2014 New Building Canada Fund: Provincial-Territorial Infrastructure Component, Small Communities Fund
Program Overview
Annex C - Eligible and Ineligible Expenditures

Eligible expenditures are limited to the following:

Eligible expenditures will be all direct and necessary expenditures incurred and paid by an eligible recipient or ultimate recipient towards an eligible project, associated with acquiring, planning, designing, constructing or renovating a tangible capital asset, as defined by Generally Accepted Accounting Principles (GAAP).  This also specifically includes the following:

1. Expenditures directly associated with joint federal communication activities and with federal project signage.
2. The incremental costs of the eligible or ultimate recipient’s employees or leasing of equipment may be included as eligible expenditures under the following conditions:
• The recipient is able to demonstrate that it is not economically feasible to tender a contract;
• The employee or equipment is engaged directly in respect of the work that would have been the subject of the contract; and
• The arrangement is approved in advance and in writing by the province or territory.
3. Costs of Aboriginal consultation, and where appropriate, accommodation;

For P3 projects specifically, the capital costs of acquiring, constructing or renovating a tangible capital asset, determined on the basis of cost data contained in the financial model supporting the project agreement. The following are also considered eligible costs:

1. Bid costs, defined as costs incurred by an applicant for a project to compensate a private sector bidder for the development of a bid proposal; and
2. Construction finance costs of the Project Consortium.

The following are deemed ineligible expenditures:

1. Expenditures incurred prior to the approval of the project by Canada;
2. Expenditures incurred after the project completion date with the exception of expenditures related to audit and evaluation requirements pursuant to the agreement;
3. Expenditures related to developing a business case or proposal for funding;
4. Expenditures related to purchasing land, buildings and associated real estate and other fees;
5. Financing charges and interest payments on loans, except in accordance with the lists of eligible expenditures above;
6. Leasing land, buildings, equipment and other facilities except for equipment directly related to the construction of the project;
7. Furnishing and non-fixed assets which are not essential for the operation of the asset/project.
8. General repairs and maintenance of a project and related structures, unless they are part of a larger capital expansion project;
9. Services or works normally provided by the recipient, incurred in the course of implementation of the project, except those specified as eligible expenditures;
10. Expenditures related to any goods and services which are received through donations or in kind;
11. Any overhead costs, including salaries and other employment benefits of any employees of the recipient, its direct or indirect operating or administrative costs of ultimate recipients, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by its staff, except in accordance with the list of eligible expenditures above;
12. Taxes for which the ultimate recipient is eligible for a tax rebate and all other costs eligible for rebates;
13. Legal fees