Managing Collaborative Arrangements: A Guide for Regional Managers

Grants and Contributions Agreements

O&M Arrangements

PRE-APPROVAL

LEGAL REQUIREMENTS

• Recipient. Describe the material against which the recipient was evaluated.

• Title. MOU (with a government agency) or Arrangement (non-government agency)

• Financial Limitations. Ensure all other sources plus total government assistance is identified.

• Effective Date or date of the last signature

• Legal Name of other party to whom we make the cheque.

G&C AGREEMENT

FINANCE-RELATED REQUIREMENTS

• Effective Date. Cannot be earlier than last signature date.
• Whereas. Ensure reference to the “purpose” part of the relevant terms and conditions. (Annexes B-F of this guide).

• Whereas. Is it clear that this is neither G&C nor a procurement contract, i.e.
•  
  • that this is cost-shared
  • that the department/agency needs a good or service in our hands
  • that the other party has a mutual vested interest
  • that the other party is not making a profit

1. Purpose. In addition to the outputs of this particular agreement, should be linked to a higher result, and to the departmental business line result.

• The Funding
•  
  • What is the total value?
  • How much is department/agency paying and for what specifically?
  • How much is the Party paying and for what?

2. Activities. Include performance indicators/measures.

• The Payments
•  
  • Milestones for payment
  • How much and for what?
  • Send invoice to file manager
  • Send cheque to ...?

3. Funding. Include non-monetary as well as monetary information. Ensure contributions of others plus total government assistance complete.

• The signature

Head level or higher

MANAGEMENT-RELATED REQUIREMENTS

4. Allowable expenditures. Watch that you are not paying the full GST.

• Purpose. Must include bigger results plus business line result.

• Activities. Include performance indicators/measure

5. Method of Payment. Ensure advances conform.

• Evaluation and Monitoring. Is it clear how we will ensure we achieve our goal and how well we have done?

6. Intellectual Property (IP). ). Ensure that this issue is addressed.

MORE LEGAL REQUIREMENTS

Signature. Ensure a manager or above.

• Liabilities/Partnership/Termination clauses (minimum)

FINANCE SHOULD HAVE ON FILE

1. The approval form

2. The signed agreement

3. The cash flow statement

4. (if applicable) Document from recipient stating all other sources of funding when our contribution is greater than $100,000 (needed to complete Clause 3 of the agreement)

5. (if applicable) Document explaining the appropriateness of the department or agency's contribution level in light of other sources of funding.

6. Each invoice

7. (if applicable) Documentation from recipient at end of project of all sources of funding, especially if the department or agency's contribution is greater or equal to $100,000. Any increase of other sources of funding may warrant a reduction in our payment.

FUNCTIONAL EXPERTS REQUIREMENTS

• OSH

• Risk Sharing

• Official Languages

• Intellectual Property

• Assets

Procurement Contract

O&M Arrangement

G&C Agreement²⁴

$$

O&M

O&M

G&C

Purpose

Must have a

Good or service in hand, in order to do the department's job

Must have a

Good or service in hand, in order to do department's job

Want to “enable” partner to do something that furthers departmental policies; NO direct good or service. May have a by-product

Contribution

Full price

Cost-shared

Cost-shared to full cost

Relationship

Supplier; may be construed to be acting on behalf of the department

Partner (not legally); each party acts on its own behalf.

Partner (not legally); does not act on behalf of the department

Party's interest?

Profit

Vested interest; no profit allowed

Vested interest; no profit allowed

Degree of control

Very prescriptive;

a lot of control

Very prescriptive; a lot of control

Conditions in agreement. May not subsequently control the use of funds

When to pay?

At end, or at milestones; normally in arrears

At end, or at milestones;

always in arrears

Based on cash flow needs; can be in advance