Grant Rescind and Recovery Policy

1.0 Rationale

The Ontario Trillium Foundation (OTF) monitors all grants to ensure that OTF funding is used for the purposes for which it was approved. Close monitoring and prudent decision-making concerning the use of OTF's funds by grantees mitigates risk to OTF and the government and strengthens the Foundation's accountability for, and ensures the appropriate use of, public funds. As a steward of public funds and in alignment with government directives OTF rescinds grants and recovers grant funds under specific circumstances.

2.0 Purpose

This policy defines OTF's approach to the circumstances or conditions for rescinding a grant or a portion of a grant and recovering grant funds.

3.0 Policy

OTF may rescind a grant or a portion of a grant and recover grant funds in the following circumstances: 

• A grantee fails to comply with OTF's policies, program guidelines or the Grant Contract, including OTF’s Anti-Discrimination Policy and Eligibility Policy
• As a result of the Quality Assurance audit process.
• A grantee uses OTF grant funds for purposes that are contrary to OTF's policies, program guidelines or the Grant Contract unless revisions have been approved in writing by OTF
• A grantee fails to show satisfactory progress in achieving the grant’s outcomes
• The grant is not completed within the timelines specified in the Grant Contract, unless a revised timeline has been approved in writing by OTF
• Circumstances prevail that seriously jeopardize the successful completion of the grant or management of grant funds, including changes within the management or operations of the grantee
• Grant funds have been misappropriated, spent in bad faith or otherwise fraudulently employed
• At the request of a grantee
• A grantee no longer requires the grant funds, or a portion thereof

3.1 Fraud and Misappropriation

In cases of fraud or misappropriation, OTF reserves the right to pursue the matter to the full extent of the law. 

3.2 Recovery of Funds

OTF requires the repayment of previously released grant payments in cases of unauthorized spending of OTF funds.

Unauthorized spending occurs when:

• OTF funds have been spent on activities not included in the approved grant budget and/or Grant Contract
• OTF funds have been reallocated without prior written authorization or approval by OTF
• OTF funds have been misappropriated, spent in bad faith or otherwise fraudulently employed

OTF may require repayment of previously released grant funds when there is a significant amount of grant funds held by the grantee with no clear indication of when the funds may be expensed 

OTF will not release any portion of the 10% “holdback” amount which has not been spent appropriately by the time of the final report. 

In alignment with the OTF Reallocation of Funds Policy, OTF will request the return of any surplus funds of $100 or greater remaining at the end of the grant. 

In instances where the return of funds is requested but the grantee does not comply, based on the amount to be recovered and other circumstances, OTF will make all reasonable efforts to recover the funds, including auditing the grant and/or taking legal action.

Grantees in arrears of returning funds to OTF will be unable to access any further funding until all monies have been repaid and any other requirements have been satisfied. 

3.3 Multiple Active Grants

In the case of an organization with multiple active grants when a grant is rescinded at the initiation of the Foundation, all other grants will be subject to review by a member of the OTF Leadership Team to determine if an additional rescind(s) is warranted. OTF reserves the right to consider the circumstances leading to a rescind as a violation or breech of all Grant Contracts between the Foundation and the grantee.

3.4 Consideration of Future Grants

When assessing applicant organizations, OTF considers the past performance of any previous grants to the applicant organization. 

The circumstances around a rescinded grant, including the failure to return funds upon request, will be considered if the organization reapplies directly or indirectly for OTF funding. OTF reserves the right to consider an organization as ineligible under these circumstances and until the organization has satisfactorily addressed OTF’s concerns.

3.5 Parameters of Implementation/Responsibility for Compliance

The Board, in whole and at the Executive Committee, reserves the role of approving grant rescinds where there is a reputational risk and delegates the approval of other rescinds to the appropriate leadership position.

4.0 Definitions

Rescind: Reducing the amount of an approved grant and cancelling or reducing future payments of an approved grant or portion of a grant.

Recovery: Collecting from grantees or past grantees the repayment in whole or in part of previously released grant payments.

Fraud: An intentional false representation of any fact pertaining to the use of OTF funding or the initiative carried out under an OTF grant.

Reputational Risk: A risk of harm resulting from damages to the good name or standing of the Ontario Trillium Foundation.