Eligible costs are the reasonable, incremental costs necessary for the execution of an approved project and incurred and paid by the applicant after the project has been approved and within the timelines identified in the funding agreement.
Note: costs incurred must reflect when goods and services are expected to be received, regardless of when payments are made. When purchasing goods or services, applicants must follow a process that is transparent, fair and promotes the best value for the money expended and at competitive prices that are no greater than fair market value after deducting trade discounts and/or any other discounts available to the applicant; and must comply with all Requirements of Law applicable to how the Recipient acquires goods, services or both.
All businesses from which goods or services are purchased must be at arm’s length to the applicant and collaboration members/partners.
Eligible costs are:
Eligible Capital Costs
Capital costs must be directly related to the project and are subject to these parameters (unless otherwise noted in the Eligible/Ineligible Costs section in the Project Category, under which the project is submitted, found in Appendix 1):
Eligible In-Kind Contributions
Eligible in-kind contributions are goods and services that are contributed to a project that would otherwise have to be purchased or contracted in order to complete the project. Contributions will be subject to the same financial review or audit procedures as cash costs and must be supported with appropriate documentation.
Eligible in-kind contributions must be contributed by the applicant and/or collaboration/partner members, if applicable, and:
In-kind contributions will be subjected to the same financial and audit review procedures as cash costs and must be supported with appropriate documentation. The AAC, in its sole and absolute discretion, may reject any in-kind contribution claim with which it is not satisfied. A signed in-kind contribution form (AAC template) must be submitted as part of the claims process to track all in-kind contributions.
Further information about eligible in-kind contributions has been outlined in the Eligible In-Kind Contributions Documentation Chart in the Canadian Agricultural Partnership Program Guide.