Ontario Automotive Modernization Program (O-AMP)

No disbursements will be made until the funding agreement has been signed and the recipient has satisfied the following conditions to the satisfaction of Ontario:

1. evidence of project financing
2. proof of insurance
3. compliance with the following ministries:

• Ministry of Seniors and Accessibility (MSAA): Accessibility for Ontarians with Disabilities Act, 2005
• Ministry of Labour, Immigration, Training, and Skills Development (MLITSD)
• Ministry of the Environment, Conservation and Parks (MECP)
• Ministry of Finance (MOF): Tax Compliance Certificate

4. supplier registration form

For previously successful O-AMP recipients, all reporting requirements related to the previously funded project(s) must have been received by the ministry.

Other conditions may need to be met before disbursements are made. Insurance is not an eligible project cost and will not count towards the final project value.

Successful applicants are expected to contribute at least 50% to eligible project costs from their internal resources or through private/bank financing.

Eligible project costs mean those costs, net of applicable HST, which are directly attributable to, and necessary for, the completion of the project and are not wholly or partially for another purpose. Eligible project costs are incurred and paid for by the company on or after the application intake close date (project start date) up to and including the date that the project is completed (project completion date). Any costs for which the company is eligible to receive a rebate, credit or refund are not eligible project costs. The categories of eligible project costs are capital costs, training costs, salaries and benefits and travel and living costs.

The ministry will acknowledge only eligible project costs incurred and paid for on or after the application intake close date (project start date). In cases where an application is not approved and/or there is no funding agreement in place, any project costs incurred are at the risk of the applicant.

O-AMP will review all expenses and will approve only those expenses directly related to the project and deemed reasonable and necessary for execution.

Capital costs

Capital costs are those costs incurred for capital items (for example, fixed assets) and include equipment, testing tools, software costs and instruments that have residual values as determined by Generally Accepted Accounting Principles (GAAP) at the end of the funding period.

GAAP is a collection of commonly followed accounting rules and standards for financial reporting. The purpose of GAAP is to ensure that financial reporting is transparent and consistent from one organization to another.

Eligible costs

Eligible costs related to capital costs include:

1. purchase, implementation, installation, and setup costs of hardware and software that support manufacturing, engineering, design, prototyping and/or logistics processes
2. software licencing costs are eligible only for the duration of the project up to the project completion date
3. cost of direct materials necessary for specifically identified activities and measured as having been used for the completion of the project
4. materials used for configuring and testing production processes, systems, and training employees

Additional limits and conditions

Invoice amounts in foreign currencies must be converted to Canadian Dollars (CAD) at the exchange rate prevailing at the time of the transaction.

Exchange rates used must be shown either on the invoices or be drawn from the financial institution used. Proof of exchange rates used should be submitted along with the signed invoices.

Training costs

Eligible costs

Eligible costs related to training include:

1. costs involved in providing personnel with training and/or development in novel techniques required for the project for their role(s)
2. staff hours charged by non-management employees
3. sub-contractor and consultant fees (must be associated with LEAN mentorship/specialized expertise related to LEAN)

Salaries and benefits

Eligible costs

Eligible costs related to salaries and benefits include:

1. incremental salary and benefits for employees of the company working on the project activities, to a maximum specified in the funding agreement with the ministry (position and employment status must be specified)
2. hourly wages for training for employees who are not part of company management team
3. external third-party training provider costs

Additional limits and conditions

Salaries and benefits must only be claimed in proportion to the amount of time spent working directly on project activities.

The company shall be required to maintain signed timesheets or appropriate records for all employees working directly on the project.

Hourly wages used for the staff hours being expensed must be stated in the supporting documentation.

Travel and living costs

Eligible costs

Eligible costs related to travel and living include transportation and accommodation costs that are exclusively project-related and use the most economical option (economy fare and standard hotel rooms). Any costs that are not the most-economical option will be rejected

Additional limits and conditions

Travel outside of Ontario will require prior documented approval from the ministry unless travel to such location is for employee training purposes and is referred to specifically in the company’s agreement.