AgriScience Program – Projects: Applicant guide annexes

Annex A: How to apply

General information

1. Complete the project application form by downloading and saving the form to your computer.
2. Use the step-by-step instructions below to help you complete your application form, including the project work plan and budget.
3. See section 1.1.6 for a list of all additional required documents to ensure you have all the documentation needed to complete your application package.
4. Attach the documents to your form and submit.

If you experience any trouble submitting your application, or if you prefer to apply by mail or email, please contact us by telephone at 1-877-246-4682.

For technical assistance submitting your application, or at any time during the application process, you can access the technical help file by clicking on the information icon located throughout the project application form.

PDF forms

If you have problems opening a PDF form in your Internet browser, you need to:

• Use your computer. The forms may not open on mobile devices (iPads, tablets, mobile phones).
• Make sure you have Adobe Reader 11 (or higher) already installed on your computer. If not, download Adobe Reader 11 or higher for free. Adobe has help for solving common issues.
• You must save the file on your computer in a place you can remember.
• Open the file on your computer using Adobe Reader 11 or higher.
• If you can't open the form with Adobe Reader 11 or higher, contact the program.

How to download and open a PDF form

• Microsoft Windows Operating System computers using "Internet Explorer" or "Microsoft Edge" as your browser

  1. Right-click on the link you want to save
  2. Select "Save target as" or "Save link as"
  3. Choose the location on your computer where you would like to save the file
  4. Select "Save"
  5. Open Adobe Reader 11 or higher
  6. Select "File"
  7. Select "Open"
  8. Go to the location where you saved the file
  9. Select the PDF file
  10. Select "Open"
• Microsoft Windows Operating System or Apple computers using "Chrome" or Firefox" as your browser

  1. Right-click on the link you want to save
  2. When the option menu appears, choose "Download link file" or "Download link file as"
  3. Choose the location on your computer where you would like to save the file. Your computer will start the download once you have selected a location.
  4. Open Adobe Reader 11 or higher
  5. Go to the location where you saved the file
  6. Select the PDF file
  7. Select "Open"

1.0 How to complete an application

1.1.1 Applicant information

Agriculture and Agri-Food Canada (AAFC) will use the information you provide in this section to establish your organization's identity.

Organization type

See section 1.2 of the Applicant Guide to determine if you are eligible to apply under this program.

Legal name

Your organization's legal name, as it appears in legal documents such as articles of incorporation.

Operating as (if used)

Enter the name under which your organization operates, if that name is different from its legal name.

Canada Revenue Agency business number

A Canada Revenue Agency (CRA) business number is a nine-digit number that gives each registered business its own unique identifier. For more information on obtaining a CRA business number, visit the CRA's business number web page.

If you do not have a CRA business number, or do not wish to share it at this time, enter nine zeros (for example, 000000000).

Primary contact

Enter the contact information of the person in your organization who is responsible for responding to inquiries regarding this application.

Project contact

If your project is approved for funding, this is the person who will be liaising with AAFC during the project. This person can be the same as the primary contact.

Mailing address

Provide the complete address of your organization's headquarters.

Primary project location

The primary location the Project will take place other than your organization's headquarters, if applicable.

Organizational capacity

AAFC will use the information you provide in this section to understand more about your organization and assess your ability to carry out this Project.

How many employees work for your organization?

Include the number of all full-time and part-time employees on your organization's payroll. Do not include contractors.

Describe your organization

Provide your organization's mandate and priorities. Include a brief history of the organization including any significant changes in the past two years (such as, a significant increase/decrease of staff, changes to executive leadership, including the Board of Directors, a change in mandate, etc.).

Does the mandate of your organization focus on any of the following groups?

This question is for statistical purposes and may be used for assessment.

Indigenous	Individuals who are: registered on a band list registered as an Indian under the Indian Act living both on or off reserves or, Indigenous communities and governments such as: band and tribal councils governments of self-governing First Nations local governments of Inuit communities Métis organizations
Persons with disabilities	The Employment Equity Act defines persons with disabilities as persons who have a long-term or recurring physical, mental, sensory, psychiatric or learning impairment and who: consider themselves to be disadvantaged in employment by reason of that impairment believe that an employer or potential employer is likely to consider them to be disadvantaged in employment by reason of that impairment Includes persons whose functional limitations owing to their impairment have been accommodated in their current job or workplace
Visible minorities	The Employment Equity Act defines visible minorities as persons, other than Aboriginal peoples, who are non-Caucasian in race or non-white in colour
Women	Individuals who are born female or who identify as female
Youth	Individuals aged 30 and under
Not applicable	Use this section if the mandate of your organization does not focus on any of the above-listed groups
Decline to identify	Use this section if the mandate of your organization might focus on one of the above groups, but you don't want to disclose that information at the time of your application

Previous funding

Please identify if you or your organization has previously received funding from AAFC since April 1, 2013. If yes, list the program(s) from which you've received funding.

Capacity to deliver this project

This long-form response should answer the following questions:

• Has your organization managed other projects on a similar scale to this proposed Project application? If so, briefly describe the past projects.
• What resources do you have to ensure this proposed Project will be successful (for example, human resources, financial management practices etc.)? Expand on the following:
  • Who will provide overall Project management for this Project? Include the name and some background about the Project Lead.
  • Who will be providing overall research coordination?
  • Who will conduct financial management, including the AAFC financial reporting requirements process under the Contribution Agreement (CA)?
  • Who will monitor and report on Project performance?
  • Who will lead communication, knowledge and technology transfer?
  • What other technological and operational staff will be involved?

1.1.2 Project information

AAFC will use the information in this section, in association with your Project work plan and budget to do a full assessment of your project.

Project title

Provide a brief project title that accurately reflects the activities and results of the Project.

Project objective

This short-form answer should be a concise summary of your Project (in other words, how would you briefly describe your project at a high-level to a non-technical friend or colleague who is not well versed on the subject, or on social media).

Please note that if your Project is chosen for funding, this summary may be published on Government of Canada websites.

Project purpose

Your answer to this long-form question should:

• explain how the Project will address an industry need and/or priority
• describe how this project aligns with the Program and its objectives and priorities listed in the main section of the Applicant Guide
• describe how your project meets the priorities of AAFC or broader government priorities stated in the Applicant Guide
• describe the expected results of the project and the benefits to agricultural stakeholders (in other words, producers and processors) and other Canadian stakeholders

Environmental considerations

1. Is your Project on Federal Land?

   All projects must comply with the Canadian Environmental Assessment Act 2012 (CEAA 2012), the applicability of which will depend on the type of activities being undertaken as part of the project and the project location. To help us determine this, you are asked to indicate whether the project is on federal land. Under CEAA 2012, federal land means:

   1. lands that belong to Her Majesty in right of Canada, or that Her Majesty in right of Canada has the power to dispose of, and all waters on and airspace above those lands, other than lands under the administration and control of the Commissioner of Yukon, the Northwest Territories or Nunavut;
   2. the following lands and areas:
      1. the internal waters of Canada, in any area of the sea not within a province,
      2. the territorial sea of Canada, in any area of the sea not within a province,
      3. the exclusive economic zone of Canada, and
      4. the continental shelf of Canada; and
   3. Reserves, surrendered lands and any other lands that are set apart for the use and benefit of a band and that are subject to the Indian Act, and all waters on and airspace above those reserves or lands.

2. Have you received, initiated, or do you anticipate requiring any local, provincial, territorial, federal environmental authorizations related to this project (this does not include electrical, hydro or gas permits)?

   If a project is on federal land, additional legislative requirements such as permits or authorizations may be needed before a project can begin. AAFC staff will follow-up with you for further details and/or to clarify, as required.

   You are also asked to indicate in the application form whether you have or will obtain federal, provincial, territorial or municipal environmental authorizations or permits, for example a municipal wastewater discharge authorization. Copies of these authorizations or permits might be required by AAFC during the application assessment.

   If you have applied for any of the above mentioned permits, provide details on whether the project has any environmental effects and risks. Positive or negative environmental effects and risks can include those related to air emissions, soil erosion, noise, effluent, waste water, solid waste, odour, construction, rare species and habitat, nearby bodies of water, and any other public concerns. AAFC reserves the right to request additional information.

3. Does the Project pose any risks or result in any environmental effects, including any positive or negative effects on the surrounding environment?

   Environmental effects could include those related to air emissions, noise, effluent, waste water, solid waste, odour, soil erosion during construction, rare species, species habitat, nearby water bodies, and any public concern.

1.1.3 Project data collection

We will be using the following questions for assessment and reporting purposes. The purpose of collecting this information is to align the program funding to areas where there may be gaps and to avoid duplication of Project activities across the program. Note however that each Project is assessed based on its own merit and the impact and relevance of the results for Canadian agriculture and citizens.

North American Industry Classification System

North American Industry Classification System (NAICS) is an industry classification system developed by the statistical agencies of Canada, Mexico and the United States.

For more information, visit North American Industry Classification System (NAICS) Canada 2017 Version 1.0.

The NAICS identifiers that best suit this program have been selected for assessment and reporting purposes. The list has been narrowed down to selected options under one of the following categories:

• Agricultural Production
• Food and Beverage Manufacturing
• Other Manufacturing
• Other

We recognize that not all Projects will fit perfectly into one identifier; if this is the case for your Project, select the identifier that best defines the overall intent of your Project, or the identifier that best defines the activity with the highest dollar value.

Select any of the following groups who will directly benefit from the intent of this Project's activities

• Indigenous
• persons with disabilities
• visible minorities
• women
• youth
• not applicable
• decline to identify

Official languages

AAFC is committed to enhancing the vitality of official language minority communities (OLMCs), supporting and assisting their development, and promoting the full recognition and use of both English and French in Canadian society.

If approved, would your project activities reach an audience of both English-speaking and French-speaking individuals or groups?

OLMCs consist of Francophones outside Quebec and Anglophones in Quebec. These communities are often represented by provincial and regional organizations.

If approved, would your project activities specifically target an official language minority community (French-speaking people outside Quebec or English-speaking people in Quebec)?

When it is determined that projects under this program involve activities related to the development and transfer of knowledge and may have an impact on OLMCs or promote the use of English and French, AAFC will include appropriate linguistic commitments in agreements with your organization and ensure that additional expenses incurred as a result of these commitments are considered eligible for contribution funding.

Activities can include, but are not limited to:

Communications

• Project web pages and/or project social media account(s) produced and maintained in both official languages
• Project materials offered in both official languages (brochures, kits, handouts, newsletters, reports, etc.)
• Project-related advertisement in OLMC media (newspapers, radio, social media)
• Bilingual coordinator or other contractor hired to help deliver project-related activities in both official languages (such as, a master of ceremony for a project event or a simultaneous translator)
• Distribution of invitations in both official languages
• Knowledge transfer activities as listed in the applicant guide

Outreach

• One or more OLMCs are included in the project target groups (for example, as in-kind or cash partners in project budget or to be invited to project events)
• Other groups representing OLMCs are consulted to see if there is any potential for involvement on their end
• Travel to or from OLMCs (costs associated with these project activities included in project budget)

If funded, your organization may be required to publicly acknowledge AAFC's support for the project. In these cases, the department may request that such acknowledgments include text in both official languages.

Attachments

Refer to section 1.1.6 for a description of documents required with your application.

1.1.4 Work plan instructions

Applicants must complete a work plan for each activity.

Please follow the instructions below when completing the work plan section of your application.

Overall direction

• Activity numbering
  • Science Coordination, described below, must be Activity 1
  • Where an activity is being done in partnership by both AAFC and industry, separate the work to be performed by AAFC under its own separate activity number. The first of the two should represent the portion led by the Principal Investigator. Please include a detailed description of the work performed under each Vote.
• Science Coordination

  • Science Coordination involves the coordination of science and research activities such as coordinating and liaising with the Principal Investigators who lead Project research activities, aligning research with Project research strategies and reviewing research results, etc. Science Coordination can include salaries/benefits, travel, contracted services and other direct project costs (not capital). Where an employee/contractor conducts project management or administration duties as well as science coordination, their time must be split between Administrative time and science coordination time. No additional administrative time/costs (such as those listed under Administrative cost items, including project management or preparing performance reports) may be charged under science coordination.

    Your application must include a detailed description of what is to be included in this activity along with a justification for the costs. Note that projects with a low number of activities or low complexity may not require a science coordination activity, therefore a separate activity or separate costs may not be required for your Project. Should your project be approved, costs approved under the science coordination activity will be treated as the maximum amount payable for that activity under the agreement.

• Knowledge and technology transfer activities

  • To ensure that knowledge and technology resulting from investments in science better reach the end user and are readily available, Science Projects are encouraged to address knowledge and technology transfer (KTT) in their application.

    While KTT related to scientific dissemination (for example, academic publications, conference papers, scientific lectures) directly related to an activity may be addressed within each respective activity, specific KTT activities should outline the steps that will be taken to efficiently transfer the knowledge, technology and results to the whole sector beyond the scientific community, leading to adoption by producers and/or processors.

    Examples of eligible KTT activities include:

    • dissemination of results to producers (such as field days, demonstrations, case studies, videos and other formats to help sector leverage results of funded initiatives)
    • technology transfer collaborations that seek to further research, development, and commercialization
    • publications, media outputs and other initiatives meant to reach a broad audience and improve the potential for adoption

Step-by-step work plan guidance

• For Activity 1, Science Coordination
  • fill in the start and end date; the dates should span the full timeline of the Project
  • explain your science coordination activities and who will fill this role
• For research activities, starting at Activity 2
  • fill out the activity name, number, start date and end date (March 31, 2023 or earlier)
  • select whether the work will be undertaken by AAFC [Collaborative Research and Development Agreement (CRDA)] or industry/other (CA)
  • provide the name of the Principal Investigator and the organization they represent
  • select the primary location of the activity and fill in the city and province
• Description
  • explain what the activity aims to achieve (activity objective)
  • describe the work to be undertaken (in order to meet the objective), including detailed research methodology and the expected results
  • clearly explain and provide detail that addresses program priorities, program principles, program assessment criteria, etc.
  • include any relevant activity risks and appropriate mitigation measures
  • add any other pertinent information
• Deliverables
  • provide a breakdown of the activity deliverables (and, if available, indicate by fiscal year (April 1-March 31)

1.1.5 Funding details, project costs and sources of funding

Funding details

Cost-sharing under your Contribution Agreement (Vote 10)

Your portion of the cost-share can be comprised of both cash contributions and in-kind contributions. In-kind contributions can only account for a maximum of 10% of total Project costs under the CA.

Cost-sharing under your Collaborative Research and Development Agreement (Vote 1)

Your portion of the cost-share is made as a direct payment to AAFC. On a case-by-case basis, AAFC may consider your resources as part of your cost-share up to 10% of the total project costs under the CRDA.

Science Service charge under your Collaborative Research and Development Agreement

AAFC has streamlined the rates it charges for CRDA projects to a single 10% science service charge. This charge will be applied consistently to all vote 1 allocations and collaborator contributions that support the CRDA activity. These charges will be collected by Science and Technology Branch at the centre where the science activity is taking place. When completing the Project costs for a CRDA activity, you would list this charge under “Other Direct Project Costs”. This service charge can be cost-shared, at the cost-sharing ratio of the Vote 1 project.

This charge covers additional variable and fixed cost items needed to conduct work under the CRDA, including:

• variable expenses associated with the use of common research infrastructure/facilities that have a direct relation to the project; these costs are itemized directly in the scientist's budget and are paid to the AAFC research centre to help support basic maintenance of facilities, field plots, greenhouse and growth chambers, etc.
• fixed costs that enable science activities, such as:
  • maintenance of movable and immovable capital supported by the Department (for example, tractor purchases and repairs)
  • summer students for general farm duties
  • maintaining animal units and plot land in rotation in between experiments
  • laboratory costs and regular maintenance and repair of common use equipment

Step-by-step project costs and sources of funding guidance:

Project costs

• Select an Activity and enter each cost item and its description
• Select a cost category and enter the costs by fiscal year
• To add a new cost item, select "+"; to delete an item, select "x"

Sources of funding

• Under Sources of funding identify:
  • your cash contribution for your CRDA (if applicable)
  • all sources of funding for all CA activities, including those from the Applicant Directly, Other Government Funding and Industry/Partners

For more information on funding details, eligible costs, eligible cost dates, and definitions of cash and in-kind contributions, refer to Annex B: Cost categories.

1.1.6 Additional documents

In addition to the application form, including the work plan and budget, the following documents are required as part of a complete application package:

Document name	Description
Signature of applicant authorized representative form	Applicants must have their authorized representative(s) sign and attach this form.
Executive summary	A brief summary that links proposed activities to the Project objectives and priorities.
A copy of the applicant organization's Certificate of Incorporation or Articles of Incorporation (only required if you are applying to the Program for the first time or if there have been changes to your incorporation since first provided)	Certificates and Articles of Incorporation are issued and filed, respectively, by or with provincial, territorial or federal government that document the applicant's status as a legal entity.
Financial statements	Statements for the last two years (Audited or Review Engagement)* *Where the Applicant has been in business for fewer than two years (such as a start-up), other financial information may be considered. Examples of what you would be expected to provide include: Notice to Reader financial statements confirmation of debt or equity closing and funds availability bank statements (to verify cash availability) attestation from corporate officers of funds availability
Letters of Financial Support	Letters outlining confirmed financial support (cash or in-kind) from all financial contributors to the project, other than the Applicant organization (that is, other industry groups or other government*) must be provided. *On a case-by-case basis, letters outlining pending support may be accepted from other governments.
Letters of Acknowledgement From all research organizations identified in the Application, Work Plan or Budget (includes AAFC and organizations external to AAFC)	For AAFC: Letters from AAFC Directors responsible for work to be conducted by AAFC personnel are required. These will solely confirm that the scientific and technical capacity is available to conduct the work, should the project be approved, and would not infer an acceptance/approval of the proposal. External to AAFC: The letters must make specific reference to the proposed activities in the Work Plan, and confirm their availability to do the work within the proposed timeframe. Letters must come from a senior executive authorized to sign the letter on behalf of the organization.
Project Endorsement Letters/ Letters of Support (if available, not a requirement)	Letters of support from organizations indicating they believe there is a need for the proposed project and expressing hope that the proposed project will be accepted.
Capital Asset Pre-approval (PDF)	For Capital Costs to be purchased for the Project that are $100,000 or more.

1.2 What you must declare

Unpaid debts to the Government of Canada

The recipient of AAFC funds must declare any amounts owing to the Government of Canada. Any amounts due to the recipient under AAFC programs may be set off against any such amounts owing to the Government of Canada under any agreement or any legislation with the Government of Canada.

Lobbying activities

The applicant must ensure that a person lobbying on behalf of the applicant is registered and in compliance with the Lobbying Act.

More information on the obligations in the Lobbying Act can be found on the website of the Commissioner of Lobbying of Canada.

Conflict of Interest

Current or former public servants or public office holders are required to avoid conflict of interest situations while employed by the federal government, and for a period of time following their service. The Applicant acknowledges that any individuals who are subject to the provisions of the Conflict of Interest Act, the Values and Ethics Code for the Public Sector, the Conflict of Interest Code for Members of the House of Commons, any applicable federal values and ethics code or any applicable federal policy on conflict of interest and post-employment shall not derive any direct benefit resulting from this application unless the provision or receipt of such benefit is permitted in such legislation, policy or codes.

Consent for Use, Disclosure and Copyright

Personal information will be treated and disclosed in accordance with the Privacy Act. You have the right to access your personal information held by Agriculture and Agri-Food Canada and to request changes to correct personal information by contacting the AAFC Access to Information and Privacy Director at aafc.atip-aiprp.aac@agr.gc.ca.

For more information about AAFC's privacy practices, you may refer to the following Personal Information Banks: Public Communications PSU 914 and Outreach Activities PSU 938.

Business information will be disclosed in accordance with the provisions of the Access to Information Act.

For information about the Privacy Act and the Access to Information Act, visit Privacy Act and  Access to Information Act. For further information about these Acts please contact the Access to Information and Privacy Director at aafc.atip-aiprp.aac@agr.gc.ca.

Copyright permission

AAFC may disclose, reproduce and distribute any part of or the whole of the documentation provided in or with the Application Form, within AAFC and to its authorized third parties, including other Government Departments, for purposes consistent with the receipt, assessment and subsequent treatment of the Application.

1.3 Submit

Once you have completed your application form and all the additional documents, please submit your project application.

For more information on the AgriScience Program – Projects Component, please contact us by:

Email: aafc.agriscienceprogram-programmeagri-science.aac@agr.gc.ca
Telephone: 1-877-246-4682
TDD/TTY: 613-773-2600

Mail:
Agriculture and Agri-Food Canada
AgriScience Program
960 Carling Ave., CEF Building 97
Ottawa, ON K1A 0C6

Annex B: Cost categories

Financial Reporting

You will be required to submit claims for eligible costs incurred and paid in accordance with the terms and conditions of your Contribution Agreement (CA). Each claim will need to be supported by documents and invoices of the costs being claimed and certified by your authorized official. Agriculture and Agri-Food Canada (AAFC) will make payments based on expenses deemed to be eligible project costs as per this Annex.

Advances may be made available based on AAFC's assessment of the project risk and where need is substantiated.

Should your project be approved, please ensure that you have fully understood the reporting requirements for your expenses before signing a contribution agreement with AAFC.

Note that costs incurred under a CRDA will not be paid to the Receipient/Colloborator, but will be transferred to the appropriate centre within AAFC.

Cost categories

The following Cost Categories provide details on costs and requirements that will be necessary at the application stage and the financial reporting stage, should your application be approved and a Contribution Agreement signed.

Timing limitations for costs:

Any costs incurred before April 1, 2018 or after March 31, 2023 are ineligible for reimbursement under a Contribution Agreement and will not be accepted under a Collaborative Research and Development Agreement (CRDA).

If your Project is approved, AAFC may consider eligible costs incurred during the review period, on or after April 1, 2018, to be eligible. However, only eligible costs incurred after an application package has been deemed complete by AAFC will be considered. It is very important that you understand that in these cases, eligible costs cannot be reimbursed under a CA until a signed CA is in place, therefore these costs are incurred solely at your risk.

1.1 Administrative costs

Administrative costs will be calculated automatically at a flat rate of 10% based on the total Vote 10 (CA) activity costs* in the budget. This flat rate will cover costs of project management and administrative staff salaries (managing and reporting), use of office accommodations, use of office equipment and use of office materials.

These administrative costs will be subject to the cost-sharing ratio of the Project. Should your Project be approved, the 10% flat rate will be applied to your actual eligible costs* when you submit your financial reporting against your CA expenses.

*Capital asset costs for items with a value of $100,000 or more are excluded from the 10% flat rate calculation.

The following list identifies costs that would be covered in the flat rate. These costs cannot be charged under salaries and benefits or other direct project costs.

The costs include, but are not limited to the following:

Administrative cost items

Project management and administration salaries and benefits:

• salaries, including contracted services, for project management and administration staff who perform tasks such as pay the Project related invoices, negotiate service contracts, manage the Project budget, and/or prepare any financial and/or performance/progress reports for the Project
• benefits for project management and administration staff such as Mandatory Employment Related Costs (MERCs), Employment Insurance (EI), Canada Pension Plan (CPP), Quebec Pension Plan (QPP), vacation pay

Administrative costs related to:

• audit fees related to the organization's financial statements
• bank fees
• insurance (fire, theft, liability)
• membership fees
• legal fees

Administrative office supplies and expenses:

• basic telephone fees (including fax lines) and cell phones
• hydro
• materials and office supplies (such as pens, pencils, paper, envelopes, cleaning supplies, subscriptions)
• monthly internet fees
• postage and courier fees
• office equipment (like computers, printers, photocopiers)
• office administrative space (that is, rent for administrative space) and related utilities, maintenance and property taxes
• use of administrative information technology (IT) products and services, including maintenance
• other overhead type expenditures relating to the organization's office

Note: Administrative costs are not applicable to CRDA (Vote 1) activities.

1.2 Cost Categories

Other costs beyond Administrative costs must fall under one of these categories:

• salaries and benefits
• contracted services
• travel
• capital expenditures
• other direct project costs

Salaries and benefits

Eligible cost items

Salaries and benefits directly related to completing the activities of the work plan, other than those covered under Administrative costs

Timesheets:

• will not be required for an employee who is 100% devoted to the Project
• will not be required for people under contract including research agreements
• are required for an employee of the recipient organization who shares their time between Project specific work and organizational work

Limitations/ineligible costs

• benefits will be considered up to 25% only and would include the employer's portion of CPP, QPP; EI; group insurance, vacation pay and pension benefits
• losses to investments or pensions due to stock fluctuations or other unforeseen events will not be eligible
• performance pay (such as a bonus), severance pay and retiree settlements are not eligible
• discretionary employee benefits (for example, parking at employer's location, gym membership fees, daycare costs, etc.) are not eligible
• relocation costs for employees hired for the Project are not eligible
• for Provincial, Territorial and Municipal government employees, only incremental salaries/benefits are eligible (full-time employee salaries/benefits are not eligible); other restrictions may apply

Contracted services

Eligible cost items

Professional or specialized services for which a contract is entered into, such as:

• research agreements
• consultant/expert services
• science co-ordination services

Limitations/ineligible costs

• all services, including research work should be established under a contract or a research agreement
• Recipients must use a fair and competitive or otherwise justifiable and generally accepted sound business process that results in competent and qualified contractors working on the Project activities
• all such contracts or research agreements should include payment terms, and detailed budgets
• overhead costs cannot exceed 15% of total eligible costs invoiced
• contracts for project management and administration services may be used, however these costs will be considered Administrative costs (in other words, they are included in the 10% flat rate and are not eligible for additional reimbursement)

Travel (based on a Agriculture and Agri-Food Canada directive – subject to periodic change)

Eligible cost items

Travel costs directly related to the Project, such as:

• meals, incidentals and accommodations on a per-diem basis
• transportation (air or ground)

Who can claim travel costs:

• staff travelling for Project related activities
• visitors to Canada for the purpose of Project related activities
• workers travelling to Project sites or meetings (ground and air transportation)

Limitations/ineligible costs

• only economy airfare for travel is eligible; bookings should be made as far in advance as possible; seat selection and baggage costs are eligible (upgrades are not eligible)
• if a higher class is purchased, proof of the flight's economy rate must be obtained for reimbursement purposes
• for ground transportation by car, other than when on travel status (like field site visits or meetings when not on travel status), a rate of up to $0.55 per kilomtre (km) will be accepted regardless of the province or territory
• travel insurance (such as medical, accident, cancellation) is not eligible
• non-essential options for rental vehicles (such as GPS and roadside assistance) are not eligible
• travel and accommodation expenditures for federal government employees are not eligible
• hospitality is not eligible under this program

Refer to the Travel section below for more information

Capital expenditures (based on a Agriculture and Agri-Food Canada directive – subject to periodic change)

Eligible cost items

Capital Assets are tangible assets that are purchased, constructed, developed or otherwise acquired and:

• are required for the execution of the Project
• have a useful life extending beyond one year and are intended to be used on a continuous basis
• are not intended for resale during the life of the Project
• the cost of which is considered to include the purchase price plus other acquisition costs, such as installation costs, freight charges, transportation insurance costs, duties, and the non-refundable portion of provincial sales taxes, GST\HST or other value-added taxes
• require AAFC pre-approval for costs over $10,000

Examples specific to this program:

• research equipment
• computers and specialized software
• prototypes

Limitations/ineligible costs

• the purchase of land or buildings are not eligible
• the purchase or lease of private/personal vehicles are not eligible
• assets and capital items not specifically required for the execution of the Project are not eligible
• each capital cost estimated at $100,000 or more to be included in the Project budget must be accompanied by a pre-approval form at the time of application
• each capital cost item estimated between $10,000 and $100,000 also requires pre-approval by AAFC, but can be submitted after approval of the Project, before a contribution agreement is signed
• pre-approval by AAFC applies regardless of how it is cost-shared between AAFC, and other sources

Refer to the Capital Assets section below for more information

Other direct project costs

Eligible cost items

• shipping
• translation
• conference or registration fees
• knowledge transfer associated costs
• costs associated with the review of graduate and Ph.D. thesis
• stipends

Limitations/ineligible costs

• any government related fees such as visas, patents, etc. are not eligible

Other ineligible project costs include, but are not limited to:

• normal costs of establishing a commercial operation
• costs for activities that are deemed to be part of normal business practice for any Recipient
• costs for activities intended to directly influence/lobby governments
• costs related to marketing activities and business promotion
• hospitality costs are not eligible under this program
• costs to prepare the Contribution Agreement or related schedules
• other costs not specifically required for the Project

1.3 Contracted Services

Requirements

1. Costs incurred by Universities or other contractors must be reported under the "Contracted Services" category and must contain sufficient detail on the invoice to establish the cost category of the expense and alignment with the contract signed.
2. Overhead costs under contract
   • overhead cannot exceed 15% of the total eligible costs invoiced by the University or research service provider
   • overhead is calculated as an additional 15% cost on goods/services (that is, as an example: $10,000 cost of services × 0.15 = $1,500; for a total invoice, including overhead, of $11,500)
   • overhead costs are indirect expenditures incurred by a University or research service provider, which are required for the research activities, but are not specifically identified as Project activity costs; these costs relate to the use of the organization's resources, which may include, but are not limited to:
     • information technology support
     • internet, telephone
     • use of photocopiers, fax machines, and other office equipment
     • use of existing workstations, including furnishings and equipment (for example, computers or scanners)
     • normal office software (not including software specifically required to conduct Project activities)
     • memberships and subscriptions
     • staff recruitment and training
     • routine laboratory and field equipment maintenance (such as oil changes)
     • building occupancy and operating costs (that is, the use of the workspace)
     • facilities maintenance
     • administrative support (such as accounting, payroll administration, meetings)
3. Down payments or advance payments in contracts
   • down payments or advance payments due to contractual obligations are allowed to be claimed
4. Contracts, including research funding agreements
   • should be rigorous enough to ensure that payments will be subject to costing details and timing of incurred costs
   • to assist with the verification of expenditures, Recipients may be required to share with AAFC, a copy of service contracts for work conducted under the Project

Guidance^{Footnote *}

For many approved Science Projects, a significant portion of the work will be completed under contract by Universities or other organizations on behalf of the Recipient. To better ensure that the work is aligned with the requirements of the CA, it is recommended that the following points be considered before putting in place a contract/agreement with a service provider:

• the Recipient is not an agent of Her Majesty the Queen or the Government of Canada
• the Recipient is fully responsible for funds disbursed, including costs paid to service providers (such as Universities)
• it is the responsibility of the Recipient to ensure that both you and AAFC are only paying for eligible Project-related costs under contract
• work required to complete your Project is considered to be work under contract if it is not work performed by your organization
• as the CA is an agreement between you and AAFC and not with any other organization (such as service providers), there should be no reference to "the Minister, AAFC or the Crown" anywhere in your contract/agreement between you and any other party who performs work for the Project
• while the CA lists requirements, terms and conditions that you must follow, it should not be used as a template for your contracts/agreements with other parties
• there is a difference between an agreement to fund a Recipient and an agreement to allow a Recipient to further distribute funds to other ultimate Recipients; to be clear, the CA you sign with AAFC is an agreement with you and not your contractors (in other words, accountability for the Project and its activities rests with you)
• AAFC may only undertake a Recipient audit with the Recipient, as per the agreement, not with the service provider; again, the service provider is your responsibility
• it is recommended that you keep written procedures of your contracting or procurement practices and of the process regarding validation of expenses (such as sampling) of other service providers or contractors; these documents may be helpful in satisfying an auditor that the practices of your organization are clear, understood and followed by your employees
• sampling done by you to verify details of a service provider's invoice should be done on a risk-based approach (as an example, a 10% sampling of details of costs on an invoice)

What to include in a contract or an agreement^{Footnote *}

The terms of written contracts between the Recipient and service providers who conduct research on behalf of the Recipient should address the following:

• specific details of the work being done, who is doing the work and what will be delivered
• clear milestones and timelines for the completion of the work
• detailed breakdown of the budgeted costs (such as hourly/daily rates for salaries and number of positions, list of required supplies and related costs)
• invoicing details, including when invoices are to be submitted and the level of detail they should contain to ensure that the costs invoiced can be verified by the Recipient for eligibility and reasonableness
• the sampling process to be used to confirm costs; it is recommended that the Recipient establish a sampling process based on risk
• reporting requirements (such as financial, progress and performance reporting)
• the right to access all Project related documentation
• other responsibilities agreed upon between parties, including financial roles and contact information
• the provisions, as deemed appropriate, for oversight such as reviews and audits to be conducted by the Recipient and the right of the Recipient to provide copies of any review, evaluation or audit reports to third-parties

Overall

AAFC's claim process will involve sampling of invoices you received and paid. These invoices must provide enough detail to establish, at a minimum: the category of costs and the period covered; as well as the following details: if equipment, the cost of each item (must be previously approved if over $10,000); if travel, the destination, number of days and # of people travelling; if salaries, the # of people. AAFC will only sample invoices provided by the Receipient and will not further sample service contractor (or third-party) details, provided the detailed information above is provided.

As noted above, the responsibility for verifying research services contractor's invoices for further detail should be done on a sampling basis and lies with the Recipient.

AAFC may return for additional information if there is doubt on the eligibility or reasonableness of the costs. However, AAFC will rely on the Recipient's verification process for establishing eligibility of costs incurred under contracted services. AAFC will also rely on compliance audits to verify the due diligence applied for costs of services under contract.

1.4 Travel Costs

The following requirements are based on an internal AAFC directive that is subject to change periodically.

Requirements

1. Per diems will contribute to covering the costs for daily accommodation, meals, local or in-city transportation (buses, taxis, vehicle rentals, etc.), ground transportation (including parking, to and from the public carrier terminal), entry documents (including passports and visas), insurance (all types), vaccinations and incidentals (personal phone calls, laundry, gratuities, currency exchange fees, etc.) for individual travel.
2. Recipients may:
   1. claim the established per diem; or
   2. claim an amount less than the established per diem (based on actual costs).

   Whether using option (a) or option (b), individual invoices and proof of payment for these incurred travel costs will not be required for claims, however, proof of travel is required (for example, boarding pass, hotel invoice, trip report) and recipients are obliged to keep all invoices and proof of payment, as per the terms of their CA.

   If using option (a) per diems are payable for every day on travel status as follows:

   1. day trip within Canada with no overnight stay: Can$70 per day
   2. day trip outside Canada with no overnight stay: Can$100 per day
   3. travel within Canada with an overnight stay: Can$300 per day
   4. travel outside Canada with an overnight stay: Can$425 per day

   Whether using option (a) or option (b), individual proof of payment for all expenses incurred will not be required for a claim. However, recipients are obliged to keep all invoices and payment receipts, as per the terms of their CA.

3. The recipient may claim cost for air, rail and ground transportation (to an out-of-city destination) for individual travel as follows:
   1. air: economy rate (not Business or First Class) fare
   2. private vehicle: kilometric rates (at a rate of up to $0.55 per km) as well as costs for parking at the destination
   3. rental vehicle: the cost for a mid-size vehicle (or the cost of a larger vehicle, based upon factors such as, but not limited to, safety, the needs of the traveler, and the bulk or weight of goods transported), gas, and parking at the destination

Recipients are obliged to keep all invoices and proofs of payment, as per the terms of their CA.

1.5 Capital Assets

The following requirements are based on an internal AAFC directive that is subject to change periodically.

Requirements

1. All capital assets required for a Project must be eligible under program criteria.

Acquisition of Capital Assets over $10,000

2. All capital asset purchases over $10,000 must be pre-approved by the Program using an AAFC form intended for that purpose.
3. The pre-approval process for acquisitions over $10,000 will consider:
   • alignment with program and Project objectives
   • the necessity and the cost of the asset as well as timing of the purchase
     (i.e. beginning vs. the end of the contribution agreement)
   • the residual value of the asset at the end of the contribution agreement
   • the possibility of resale (i.e. presence of a market for specified equipment)
   • the future need of the asset for the sector or recipient
   • the benefits of transferring the asset to another organization
   • the retention/disposition mechanism for the asset
4. Capital asset pre-approvals must include a rationale for the purchase and proposed retention or disposal.
5. This pre-approval requirement applies to any capital asset in a Project's budget, including cases where the asset acquisition is paid by the Recipient or a partner/service provider (like a university) working on the Project (Recipient contributions).
6. Pre-approval is required for any capital asset acquisition made by an applicant or recipient intended to enhance capacity in another agriculture, agri-food and agri-based sector (for example, by modifying or retrofitting a piece of equipment that would benefit another industry). Pre-approval for such acquisitions will consider the purchase cost, the residual value, retrofitting costs and the usefulness of the asset at the end of the agreement.
7. Where several similar or related assets are acquired within a Project, the cumulative cost of these assets should be considered as one and require pre-approval if over $10,000.
8. Purchased materials with the intention of building a capital asset (such as a prototype) must be pre-approved if the total value of materials exceeds $10,000.
9. A lease or rental fee for the use of a capital asset acquired by a Recipient outside its current contribution agreement may be considered in cases where the asset is needed by the recipient to achieve Project outcomes and the asset was not previously paid with federal government funding. Any proposed usage fee must be pre-approved by the Program.
10. AAFC reserves the right to address capital asset requests on a case by case basis when required.

Acquisition of Capital Assets over $100,000

11. Capital asset acquisitions over $100,000 will normally be considered when the applicant includes the proposed acquisitions in the application budget. Applicants are required to submit in their application a rationale for the proposed acquisitions and outline future plans for retention or disposal. These acquisitions, including proposed retention or disposal, will be reviewed by the Program during assessment and will require AAFC approval.
12. Capital asset acquisitions over $100,000 and required to achieve Project outcomes will normally be leased where possible and appropriate. Proposed leasing costs to be claimed from contribution funds must be pre-approved by the Program before they can be deemed eligible towards project costs.
13. Capital asset acquisitions over $100,000 and not approved at the time of Project approval may be considered at a later date in exceptional cases, and will require approval by AAFC.

Retention or Disposal of Capital Assets

14. Capital asset acquisitions with a residual value of under $25,000 at the end of the contribution agreement will normally be retained by the Recipient or partner/service provider but will still require pre-approval by AAFC.
15. Where disposal of the asset is required, the residual value of the asset will be returned to AAFC or will be offset on the final claim or holdback, taking into account the cost-sharing ratio for the Project and the asset being disposed.
16. The Recipient will be required to provide an estimate of fair value for the proposed assets (at the end of the contribution agreement) using a method agreeable to both Recipient and AAFC. The Canada Revenue Agency (CRA) provides an acceptable depreciation model to determine the decrease in the value of an asset through age, use, and deterioration over time. Information on classes of depreciable property and rates are available on the Canada Revenue Agency website.
17. AAFC reserves the right to require disposal of an asset if the Project or Project activity is ended prematurely, or is terminated by default, regardless of the disposal or retention plan approved at the time of pre-approval.

Lexicon of frequently used terms

The following terms are used in this Applicant Guide and accompanying Annexes:

Cash contribution

means an expense requiring a cash outlay, by either the Recipient organization or another Project participant/contributor (such as a partner or other government), during the term of the CA. Specifically, a cash contribution is an expenditure for an eligible project cost incurred and paid for by the Recipient organization, or another project participant. AAFC will only reimburse cash contributions for eligible project costs that are incurred and paid for by the Recipient organization. A cash contribution made by another project participant should be reported as part of the Recipient's Contribution, and must be an eligible project cost.

Note: However, when universities and colleges provide services/goods for a Project (such as employee/researcher time) under a service contract/research agreement, for which the institution is not reimbursed by the Recipient organization or another Project participant/contributor, these services/goods may only be included in the project expenditures as an in-kind contribution.

Contribution

is a transfer payment subject to performance conditions specified in a funding agreement (in the CA). A contribution is to be accounted for and is subject to audit.

Fair value

means the amount for services that would be agreed upon in an arm's length transaction between knowledgeable, willing parties who are under no compulsion to act.

Fair market value

means the highest dollar value amount you can get for your goods in an open and unrestricted market, between a willing buyer and a willing seller who are acting independently of each other.

Flat rate

is a rate that is the same in all cases and that does not vary in proportion with something.

In-Kind contribution

means the fair market value attributed for goods; and, the fair value attributed for services, that are contributed to a Project and require no outlay of cash during the term of the CA by a Recipient or a Project contributor. These contributions must be eligible costs. They will not be reimbursed by AAFC.

Per diem

an allowance or payment made for each day

Recipient

is an entity that either has been authorized to receive a transfer payment or that has received that transfer payment.

Transfer payment

is a monetary payment, or a transfer of goods, services or assets made, on the basis of an appropriation, to a third party, including a Crown corporation, that does not result in the acquisition by the Government of Canada of any goods, services or assets. Transfer payments are categorized as grants, contributions and other transfer payments. Transfer payments do not include investments, loans or loan guarantees.

Travel status

occurs when a person, conducting Project activities, is more than 50 km away (one way) from their assigned workplace using the most direct, safe and practical route, usually for more than one day.

Annex C: Performance measures

You will be required to complete a Performance Measures Table (PMT) when you develop work plans under the Contribution Agreement (CA) and the Collaborative Research and Development Agreement (CRDA) and when you complete your annual and final performance reports. The following guidance is provided as information only at this time, although it is recommended that, in your application, you reflect how the intended results of your Project will be in alignment with the performance measures in the PMT included below.

Performance Measures Table requirements

Projects require one PMT for each activity. In the event where a Project activity has work being done under both a CA and a CRDA, two PMTs are required: one is for the work plan in the CA and another is for the work plan in the CRDA.

1.1 Requirements for Performance Reporting

You will be required to complete an Annual Performance Report (APR) during the course of the Project to provide performance and progress updates. A Final Performance Report (FPR) will be required for the last year of the Project and will cover the entire Project.

• The Performance Measures Table (PMT) is part of the performance and progress update information required when completing the APR and FPR, along with sections such as scientific results, issue identification and success stories. In the PMT, information including results achieved, description for each result and explanation of variance will be required for the APR and FPR.
• You will be provided standard templates with guides for completing the APR and FPR.

1.2 Completing a Performance Measures Table

• Successful applicants of Project activities will need to develop PMT(s) as part of the work plan(s) for their Contribution Agreement and/or Collaborative Research and Development Agreement.
• The list of performance measures is standard across all Project activities. You will be able to select "Not Applicable" if a particular measure does not apply to your Project activity. However, if a result is achieved during the life of your Project activity or and had not been included in the work plan, it can still be reported in the APR/FPR.
• For each applicable measure, you will be asked to provide an estimated target. The targets identified are for the life of the Project activity. A brief description for each target is also required and should explain what is expected to be achieved during the life of the Project activity. This provides Agriculture and Agri-Food Canada with context for the targets identified and helps avoid duplication.

Note: These requirements are for your information only at this time. The attached PMT is provided only as an example and does not need to be completed at the time of application.

Performance Measures Table

Performance measures	Information that will be required for the CA and CRDA work plans		Information that will be required for the AP and FP reports
	Targets	Description for each target	Results achieved	Description for each result reported	Explain variance between targets and results (required for final performance reports only)
Number of highly qualified personnel (HQP) working on funded activities Definition: This includes individuals who are registered in Master or PhD programs and are working on activities that receive funding through the Canadian Agricultural Partnership. They are only counted in their first year working on Projects.	Example: 5 □ Not Applicable	Example: 2 for Master students; 3 for PhD students	Guide will be provided along with the APR and FPR templates.	Guide will be provided along with the APR and FPR templates.	Guide will be provided along with the FPR template.
Number of training/knowledge transfer events organized Definition: This includes events completed in the reporting year that were organized under the Project to share results of the activities with audiences who may use the knowledge in the future. Examples could include training events, scientific meetings, symposia, conferences, workshops, industry meetings, field days or webinars.	Example: 2 □ Not Applicable	Example: 1 for wheat breeding workshop; 1 for webinar training on crop production
Number of participants at training/knowledge transfer events Definition: This includes individuals who attend the events listed and who may use that knowledge in the future.	Example: 200 □ Not Applicable	50 of participants for Wheat breeding workshop; 150 of participants who register for webinar training on crop production
Number of new knowledge transfer products developed Definition: New knowledge could include, but is not limited to: newly acquired knowledge that differs significantly from previously acquired knowledge existing knowledge that is enhanced to meet different requirements existing knowledge that is applied in different situations. These are knowledge transfer materials created under the Project that have been disseminated to transfer information to audiences who may use that knowledge in the future. Examples could include brochures, factsheets, flyers, guides, articles in trade magazines, technical bulletins and social media items. Only the number of products developed should be reported, not the number of copies that were printed and disseminated.	Example: 1 □ Not Applicable	1 brochure about benefit of no-till practice
Number of papers published in peer reviewed journals Definition: This includes scientific papers that are published in peer reviewed journals. Papers that are not yet published (for example, manuscripts in preparation, under review or accepted) should not be reported.	Example: 2 □ Not Applicable	1 for Soil and Tillage Research; 1 for Journal of Plant Sciences
Number of new technologies (new products, practices, processes and systems) that are developed Definition: A new technology could include, but is not limited to: a newly created technology that differs significantly from existing technologies an existing technology that is modified to meet different requirements an existing technology that is tested in different situations New products are goods and services that differ significantly in their characteristics or intended uses from products previously produced and used. Examples could include equipment, software, novel foods or consumer goods. New practices are new agronomic techniques or methods that can be applied directly by producers. New processes are the set of operations performed by equipment in which variables are monitored or controlled to produce an output in labs or processing facilities. New systems are the set of detailed methods, procedures and routines created to carry out a specific activity, perform a duty, or solve a problem. Development consists of the creation of a new product, the generation of a new practice, or the demonstration of utility of a new process or system.	Example: 2 □ Not Applicable	Example: 1 for new practice: new technique in seed spacing which increases yield; 1 for a new product: a bio-herbicide that demonstrates efficacy in killing Canada thistle. 1 for a new process: a spray drying process where bioactive food compounds can be encapsulated and delivered in food ingredients.
Number of new technologies (new products, practices, processes and systems) that are assessed under research conditions Definition: Are assessed: when new technologies are evaluated or tested under research conditions.	Example: 2 □ Not Applicable	1 for a new practice: a new no-till practice that will be tested in research and development centers; 1 for a new product: a new energy bar that will be evaluated for consumer acceptance.
Number of new technologies (new products, practices, processes and systems) that are demonstrated on-farm or in-plant Definition: Are demonstrated: when new technologies are presented to the sector by experiments, prototypes, examples or pilot on-farm or in-plant.	Example: 1 □ Not Applicable	1 for a new no-till practice that will be demonstrated on-farm.
Number of new technologies (new products, practices, processes and systems) that attain Intellectual Property (IP) protection. Definition: Examples for IP protection could include, but are not limited to: plant breeder rights, patents filed, registered trademarks and copyrights, and registered or released varieties.	Example: 1 □ Not Applicable	1 for a new wheat variety that is expected to be registered
Number of new technologies (new products, practices, processes and systems) that are utilized Definition: Are utilized: when new technologies are adopted or implemented for use within the sector. Examples may include, but are not limited to: a signed license agreement a signed letter of intent a new product that is available on the market and a new practice which is adopted by farmers	Example: 1 □ Not Applicable	1 for a new no-till practice that may be adopted by farmers in Guelph.