Eligible and Ineligible Expenditures
A. Eligible Expenditures
The following items expenditures, if incurred under an eligible activity are an eligible cost:
- Wages and Mandatory Employment Related Costs:
- Wages for employees whose time and activities can be directly linked to delivering eligible services or programs. This would include employees who deal directly with clients doing employment counselling, needs assessment, life skills coaching, or case management. Employees whose duties do not require them to deal with clients should be considered administration staff
- Mandatory Employment Related Costs (MERCS) for staff whose time and activities can be directly attributable to eligible core services or programs (including employer portions of Employment Insurance Premium, Canada Pension Plan, workers compensation, health care benefits, accrued vacation pay per applicable labour code, other employer costs required in relation to staff)
2. Tuition costs
- Tuition costs to either public or private educational institutions for providing a training or instruction course or program to a participant.
3. Completion stipends
- Lump sum paid to individual participants upon successful completion of their ASETS intervention(s). Completion stipends are typically used as an incentive for clients with multiple barriers, such as youth at risk. The maximum amount payable is $500 per participant and is dependent on MNO review & approval as per projects guideline. Note: As per Canada Revenue Agency’s guidance, completion bonuses are taxable (organizations must provide participants with a T4A), not insurable (towards EI) and not pensionable.
4. Living Away from Home Allowances
- Financial assistance provided to a client participating in a training or employment ASETS intervention taking place outside of the client’s ordinary place of residence.
5. Disability related supports
- Disability supports such as attendant care, note takers, sign language interpreters, etc. required to facilitate participation of clients with a disability in an ASETS intervention.
6. Disability related incremental costs
- Refers to additional per diems (daily rates) for fees for assistance provided, for example, to pay fees for a job coach for 4 hours per day, 3 days per week for the first three months of employment, to facilitate the participant's integration to both the job duties and the workplace itself or costs for an attendant to help a disabled person attend an interview / meeting / etc..
7. Professional fees
- Services provided in support of client ASETS interventions (i.e. vocational assessments, needs assessments, contractors services, services provided by senators, elders, etc.).
8. Dependent care costs
- Financial assistance provided to a client while participating in an ASETS intervention for the provision of care for those who are young, ill, elderly or disabled and dependent on the participant
9. Adaptive technology set-up
- This may include the purchase of a voice-activated computer, specialized furniture, or other personal or physical supports as recommended by a qualified assessor.
10. Materials and supplies, books and testing materials
- This support provides a client the materials and supplies required to participate in an employment or training activity. Eligible items include hard hats, safety boots, safety glasses, work apparel, text books, work books, test fees, etc.
11. Travel and transportation costs directly related to program activities
- Clients are eligible to receive funding to cover the cost in support of attending training. This may include mass transit fees, mileage and parking.
12. Participants allowances
- Income support allowance to individuals based on the prevailing wage rate for that kind of work in that particular location to support job creation projects; obtain skills for employment, etc.
- Training allowances are based on a predetermined schedule.
13. Level upgrading (certification)
Short term training to help clients access employment e.g. First Aid and CPR training, WHMIS courses, SmartServe, etc.
B. Capital Costs Eligible Expenditure
- A capital cost is incurred to purchase goods, real property or intellectual property assets that will be useful for more than one fiscal year. Under ASETS, a capital asset is any single or composite asset (i.e. a collection of unique capital assets which form an identifiable functional unit) with a purchase value of more than $1,000 (taxes included) that is not physically incorporated into another product and that remains functional at the end of the project.
- Capital purchases must be identified and approved as per MNO contracting process.
- Capital assets with a purchase price of less than $1,000 are considered expenses.
The following guidelines apply only to items over $1,000:
- Capital assets with a purchase price greater than $1,000 must be tracked for inventory purposes. Additions to this inventory are a result of the approved capital plan. A disposal plan for this itemized inventory at the end of the agreement is subject to pre-approval by the MNO.
- Capital assets with a purchase price greater than $25,000 should follow a formal procurement process that will demonstrate due diligence in obtaining the best value for money in acquiring the asset.
Capital costs for specified renovations and upgrades to accommodate for clients with a disability are eligible as approved by the MNO.
C. Ineligible and Disputed Costs
Below are listed the expenditures that are ineligible. Where appropriate, supplementary information on disputed costs could be eligible conditional upon pre-approval by MNO:
- Canada Revenue Agency or Payroll Penalties and Interest
- Traffic Fines and Penalties
- Legal fees and court awards for inappropriate dismissal or other inappropriate/ illegal activity
- Purchase of alcoholic beverages
- Purchase of any illegal substances
- Mentor wages (under Youth projects)
- Gifts or payments for recognition (e.g. honoraria, ex gratia payments)
- Capital costs for the purchase of land or buildings
- Capital costs for the construction of a building, renovations and leasehold improvements
- Board meetings
Board meeting costs are eligible only to the extent that the topics under discussion relate to the MNO funded activities and its administration. This is determined based on the percentage of meeting time used for MNO funded activities business. Reasonable travel and accommodation costs associated with the meeting are also eligible.
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