Annex A – Roles and Responsibilities of the Initial Recipient

Initial Recipients are expected to fulfill the following roles and responsibilities:

  • Signatory to the Contribution Agreement with DND on behalf of the Micro-net;
  • ensure that all costs submitted to DND are eligible project costs;
  • distribute allocated Micro-net funds to Ultimate Recipients in support of eligible activities;
  • establish and manage agreements with Ultimate Recipients and, as required, Micro-net members on collaboration, intellectual property, and funding;
  • monitor and report to DND on activities and achieved results per the Contribution Agreement requirements.

Redistribution of Funds

Approval by DND is required prior to the redistribution of funding by a contribution recipient to one or more individuals or entities.

Contribution Agreement provisions will address the requirements of the Treasury Board Policy on Transfer Payments and the Terms and Conditions of the program. These Terms and Conditions must also be reflected in the agreements signed between the Initial Recipient and the Ultimate Recipients.

If an Initial Recipient redistributes funding to one or more Ultimate Recipients:

  • the Initial Recipient has independence in the choice of Ultimate Recipients, with minimal guidance from DND, and will not be acting as an agent of the government in making distributions;
  • the Initial Recipient funding agreement will address the provisions set out in Appendix G (27 to 34) of the Directive on Transfer Payments; and
  • Ultimate Recipients receiving redistributed funding must be eligible recipients and must utilize funding for the type and nature of eligible costs as defined in Section 4.3 - Eligible Costs .

Additional overhead expenses

In recognition of the additional administrative responsibilities required to manage the Micro-Net, Initial Recipients may claim up to 3% of the total eligible costs incurred by all Micro-net members. This is in addition to the 15% overhead costs allowance for eligible costs incurred by the Initial Recipient.

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