Annex B – Eligible and Ineligible Costs
Eligible costs are limited to the following categories:
|1.||Stipends, salaries and benefits for students, postdoctoral fellows, research assistants and technical staff||Benefits: 20% of salaries|
|2.||Acquisitions or rental of equipment||20% of eligible costs ($5,000 per acquisition)|
|3.||Consultant services (provided by third parties not affiliated with the Micro-net)||N/A|
|4.||Laboratory analysis services (provided by third parties not affiliated with the Micro-net)||N/A|
|5.||Materials and supplies||N/A|
|6.||Overhead (administrative) costs||15% of eligible costs|
|7.||Publication, outreach and communication costs||N/A|
|8.||Travel in accordance with the National Joint Council’s Travel Directive||5% of eligible costs|
1. Stipends, salaries and benefits for students, postdoctoral fellows, research assistants and technical staff
Salaries and benefits are eligible as long as they are directly related to project activities, including project management, and reflect the exact costs associated with the employees.
Benefits are defined as employment costs paid by the employer and may include the following:
- Employer’s portion of CPP/QPP
- Employer’s portion of Employment Insurance (EI)
- Employer’s portion of group insurance
- Employer’s Pension contributions
Benefits will not usually exceed 20% of an individual’s salary
Contributions from the Micro-net funds towards the total annual remuneration (fixed or variable) of each Micro-net member must not exceed $120,000 per full-time equivalent (excluding benefits). This maximum applies to all positions (including employment contracts) and shall be pro-rated on the basis of the proportion of time worked relative to the full-time equivalent.
2. Acquisitions or rental of equipment
Equipment is defined as any item (or interrelated collection of items comprising a system) which is used wholly or in part for the research proposed and meets all three of the following conditions: 1) non-expendable tangible property; 2) having a useful life of more than one year; and, 3) a cost of $2,000 or more.
The equipment category also includes research infrastructure such as scientific collections and information databases used wholly or in part for the research proposed.
Equipment purchases will be reimbursed at a rate to equal the percentage of the length of the project to the estimated value of the equipment purchased. For example, if a project has a time frame of 3 years, and the Recipient buys a piece of lab equipment with life expectancy of 5 years, DND would recognize an eligible expenditure of 3/5 times the fair value or actual cost of the lab equipment. The reimbursable amount could be given as a lump sum or equal amounts over the life of the project.
The Recipient will be responsible for obtaining the fair value of capital assets at the time of purchase.
3. Consultant services (provided by third parties not affiliated with the Micro-net)
Upon request, recipients are to send DND a copy of service contracts for research under the Project prior to signing the contract with the service provider.
The Micro-net Contribution Agreement should not be used or replicated for contracting with other parties. A recipient’s own contract should detail the milestones to be achieved under that contract, the costs, and deliverables.
It is the responsibility of the Initial Recipient to ensure that all costs from service providers providing contracted services are eligible project costs.
4. Laboratory analysis services (provided by third parties not affiliated with the Micro-net)
Examples include physical, chemical or biological property analysis of samples, standardized testing laboratory services, and calibration services from fee-for-service laboratories.
5. Materials and supplies
Material and supplies: includes items that meet at least one of the following conditions: 1) expendable tangible property; or, 2) useful life of 1 year or less; or, 3) a cost of less than $2,000. As an example, a laptop computer that costs less than $2,000 would be considered a consumable even though it is a non-expendable tangible item with a useful life of more than one year.
- For consumables commonly utilized in most laboratories, a general rate per FTE will be accepted, provided that the rate is appropriately justified in the supporting documentation.
- The consumables category also includes items such as equipment maintenance contracts and general maintenance of research infrastructure and travel that is directly related to the conduct of the project.
6. Overhead (administrative) costs
Overhead costs are indirect expenditures incurred by Initial and Ultimate Recipients, which are required for the research activities, but cannot be specifically identified as project costs. These costs relate to the use of the organization’s resources, which may include, but are not limited to:
- Administrative support (e.g. accounting, payroll administration, meetings);
- IT (Information Technology) support;
- Internet, telephone, excluding long-distance charges;
- Use of photocopiers, fax machines, and other office equipment;
- Use of existing workstations, including furnishings and equipment (e.g. computers, scanners);
- Normal office software (not including software specifically required for the project);
- Memberships and subscriptions;
- Staff recruitment and training;
- Routine laboratory and field equipment maintenance (e.g. oil changes);
- Building occupancy and operating costs (i.e. use of space);
- Facilities maintenance.
Overhead cannot exceed 15% of the total eligible costs.
7. Publication, outreach and communication costs
This cost category includes web support, newsletters, brochures, translation costs, printing and mailing costs, public relations associated expenses, and the costs of publishing in open access journals.
8. Travel in accordance with the National Joint Council’s Travel Directive
Consult website for further details.
Ineligible costs include, but are not limited to, the following:
- Remuneration of Principal Investigator(s), Co-Investigators and Collaborators;
- In-Kind Contributions;
- Staff awards and recognition;
- Professional training or development, such as computer or language courses;
- The purchase of land or buildings;
- Costs of moving a lab;
- The purchase or lease of private/personal vehicles;
- Assets and capital items not specifically required for the execution of the project;
- Normal costs of establishing a commercial operation;
- Costs for activities that are deemed to be part of normal business practice for any Recipient, such as:
- Review engagements and audits, unless required in the agreement
- Board of Directors’ meetings
- Interest and overdraft charges;
- Credit card charges;
- Refundable portion of the GST/HST, value-added taxes, or other items for which a refund or rebate is receivable;
- Alcohol, entertainment, honorariums, gifts (e.g., gifts for speakers or facilitators);
- Travel insurance (e.g., medical, accident, cancellation);
- Non-essential options for rental vehicles, for example GPS and roadside assistance (collision damage waiver (CDW) insurance may be eligible);
- Gasoline purchased for private or company-owned vehicles (vehicle costs must be based on applicable NJC kilometric rate), and vehicle maintenance costs;
- Monthly parking fees for vehicles, unless specifically required for field work;
- Costs of regular clothing;
- “Rental” charges for company-owned vehicles;
- Travel and accommodation expenditures for federal government employees;
- Internet charges outside headquarters (e.g. in hotels, taxis), unless specifically required for the project;
- Membership fees, unless specifically required for the project and a person does not already have it;
- Discretionary employee benefits (e.g., parking at employer’s location);
- Relocation costs for employees hired for the project;
- Patent fees;
- Costs for activities intended to directly influence/lobby governments;
- Direct marketing, business promotion or one-on-one extension types of activities;
- Costs associated with the review of graduate and Ph.D. thesis;
- Supplementary employment insurance benefits for maternity/paternity leave;
- Other costs not specifically required for the Project.
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