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Compliance 101 for development initiatives


Once an agreement is signed between Global Affairs Canada (GAC) and a partner organization for a development grant or contribution, the recipient organization must adhere to several financial clauses and administrative requirements.


Since financial documentation contained in these agreements is often long and complex, GAC's Financial Compliance Unit (FCU) has come up with a simple way to convey the information and its underlying intent.

Below you will find links to animated YouTube videos that will help you understand certain requirements in your grant or contribution agreement. These videos are intended to:


  1. Direct costs vs. indirect costs
    Determine the differences between a direct and an indirect cost.
  2. Allocation of shared costs
    Select proper methodologies for allocating shared and administrative costs.
  3. Foreign exchange
    Comply with financial requirements when receiving or making advance payments.
  4. Salary increases
    Learn the principles around remuneration.
  5. Airfare
    Understand airfare principles for travel arrangements.

About the Financial Compliance Unit

In addition to managing auditing and compliance for grant and contribution agreements, the FCU is also responsible for financial capacity-building activities (FCBA). We provide several value-added services to partner organizations:

Contact us

Submit your suggestions for future video topics you would like to see on this page by emailing the FCU at

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