CAP: Section F Eligible Costs

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:

  • cost of goods (including supplies), services and all related shipping or transportation costs
  • labour costs such as contract salaries, benefits, and specific per diem fees
  • costs of land rental for research purposes
  • costs for rental of facilities, equipment or machinery
  • costs of communication materials including design, printing, translation, etc.
  • travel and meal costs within the Travel and Meal Expense Guidelines. For further information, see Appendix 3 Travel and Meal Expense Guidelines
  • research institution overhead to a maximum of 25%
  • costs as noted in each Project Category, under which the project is submitted, found in Appendix 1

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):

  • capital reimbursement of up to $100,000 per project
    • considerations to exceed the $100,000 per project will be determined on a case-by-case basis, as noted in the Eligible Costs section in the Project Category, under which the project is submitted, found in Appendix 1
  • if the applicant and/or collaboration members are a for-profit business, the applicant and/or collaboration members must contribute at least 25 per cent in cash (from non-government sourced funds) of the total costs of the capital items
  • capital items include:
    • software and software development (implementation and customization), but excluding licensing and service fees
    • computers, office equipment, equipment and construction costs for buildings, on-farm and further processing infrastructure and plant upgrades
    • assets which have been acquired, constructed or developed (including any associated delivery and installation costs) and are not intended for sale in the ordinary course of business
    • betterments that are costs relating to the alteration and/or modernization of an asset that appreciably prolong the items period of usefulness or improve its functionality

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:

  • be essential to the project’s success, includes paid positions, unpaid volunteers, equipment, materials and supplies and use of land/facilities
  • be valued at fair market value
  •  not exceed 15 per cent of the total eligible project cost
  • have a defined rate (per hour, per day, per item, etc.)
  • be auditable (documentation is required to validate in-kind expenses)

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.