What is a Contribution?

A contribution is a conditional transfer of funds to an individual, organization or other level of government to reimburse some portion of the costs incurred in carrying out a worthy project that the Government of Canada wishes to support:

  • The conditions of payment are specified in a Contribution Agreement
  • The recipient must account for the use of funds and report on results attained from their use
  • The contribution is subject to being accounted for and audited

Under a contribution program, Natural Resources Canada is not purchasing goods or services from a recipient; nevertheless, both Natural Resources Canada and recipients have responsibilities to ensure that funded projects are completed according to the agreement.

Entering into a Contribution Agreement

Please contact the Program Coordinator to discuss your project proposal. You will then prepare a Contribution Agreement and the required Annexes for signature.

The Contribution Agreement consists of standard clauses that cannot be changed and appendices that relate to your specific project including:

  • A description of the project's objectives, measurable results, activities and timelines
  • The project budget

What is the role of your Natural Resources Canada contact?

The Program Coordinator is your primary point of contact with Natural Resources Canada and is responsible for:

  • Reviewing the Contribution Agreement
  • Ensuring that you receive copies of the signed agreement as well as the required guidelines and forms for reporting to Natural Resources Canada
  • Providing information and guidance
  • Monitoring the project to determine if the activities and expenditures are in line with the agreement and if objectives are being met
    • Monitoring is conducted by phone contact, correspondence, and file review

The Program Coordinator also works closely with a Financial Officer who reviews your claims and prepares the payments and who may contact project staff directly for information and supporting documentation.

As a funding recipient, what do I need to know about contribution programs?

  1. The Contribution Agreement is what counts

    Please read it carefully and seek clarification, where necessary:

    • It is the basis on which Natural Resources Canada will monitor your progress and assess your claims for payment
    • It specifies the maximum federal contribution and what activities are eligible for funding
    • It outlines the objectives of the project and how they will be measured and identifies the deliverables
    • It tells you how often you must submit progress reports and claims
    • It takes precedence over all other documents pertaining to the project when determining the obligations of either party to the agreement
    • It takes effect only after both parties have signed
    • You will not be reimbursed for project expenses that are incurred prior to Natural Resources Canada signing the agreement or for expenditures that are incurred after the termination date specified in the agreement
  2. Amendments to the agreement
    • Amendments may be necessary to increase or decrease the overall federal contribution, modify the time frames for the completion of the project, or to otherwise address emerging situations
    • Financial amendments may be possible, subject to program criteria and the availability of funds
    • Amendments cannot be made after the Contribution Agreement has expired
    • Requests for amendments should be submitted in writing and no action should be taken with respect to changes involving expenditures until both parties have signed the amendment
  3. Please contact your Program Coordinator if you have questions about the agreement or about amendment policies and procedures.
  4. Keep in touch with Natural Resources Canada

    It is your responsibility to advise your Program Coordinator of any changes to the project such as location, staffing, delays in schedule, budget or anything else that may affect the project.

  5. Know how and when you will be paid

    Each agreement specifies the terms of payment, including the intervals at which reports and claims should be submitted to Natural Resources Canada.

  6. When you receive a cheque depends on when you submit progress and financial reports

    Natural Resources Canada cannot issue a payment until you properly account for expenditures through a claim submission and progress report.

  7. Audit

    Natural Resources Canada may audit the project accounts to ensure compliance with the agreement.

  8. Evaluation

    You must provide an evaluation report of the project as part of the final reporting package.

  9. Responsibilities to project staff

    You are responsible for ensuring that all applicable labour, health and safety laws are respected, that employees are provided with proper working accommodations, and that conflict of interest terms outlined in the agreement are observed.

  10. Privacy/Confidentiality

    Both parties to the agreement are obliged to protect any confidential information according to applicable federal, provincial or territorial legislation and to protect confidential information from disclosure to third parties in accordance with the Access to Information Act and the Privacy Act.

  11. Official Languages

    You are obliged to respect the spirit and intent of the Official Languages Act as it applies to the area in which the project activities are being implemented. Plan for the translation of documents, where applicable.

  12. Holdback of final payment/recovery of funds

    The agreement specifies a holdback amount that will not be released until Natural Resources Canada receives and reviews all the reports required by the agreement.

    Natural Resources Canada will take action to recover funds that have been advanced and for which there has not been an adequate accounting of expenditures.