ARCHIVED — Schedule 4

Cost

A request for project funding may represent up to 50 percent of the total eligible costs. The applicant is responsible for securing the remaining portion of the project costs.

Eligible costs must be directly related to the project (see Sections 4.1 and 4.2). Costs must not exceed fair market value (evidence demonstrating this may be required) and must not include any mark-ups. For auditing purposes, recipients of federal funding are required to maintain all documentation pertaining to the project for a period of seven years.

Applications must also include the total amount that is being requested and the average cost per household per GSA proposed to be served by the applicant. Applications must demonstrate that costs are reasonable and realistic for each GSA.

Please note : If an application includes bringing broadband connectivity to a First Nations community and seeks to take advantage of other federal funding, those costs and sources of funds must be identified separately.

4.1 Eligible Expenses

Eligible costs for contributions will be those costs that are incurred by the recipient and that, in the opinion of the Broadband Canada, are reasonable and required to carry out the eligible activities to which they relate.

Eligible expenses relating to the project may be incurred only between the starting and closing dates of the project, a requirement that will be reflected in the contribution agreement.

In-kind contributions will not be accepted as eligible expenses.

Starting and closing dates will be based on the project schedule provided by the applicant. Projects can not start earlier than October 23, 2009, and must be completed by December 31, 2011.

Eligible expenditures include the following:

• Engineering and design including network, architecture and systems design and integration;
• Environmental assessments, if required;
• Equipment and infrastructure including servers, switches, fibre optic cable, repeaters, radio equipment, towers, backup-power supplies and network broadband connectivity devices including upgrades and adaptations;
• Co-location lease or rental costs for towers;
• Incremental salaries and benefits associated with the project;
• Satellite capacity including capitalized cost of satellite bandwidth leased by the applicant for a maximum of five years as a part of the proposed technical solution; and,
• Software required for telecommunications and network facilities related to the new broadband project.

Here are examples of the level of detail required:

Item	Number of Units	Cost per unit	Total Cost
Stand-alone towers or towers attached to buildings (including but not limited to grain elevators, water and fire towers, silos, communications towers) and; 50 feet or less in height greater than 50 feet in height
Fibre optic cable
Satellite dishes
Total eligible project costs

4.2 Ineligible Expenses

Ineligible expenditures include, but are not limited to, the following:

• Contingency provisions;
• Costs to develop the Broadband Canada application;
• Existing capital assets including land, buildings, vehicles and other indirect, fixed, and/or capital costs;
• Customer Premise Equipment (CPE): This refers to any terminal and associated equipment located at a subscriber's premises that is connected with a carrier's telecommunications network at a demarcation point. Examples include telephones, key systems, inside wiring, personal computers and modems (DSL, cable, wireless), as well as cell phones, antennae and satellite dishes for wireless networks. The demarcation point separates customer equipment from the carrier's network infrastructure equipment;
• Donations in the form of knowledge, goodwill or other such intangibles;
• Financing or carrying costs;
• General office equipment including office space, photocopiers, furniture, telephones, computers, printers and office software;
• In-kind contributions;
• Advertising/promotion activities;
• Legal fees;
• Radio licensing fees;
• Recipients audit fees;
• Fees paid to members of a Board of Directors for their time;
• Research and development or pilot projects; and
• Volunteer services, opportunity costs, and standard discounts.

Please Note: Cost overruns are at the applicant's risks and will be at the applicant's cost.

4.3 Cost Summary

Applicants must use the Excel spreadsheet to provide a detailed breakdown of total eligible project costs.

SUBMISSION INSTRUCTIONS

A printed copy of the spreadsheet must accompany the application. Additionally, attach an electronic copy in the original Excel format (not PDF) to the electronic application.