Eligible Cost Guidelines CHF-Funded Programs ( )

Transcription

1 Eligible Cost Guidelines CHF-Funded Programs ( ) The following are the Calgary Homeless Foundation s general guidelines setting the types of costs that program funding can be used for. The recipient is asked to develop and maintain their own internal processes and controls to ensure a reasonable standard of care in utilizing disbursed funding (e.g. cheque requisitions, signing authority, collection of damage deposit, etc.). Please note that these guidelines will be revised periodically. Any changes will be communicated to the recipient as soon as is reasonably possible. CHF recognizes that its cost guidelines are highly structured and encourages recipients to submit requests for amendments where the recipient believes they have a strong case for costs that are not listed. Written approval should be sought before incurring the expense. The four areas that CHF will examine in reviewing such requests are: 1. The likelihood of the adjustment to materially benefit the clients served by the program; 2. The potential of the adjustment to increase or improve successful outcomes; 3. Any availability of alternate resourcing; 4. CHF s own fiscal limitations, responsibilities, and priorities. Section 1 Specifically Ineligible Costs Expenses and activities that are strictly ineligible for CHF funding: 1. Alcoholic beverages 2. Board meetings (e.g. travel, space, food) 3. Performance incentives/bonuses 4. Fines or penalties of any kind 5. Fundraising, advertising, and public relations 6. Losses from other projects or contracts 7. Unrealized appreciation or depreciation of any assets 8. Federal and provincial taxes (save for payroll and GST) 9. The portion of any expense incurred by a project for which it could also claim a tax credit/deduction Programs with a federal component of funding also have the following restrictions: 1. Staffing expenses for clinicians (or similar roles that are distinctly medical in nature) are ineligible for HPS funding 2. Costs related to the development or maintenance of software or hardware are ineligible for HPS funding if that system would either perform a function similar to Homeless Individuals and Family Information System (HIFIS) or is incompatible with HIFIS. Page 1 of 7

2 Section 2 Eligible Cost Guidelines 1. Start-Up Costs Start-up costs are the initial one-time expenses incurred when setting up a new program or ramping up a program expansion. Please note that this is an extraordinary cost-specific category i.e. expenses beyond business as usual and that programs that are not new or expanding in some way are expected to capture office costs within the administration section. Possible Start-Up Costs Moving Costs Computers and Telephones Desks and Furniture Costs incurred for moving to another location to accommodate some significant change in programming. Eligible items include moving personnel, services, vehicles, and supplies. Eligible costs include the initial acquisition of computers and telephones and IT set up for new project staff. Please note: depreciation is not an eligible expense. Eligible costs include the initial acquisition of desks and furniture for new project staff. Please note: depreciation is not an eligible expense. 2. Project Staff Costs Costs for staff directly involved in program/project activities. Staff who are part of the head office or administrative office for the agency are covered under administrative costs. Line Item Salaries and Wages Approximate gross salaries including vacation, sick and compassionate leave, and overtime pay. Salaries will be funded to the extent that they are aligned to industry averages and the credentials and experience of the staff as outlined in the Schedule A of your Program Funding Agreement. Wherever possible the recipient is asked to categorize project staff into the eligible positions outlined below based upon the characteristics and definitions provided: 1. Direct Service Staff: involved in providing direct services to and with clients. The most common examples of direct service staff include: i. Case Managers whose primary role is direct service delivery and client engagement (e.g. support workers, case workers, youth workers, etc.) Case managers are typically an entry level position functioning under regular supervision. Credentials typically include college diploma or undergraduate degree. As per the guidelines outlined in the CHF Standards of Practice case managers are eligible for funding at a maximum ratio of: 1:10 for high acuity clients; 1:20 for moderate acuity clients; 1:25 for low acuity clients. ii. Clinicians may include nursing and/or mental health staff. Credentials typically include high levels of education and current registration with the appropriate college (e.g. College of Psychologists). Please note that clinicians are not an eligible cost in federally funded programs. 2. Indirect Service Staff: involved in providing project-specific work that may or may not require consistent interaction with clients. Page 2 of 7

3 Line Item Mandatory Employment Related Costs (MERCs) Project Staff Benefits Project Staff Communications Project Staff Development i. Housing Locators are responsible for a wide range of activity around finding and managing programs housing portfolios frequently including: assessing clients housing needs, matching clients to appropriate rental units, and/or supporting ongoing landlord/tenant relationships. 3. Team Lead: a senior direct service staff who provides informal supervision and support to a team of four or more other direct service staff. A team lead is still expected to hold a case load, but it may be smaller to offset their leadership responsibilities. Team leads are eligible for CHF funding at up to 0.25 FTE per direct service staff. 4. Program Coordinator: a program-specific role that provides ongoing supervision to service staff and coordinates direct and indirect program-specific responsibilities such as staff recruitment and report preparation. Program coordinators are eligible for CHF funding at up to 0.2 FTE per service staff. 5. Program Manager: a supervisory role that reports to the director of programs or executive director, and is accountable for the effective development, delivery, and evaluation of the program. A program manager may have one or more projects to manage depending upon the size/complexity of the projects and is eligible for CHF funding at a maximum of 0.5 FTE for each program coordinator. 6. All other positions require approval by CHF at time of contract initiation (or renewal). MERCs are limited to the following rates as mandated to employers: Canada Pension Plan (CPP): 4.95% Employment Insurance (EI): 2.63% Workers Compensation premiums (WCB): ~1.3% Direct payment of health insurance premiums is eligible up to a maximum of 12% of personnel costs. In the event that the company has a documented whole-of-organization policy to offer payment in lieu of health insurance premiums these are only eligible insofar as they are paid directly to the employee and do not exceed 12% of personnel costs (i.e. direct payment to a third party for goods or services that flow to the employee in lieu of health premiums are ineligible.) Cell phones are eligible for program staff if the position requires them to be out of the office or on-call outside of office hours. Phone costs are ineligible where the device is not used for work purposes at least 80% of the time. Includes professional fees, training, conferences, and staff learning media for project staff. Professional fees: Should be aligned with the employee s role in the project. Training/Conferences: Including tuition, fees, training materials, and textbooks. All attempts must be made to attend training locally if possible. Where travel is required: Travel costs are only eligible up to the maximum levels set out in the National Joint Council of Canada s (NJCC) Travel Directive. Where hospitality if required: Hospitality is eligible when conducting project-related business. Decisions to offer hospitality should be carefully considered and demonstrate the necessity based on the circumstances, diplomacy, or protocol. Hospitality costs are only eligible up to the maximum levels set out in the Government of Canada s Directive on Travel, Hospitality, Conference and Event Expenditures. Page 3 of 7

4 3. Client Costs Client costs are incurred by supporting project clients. Projects should demonstrate reasonable effort to leverage public resources and donations (such as Alberta Works, food banks, thrift shops, etc.) before using project funds. Line Item Damage Deposits Move-in and Setup Rent Subsidies Utility Subsidies Property Maintenance and Repairs Client Public Transit Damage deposits are eligible to a maximum of one month s rent (as per the Residential Tenancies Act). It is expected that all damage deposits be collected by the program from the relevant landlords as they are retrievable. For budgeting purposes these funds should be reused for future damage deposits (and deductions made instead applied to the maintenance & repairs line). Eligible items include: Beds and related items (e.g. linens, blankets, pillows) Toiletries Basic cookware and dishes Telephone or cell phone Dishes and utensils The recipient is encouraged to purchase these goods (lightly) used when possible. This includes only rental subsidies paid by the program directly to the landlords on the client s behalf. Any rent collected from the clients by the program must be included in the rental revenue line. Eligible rent subsidies are calculated based on the difference between 30% of a household's income and the average market rent for the unit type. Average market rents in Calgary are surveyed by Canada Mortgage and Housing Corporation (CMHC). The CHF s minimum requirements are that all housing placements meet both of: 1. Government of Alberta Modesty Assurance Guidelines and, 2. Alberta Health Minimum Housing and Health Standards. This includes the cost of providing basic utilities to the client to ensure safe and comfortable housing when such costs aren t already included under rent subsidies. The following utility expenses are eligible for subsidy: Heating Water Electricity Basic phone bill Payments should be made directly to utility companies. Intended to cover: Deductions made against the damage deposit line Any additional costs associated with restoring a market unit to the condition in which it was first acquired (less regular wear and tear) Recognizing that large surpluses and deficits can quickly occur in this line the recipient is strongly encouraged to maintain close contact with their respective system planner to ensure that the agency has sufficient resourcing while still mitigating unnecessary surplus. Please note that regular cleaning and general maintenance are not eligible costs at this time. Such as bus tickets and other public transportation costs for clients to attend support services or get to work. Page 4 of 7

5 Line Item Food/Meals/Gift Cards Rent Subsidies Programming Space Staff Travel for Client Purposes Other Programming Expenses Taxis and other non-public transportation costs for clients are eligible in exceptional circumstances (e.g. client has a health issue) or where public transportation is not practical (e.g. if no public transportation is available). This is any purchases for food items for the direct benefit of the client. Hospitality expenses for non-client purposes should be captured with other administrative costs. The following expenses are eligible: Prepared meals for clients in a shelter or group home setting Grocery purchases for clients as either direct food donations or indirect (i.e. reimbursement of grocery expenses/gift cards) Light meals or drinks during client meetings All efforts should be made where possible to maximize the use of other mainstream resources. Please note that due to donor restrictions alcohol is always an ineligible expense for CHF funding (including for non-client purposes). Intended to capture fixed rent subsidy expenses where the cost to the agency does not vary at all with the number of clients housed within the program (such as place-based and master-leased settings). For budgeting purposes: please capture any expected rental revenue collected from clients in the expected rental revenue line in the variable client cost section. Only the net cost (of the living space less rental revenue) is eligible for CHF funding. For any building space to be used for client-oriented activities not already included in rent (e.g. setting aside a unit in a place-based building as a common area). This includes only staff travel costs for the direct delivery of client service or for activities directly related to the project such as: Servicing and maintaining a company vehicle used solely for direct client service delivery. This includes lease expenses, insurance, maintenance, and gas. Use of a staff member s personal vehicle for project-related uses. Staff travel that is not for direct client service is included either under staff development (e.g. conferences or training) or administrative costs (for staff meetings). For all legitimate travel reasons travel costs are eligible in line with CHF s own travel policy and at a maximum up to the levels set out in the National Joint Council of Canada s (NJCC) Travel Directive. Both travel for board meetings and depreciation on capital assets are ineligible expenses. Small allowances that fall outside of other line items may be eligible if they are directly aligned with the project and better client outcomes. Eligible activities may include: Community integration Finding and maintaining employment Health related items (where not covered elsewhere). The recipient is asked to show strong judgment in allocating this line and strongly encouraged to check with their system planner if the intended expenses are not plainly for client benefit and within the scope of the project. Page 5 of 7

6 4. Administrative Costs All of the activities and guidelines listed below can be included within the one line (currently organizational infrastructure ) so long as the total cost does not exceed 10% of the total budget. Possible Administrative Costs Admin Staff Salaries and Wages Admin Staff MERCs/Benefits Rent/Mortgage/Utilities Insurance (Non-Staff) IT, Internet, and Communications Licenses, Permits, and Fees Office Supplies + Equipment/Furniture Eligible costs include: A portion of the director/senior manager s position A portion of the accountant s position A portion of the volunteer coordinator s position Direct payment of health insurance premiums is eligible up to a maximum of 12% of personnel costs. In the event that the company has a documented whole-of-organization policy to offer payment in lieu of health insurance premiums these are only eligible insofar as they are paid directly to the employee and do not exceed 12% of personnel costs (i.e. direct payment to a third party for goods or services that flow to the employee in lieu of health premiums are ineligible.) Rental costs including electricity, water, heating and gas are eligible to the extent that the rates are reasonable in light of such factors like rental costs of comparable property, market conditions, available alternatives, and the type/life expectancy/condition/value of the property. Rental arrangements should be reviewed periodically to determine if circumstances have changed and other options are available. Please note: depreciation is not an eligible expense. Costs of insurance required for your funding agreement with CHF are eligible. Costs of other insurance maintained by the program are allowable as long as the types and extent of coverage are in accordance with sound business practice and the rates and premiums are reasonable under the circumstances (and prorated for application to the project). Please note that insurance costs associated with project costs can be included under Staff Travel for Client Purposes as a client cost. Costs for internet and other IT services are eligible for computers used substantially in the operation of the project. Advertising and public relations: Costs are generally ineligible for CHF funding with the exceptions of both a) advertising for recruitment purposes and b) costs associated with the preparation of annual financial and community reports. Licenses and Permits: Costs of obtaining licenses and permits are eligible where they allow the normal operations of the business. Memberships and Subscriptions: Costs of the non-profit organization s membership in and subscriptions to business, technical, and professional organizations and periodicals. Costs of membership in any civic or community organization are also eligible. Costs of any other membership (for example in any social or dining club) are ineligible. Bank Fees: Regular banking fees are eligible costs with the exceptions of interest expenses (e.g. credit card balances) and penalty fees (e.g. late payments). Including costs for stationary, minor equipment, printing, photocopying, postage, and/or couriers that are maintained on-site and held for business use. Eligible costs for replacement and maintenance of project assets such as computers, desks, chairs, lights, or printers. Capital >$5k: All capital purchase requests for equipment greater than $5,000 must be accompanied by documentation of 3 bids from different suppliers and a justification for the purchase and the preferred supplier. Page 6 of 7

7 Possible Administrative Costs Contractors Depreciation: Note that all capital purchases will be funded at the time in which the cash flows for the item. The program will not be eligible to claim recovery of depreciation for any capital purchases. Individuals hired by the project for whom the project does not incur payroll taxes. Eligible costs include: Audits: The costs of audits required by and performed in accordance with the audit clauses of your funding agreement. Legal fees: Cost of legal fees associated with the normal operations of the business. Janitorial: Reasonable costs incurred to clean office space. For all contractor costs retainer fees are ineligible unless supported by evidence of bona fide services available or rendered. Please note that contractors hired for staff training can be booked to the staff development line and don t need to be captured as an administrative expense. Section 3 General Requirements of CHF Funding Proof of Expense: The recipient is responsible for ensuring collection of all relevant documentation to support all eligible costs funded by CHF, and may be called upon to produce evidence supporting those costs during the course of CHF s usual financial monitoring procedures. Such documentation needs to be externally verifiable such as an invoice, bank statement, itemized receipt, or active legal agreement. Allocated Expenses: The recipient may be asked to explain the allocation method and provide supporting documentation for any shared expenses attributable to CHF funding (e.g. square footage of rent for head office). Interest Earned: The recipient is asked to report on any interest earned on CHF funds when it exceeds $100 over a 12-month period. This interest will be treated as revenue for the year in which it is earned and can be spent within the same year on relevant programming expenses but will also be used when determining surplus deductions in subsequent years if unspent. Purchases/Contracts for Services: Capital purchases, contracts, and requests for equipment or services exceeding $25,000 must be subject to a competitive bid process (with at least three independent suppliers and some rationale provided for selecting the preferred supplier). Documentation of this process and proof of bids must be retained and made available to CHF upon request. Separate Bank Account: The recipient is encouraged to establish a separate bank account for all CHFfunding-related deposits and expenses. Priority of Spending: CHF assumes that where a program has multiple funders any unspent dollars will be distributed after giving consideration for spending restrictions between all funding sources based upon their original contributions (i.e. if a donor requires that the entirety of their donation of $50.00 is spent on staff and staff expenses are more than $50.00 over budget, but the program is $ under budget, the donor will not receive a share of the surplus). Page 7 of 7