No other government funds can be used for the balance of the costs funded under EAGS.

Other government funds can only be used for costs not covered by this grant, ie you can receive funds from another government scheme for the activity as long as the costs covered by it are different from those covered by the EAGS grant.

5 The grant is only paid for approved costs on the basis of original invoices matched to original receipts. Photocopied receipts and invoices are not acceptable. The only other basis on which claims can be paid is by forwarding an Accountant’s certification of costs to the Board. This must be by an independent accountant in public practice certifying a schedule of expenditure, matching expenditure claimed to approved costs.

Please note that where hand-written receipts are provided, or where payment is noted on invoices, these must show the following:

• date of payment
• amount of payment
• signature of person receiving payment
• name of person receiving payment together with their designation

If goods or services have been paid for by credit card, you must supply the original invoices for these together with the credit card statement to which these are charged to plus a subsequent statement showing payment has been made.

The prescribed “Claim and Report Form”, a copy of which is attached to this letter, must be completed for your claim.

6 The grant will not be paid until the Board receives a report on the findings of the work. Section B of the Claim and Report Form is to be used for this. A copy of the consultant’s report is also to be submitted.

7 Information on grant approvals can be made publicly available by the Board - this covers:

• grant recipient; region; amount of grant

• general statement on the target area of scheme for which assistance is approved

• outcome of the activity assisted

  ) any time after
  ) approval after
  ) report received

  6 months after

8 Any grant approved is personal to the applicant and may not be assigned without the written authority of the Board.

9 The project is carried out by the consultant(s) nominated in the application and in accordance with the Terms of Reference.

10 Grants are made subject to the Board being satisfied that the information given by the applicant is true and correct and that there has not been any omission of any relevant fact nor misrepresentation made. The Board retains the right to refuse to make payments to approved applicants in cases where it determines that it has been misled by the applicant or if the applicant has been placed in receivership or declared bankrupt.

IMPLICATIONS OF THE GRANT FOR TAX PURPOSES

1 The grant is GST inclusive therefore, claims should be based on GST inclusive amounts.

2 If you are registered for GST you will have to account for the GST portion of the grant as output tax.

3 Section 169 of the Income Tax Act 1976 deals with grants such as this. Effectively, the grant is not assessable income as such but has the effect of reducing the costs which may be claimed for income tax purposes, or reducing the cost of assets for depreciation.

We wish you well for the activity to be undertaken.

Yours sincerely

.................................................
Business Development Board

NEW ZEALAND GAZETTE

No. 120