P.A.C.E (Canada) is now accepting submissions to the Helen Isobel Sissons Canadian Children's Story Award. This award is a cash grant and is intended to encourage the development of literature for young children.
This is not for a picture book however, but just for a manuscript. In fact I quote: "If illustrations are central to the storyline, a brief description of these should be included with the manuscript. Please do not include original artwork." (from the submission guidelines part. A description of the illustrations, NOT actual illustrations! :)