Companion Guide
This resource provides guidance on how to complete the financial report template as part of an Ultimate Recipient’s (UR) quarterly report. NOTE: All expenses claimed must directly support the project. Expenses related to organizational costs may not be considered eligible (see Indirect Costs).
More detailed definitions, including post-award financial information and account information can be found in the NCC’s Call for Proposals Post-Award Guide https://ncc-cnc.ca/wp-content/uploads/2024/07/NCC-Funding-Program-Guide-Post-Award.pdf
Direct Labour (Salaries and Wages)
Direct Labour includes the cost of staff working on project activities that directly support project deliverables, who are paid via the organizational payroll system.
- Costs for staff working directly on the project, including staff working in technical roles within the current reporting period. Note that the hourly rate should be included, not the overall salary (see “Tips and Tricks” for more information).
- Base salary of project staff.
- Temporary, seasonal, or term project staff who are paid via the organization’s payroll system.
- Salaries classified as scholarships/stipends where the student works in a technical capacity to support project milestones and deliverables.
- All matching contributions under Direct Labour must be input as “cash”.
- Staff benefits, including RRSP, the company portion of EI and CPP benefits, and medical and dental costs. These should instead be included in the Indirect Cost Category.
- Overtime costs and staff allowance costs.
- Staff bonuses.
- Executive staff oversight work unless the Executive staff directly works providing technical expertise on project deliverables. All work done by executives should generally be allocated to the Indirect Cost Category, except where circumstances necessitate that the executive assumes a technical role within the project.
- Scholarships/stipends where the student is reimbursed for tuition by a third party, as this would be ineligible under the program guidelines.
- Administrative and support staff costs. These should instead be included in the Indirect Cost Category.
- Hourly Rate: If an employee is paid a salary, the hourly rate can be calculated by taking the annual salary and dividing it by standard annual hours (if the standard work week per employee contract is 40 hrs/week, then annual hours are 40 hours x 52 weeks = 2,080 hours per year).
- Flat-fee salaries: Any project staff paid via flat fee through the payroll system will still require an hourly rate breakdown
- Pay Raises: Pay raises should be reflected in two line items, separating different pay rates. For example, if the claim period is April-June, and the project staff received a raise effective May 1, recipient should make 1 line for April 1-30 hours at old rate, and second line for May 1-June 30 with new rate. Explain any changes in employment in the comments field.
Subcontractors and Consultants Category
Subcontractors and Consultants include costs of individuals or consulting organizations that directly support the project deliverables. This can include both subcontractors fees, but also equipment purchased by subcontractors on behalf of the project. These costs are invoiced, and not paid through the organization’s payroll system.
- If only a portion of the invoice is being claimed against the project budget, please explain in the “comments” section, and included the % allocation of the cost, if applicable. For example, including “Partial claim of $2,000 due to other non-project work included in invoice”, or “Including 50% of the invoice, as this cost was divided between the project and another business initiative” would provide context for reviewers.
- Please note that any matching contributions that fund subcontractor wages should be classified as “cash”. Any equipment purchased via the subcontractor specifically for the project should be classified as “cash”. Any equipment that is rented or borrowed (i.e. not specifically purchased for the project) should be classified as “in-kind”.
- Canadian sales tax (HST, GST, PST, QST).
- Other currencies: For expenses incurred in currencies other than CAD, please include currency and exchange of the transaction in the provided columns (columns K & L in the Direct Expenses category).
Other Direct Expenses
Other Direct Expenses includes remaining direct costs that directly support the project deliverables. These include direct materials and consumable costs, any commercialization activities (e.g., product demonstration, market research, focus groups, patents, trade shows, customers/end users meetings)., and other direct incremental costs.
- If only a portion of the invoice is being claimed against the project budget, please explain in the “comments” section, and included the % allocation of the cost, if applicable. For example, including “Partial claim of $2,000 due to other non-project work included in invoice”, or “Including 50% of the invoice, as this cost was divided between the project and another business initiative” would provide context for reviewers.
- Please note that any items purchased via matching contributions should be classified as “cash” if the item was purchased or rented specifically for use on the project. Any items that are borrowed or donated for the project should be classified as “in-kind”.
- Canadian sales tax (HST, GST, PST, QST).
- Office supplies, stationery, postage, general software and licensing costs. These should generally be allocated to the Indirect Cost Category.
- Recruitment fees and associated costs would not be eligible under the program.
- Other currencies: For expenses incurred in currencies other than CAD, please include currency and exchange of the transaction in the provided columns (columns K & L in the Direct Expenses category).
Equipment
Important: Total equipment costs cannot exceed 20% of the NCC grant.
The equipment category includes the cost of items that specifically support the success of the project deliverables. This includes either purchasing or leasing computer or special purpose equipment or infrastructure. This category also includes costs to modernize or update existing equipment to support the project deliverables.
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- If only a portion of the equipment is being claimed against the project budget, please explain in the “comments” section. If this portion being claimed is a percentage of the total cost, please include the percentage being claimed in the “comments” section.
- Please note that any items purchased via matching contributions should be classified as “cash” if the item was purchased or rented specifically for use on the project. Any items that are borrowed or donated for the project should be classified as “in-kind”.
- Canadian sales tax (HST, GST, PST, QST).
- General equipment for the organization that has not been specifically purchased or modernized to support the project’s success.
- Extended warranties – these should be included in Indirect Costs.
Travel and Outreach
The Travel and Outreach Category includes costs that are directly related to supporting the project deliverables and the overall project success. This does not include organizational travel and promotion costs that don’t specifically support the project.
- All travel expenses (airfare, accommodation, meals, incidentals, mileage) that directly support the project, including those outside of Canada.
- Local taxes incurred outside of Canada associated with the costs listed above.
- Please note that most travel purchased via matching contributions funds would be considered as “cash”. However, if an event is sponsored by another organization (i.e. free passes, travel arrangements are provided), then that cost would be considered an “in kind” matching contribution.
- Canadian sales tax (HST, GST, PST, QST) for travel within Canada.
- Travel insurance – these costs should be included in the Indirect Cost category.
- Seat upgrades – this is not eligible
- Costs of regular daily commuting, alcoholic beverages, valet parking, costs for passport issuance, unless it is for urgent and required travel, costs for drivers’ licenses, in-flight movies and refreshments, hotel room movies and mini-bar service, personal articles (i.e., toiletries, magazines, etc.), laundry service, and credit card fees for cash advances when using a personal credit card.
- Expense caps: Travel costs must adhere to the National Joint Council directive (appendices B & C) or Treasury Board Secretariat policies. Costs that exceed these recommendations may not be validated in full.
- Cancellation: Trip cancellation costs (i.e. hotel, flight, etc.) are generally not considered eligible costs.
Outside of Canada Costs
Important: Cannot exceed 10% of the NCC Grant.
- Non-Canadian staff outsourced to work directly on supporting project deliverables outside of Canada.
- Paying non-Canadian researchers to work directly on supporting project deliverables outside of Canada.
- Using non-Canadian equipment to directly support project deliverables outside of Canada.
- Local taxes incurred outside of Canada associated with the costs listed above.
- Please note that any matching contributions that fund non-Canadian staff wages working outside of Canada should be classified as “cash”. Please note that any items purchased via matching contributions should be classified as “cash” if the item was purchased or rented specifically for use on the project. Any items that are borrowed or donated for the project should be classified as “in-kind”.
- Travel costs for Canadian residents for trips outside of Canada. These should be entered in the Travel and Outreach Category and should not be included in “Outside of Canada” costs.
- Any registration costs for outside of Canada (international) events should not be included in Outside of Canada costs but instead in either Other Direct Expenses or Travel and Outreach as appropriate.
Indirect Costs
Important: These costs cannot exceed 15% of the Total NCC grant.
The Indirect Cost Category includes costs that are not directly required to carry out the project. This category includes overhead costs and administrative costs. Note that use of this category is up to the discretion of the awarded project, and that no details/receipts are required as supporting documentation. Please note that staff benefits, including RRSP, medical and dental costs, should be included in this category.
Matching contributions: Please note that any benefits or employee bonuses paid via matching contributions should be classified as “cash” contributions. Any items purchased via matching contributions should be classified as “cash” if the item was purchased or rented specifically for use on the project. Any items that are borrowed or donated for the project should be classified as “in-kind”.
- Non-technical project staff costs (administrative, support staff).
- Executive staff project oversight costs.
- Overhead and administrative costs.
- Project staff bonuses.
- Project staff benefits, including RRSP, medical and dental costs.
- Travel insurance for project travel.
- Office supplies, stationary, postage, general software and licensing costs.
- General organizational costs that don’t benefit the project.
- Canadian sales tax (HST, GST, PST, QST).
- Recruitment costs or fees.
- If your total NCC Grant amounts to $100,000, then your Indirect Cost cannot exceed $15,000, or 15% of total NCC Grant amount.
- Office supplies, stationery, postage, general software and licensing costs should generally be allocated here.
- Please refer to your URA for a comprehensive listing of eligible and ineligible expenses.
- Please note that Indirect Costs cannot exceed 55% of direct labour over the Total Project Cost.