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Human Resources and Skills Development Canada

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Guide to Managing Your Contribution Funds

1.0 Introduction

As a recipient of contribution funds, you want to know and understand not only what your roles and responsibilities are, but also the processes and rules that govern how you can spend the funds you receive.

With that in mind, we have designed this guide to help you along the way so that your experience is both productive and trouble-free.

1.1 Contribution funding simply defined

Contribution funding helps organizations like yours conduct activities that support the goals of the government or that advance objectives you share with us.

A contribution is a conditional transfer of funds to an organization for a purpose specified in a formal agreement. This payment is subject to accounting and audit by the Department.

1.2 Eligible costs in a nutshell

Generally, eligible costs include wages and benefits, mandatory employer related costs (MERCS), capital costs, project or activity overhead costs and, in some cases, support for individuals.

Please see "Eligible expenses" in Section 3.5 for a more detailed explanation of allowable expenses.

1.3 Your responsibilities as a recipient

When you receive funding, you enter a formal agreement that entails these responsibilities for you, the recipient:

  • meet the objectives stated in the agreement by the negotiated deadlines;
  • report on your progress and accomplishments;
  • keep accurate financial and activity records, in compliance with your agreement;
  • apply good management practices that allow you to maintain and submit accurate progress reports and financial records;
  • practice "generally accepted accounting principles," which means you make sure that the funds are being used for their intended purpose, that the objectives in the agreement are met, and that your payment claims come with appropriate supporting documentation; and
  • adhere to all applicable Canadian laws and provincial/territorial.

The formal agreement is the tool that allows us to actually support your project; that is why adhering to it (producing the results and outcomes within the established frames and respecting the budget) is essential.

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Date Modified:
2012-01-18