Removal of Administrative Fee on Funding Grants
Whereas the Government of Canada offers funding to municipalities for various programs administered through the Government of Saskatchewan; and,
Whereas municipalities apply for funding to assist in costs for infrastructure and construction projects within the municipality; and
Whereas an administrative fee is charged by the Government of Saskatchewan to administer the funding programs on behalf of the Government of Canada, which includes completing an assessment of the applications; and
Whereas Provincial Sales Tax of 6% is charged to municipalities for supplies, services and projects, which cost is in addition to the administration fee; and
Therefore be it resolved that SUMA advocate the Government of Saskatchewan to eliminate the administrative fee they charge for administering Government of Canada funding programs for all municipalities.
ACTS AFFECTED: None
REGION/SECTOR AFFECTED: All
- The Government of Canada has entered into agreements with provincial and territorial governments (PTs) to deliver infrastructure programs on their behalf.
- The fees for administration of the infrastructure projects are paid to the province from the federal government for the administration of their infrastructure programs. These fees are not charged to municipalities and instead are a part of the program allocation provided to the province.
- PTs are required to present a detailed business case to Canada outlining the administrative expense related to program delivery and implementation.
- Fees for the administration of these infrastructure programs support incremental costs incurred by the province to deliver these programs. Dependent on the program, these administrative expenses include costs for incremental staff needed to conduct program intakes, review project applications, administer, audit, and pay claims for projects and undertake reporting required by Canada.
- Costs incurred in excess of those approved in the business case are absorbed by the province.
- PST applies to goods and services purchased in the province, as well as goods and services imported for consumption or use in Saskatchewan, and is not an administrative expense related to the delivery of infrastructure programs.
- Municipal Revenue Sharing is based on 0.75 of 1 point of PST, allowing municipalities to benefit from PST collected by the province to support a variety of municipal programs.
- GR did not submit a business case to Canada for the Canada Community-Building Fund to administer additional top up funds received for the fiscal years 2018/19 and 2020/21.
- PST costs are eligible costs and can be claimed for program reimbursement under these infrastructure programs.