mandate and its compliance with
Ontario's administrative directives and policies. For these purposes,
the Minister reports and responds to the Legislature on the affairs
of the Agency.
- The Minister is accountable to the Cabinet for the
performance of the Agency and its compliance with the Ontario
Government's operational policies and broad policy directions.
- The Minister is accountable for attesting, reporting
and responding to the TB/MBC for the Agency's compliance with
applicable TB/MBC as well as Ministry of Finance directives and
- The Minister is responsible for representing the Agency
in the Cabinet and its committees, as well as the Legislature
and its committees.
- The Minister is responsible for receiving and ensuring
that the Agency's annual report is made available to the public.
5.2 Central Ministries
Central Ministries, such as the Ministry of Finance and the Ministry
of Government and Consumer Services, are accountable to their respective
ministers and to Cabinet for the oversight of all ministries' responsibilities
regarding provincial agencies.
5.3 Deputy Minister of Agriculture, Food and Rural Affairs
The Deputy Minister is accountable to the Secretary of Cabinet
and the Minister for the performance of the Ministry in providing
administrative and organizational support to the Agency and for
carrying out the roles and responsibilities assigned by the Minister,
applicable TB/MBC and Ministry of Finance directives and this MOU.
- The Chair is accountable to the Minister for the performance
of the Agency in fulfilling its mandate and for carrying out the
roles and responsibilities assigned to the Chair by all applicable
legislation, this MOU and applicable TB/MBC as well as Ministry
of Finance directives.
- The Chair is responsible for reporting to the Minister,
as requested, on the Agency's activities.
- The Chair is responsible for ensuring timely communications
with the Minister regarding any issue that affects, or can reasonably
be expected to affect, the Minister's responsibilities for the
The Agency is accountable to the Ministry, through the Chair, for
the oversight and governance of the Agency, setting its goals, objectives
and strategic direction within its mandate and for carrying out
the roles and responsibilities assigned to it by the Farm Products
Payments Act, all other applicable legislation, this MOU and
applicable TB/MBC and Ministry of Finance directives.
5.6 Agency Liaison
The Agency Liaison is accountable to the Agency, through the, Chair
for sharing information and coordinating information between the
Agency and the Ministry. The Agency Liaison works under the direction
of the Chair to implement policy and operational decisions. The
Agency Liaison reports the Agency's performance results to the Agency,
through the Chair.
5.6 Agency Liaison
The Ministry Liaison is accountable to the Deputy Minister, through
the Director of Farm Finance Branch (or equivalent position in any
successor branch) for sharing information and coordinating information
between the Ministry and the Agency. The Ministry Liaison provides
guidance and advice on meeting AAD requirements, policy advice on
governance and program policy issues and training with regard to
policy changes that may impact the Agency and best practices in
6.0 Roles and Responsibilities
The Parties to this MOU agree to the roles and responsibilities
set out below.
6.1 The Minister
The Minister is responsible and accountable to Cabinet and the
- Reporting and responding to the Legislature on the
- Attesting, reporting and responding to TB/MBC on the
Agency's performance, compliance with applicable TB/MBC directives,
the Government of Ontario's operational policies, policy directions
and this MOU.
- Where required, recommending to TB/MBC the merger or
dissolution of the Agency or changes to the Agency's mandate.
- Recommending to TB/MBC the powers to be given to, or
revoked from, the Agency when a change to the Agency's mandate
is being proposed.
- Determining at any time the need for a review or audit
of the Agency and recommending to TB/MBC any change(s) to the
governance or administration of the Agency resulting from that
- When appropriate or necessary, taking action or directing
the Agency to take corrective action in respect of the Agency's
administration or operations.
- Receiving the Agency's annual report, submitting it
to the LGIC and the Legislative Assembly, as required by subsection
6(2) of the Farm Products Payments Act, as well as ensuring
that the annual report is made available to the public
- Informing the Chair of the Ontario Government's priorities
and broad policy directions for the Agency.
- Meeting with the Chair s necessary to discuss issues
- Consulting, as appropriate, with the Chair (and others)
on significant new directions or when the Ontario Government is
considering regulatory or legislative changes for the Agency.
- Developing the Agency's MOU with the Chair, as well
as any amendments to the MOU, and, if satisfied that it is appropriate
to do so, signing it into effect after it has been signed by the
- Reviewing and approving the Agency's annual business
plan as required by the AAD.
- Recommending to TB/MBC any provincial funding to be
provided to the Agency.
- Directing the Chair to undertake reviews of the Agency
on a periodic basis and making recommendations to TB/MBC as may
be required after such reviews are completed.
- Review the advice or recommendation of the Chair on
candidates for appointment or re-appointment to the Agency.
- Making appointments to the Agency as well as selecting
the Chair and Vice Chair(s) of the Agency.
The Minister may delegate any legal authority that has been granted
to the Minister as the Minister deems appropriate.
6.2 Deputy Minister
The Deputy Minister is responsible for:
- Advising and assisting the Minister regarding the
Minister's responsibilities for the Agency.
- Advising the Minister on the requirements of the AAD,
the Government Appointees Directive and other directives that
apply to the Agency.
- Recommending to the Minister, as may be necessary,
the evaluation or review, including a risk-based review, of the
Agency or any of its programs, or changes to the management framework
or operations of the Agency.
- Facilitating regular briefings and consultations between
the Chair and Minister.
- Attesting to TB/MBC as required on the Agency's compliance
with the mandatory accountability requirements set out in the
- Ensuring, where appropriate, that the Ministry and
the Agency has the capacity and systems in place for on-going
risk-based management, including appropriate oversight of the
- Ensuring, where appropriate, that the Agency has an
appropriate risk management framework and a risk management plan
in place for managing risks that the Agency may encounter in meeting
its program or service delivery objectives.
- Undertaking, where appropriate, timely risk-based reviews
of the Agency, its management or operations, as may be directed
by the Minister or TB/MBC.
- Establishing a framework for reviewing and assessing
the Agency's business plans and other reports.
- Supporting the Minister in reviewing the performance
targets, measures and results of the Agency, identifying needs
for corrective action where warranted, and recommending to the
Minister ways of resolving any issues that might arise from time
- Advising the Minister on documents submitted by the
Agency to the Minister for review or approval, or both.
- Submitting to the Minister, as part of the annual
planning process, a risk assessment and management plan for each
- Undertaking such reviews of the Agency as the Minister
- Cooperating with any review of the Agency, as directed
by the Minister or TB/MBC.
- Monitoring the Agency on behalf of the Minister while
respecting the Agency's authority, identifying needs for corrective
action where warranted, and recommending to the Minister ways
of resolving any issues that might arise from time to time.
- Negotiating a draft MOU with the Chair of the Agency,
as well as any amendments to the MOU, as directed by the Minister.
- Consulting with the Chair, as needed, on matters of
mutual importance including compliance with TB/MBS directives
and government policies.
- Meeting with the Chair as needed or as directed by
- Arranging for administrative, financial and other
support to the Agency as specified in this MOU as well as any
service level agreements.
- Informing the Chair, in writing, of new government
directives and any exceptions to or exemptions in whole or in
part from TB/MBC directives or Ministry administrative policies.
- When required, submitting a report to the Secretariat
of TB/MBC on the wind-down of the Agency (immediately following
the disposition of any assets), the completion of the Agency's
outstanding responsibilities and the termination of any appointments.
The Deputy Minister may delegate any of the powers and duties assigned
to the Deputy Minister that the Deputy Minister deems appropriate.
The Chair is responsible for:
- Providing leadership to the Agency and monitoring the
Agency's performance, particularly with respect to the translation
of government policy objectives into operational plans and activities.
- Recommending appointments and reappointments.
- Chairing Agency meetings in a manner that is consistent
with generally accepted business practices.
- Reviewing and approving claims for per diems and expenses
for Appointees to the Agency.
- Ensuring that Appointees to the Agency are informed
of their responsibilities under the Public Service of Ontario
Act, 2006 with regard to the rules of ethical conduct (Part
III), including the political activity rules (Part IV).Providing
leadership to the Agency.
- Recording any declared or apparent conflicts of interest
and ensuing recusals and advising the Minister of those conflicts
- Subject to Schedule "C", carrying out public
communications and relations for the Agency as its chief spokesperson.
- Reviewing and approving the Agency's business plan,
budget, annual report and financial reports as well as submitting
them to the Minister in accordance with the time lines specified
in the applicable TB/MBC and Ministry of Finance directives and
- Through the Ministry's Liaison, ensuring that approved
documents are publicly posted as required under the AAD.
- Ensuring the implementation of actions that support
the Agency's goals, objectives and strategic directions.
- Implementing administrative policies for appointees
to the Agency concerning:
- A code of conduct or conflict of interest framework
- Post-service conduct (lobbying, appearing before the Agency),
including time periods for restrictions.
- Ensuring that appropriate management systems are in
place (e.g. financial, information technology and human resource)
for the effective administration of the Agency.
- Ensuring that an appropriate framework is in place
for Agency staff and Appointees to the Agency receive adequate
orientation and training with respect to the business and operations
of the agency and their particular responsibilities.
- Ensuring that Agency staff (if any) and Appointees
to the Agency are aware of and comply with applicable TB/MBC and
Ministry of Finance directives.
- Ensuring a process for responding to and resolving
complaints from the public and Agency clients is in place.
- Meeting with the Minister as necessary to discuss issues
and to keep the Minister informed.
- Seeking strategic policy direction for the Agency from
- Ensuring timely communications with the Minister regarding
any issues or events that may concern, or reasonably expected
to concern, the Minister in the exercise of the Minister's responsibilities
regarding the Agency.
- Consulting with the Minister in advance regarding any
activity which may have an impact on the Government and Ministry's
policies, directives or procedures or on the Agency's mandate,
powers or responsibilities as set out in the Farm Products
- Developing the Agency's MOU with the Minister, as well
as any amendments to the MOU, and signing it into effect on behalf
of the Agency, as authorized by the Agency.
- Reporting to the Minister, as requested, on the Agency's
activities within agreed upon timelines.
- Providing both the Minister and the Minister of Finance
with a copy of every audit report, a copy of the Agency's response
to each report and any recommendations of the audit.
- Advising the Minister annually on any outstanding audit
- Advising the Minister of upcoming appointment vacancies
and provide recommendations for appointments or re-appointments
that have been identified pursuant to the Agency's policy and
processes for Agency member recruitment.
- Cooperating with any review or audit of the Agency
directed by the Minister or TB/MBC.
- Providing an attestation to the Minister, upon the
Minister's request, that the Agency is in compliance with all
applicable legislation, the AAD, all applicable TB/MBC and Ministry
of Finance directives and policies and this MOU.
- Meeting with the Deputy Minister, where appropriate.
- Fulfilling the role of ethics executive for public
servants who are government Appointees to the Agency, promoting
ethical conduct and ensuring that all members of the Agency are
familiar with the ethical requirements of the Public Service of
Ontario Act and the regulations and the directives made under
the Public Service of Ontario Act, including in respect of conflict
of interest, political activity and the protected disclosure of
The Chair may delegate any authority that has been granted to the
Chair under this MOU as the Chair deems appropriate.
The Vice-Chair is responsible for acting in the absence of the
6.5 The Agency
The Agency is responsible for:
- Setting its goals, objectives and strategic directions
within its mandate, as defined by the Farm Products Payments
Act, government policies, as appropriate, and this MOU.
- Directing, managing and controlling as well as setting
its overall priorities in order for it to fulfill its mandate.
- Directing the development of as well as approving its
business plans for submission by the Chair to the Minister within
the timelines agreed upon with the Minister or set out in the
- Directing the preparation of as well as approving its
annual reports for submission to the Minister for submitting to
the LGIC as well as tabling in the Legislature
- Managing and controlling the affairs of the Agency
and making decisions consistent with the business plan approved
for the Agency and exercising reasonable care to ensure that it
operates within its budget
- Ensuring that it manages its affairs in compliance
with applicable TB/MBC and Ministry of Finance directives.
- Ensuring that it uses pubic funds prudently and only
for its business based on the principle of value for money and
in compliance with applicable legislation, TB/MBC directives and
Ministry of Finance directives.
- Ensuring that its funds are used with integrity, honesty,
fairness and effective controllership.
- Implementing measures to see a corporate governance
model established that reflects the following:
- Adequate training and orientation process for its members;
- Annual training plan for its members;
- To develop skills profiles for its members;
- To undertake an annual assessment and feedback process;
- To develop an annual strategic calendar that helps guide
- Establishing committees as may be required to advise
itself on the effective management, governance or accountability
- Approving its MOU, and any amendments to the MOU, in
a timely manner and authorizing the Chair to sign the MOU, as
well as any amendments to the MOU, on its behalf.
- Approving its reports and reviews that may be requested
by the Minister from time to time for submission to the Minister
within agreed upon timelines.
- Approving its business plans, reports and review for
submission to the Minister in a timely manner.
- Directing the development of an appropriate risk management
framework and risk management plan, where appropriate, and arranging
for risk-based reviews and audits as needed.
- Establishing overall priorities, performance measures,
targets and management systems for monitoring and assessing its
- Directing that corrective action on its operations,
- Cooperating with and sharing any relevant information
on any risk-based or periodic review directed by the Minister
- Consulting, as appropriate, with stakeholders on its
goals, objectives, strategic directions, rules and procedures.
- Providing advice to the Ontario Government, through
the Minister, on issues within or affecting its mandate and operations.
- Implementing reasonable measures to ensure that it
is in compliance with all applicable legislation, regulations,
TB/MBC directives, Ministry of Finance directives and this MOU.
- Making decisions consistent with its business plan.
- Developing or updating policies in the following areas:
- The adjudication of claims,
- The collection of debt it is owed, and
- Its by-laws.
- Adjudicating all claims against the Fund in an independent
and impartial manner.
- Using commercially reasonable efforts to collect on
debts owing to the Fund.
- Where applicable, promoting the conflict of interest
rules that the Agency is required to follow, as set out in Ontario
Regulation 381/07, with the members of the Agency and employees
of the Agency.
6.6 Agency Liaison
The Agency Liaison is responsible for:
- Communicating with the Ministry Liaison on matters
that affect the Agency and/or the Ministry on behalf of the Agency.
- Other duties as the Chair may assign to the Agency
- Providing an attestation to the Chair, upon the Chair's
request. Such attestations could include the following subject-matters:
the Agency is in compliance with AAD, applicable TB/MBC and ministry
of Finance directives and policies, applicable legislation and
- Keeping the Agency, through the Chair, informed of
the implementation of policy and the Agency's operations.
- Preparing annual reports and business plans for the
Agency as directed by the Agency.
- Preparing annual financial reports for the approval
of the Agency.
- Supporting the Chair and the Agency in meeting their
- Translating the goals, objectives and strategic directions
set by the Agency into operational plans and activities in accordance
with the Agency's approved business plan.
- Implementing policies and procedures so that the Fund
is used with integrity and honesty, and for their intended purpose.
- Recommending, for approval by the Agency, the adoption
of prudent investment practices and policies.
- Establishing and applying a financial management framework
for the Agency in accordance with applicable Minister of Finance
controllership directives, policies and guidelines.
- Advising the Chair on the requirements of and compliance
with the AAD and any other applicable directives and policies,
and Agency by-laws and policies including attesting to the Chair
on the agency's compliance with mandatory requirements.
- Establish a system to ensure that the Agency operates
within its approved business plan.
- Ensuring the Agency has the oversight capacity and
an effective oversight framework in place for monitoring its business
- Ensuring that the Agency has an appropriate risk management
framework and risk management plan in place as directed by the
Chair to help provide the proper level of assurance that program
or service delivery objectives are met.
- Establishing a system for the retention of Agency
documents and for making such documents publicly available when
appropriate in order to comply with the Freedom of Information
and Protection of Privacy Act and the Archives and Record
Keeping Act, where applicable.
- Keeping the Ministry and the Chair advised on issues
or events that may concern the Minister, the Deputy Minister and
the Chair in the exercise of their responsibilities.
- Seeking support and advice from the Ministry, as appropriate,
on Agency management issues.
- Consulting with the Ministry Liaison, as needed, on
matters of mutual importance, including services provided by the
Ministry and on TB/MBC and Ministry of Finance directives and
- Ensuring that Ministry Liaison receives a copy of
the Agency minutes and supporting documentation.
- Cooperating during periodic reviews as directed by
the Minister or TB/MBC.
- Implementing reasonable measures to see that the Agency
has and will maintain appropriate risk management and mitigation
strategies to fulfill its obligations under this MOU.
6.7 Ministry Liaison
The Ministry Liaison is responsible for:
- Communicating with the Agency Liaison on matters that
affect the Agency and/or the Ministry on behalf of the Ministry.
- Providing guidance and advice on meeting AEAD requirements.
- Providing policy advice on governance and program policy
- Providing training to the Agency with regard to any
policy changes that may affect the operation of the Agency and
best practices in governance
- Ensuring the Agency's annual report is posted on the
Ministry's website within 30 days of tabling in the legislature.
- Ensuring the Agency's MOU and business plan are posted
on the Ministry's website within 30 days of approval by the Minister.
- Ensuring quarterly expense information for Appointees
of the Agency are posted on the Agency's website once reviewed.
7.0 Applicable Statutes
The Agency shall comply with the statutes set out in Schedule "A"
of this MOU and others as may be identified from time to time..
8.0 Applicable Government Directives
The Agency shall comply with all applicable Government Directives
and Policies, including those set out in Schedule "B"
of this MOU and others as may be identified from time to time.
9.0 Conflict of Interest
- As a public body prescribed by the Public Service
of Ontario Act, the Agency's Appointees and staff shall comply
with the conflict of interest rules in the Public Service
of Ontario Act unless the Agency submits conflict of interest
rules to the Conflict of Interest Commissioner that are equivalent
in degree to those set out in the Public Service of Ontario
Act and the Conflict of Interest Commissioner has approved
such rules before being implemented.
- The Chair is responsible for ensuring that Appointees
to the Agency and staff of the Agency (if any) are informed of
the conflict of interest rules to which they are subject, including
the rules on political activities and the protected disclosure
of wrongdoing that apply to the Agency.
- The Agency shall ensure, in order to avoid any conflict
of interest (real or perceived), that none of its employees or
contractors that provide adjudicative support to it are involved
in any licencing activities under the Livestock and Livestock
Products Act, or where they are so involved, that all appropriate
measures are taken to avoid any conflict of interest (real or
perceived), including the use of ethical walls.
The Parties to this MOU recognize that the timely exchange of information
on the operations and administration of the agency is essential
for the Minister to meet his responsibilities for reporting and
responding to the Legislative Assembly on the affairs of the agency.
The Minister and the Chair also recognize that it is essential for
the Chair to be kept informed on a timely basis of the government
initiatives and broad policy directions that may affect the Agency's
mandate and functions and that the Chair is consulted on such matters.
The Parties, therefore, agree as follows:
- The Chair will keep the Minister advised, in a timely
manner, of all planned events and issues that concern or can be
reasonably expected to concern the Minister in the exercise of
- The Minister will consult with the Chair in a timely
manner, as appropriate, on broad Ontario Government policy initiatives
or legislation being considered that may impact on the Agency's
mandate or functions.
- The Minister may consult with the Chair on initiatives
proposed to amend the Farm Products Payment Act, as appropriate,
including consultation on any review of the Agency's mandate or
assessment of the continuing need for its service.
- The Minister and the Chair will consult with each
other on public communications strategies and publications. They
will keep each other informed of the results of stakeholder and
other public consultations and discussions.
- The Deputy Minister and the Chair will meet as needed
to discuss issues relating to the efficient operation of the Agency
and the provision of services by the Ministry to the Agency.
- The Agency will continue to :
- Make recommendations to the Minister respecting amendments
to the legislation and regulations relevant to the financial
protection program; and
- Respond to the Minister's request for comments respecting
proposed changes to the Farm Products Payments Act and its
regulations in a timely manner.
- The Agency shall be governed by the protocol set out
in Schedule "C" of this MOU for all matters that are
to be broadly communicated to the public at large either directly
or through the media. The protocol shall not apply to the Agency's
day-to-day communications made in the normal course of the Agency's
business, such as contact with individual claimants and the issuance
notices and decisions.
11.0 Reporting Requirements
11.1 Business Plan
- The Chair will submit to the Minister for approval
the Agency's annual business plan covering a minimum of three
years from the current fiscal year..
- The Chair is responsible for ensuring that the Agency's
business plan meets the requirements set out in the AAD.
- The Chair is responsible for ensuring that the Agency's
annual business plan meets the requirements of the AAD and includes:
- performance measures and targets over the life
of the business plan over the life of the business plan;
- a risk assessment and risk management plan to
assist the Ministry in developing its risk assessment and
risk management plan information, in accordance with the requirements
of the AAD, for reporting to TB/MBC; and
- a financial budget over the life of the business
- The Chair will submit the business plan to the Ministry's
Chief Administrative Officer or designated Executive Lead for
the provincial Agencies three months prior to the beginning of
the Agency's fiscal year. Ministry staff will review and recommend
the business plan for approval no later than one month prior to
the start of the Agency's fiscal year.
- The Minister shall review the Agency's annual business
plan and will promptly advise the Chair whether or not the Minister
concurs with the directions the Agency proposes. The Minister
may advise the Chair where and in what manner the Agency's plans
vary from the Government of Ontario or the Ministry's policy or
priorities. In the event of any variance between the Government
of Ontario or the Ministry's policy or priorities and the Agency's
plans, the Chair shall revise the Agency's annual business plan
- If the Minister approves the Agency's annual business
plan, the Minister shall provide such approval in writing.
- TB/MBC may require the Minister to submit the Agency's
annual business plan to it for its review at any time.
11.2 Annual Reports
- With the assistance of the Ministry's Liaison, the
Chair is responsible for ensuring that the Agency's annual report
is submitted to the Minister for tabling in the Legislature.
- The Agency's annual report shall be submitted to the
Minister no later than one hundred twenty (120) days after the
Agency's fiscal year-end. Or, where the Auditor General has conducted
an audit, the Agency's annual report shall be submitted within
90 days of the Agency's receipt of the audited financial statements.
- The Agency's annual report shall meet the requirements
set out in the AAD.
- The Minister shall, as required by section 6(2) of
the Farm Products Payments Act, submit the Agency's annual
report to the LGIC and then shall lay the annual report before
the Legislature if it is in session, or if not, in the next session
of the Legislature.
11.3 Other Reports
- The Chair is responsible for ensuring that any reports
requested by the Minister or the Deputy Minister that relate to
the provision of specific data and/or other information requests
that may be required from time-to-time for the purposes of the
Ministry's administration are provided.
- Where applicable, the Minister may ask the Agency
to, and the Agency shall retain, an actuary to provide to the
Minister through the Agency such information that the Minister
considers helpful in discussing prospective changes to the Funds.
Where the information requested by the Minister is for evaluating
and considering changes to the Fund, and where the provision of
such information to the Minister is consistent with the Agency's
fiduciary obligation, the cost of the actuary and any other reasonable
costs incurred by the Agency shall be paid out of the Fund.
12.0 Audit and Review Arrangements
- The Auditor General shall audit the Agency pursuant
to section 5(7) of the Farm Products Payments Act.
- The Agency is subject to periodic review and value-for-money
audit by the Auditor General under the Auditor General Act
or by the Ontario Internal Audit Division.
- The Ontario Internal Audit Division may also carry
out an internal audit if approved to do so by the Ministry's Audit
Committee or by the Corporate Audit Committee.
- The Minister may, regardless of whether any external
audits have been completed, direct that the Agency be audited.
The Minister shall determine the timing and responsibility of
the review, the roles of the Chair and the Deputy Minister and
the manner in which other parties (if any) are to be involved.
The results of the review shall be submitted to the Minister.
- The Agency shall promptly provide a copy of every report
from an audit to the Minister and the Minister of Finance. The
Agency shall also provide a copy of its response to the audit
report and any recommendations therein. Further, the Agency shall
advise the Minister annually of any outstanding audit recommendations.
- The Chair may request an external audit of the financial
transactions or management controls of the Agency at the Agency's
13.0 Financial Arragements
The Agency's financial arrangements in relation to the Fund shall
be in accordance with the requirements of the Farm Products
Payments Act. Any other financial arrangements provided for
by the Agency or on behalf of the Ministry or any other entity shall
be in compliance with all applicable Acts, as set out in Schedule
"A" of this MOU.
The Chair is responsible for ensuring that the Agency's financial
statements and financial records are prepared in accordance with
such accounting policies and principles as may be directed by TB/MBC
and/or the Ministry of Finance or, in default of any direction,
with Canadian Generally Accepted Accounting Principles.
- All financial procedures for the Agency shall be in
accordance with TB/MBC and Ministry of Finance directives and
guidelines, the Ministry's corporate financial and administrative
policies and procedures and other applicable Ministry and Ontario
Government's guidelines, directives and policies, as set out in
Schedule "B" of this MOU.
- The Agency shall maintain a bank account in its own
name and manage its financial activities in accordance with the
Ontario Financing Authority's policy directions.
- The Chair shall be responsible for the maintenance
of documentation to support the Agency's expenditures.
- When ordered to do so by the Minister of Finance, pursuant
to section 16.4 of the Financial Administration Act,
the Agency shall pay into the CRF any money that the Minister
of Finance determines is surplus to its requirements.
- The Agency shall not enter into any financial arrangement
or commitment, guarantee, indemnity or similar transaction that
may increase, directly or indirectly, the indebtedness or contingent
liabilities of the Government of Ontario without first obtaining
the written approval of the Minister of Finance, as required by
section 28 of the Financial Administration Act. The Minister's
approval is required before seeking the Minister of Finance's
- The Agency is funded by fees that it receives under
the Farm Products Payments Act and the interest earned thereon.
- The Agency is expected to be self-sustaining, meeting
all of its operating costs out of the Fund it administers, except
for the following costs:
- The provision of legal services, and
- The provision of investigative services.
- Recovered costs and other revenues, if any, shall be
paid to the CRF unless otherwise provided by law.
- The Chair is responsible for ensuring the financial
integrity of the Fund.
- All revenues generated by the Agency shall be accounted
for in the Agency's financial statements.
13.2 Financial Reports
- The Chair shall report to the Minister on the Agency's
financial and operating performance relative to planned performance
on a regular basis and when significant variances occur to the
- The Chair will provide to the Minister audited annual
financial statements and will include them as part of the Agency's
annual report. The statements will be provided in a format that
is in accordance with the Government of Ontario's stated accounting
policies issued by the Office of the Provincial Controller.
- The Agency shall submit to the Ministry of Finance,
through the Ministry, its salary information according to the
Public Sector Salary Disclosure Act.
- The Chair shall provide, on instruction from the Minister
of Finance, the Agency's financial information for consolidation
into the Public Accounts.
- The Chair shall prepare and present to the Deputy Minister
a financial report on a quarterly basis that includes, but is
not necessarily limited to, the following:
- Year-to-date actual expenditures for the Agency's operating
- Fiscal year end financial forecast of expenditures and revenues;
- An explanation with respect to any significant variances
from the Agency's approved business plan.
- The Chair shall prepare and present other financial
reports as requested by the Minister or the Deputy Minister.
- The Agency Liaison shall provide the Ministry Liaison
with quarterly operating reports on the Agency's programs and
13.4 Taxation Status - Harmonized Sales Tax
The Agency shall pay taxes for the goods and services it purchases
in accordance with the provisions of the tax laws of Ontario and
the applicable federal tax laws of Canada, as those laws may be
amended or replaced from time to time.
13.5 Fees to the Fund
- The producer "check-off" fees collected in
accordance with the Farm Products Payments Act and its
regulations are to be forwarded to the Agency for deposit into
- The Agency shall deposit all producer "check-off"
fees it receives under the Farm Products Payments Act
in a Canadian chartered bank or financial institution in Ontario
that is supervised or examined by a governmental authority in
the jurisdiction in which the bank or financial institution carries
- The Agency shall deposit the producer "check-off"
fees it receives into the Fund.
13.6 Payments from the Fund
- The Agency shall pay all claims approved under the
Farm Products Payments Act from the Fund in accordance
with the Act. In the event of a conflict between the provisions
of the Act and the terms and conditions of the MOU, the Act shall
- No payment shall be made out of the Fund unless it
is authorized by the Agency or made in accordance with procedures
established by the Agency.
- The Agency shall pay all operating expenses out of
the Fund, other than those set out in section 13.1 B of this MOU
or for the remuneration of those of its employees who are public
servants employed under Part III of the Public Service of
- The repayment of any advances or loans made under the
Farm Products Payments Act or the Livestock and Livestock
- The Agency may engage persons to provide professional,
technical or other assistance to the Agency and such costs shall
be paid from the Fund.
- The Ministry shall procure a third-party person or
persons to assist the Ministry in determining whether a dealer
is financially responsible for licensing purposes. The Agency
shall pay the person or persons who are responsible for determining
whether a dealer is financially responsible in accordance with
the terms and conditions of the service agreement the Ministry
enters into with that person or persons.
- The Agency further agrees to pay the amount and manner
toward the cost to determine financial responsibility of livestock
dealers out of the Fund referred to in clause 13.6 F of this MOU
for each month up to and including the month in which the Agency
is dissolved and a successor organization (if any) is designated
to administer the Fund or clause 13.6 F of this MOU is amended.
- The Agency agrees that the fact it is paying for the
services of a person or persons to determine financial responsibility
of Livestock dealers does not entitle the Agency to any input
into any aspect of licensing under the Livestock and Livestock
- Should the Agency have concerns regarding the costs
of the services that the person or persons responsible for determining
financial responsibility is charging, the Agency shall notify
the Ministry Liaison. Upon notification, the Ministry agrees to
review the costs and determine what (if any) action should be
- The Agency is responsible for ensuring that the person
or person(s) who determine financial responsibility of livestock
dealers and/or are providing administrative/secretariat support
to the Agency are only using the funds the Agency is providing
to them to determine financial responsibility of livestock dealers
under the Livestock and Livestock Products Act and/or
for providing administrative/secretariat support.
13.7 Money Recovered
The Agency shall deposit all money it recovers from dealers under
the Farm Products Payments Act into the Fund.
13.8 Actuarial Review
The Agency may undertake an actuarial review, at any time, in order
to ensure the actuarial soundness of the Funds. The Agency shall
also undertake an actuarial review of the Fund at the Minister's
The Agency shall also undertake an actuarial review of the Fund
when either the Agency or the Minister is contemplating a change
in the amount of the producer "check-off" fee. The Minister
may, on the basis of the Agency's actuarial review, make an adjustment
to the producer "check-off" fee.
13.9 Fiscal Year
The Agency's fiscal year shall be the same as the Ministry's (i.e.
April 1st to March 31st).
- Although not a trustee and not bound by the Act, the
Agency will nevertheless invest the Fund in accordance with the
principles in sections 26, 27, 27.1 and 27.2 of the Trustee
Act as set out in Schedule D to the extent that they inform
- The Agency is responsible for the prudent management
of the Fund's investments.
- The Agency may delegate aspects of administration
and oversight of the Fund's investment as it deems appropriate
to a third party Fund manager.
- The specific roles, responsibilities, and authorities
of the Agency and the third party Fund manager in the administration
and oversight of the Fund must be documented in an investment
policy which is reviewed periodically and amended as required
by the Agency.
- An Investment Policy must be established in accordance
to the guidelines set out in section 27 of the Trustee Act and
Schedule E. Without limitations, the policy must:
- communicate the Agency's investment philosophy
and risk tolerance;
- describe the Fund objectives, asset mix, governance,
permitted investments, valuation of the investments, and risk
- demonstrate "due diligence" (i.e., that
the system follows a prudent set of procedures) and include
written procedures outlining how the investment policies will
be implemented and monitored. This should at a minimum: identify
responsibilities and accountabilities; set out the process
for recommending, approving, and implementing decisions; determine
the frequency and format of reporting and of performance measures;
- provide instructions to a third party Fund manager
to ensure proper execution of the investment policy. Describe
the role of the third party investment managers in managing
the assets of the Fund and document the selection of investment
managers, the determination of their remuneration, as well
as any decision to replace an investment manager in a manner
that encourages compliance with the policy's objectives, goals
- The Investment Policy shall be reviewed by the Agency
at least annually and amended as required. Additionally, the Investment
Policy must be reviewed by an actuary as part of any actuarial
review to ensure it remains relevant to the prevailing and forecasted
nature of the Fund's liabilities.
- The Investment Policy must be submitted to the CAO,
Ministry's Research and Corporate Services Division within 140
days of the signing of this MOU. Any updates must be submitted
to the Ministry within 30 days of approval by the Agency.
- At the Ministry's request or at least once every five
fiscal years at the Agency's own initiative, and at the Parties'
mutual expense, the Agency shall have a detailed review of the
fitness of, without limitation, the Fund's investments and transactions
conducted against its Investment Policy by an actuary on terms
of reference that are acceptable to the Ministry. The Agency shall
make a copy of the report available to the Ministry. In the event
that a deficiency or risk is identified in the actuary's report,
the Agency shall propose a remediation plan in accordance with
the actuary's recommendations and shall implement that plan.
14.0 Appointments and Staffing
- The Minister may appoint Agency members pursuant to
section 2(2) of the Farm Products Payments Act. The LGIC
may fix the remuneration of members appointed to the Agency who
are not also employed in the Ontario Public Service.
- The Minister shall appoint a Chair and a Vice-Chair
for the Agency from among its members pursuant to subsection 3(2)
of O. Reg. 560/93.
- Remuneration for members of the Agency who are not
also employed in the Ontario Public Service is provided via a
per diem set out in an Order in Council, which is predicated on
- The Agency's Chair shall advise the Minister of upcoming
appointment vacancies and provide recommended candidates for appointments
or re-appointments that have been identified pursuant to clause
4 (1) (a) of O. Reg. 560/93 and the Agency's policy and processes
for Agency member recruitment.
The Minister, may, as part of the Minister's consideration
as to who the Minister should appoint to the Agency, review
the advice or recommendations of the Chair and make appointment
or re-appointment of Agency members on a timely basis to ensure
effective continuing direction and oversight of the Agency.
- Government appointments will respect the needs of
the Agency, but will also reflect the diversity of the people
of Ontario and the need to deliver services and decisions in a
professional, ethical and competent manner.
The Agency may procure adjudicative and administrative support
services from a third party, provided the individual(s) providing
the adjudicative administrative support services is not (are not)
involved in any licencing activities under the Livestock and
Livestock Products Act. Where these persons are so involved,
the Agency shall implement all appropriate measures to avoid any
conflict of interest (real or perceived), including the use of ethical
15.0 Administrative Arrangements
15.1 Agency to Follow These Requirements When Providing Its Own
Administrative Support Services
- The Agency shall develop and operate administrative
procedures that are consistent with the principles of the administrative
policies established and specified in the Public Service of
Ontario Act, its regulations, the applicable TB/MBC directives/policies,
associated guidelines and the Ministry's corporate policies.
- The Agency has the authority and responsibility for
its administrative services and is accountable to the Minister
for those administrative services.
15.2 Freedom of Information and Protection of Privacy Act
The Minister is the institution head for the purposes of the
Freedom of Information and Protection of Privacy Act.
15.3 Records Management
- Both the Chair and the Minister recognize and acknowledge
that the Agency is subject to the provisions of the Archives
and Record Keeping Act and the Freedom of Information
and Protection of Privacy Act. Further, both the Chair and
the Minister recognize and acknowledge that the Agency is bound
to follow the requirements set out in the Freedom of Information
and Protection of Privacy Act in relation to the collection,
retention, security, use, distribution and disposal of records.
- The Chair is responsible for ensuring that the Agency
complies with the Archives and Recordkeeping Act.
- The Chair is responsible for ensuring that the Agency
complies with the requirements set out in the Freedom of Information
and Protection of Privacy Act.
- The Chair is responsible for ensuring that the Agency
complies with TB/MBC Management of Recorded Information Directive.
- The Chair is responsible for ensuring that a system
is in place for the creation, collection, maintenance and disposal
of the Agency's records.
- The Chair shall protect the legal, fiscal and other
interests of the Agency by implementing reasonable measures to
ensure the ongoing viability, integrity, preservation and security
of all official records created, commissioned or acquired by the
Agency. This includes, but is not limited to, all electronic records,
such as e-mails, information posted on the Agency's website(s),
database datasets and all records stored on personal computers
and shared drives.
- The Chair is responsible for ensuring reasonable measures
are implemented requiring the Agency's employees to create full,
accurate and reliable records that document and support significant
business transactions, decisions, events, policies and programs.
15.4 Customer Service and Quality Review Process
- The Agency shall adhere to the service quality initiatives
of the Ontario Government and the Ministry and must have established
standards that are consistent with the stated Ontario Public Services
- The Agency shall maintain and operate a formal process
for responding to complaints about the quality of service received
- The Agency's annual business plan will include performance
measures and targets for customer service and the Agency's response
- The Agency shall comply with the Accessibility
for Ontarians with Disabilities Act.
15.5 Legal Services
- The Ministry of the Attorney General shall provide
legal services for the Agency.
- The Agency may request outside legal assistance when
it requires expertise unavailable within the Ministry of the Attorney
General or when the use of the Ministry of the Attorney General
would result in a conflict of interest.
- The Ministry of the Attorney General shall approve
the retention of outside legal counsel by the Agency. The Agency
will refer to and comply with the MBC directives on legal services
and the retention of counsel when obtaining external legal counsel.
Where the Agency retains the services of outside legal counsel,
the Agency shall be responsible for paying any and all costs associated
with said retention out of the Fund it administers.
15.6 Investigative Services
The Ministry will provide investigative services to the Agency.
15.7 Procurement Arrangements
The Agency is classified as an "Other Included Entities"
for the purposes of TB/MBC's Procurement Directive. The Procurement
Directive includes mandatory requirements for Other Included Entities.
As an Other Included Entity, the Agency is required to establish
and follow its own procurement policy and related processes and
procedures, provided they do not conflict with the mandatory section(s)
of the Procurement Directive.
15.8 Intellectual Property
The Chair is responsible for ensuring that the legal, financial
and other interests of the Ontario Government in intellectual property
are protected in any contract that the Agency may enter into with
a third party that involves the creation of intellectual property.
16.0 Liability and Indemnification
Section 2(9) of the Farm Products Payments Act provides
that no action or other proceeding for damages may be instituted
against any member of the Agency, employees in the service of the
Agency for any act done in good faith in the execution or intended
execution of the person's duty or for any alleged neglect or default
in the execution in good faith of that person's duty.
The Minister agrees to at all times indemnify and save harmless
in the manner and form set out in Schedule "F" of this
MOU the appointees to the Agency from and against all claims, demands,
losses, costs, damages, actions, suits or other proceeding by whomsoever
made, sustained, brought or prosecuted that is in any way attributable
to anything done in good faith under the authority or purporting
to be done under the authority of the Farm Products Payments
17.0 Effective Date, Duration, Periodic review and Amendments
17.1 Effective Date of the MOU
This MOU becomes effective on the date it is signed by the Parties
and continues in effect until it is revoked or a new MOU is signed
by the Parties.
17.2 Process for Review and Amendment
- Upon a change of the person appointed as the Minister
or as the Chair, the parties must either sign a letter of affirmation
of the content of this MOU or sign a new MOU within six months
of the change.
- The MOU may be reviewed:
- By written request of either Party to the other;
- At the discretion of TB/MBC or the Minister;
- As a result of a review of the Agency's mandate,
which is required at least every seven (7) years; or
- Immediately in the event of a significant change
to the Agency's mandate, powers or governance structure as
a result of an amendment to the Farm Products Payments
If there is a review,
- The Minister shall consult the Chair, as appropriate,
during any such review.
- The Agency shall cooperate in the review.
17.3 Amendment to the MOU
Any amendments to this MOU shall be dated, signed by both the Minister
and the Chair and will form a part of this MOU.
In the event of a conflict between applicable legislation, regulations,
TB/MBC and Ministry of Finance directives and policies, the AAD,
this MOU and any service level agreements the Agency and the Ministry
may enter into whereby the Agency provides services on behalf of
the Ministry, the conflict shall be resolved in accordance to the
following descending hierarchy:
- Applicable legislation
- Applicable regulations
- TB/MBC directives and policies, including the AAD
- Ministry of Finance directives and policies
- This MOU
- Service level agreements
Original signed by:
Larry Witzel, Chair, Livestock Financial Protection Board;
The Honorable Jeff Leal, Minister of Agriculture, Food and Rural
Appendix "A" - Applicable Statutes
The Agency shall comply with all applicable acts and regulations.
Without limiting the generality of the foregoing, the Agency shall
comply with the following statutes and (the regulations made thereunder):
- Accessibility for Ontarians with Disability Act;
- Archives and Recordkeeping Act;
- Emergency Management and Civil Protection Act;
- Farm Products Payments Act;
- Financial Administration Act;
- Freedom of Information and Protection of Privacy Act;
- French Language Services Act;
- Livestock and Livestock Products Act
- Pay Equity Act;
- Public Sector Salary Disclosure Act; and
- Public Service of Ontario Act.
Schedule "B" - Applicable Treasury
Board/Management Board of Cabinet and Ministry of Finance Directives
The Agency is classified as a Trust Agency and shall comply with
all TB and/or MBC directives and policies applicable for an agency
of its classification and all directives/policies as stated in this
MOU, including but not limited to:
Business Planning and Financial Management Directives/Policies
- Delegation of Authority (Key Directive)
- Business Planning and Allocation Directive
- General Expenses
- Travel, Meal and Hospitality Expenses Directive
- Indemnification Directive
- Open Data Directive
Accountability and Governance Directives/Policies
- Accountability Directive (Key Directive)
- Agency and Appointments Directive
- Advertising Content Directive
- Procurement Directive
- Internal Audit Directive
- Accessible Customer Service Policy
Information and Information Technology Management Directives/Policies:
- Enhancing Privacy: Computer Matching of Personal Information
- Freedom of Information and Privacy Directive
- Management of Recorded Information Directive
- Procurement Directive
- Visual Identity
- OPS Service Directive
Schedule "C" - Communications Protocol
This communications protocol outlines the respective roles for
the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)
and Grain Financial Protection Board (Board), referred to as the
parties, in the development, approval and distribution of communications
products for programs and services delivered by Grain Financial
Protection Board on behalf of the Ontario Ministry of Agriculture,
Food and Rural Affairs.
"Public communications" means any material that is communicated
to the public, either directly or through the media in:
- Oral form, such as a speech or public presentation
- Printed form, such as a hardcopy report, news release, bulletin;
- Electronic format, such as a posting to a website.
For the purposes of this Protocol, public communications does not
include day-to-day communications made in the normal course of the
Agency's business, such as its ordinary contact with individual
claimants and the issuance of notices and decisions.
A "contentious issue" is a matter that is, or may reasonably
be expected to be, of concern to the legislative assembly or the
public, or is likely to result in inquiries being directed to the
minister or government.
Purpose of the protocol
The aim of the Protocol is to ensure that parties are notified
of significant activities and contentious issues before they are
in the public domain. It outlines best practices to ensure the delivery
of accurate, consistent and timely communications products and services.
The Protocol will facilitate timely and appropriate:
- Information-sharing and fact-checking;
- Notification of issues; and
- Responses to media inquiries.
The Protocol between the Ministry and the Grain Financial Protection
Board will be appended to the MOU between the Ministry and the Grain
Financial Protection Board. It will become effective on the signing
of the MOU.
Information sharing and fact-checking
Parties agree to exhange information related to communications
issues, products, events, and conentious media and high profile
stakeholder or community contacts or public correspondence trends,
as well as social media and blogs.
Each party must establish internal protocols to support an open
exchange of information and collaboration, and is responsible for
its own internal communications processes, including briefings,
information flow, review and approvals.
Each party will ensure the confidentiality of draft and pre-release
(advance) documents unless required to be disclosed pursuant to
FIPPA or other legal requirement.
To assist in the development of their respective communications
products, the Ministry and the Grain Financial Protection Board
will proactively share the following complementary elements:
- Key messages;
- Questions and answers (for Minister's Office, senior management,
staff, industry, and media) as appropriate; and
- Communication plans.
All parties will collaborate to support the development of high
quality, consistent and timely communications. The following communications
products will be shared in draft form through the public communications
leads where appropriate to facilitate fact-checking, consistency
and currency of messaging.
- News releases;
- Web copy; and
- Other public-facing materials as appropriate.
The parties agree to provide each other with a copy of all final
All communications products and technical resources developed for
programs and services delivered by the Grain Financial Protection
Board on behalf of OMAFRA shall use the Ontario trillium logo, as
well as the Grain Financial Protection Board wordmark. The usage
of these graphic items will follow the government's Visual Identity
The parties are required to provide early notification of all
contentious issues. A contentious issue could result from a decision
about a policy, program, service, a regulatory decision, an adjudicatory
decision or a quote wrongly attributed to the government, its representative
or the Grain Financial Protection Board.
The parties agree to provide information required to develop their
respective briefing materials for items identified as contentious.
The Ministry requires the following:
- For its Issues Statement - succinct description of the issue
and the anticipated question regarding the problem;
- Key messages - the Ministry will develop its own key messages
and the Grain Financial Protection Board will share its key messages;
- Background information - facts about the issue and the broader
context of the issue.
No party will speak on behalf of the other, and instead, direct
media to the appropriate point person.
Each party will handle media calls through their normal internal
Each party will notify the others of any media calls related to
contentious issues or interviews related to business risk management
programs in the same business day. For contentious issues, the parties
will inform each other prior to responding to the call.
The following information will be shared:
- Date and time of call;
- Reporter's name and contact information;
- Name of publication or media outlet;
- Nature of the request;
- Key messages to be communicated to media; and
- Reporter's deadline.
Schedule "D" - Sections 26 and 27 of
Investments authorized by other Acts or regulations
26. If a provision of another Act or the regulations under another
Act authorizes money or other property to be invested in property
in which a trustee is authorized to invest and the provision came
into force before section 16 of Schedule B of the Red Tape Reduction
Act, 1998, the provision shall be deemed to authorize investment
in the property in which a trustee could invest immediately before
the coming into force of section 16 of Schedule B of the Red
Tape Reduction Act, 1998. 1998, c. 18, Sched. B, s. 16 (1).
27. (1) In investing trust property, a trustee must exercise the
care, skill, diligence and judgment that a prudent investor would
exercise in making investments. 1998, c. 18, Sched. B, s. 16 (1).
(2) A trustee may invest trust property in any form of property
in which a prudent investor might invest. 1998, c. 18, Sched. B,
s. 16 (1).
Mutual, pooled and segregated funds
(3) Any rule of law that prohibits a trustee from delegating powers
or duties does not prevent the trustee from investing in mutual
funds, pooled funds or segregated funds under variable insurance
contracts, and sections 27.1 and 27.2 do not apply to the purchase
of such funds. 2001, c. 9, Sched. B, s. 13 (2).
Common trust funds
(4) If trust property is held by co-trustees and one of the co-trustees
is a trust corporation as defined in the Loan and Trust Corporations
Act, any rule of law that prohibits a trustee from delegating powers
or duties does not prevent the co-trustees from investing in a common
trust fund, as defined in that Act, that is maintained by the trust
corporation and sections 27.1 and 27.2 do not apply. 1998, c. 18,
Sched. B, s. 16 (1); 2001, c. 9, Sched. B, s. 13 (3).
(5) A trustee must consider the following criteria in planning
the investment of trust property, in addition to any others that
are relevant to the circumstances:
- General economic conditions.
- The possible effect of inflation or deflation.
- The expected tax consequences of investment decisions or strategies.
- The role that each investment or course of action plays within
the overall trust portfolio.
- The expected total return from income and the appreciation of
- Needs for liquidity, regularity of income and preservation or
appreciation of capital.
- An asset's special relationship or special value, if any, to
the purposes of the trust or to one or more of the beneficiaries.
1998, c. 18, Sched. B, s. 16 (1).
(6) A trustee must diversify the investment of trust property to
an extent that is appropriate to,
(a) the requirements of the trust; and
(b) general economic and investment market conditions. 1998, c.
18, Sched. B, s. 16 (1).
(7) A trustee may obtain advice in relation to the investment
of trust property. 1998, c. 18, Sched. B, s. 16 (1).
Reliance on advice
(8) It is not a breach of trust for a trustee to rely on advice
obtained under subsection (7) if a prudent investor would rely on
the advice under comparable circumstances. 1998, c. 18, Sched. B,
s. 16 (1).
Terms of trust
(9) This section and section 27.1 do not authorize or require a
trustee to act in a manner that is inconsistent with the terms of
the trust. 2001, c. 9, Sched. B, s. 13 (4).
(10) For the purposes of subsection (9), the constating documents
of a corporation that is deemed to be a trustee under subsection
1 (2) of the Charities Accounting Act form part of the
terms of the trust. 2001, c. 9, Sched. B, s. 13 (4).
Trustee may delegate functions to agent
27.1 (1) Subject to subsections (2) to (5), a trustee may authorize
an agent to exercise any of the trustee's functions relating to
investment of trust property to the same extent that a prudent investor,
acting in accordance with ordinary investment practice, would authorize
an agent to exercise any investment function. 2001, c. 9, Sched.
B, s. 13 (5).
Investment plan or policy
(2) A trustee may not authorize an agent to exercise functions
on the trustee's behalf unless the trustee has prepared a written
plan or strategy that,
- complies with section 28; and
- is intended to ensure that the functions will be exercised
in the best interests of the beneficiaries of the trust. 2001,
c. 9, Sched. B, s. 13 (5).
(3) A trustee may not authorize an agent to exercise functions
on the trustee's behalf unless a written agreement between the trustee
and the agent is in effect and includes,
- a requirement that the agent comply with the plan or
policy in place from time to time; and
- a requirement that the agent report to the trustee
at regular stated intervals. 2001, c. 9, Sched. B, s. 13 (5).
(4) A trustee is required to exercise prudence in selecting an
agent, in establishing the terms of the agent's authority and in
monitoring the agent's performance to ensure compliance with those
terms. 2001, c. 9, Sched. B, s. 13 (5).
(5) For the purpose of subsection (4),
- prudence in selecting an agent includes compliance
with any regulation made under section 30; and
- prudence in monitoring an agent's performance includes,
- reviewing the agent's reports,
- regularly reviewing the agreement between the trustee
and the agent and how it is being put into effect, including
considering whether the plan or policy of investment should
be revised or replaced, replacing the plan or policy if the
trustee considers it appropriate to do so, and assessing whether
the plan or policy is being complied with,
- considering whether directions should be provided
to the agent or whether the agent's appointment should be
- providing directions to the agent or revoking the
appointment if the trustee considers it appropriate to do
so. 2001, c. 9, Sched. B, s. 13 (5).
Duty of agent
27.2 (1) An agent who is authorized to exercise a trustee's functions
relating to investment of trust property has a duty to do so,
- with the standard of care expected of a person carrying
on the business of investing the money of others;
- in accordance with the agreement between the trustee
and the agent; and
- in accordance with the plan or policy of investment.
2001, c. 9, Sched. B, s. 13 (5).
No further delegation
(2) An agent who is authorized to exercise a trustee's functions
relating to investment of trust property shall not delegate that
authority to another person. 2001, c. 9, Sched. B, s. 13 (5).
Proceeding against agent
(3) If an agent is authorized to exercise a trustee's functions
relating to investment of trust property and the trust suffers a
loss because of the agent's breach of the duty owed under subsection
(1) or (2), a proceeding against the agent may be commenced by,
- the trustee; or
- a beneficiary, if the trustee does not commence a proceeding
within a reasonable time after acquiring knowledge of the breach.
2001, c. 9, Sched. B, s. 13 (5).
Schedule "E" - Investment Policy Components
and Considerations of Indemnity
The Agency is aware that the Ontario Financing Authority is available
to it as a resource for investment advice and shall, at a minimum,
consider the following components as part of a prudent Investment
Policy for the Fund:
1. Actuarial Review/Liability Analysis
The review will be a comprehensive document that sets the economic
assumptions and forms the basis of estimating the future cost of
liabilities. The estimation would be based on future cash flow projections
to determine variability of cash requirements. A sensitivity analysis
to determine the main drivers/factors impacting the liability estimate.
These two factors will determine the target rate of return required
to meet future cash flow needs. The assumptions in the review should
be reviewed periodically to ascertain if any adjustments to the
Investment Policy are needed to maintain the viability of the Fund.
2. Investment & Risk Management Philosophy
The Investment & Risk Management Philosophy will specify the
diversification of assets across major asset classes (Fixed Income,
Equity and Alternatives) consistent with legislation and include
an Investment Management Structure (external versus internal management,
active versus passive investing, number and style of the Manager).
The philosophy will include a determination of risks (volatility,
credit, liquidity and concentration) that will be used as monitoring
3. Asset/Liability Study
The study will determine the asset allocation to achieve the stated
target rate of return with consideration to risk and the level of
contributions. Stress testing and scenarios analysis will determine
variability of the funding status (Assets -Liabilities). Periodicity
of the study depends on the nature of the liability and usually
coincides with the actuarial review.
4. Statement of Investment Policies and Procedure
This is the governing document that sets out the Fund return objective,
fund benchmark and risk tolerances (volatility, security, time horizon
and liquidity) and includes:
- Fund Governance structure setting the roles, responsibilities
and duties of the Agency and the investment manager.
5. Performance Measurement, Monitoring and Reporting
Monthly monitoring through performance measurement to determine
if corrective action is required to meet desired the target rate
Schedule "F" - Form of Indemnity
To: Appointee of the Livestock Financial Protection Board
In consideration of your agreement to be appointed to act as a
Director for the Livestock Financial Protection Board ("Agency"),
the undersigned, Her Majesty the Queen in right of Ontario as represented
by the Minister of Agriculture, Food and Rural Affairs (the "Province")
hereby agrees, subject to the terms hereof, to indemnify and hold
harmless you and your heirs and legal personal representatives against
and from any and all legal fees and disbursements and other expenses
(an "Expense" or collectively, the "Expenses")
which you may sustain or incur in defending any action or other
proceeding, whether actual or threatened (a "Claim" or
collectively, the "Claims"), against you in connection
with your being or having been a Director of the Agency, but this
indemnity does not apply with respect to Expenses:
- arising from any circumstances for which coverage is
provided under an insurance policy or claims fund to the extent
that you are indemnified or covered under such policy or fund;
- arising out of circumstances in which you did not act
in the performance or intended performance of your duties as a
Member of the LFPB; or
- brought about or contributed to by your dishonesty,
negligence or wilful misconduct.
In order to be entitled to indemnification hereunder, you must
comply with the following terms and conditions:
- if you receive a notice of Claim or Claims, whether
actual or threatened, you shall forthwith deliver to the Province
(through the Director of Legal Services of the Ministry of Agriculture,
Food and Rural Affairs) a notice setting forth in reasonable detail
all available particulars of the Claim;
- upon the written request of the Province, you shall
furnish to the Province copies of all documents and provide any
other information relating to the Claim(s) that is in your possession
or under your control;
- you shall take all reasonable steps necessary, in a
timely manner, to secure and preserve your rights in respect of
the Claim(s) and, to the extent that you have a right to commence
a proceeding against another person (whether for damages or indemnification
or otherwise) in respect of a matter for which you claim indemnification
from the Province hereunder, you shall assign that right to the
Province and subrogate the Province to that right to the extent
of the amounts paid by the Province or for which the Province
is liable hereunder;
- you shall not voluntarily assume any liability in respect
of or settle or compromise a Claim or any proceeding relating
thereto without obtaining the Province's prior written consent;
- the Province shall have the right to participate in
or assume control of the negotiation, settlement or defence of
the Claim(s) and any proceedings relating thereto or appeal thereof
but the Province may not settle any action commenced against you
without your written consent;
- if the Province elects to participate in or assume
control of the negotiation, settlement or defence of the Claim(s)
and any proceedings relating thereto or appeal thereof, you shall
cooperate fully with the Province in connection with the same,
and you shall agree to be represented by legal counsel chosen
by the Province, unless, in the opinion of such legal counsel,
there would arise a conflict of interest preventing such legal
counsel from representing you, and, where it is such legal counsel's
opinion that a conflict of interest prevents their representing
you, you will be entitled, subject to the Province's prior written
approval, to retain legal counsel of your choice (it being understood
that the Province may withhold its approval in relation to any
counsel proposed by you who does not agree to retainer terms,
including fees, consistent with the policies of the Ministry of
the Attorney General of Ontario), and the fees and expenses of
your counsel incurred in your representation shall be costs to
which this indemnity extends;
- if the Province is not also a party to the Claim, you
shall consent to any order or leave that may be required for the
Crown to be added as a party or to be allowed to make representations
on its own behalf without being a party;
- the expenses incurred by you in investigating, defending
or appealing any Claim(s) shall, at your request, be paid by the
Province as may be appropriate to enable you to properly investigate,
defend or appeal such Claims(s), with the understanding that if
it is ultimately determined that you are not entitled to be indemnified
hereunder, you shall immediately repay such amount(s) so paid,
which shall become payable as a debt due to the Crown; and
- you agree to pay to the Province all amounts you receive
as a recovery or reimbursement of any Claim which has been previously
indemnified by the Province hereunder.