1. CFI John R Evans Leaders Fund Budget Development

2. Budget Development CFI contribution: up to 40% of total project costs
Alberta Ministry of Economic Development and Trade: up to 40% of total project costs
Remainder of matching funds is the researcher’s responsibility
Vendor discounts
Matching cash contributions from eligible sources
Recent equipment purchases through other sources of funds used as a match
Source of funds must be eligible to match CFI
Purchase must have been made < 6 months before JELF application is submitted

3. Budget Development
The CFI considers the Fair Market Value (eligible cost) of an item to be the price of the item after normal and/or educational discounts
Normal discount: A discount a supplier would normally apply to anybody
Educational discount: A discount offered to an institution due to its educational status.
Eligible in-kind contribution: A non-monetary resource offered as a contribution toward a CFI-funded project. The eligible in-kind contribution is equal to the fair market value of the item less the net selling price (if any). Must be over and above Normal and Educational Discounts
* Ref: Section 6.5 (page 45) in CFI’s Policy and Procedure Guide, 2013

4. Budget Development
Normal/educational discounts do not count as in-kind contributions to CFI projects
Examples of discounts that wouldn’t qualify as in-kind contributions:
Discounts due to the U of A’s status as a university or due to U of A’s volume of transactions with the vendor
Discounts that are normally offered by the vendor due to proximity of the U of A to the vendor
Time commitments by a University of Alberta employee towards a CFI project

5. Budget Development
Examples of discounts that might be eligible (subject to validation) as in-kind contributions to CFI projects:
Special discounts that are offered over and above any educational discounts
Donation of equipment by an industrial partner/vendor
Donation of professional services/training
Extended warranties that are offered by a vendor for free
All must be identified as specific to CFI

6. Budget Development Quotes must be provided to Contracts Specialist
For expensive equipment items, approaching multiple vendors to see who gives the best deal is a good practice, but not required
Vendors are not required to offer normal or educational discounts.
Vendor should state value of normal or educational discount on quote; OR
Vendor should state on quote that they do not offer normal or educational discounts
May ask for an in-kind contribution from suppliers but should not ask for a specific amount or percentage* *
* 0examples_updated%20April%207_2014_EN%20-%20CSV2.pdf
Pre-purchases made <6 months prior to the CFI application can be transferred into the project

7. Examples From Appropriate Quotes
Distinguishes educational and CFI in-kind discounts; indicates that the company does not offer an educational discount
Distinguishes educational and CFI in-kind discounts
Vendor makes statement that they do not offer educational discounts

8. Examples From Inappropriate Quotes
“In lieu” implies that CFI discount is being offered instead of educational discount?
Is this a discount that is based on the location of the U of A??
CFI eligible in-kind discounts must be specific to the CFI.

9. Here is what happens if the cash and in-kind amounts are properly accounted for
Project Costs
Cash
In-Kind
Total Project Cost (TPC)
Equipment Item 1
$96,000
$24,000
$120,000
Project Revenue
Amount
% of Total Project Cost
CFI (max 40% of TPC)
$48,000
40%
Province (EDT) (max 40% of TPC)
Vendor In-Kind Discounts
$24,000
TOTAL
$120,000
100%

10. But what might happen if the vendor does not specify in-kind amount at application?
Stage
Project Costs
Cash
In-Kind
Total Project Cost (TPC)
Equipment Item 1
$96,000
Not specified by vendor
Project Revenue
Amount
% of Total Project Cost
CFI (max 40% of TPC)
$38,400
40%
Province (EDT) (max 40% of TPC)
Vendor In-Kind Discounts -
Other Sources
$19,200
TOTAL
$96,000
100%

11. But what might happen if the vendor does not specify in-kind amount at application?
Project Costs
Cash
In-Kind
Total Project Cost (TPC)
Equipment Item 1
$96,000
$24,000
$120,000 At
Purchasing
Stage
Project Revenue
Amount
% of Total Project Cost
CFI (max 40% of TPC)
$38,400
32%
Province (EDT) (max 40% of TPC)
Vendor In-Kind Discounts
$24,000
20%
Other Funding Sources
$19,200
16%
TOTAL
$120,000
100%
TPC increases, but CFI/EDT requests cannot.
Shortfall
There is now a shortfall. CFI/EDT will not provide more funds to cover the shortfall!

12. Potential Sources for Other Matching Contributions
Examples of eligible sources:
Institutional funds (U of A start-up accounts; departmental operating funds)
Departments and agencies of the federal government
Departments and agencies of provincial, territorial and municipal governments
Firms and corporations
Donations from individuals and non-profit organizations
Non-eligible sources:
Tri-council (NSERC, SSHRC, CIHR) awards
Tri-council program awards (Networks of Centres of Excellence, Canada Research Chairs, etc.)
Industry awards that are already matched to a Tri-Council award (e.g. industry match to an NSERC CRD)
* Ref: Section 4.8 (page 21) in CFI’s Policy and Procedure Guide, 2013

13. Other Sources of Matching Contributions
Examples of eligible sources:
Institutional funds (U of A start-up accounts; departmental operating funds)
Departments and agencies of the federal government
Departments and agencies of provincial, territorial and municipal governments
Firms and corporations
Donations from individuals and non-profit organizations
Non-eligible sources:
Tri-council (NSERC, SSHRC, CIHR) awards
Tri-council program awards (Networks of Centres of Excellence, Canada Research Chairs, etc.)
Industry awards that are already matched to a Tri-Council award (e.g. industry match to an NSERC CRD)
Funds that originate from the Alberta Ministry of Economic Development and Trade (EDT) are eligible but stack with the EDT Contribution through the Research Capacity Program (normally maximum 40% of total project costs)
Alberta Infrastructure funds also stack with the EDT Contribution from the Research Capacity Program
* Ref: Section 4.8 (page 21) in CFI’s Policy and Procedure Guide, 2013

14. Equipment Matches
Recent equipment purchases can be used as a match to the project, provided:
The purchase was completed <6 months prior to CFI application deadline
The purchase was made using an eligible source of fund

15. Budget Template Groups of related equipment items
Note – in this example, CFI/provincial requests
Cover <40% of total project costs.
U of A startup and vendor discounts are also sources of matching funds

16. Building Contingencies Into the Budget
Exchange rates can change dramatically in a short period of time!
RSO will advise applicants about an appropriate exchange rate to use for foreign currency
For purchases from the U.S., RSO recommends using an exchange rate of $1.50 Canadian per $1 USD

17. Building Contingencies Into the Budget
Purchases made by universities are taxed by the Government of Canada at a discounted GST rate (1.65% GST)
During budget development, RSO recommends that the normal 5% GST rate is used in order to add further contingency into the budget
Contingencies are good:
If there are CFI/EDT award funds remaining after all items have been purchased, CFI award holders can use these funds for additional purchases that benefit the project
Conversely, if contingencies are not incorporated, CFI award holders will be required to find other sources of funding to address any shortfall