Finances & Refugee Resettlement

Transcription

1 Finances & Refugee Resettlement Frequently Asked Questions MENNONITE CENTRAL COMMITTEE ONTARIO KENT AVENUE KITCHENER ON N2G 3R1

2 FAQs: Finances & Refugee Resettlement* Contents Section 1 BVOR program finances... 2 Section 2 - The RRDA Budget preparation process Section 3 Disbursements... 5 Section 4 Managing the funds/helping the family understand finances... 6 Section 5 Expectations and Reports... 6 Section 6 Settlement... 7 Financial Resources available on the Portal by Category:... 9 * Note: Over the course of the BVOR program implementation, processes have changed (particularly in 2016). This document represents our most up-to-date information. If any of the information contained herein differs from what you have previously understood as being communicated by MCC Ontario and you have questions as a result, please contact the Finance Team at finance@mcco.ca directly for further clarification. ***

3 Section 1 BVOR program finances What s the financial breakdown of support in the BVOR program? It is estimated that 60% of the financial support for the newcomers comes from the Constituent Group s (CG s) RRDA and 40% of support comes from the government. Please see the following resources, found on the Refugee Portal. Cost of Refugee Sponsorship limits based on family size and location FAQ BVOR Program and RAP What is an RRDA? RRDA stands for Refugee Resettlement Designated Account. This is the account which holds the funds raised for a specific sponsorship by the CG. If you have a Gift Registry with MCCO, then you have an RRDA. What is the RRDA MOU? This is the Memorandum of Understanding between the CG and MCCO regarding the RRDA. It outlines the form and function of the RRDA and the disbursement schedule. The RRDA MOU is signed by both the Lead and Finance Contacts of a CG. What does RAP stand for? Resettlement Assistance Program. This is the official name of the government support that s provided to refugees sponsored through the BVOR Program. For more information on RAP in the BVOR program please see our FAQ BVOR Program and RAP. (document available on the Refugee Portal) Who is in control of the RRDA finances? As laid out in the MOU RRDA, funds received in an RRDA should be designated for the CG to use for resettlement purposes for the refugee for which they have signed a Sponsorship Agreement and must be held under the control of MCC as required by the CRA. Funds raised through a Gift Registry and held in an RRDA do not belong to the CG through whom the funds were raised. The funds have been donated to MCCO (and thus were able to receive a tax receipt). The funds are held in trust for use in refugee resettlement. Section 2 - The RRDA Budget preparation process. What do the different categories in the budget represent? NOTE: This information is also provided in the Information tab on the RRDA budget spreadsheet. Minimum and Maximum Limits The financial limits that we base the budget around. Budgets must fall within these limits. Current Cell: This cell represents the overall amount of income coming from the RRDA and RAP together. This amount must fall within the financial limits.

4 RRDA Distribution: This cell represents the overall amount of income being drawn from the RRDA. The budget worksheet tab is to be used for preparing the initial budget. The budget in this tab determines disbursements, and should not be changed over the course of sponsorship. NOTE: The Actual tab is for reporting purposes only. What are the CG Financial Contact s responsibilities? To read and sign the MOU RRDA To read and follow the instructions sent from the MCCO Refugee Finance Team To share financial and budget information with the rest of the team To prepare the budget To initiate cheque requests To send and prepare 4 financial reports through the course of the year, via the schedule shared by the Finance Team. What is the 5% administrative fee, and how is it calculated? A 5% cost recovery fee will be applied to all funds received into the RRDA and will be retained by MCC to help cover administrative costs associated with the refugee resettlement program that includes credit card processing fees, receipting of donations, and insuring disbursements are in compliance with CRA guidelines. This statement comes directly from the MOU RRDA, please reference it for further clarity. The 5% administrative fee is calculated as funds are raised. Each donation is subject to this fee. NOTE: The deduction is not reflected in the on-line thermometer. Where is information about the 5% administrative fee communicated? Information about the 5 % cost recovery fee is shared in the MOU RRDA. It is also shared after matching occurs, in the initial budget conversations between the Finance Contact and the Finance Team. Beginning the Budgeting Process As soon as matching has occurred, the CG Lead initiates contact with the Finance Team by way of an to finance@mcco.ca introducing the Financial Contact for the CG. This is the authorization from the CG for communication between MCCO and the Finance Contact to begin. It is then the responsibility of the Finance Contact to begin the actual budget conversation with the MCCO Finance Team. In this, and all subsequent, , the name of the CG is to be included in the subject line. What is the budgeting process? Once the budgeting process has begun the Finance Team will walk the Finance Contact through a 5-step process: Step 1: Initial setup with a few basic questions. Step 2: A customized RRDA spreadsheet will be sent for budgeting purposes. Step 3: Budget review and revisions.

5 Step 4: Budget confirmation. Step 5: First cheque disbursement, after the CG receives the NAT (Notice of Arrival Time). NOTE: The Finance Contact is responsible for contacting the Finance Team AFTER they receive their NAT to initiate disbursement. What happens to funds not included in the RRDA Budget? Disbursements from the RRDA are only made according to the specific amount indicated on the budget finalized through the budgeting process. The purpose of the budgeting process is to create a sustainable budget a sustainable budget is one that the family would be able to maintain if, at the end of sponsorship, they are not financially self-sustaining and need transition to social assistance. At the end of sponsorship, if funds remain in the RRDA account, or if the Contingency/Emergency dollars are not required, they can be used for a variety of ways. Please see the Month 13 Financial Planning document on the Refugee Portal. Can I set aside funds outside of the disbursements in case they are needed? We recognize that unexpected expenses and needs can crop up, and so have included a contingency/emergency line in the RRDA budget. This allows additional disbursements to be made for the purposes of settlement, if needed. These amounts are not reflected in the three standardized cheque disbursements. These contingency funds will only be disbursed upon request. More information will be provided during the budgeting process. What is a sustainable budget? We suggest a modest cost of living (finding a middle ground between the minimum estimated amount and the maximum) outlined in the Cost of Refugee Sponsorship limits based on family size and location (document available on the Refugee Portal). Remember the goal is to budget a sustainable standard of living for the family, with the consideration that after the 12 months of sponsorship, they may transition onto social assistance called Ontario Works. How do we determine the RAP rates? RAP rates for BVORs are comparable to Ontario Works rates. For the purposes of assisting CG s in knowing how much needs to be budgeted from the RRDA funds, we look at OW Rates to estimate what the RAP amount will be for the family with whom you have been matched. To calculate, using the OW Rates Chart (document available on the Refugee Portal): Add: the appropriate sum from the Basic Allowance chart + the appropriate sum for Shelter. Add: the cost of public transportation in your area for the appropriate # of adults in the family. NOTE: this is not listed on the chart as it varies per community If you have questions about what transportation might be for your area please contact the Finance Team for support.

6 For more information please see the FAQ: BVOR Program & RAP (document available on the Refugee Portal). Do Child Tax Benefits need to be included in the RRDA Budget? Child Tax Benefits (CTB) should not be included in the RRDA Budget, as they are considered additional support for the children. Once the family arrives, the CG should assist the family with applying for CTB as soon as possible. Section 3 Disbursements What s the processing time for a cheque disbursement? As outlined in the MOU RRDA, cheques should be requested two weeks in advance of when the disbursement is needed. Processing time from when the cheque is approved is approximately 5 business days. How many cheque disbursements are there? Funds Disbursement from MCCO will occur in three allotments, as outlined in the RRDA MOU. NOTE: All cheque requests should be initiated by the CG s Financial Contact. NOTE: The disbursement schedule is the ideal and should be adhered to. Unique circumstances will arise and will be taken into consideration by the Finance Team. Accommodations will be made if possible. Cheque 1 Disbursed between Notice of Arrival Time (NAT) and the family s arrival Initiated by the CG s Finance Contact upon receiving the NAT. NOTE: This timeline is the ideal. However, unforeseen circumstances may occur that prevent us from keeping to this schedule. Cheque 2 Sent at the beginning of the 8 th month, after reporting requirements are met. Cheque 3 Sent at the beginning of the 10 th month, after reporting requirements are met. See Section 5 in this document on information concerning financial reporting. Who should cheques be payable to? The Payee will be determined during the budgeting process. RRDA disbursement cheques are made payable to the CG member whose name appears on the account to which funds will be transferred, usually the Financial Contact. Cheques disbursed from MCC will not be payable to the newcomer family at any point in the sponsorship. What is the structure of disbursement? RRDA funds are disbursed from MCCO to the CG. The CG is then responsible to disburse these funds to the newcomer family. Each CG is responsible for internally assembling a plan of disbursement to the newcomer family.

7 How these monies are disbursed to the family and the timeline of those disbursements are up to each individual CG. Contact the Settlement Coordinator if you have any questions or want to inquire about best practices. When does the 12 th month of sponsorship end? The 12-month sponsorship is for a full calendar year of 365 days. Ex. If the newcomer family whom a CG is sponsoring arrives on April 12, 2016, then the sponsorship will end April 11, If you have questions about the impact on rent and utilities payments please contact the Finance Team at finance@mcco.ca. Section 4 Managing the funds/helping the family understand finances How should the CG hold the funds coming from the RRDA? CG s can hold the funds in one of two ways: 1. The CG can obtain a separate, non-interest bank account for their group, through which the RRDA funds can flow. This bank account should be under the CG s name when possible. 2. The money can be held in a dedicated bank account for the sole purpose of the CG under a CG member s name, usually the Finance Contact. Which of the newcomer family members require a bank account? The Head of Household will require a bank account, as will all dependants 18 years of age or older. In a sponsorship involving linked cases, each Head of Household requires an account. Married couples may choose to share a bank account. Should the newcomer family get credit cards in order to build up credit ratings? Having a credit card is not the only way to build your credit rating and arguably far from the best. We discourage groups from counselling their family members to obtain credit cards as this can be a dangerous trap for the family. It is important to communicate with the newcomers about the financial system in Canada and how it works with regards to interest, debt, and repayment processes. Section 5 Expectations and Reports What is required from the Financial Contact after the budget has been completed? The Financial Contact will be responsible for the timely submission of financial reports throughout the course of sponsorship. What does the Financial Contact need to know for the reports? Four financial reports will be required during the sponsorship year. The 2 nd and 3 rd cheque disbursements are paired with a report. The 2 nd and 3 rd reports are required prior to disbursement. As outlined in the MOU RRDA, each cheque request from the Financial Contact must include:

8 the CG name the complete name and mailing address of the group member to whom the cheque should be sent. What should be included in the reports? In the approved budget developed for the sponsorship, the Actual tab must be filled out with the monthly expenses made by the family and the group until the end of the most recent month. Rent, utility amounts, and individual expenses over $300 must be included in the report, paired with receipts. We do not need original receipts; scanned copies or bank statements will suffice. The level of detail reported is dependent on the capacity and comfort level of the family. However, the report should provide the Finance Team with a good level of understanding regarding the family s financial situation. Include the rough monetary amount for any unknown expenses next to an 'unknown' line. What is the timeline for reports? 1 st report: due before the 4 th month after the arrival of the newcomer family. 2 nd report: due 3 weeks prior to the beginning of the 8 th month. The 2nd cheque is scheduled for disbursement in the beginning of the 8th month and is dependent on the submission of the report. 3 rd report: due 3 weeks prior to the beginning of the 10th month. The 3rd cheque is scheduled for disbursement in the beginning of the 10th month and is dependent on the submission of the report. 4th report is due within one month after the completion of the 12 th month of sponsorship. Section 6 Settlement Can the newcomer family members get jobs in the sponsorship year? Yes, newcomers are able to work during their year of sponsorship. Please see the following important information concerning newcomer employment. For more information, see the Refugee Portal for the following: FAQ - BVOR Program and RAP Financial Guidelines - Refugee Newcomers Earning Employment Income What is the financial priority for the settlement year? To prepare the newcomers with a sustainable budget that will facilitate a smooth transition from sponsorship to self-support (including transition to social assistance if necessary). Of what should we be aware as the newcomers look for work? Learning English is the priority for newcomers during the year of sponsorship. If they have basic language skills (at least LEVEL 5), they can secure part time employment and attend English classes on part-time basis.

9 Research local work support agencies in your area to gather information about workplace health and safety training and any pre-employment workshops that may be available. What is the Refugee Travel and Admissibility loan? This is a loan that the Government of Canada provides to assist refugees in paying for their transportation to Canada and to cover the costs of the required medical exam overseas. For more information please read the Travel and Admissibility Loans document available for download from RSTP (Refugee Sponsorship Training Program). How do I know if the newcomer family I have been matched with will be required to repay their Travel and Admissibility Loan? NOTE: for Syrian cases Named Cases do not have to repay the travel loans if they were interviewed before March 1, BVOR Cases do not have to repay the travel loans if they arrive by December 31, Everyone else must repay the loan. Questions about how to repay the travel loan can be discussed at the initial intake interview at your local IRCC office. Also see, Settlement.org Guide. Can we help the family we ve sponsored repay the Travel & Admissibility Loan? RRDA funds can be used for this repayment only if it is in surplus of the 1 year of budgeted settlement support and will fall beneath the Maximum Financial Limit as established by the budget. Consider the following when making this decision: For further information about the loan, read the Travel and Admissibility Loans document available for download from RSTP. Your group is not expected or required to repay the newcomer's loan. Consider the amount of the loan will this be the best use of the extra funds? Having newcomer families begin their new life in Canada already in debt is not ideal. If the Government sees private sponsorship groups taking on the responsibility of repaying the loan, this may stifle our collective advocacy voice against it. At the same time, we all seek to act in the best interest of the newcomer family and understand if groups decide to contribute towards repayment. Given this information, we leave this decision up to our CG's. If you do decide to contribute towards the repayment, consider involving the newcomer family in the process. This allows them to take responsibility and be empowered. Assist them in learning how to save toward repayment on a monthly basis, or consider helping them organize a fundraising event. How do I help the newcomer family we ve sponsored get information about Income Tax Returns and applying for GST/HST Rebates? Please review the following links on information provided by the government concerning Income Tax Returns, GST Rebates, and other applicable topics.

10 CRA s video series: Newcomers to Canada and the Canadian Tax System. Segment 6 is on filing income tax returns CRA information regarding eligibility and application for GST rebates. Some Financial Resources available on the Refugee Portal by Category: About Refugee Sponsorship FAQ - BVOR Program and RAP Country Specific Information Welcome to Canada what you should know: Specifically Chapter 12 Financial Information Cost of Refugee Sponsorship limits based on family size and location Financial Guidelines - Refugee Newcomers Earning Employment Income Money Management Tools for Newcomers from Prosper Canada Ontario Works Rates October 2016 Benefits of Submitting Income Tax for Newcomers Newcomers and the Canadian Tax System (video) GST/HST Application and Eligibility information Health Information Dental Coverage for Refugees Fact Sheet MCC Resources Month 13 Financial Planning for CGs with RRDAs