Policy FAQs - Funding Awards

1) How do I know what expenses I am eligible to claim?

 

1) Refer to your Letter of Award and your Terms & Conditions Contract.

  

2) Refer to the policies on each fund. 

 

3) Refer to FAQs below.

 

4) If you still have questions after reviewing the above information sources, contact our Funding Manager, Heather Boyd-Kinnie:  innovate@unb.ca


2) What expenses are not eligible?

  • mileage is not eligible (see paragraph 3)

  • personal expenses such as clothing, childcare/baby-sitting

  • alcohol

  • operating expenses

  • legal/incorporation/patent (unless it can be proven it is required for testing the MVP-with a maximum of $1000 which is granted in very rare circumstances & must be pre-approved) 

  • general equipment (in the case of requirement for MVP protyping, some exceptions may be granted on a limited and specific basis when pre-approved).

  • wages & salaries (unless granted in extremely rare circumstances ). Funding may be used for consultants as appropriate. Please note that consultants must be at arms length from the applicant.

 
 
3) May we claim mileage if we have been approved for vehicle travel expenses?


In short, the answer is NO to MILEAGE. However, you may claim gas expenses (when backed up with a receipt), provided you can demonstrate the purpose of your travel. Write the purpose of your trip on the receipt and then provide us with a copy of the scanned receipt (s). Note: To be claimed, these expenses must be eligible under the award.

 

4) If CRA will approve claiming mileage for taxes, why can't we claim it here?
 

1) The PDC requires that entrepreneurs bootstrap their operations. In order to make your funding extend as far as possible, it is important to spend conservatively. If you claim mileage, your funds will be depleted very quickly, and you will have less that you can allocate to other very important budget items that will help you build and test your idea and mvp.


2) Because funding awards are taxable, you will want to seek advice from appropriate tax/accounting/bookkeeping professional(s). They will be able to advise on expenses and mileage claim eligibility for CRA reporting.

3) Receipts are required for all expenses, and gas receipts are the only method to do this.

 

 
5) Do we need to spend all of our expenses by the End Date on our Letter of Award & our Contract?


While you are not eligible to recover expenses spent before the Start Date or expenses spent after the End Date, we are pleased to work with you to extend your End Date where appropriate for up to 6 months from the Start Date.  You should not rush to spend the funding only because your End Date is approaching.
 


6) Will we receive all installments on the dates specified in the Letter of Award?


While you may be "eligible to receive" payment on these dates, there are several reasons why your payments will arrive at a different time in your bank account.

1) If it is the first time you have received funding from us, your initial payment will will generally be deposited in your bank account 2-3 weeks from the eligible date specified for your first installment due to internal processing at the university & the bank.

2) Due to internal university policies, we are not permitted to issue payment until an installment date. This means that provided everything is in perfect order, the payment will not be processed in the financial system until the installment date. Therefore, due to internal processing, you will receive payment after the date when you are "eligible" to receive it. 

3) If we have not received your completed direct deposit form stamped by your bank, and your signed contract in a timely fashion, this will cause delays in payment.

4) If you have not sent us your completed monthly report and copies of your receipts in a timely manner, OR if any issues have arisen from your report, your payment could be delayed.

5) If you still have considerable funds remaining from your previous installment(s), and you do not have plans to spend the funds in the next month, we will not automatically issue the next installment. In keeping with our philosophy to provide The Right Tools, and The Right Support at The Right Time, we will work with you to provide installments on a schedule that best fits your needs.


 

7) Because of a change in circumstances, may we use the funding to assist with OTHER expenses?

 

An award recipient is ONLY able to use funding in the areas that are specified in the Letter of Award and the Terms & Conditions Contract and ONLY in the amount specified in the budget lines.  ALL changes MUST BE pre-approved by the Funding Manager. However, if your circumstances have changed, we will work with you to possibly realign your approved budget lines as appropriate.

 
8) What format should we use for our financial reporting on our approved budget?


Please click on this icon below for a template for reporting expenses & receipts. Note that the budget items are included for the purposes of the example.  Continue to build on the spreadsheet each month so that it includes a list of all receipts, all total expenses, and all variances from the Start Date to the report date.  By the final report, your spreadsheet will show a complete picture of the approved budget and actual expenses. Consult your Letter of Award and Terms & Conditions Contract to determine eligible expenses. Please also be certain to read the next FAQ about receipts.


 

 
 
 
 
9) Do we need receipts or proof of payment for all expenses? How do I provide these receipts to the PDC?


All expenses must have a receipt or proof of payment. In the case of credit card or debit card purchase, we require a copy of the original receipt and reserve the right to ask for the original as well as the supporting credit card statement or bank statement. 

 

Receipts must match the expenses claimed each month. Please make it as easy as possible for us to reconcile your expense reports with your receipts. Label the receipts with letters or numbers and coordinate on your financial spreadsheet, in order that your claim can be processed. 

Methods for providing receipts: 1) Save scanned receipts in ONE shared Google folder (using your team name) and share it with us at innovate@unb.ca. 3) Drop off the copy of receipts in a sealed envelope to the attention of Sarah Cormier at our PDC Office, Suite 134, NRC Building on the UNB Campus. You may leave this with our Commissionaire. PLEASE DO NOT EMAIL RECEIPTS due to limitations on email inbox sizes.


10) What if I am having difficulty or want to discontinue my idea or business?

Sometimes, ideas and businesses don't work out the way that was initially planned, and that's okay, but please let us know as soon as possible. Perhaps you just need to to change direction, and we can help you consider possible options. However, if it is just not feasible to continue, that's okay too-perhaps you will try again with another idea in the future.

11) Rules of Practice
  • Communication and transparency is paramount. If you have questions about your award, funding policies or payments, or PDC programs contact: Heather Boyd-Kinnie, innovate@unb.ca.

  • For clarity about tax law, bookkeeping/accounting practices, business law, seek professional advice. 

 

  • Remember that your reputation is everything. Best practices are paramount. Don't do anything in your banking,  in your accounting, your financial reporting, or your business practices with which your partners, team members, the PDC, the Canada Revenue Agency would not be happy.


 

 
 
 
 
 
 
 
 
 
 
 

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