Recipient Guide: Process for Requesting a Claim for Reimbursement and/or an Advance

Table of Contents

1. 1. Purpose
2. 2. The Contribution Agreement (CA)
3. 3. The Claims Process
   1. 3.1 Completeness check
   2. 3.2 Request for supporting documentation
   3. 3.3 Claims verification
   4. 3.4 Finalizing the review
4. 4. How to Prepare a Claim for Reimbursement of Eligible Costs and/or a Request for an Advance
   1. 4.1 Claim form to seek reimbursement of eligible costs
   2. 4.2 Request for an advance
   3. 4.3 Combined claim for reimbursement of eligible costs and request for an advance
5. 5. Project Accounting and Reporting
6. 6. Eligible Direct Cost Categories
7. 7. Other Matters
8. 8. Annex 1

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1. Purpose

This document is intended for recipients who have entered into a Contribution Agreement (CA) under the Connecting Canadians Program (CCP) for funding to expand the availability of broadband services to underserved households in Canada. The purpose of this document is to provide recipients with instructions for preparing claims for reimbursement of eligible project costs that comply with the requirements set out in the CA. Also included are instructions for preparing a request for an advance payment.

2. The Contribution Agreement (CA)

The CA sets out the requirements for claims and requests for advance payments (where applicable). The CA describes the nature and type of costs that are eligible for reimbursement as well the content and the timing of project progress reports.

Recipients should familiarize themselves with these requirements prior to preparing a claim for reimbursement and/or a request for an advance.

3. The Claims Process

To process a claim, a series of steps is followed before it can be approved. The Program registers all claims throughout this process in its information management systems for financial tracking purposes. Once the claim has been approved, the Government of Canada can issue an electronic funds transfer. Cheques are no longer issued except in exceptional circumstances. CCP aims to release payment within 30 calendar days upon receipt of a complete claim. The 30 days does not include the time it takes for the recipient to provide supporting documentation as requested by the Program Officer for claims verification as per step 3.2 below.

The following is a summary of the steps the Program undertakes to process a claim.

3.1 Completeness check

Before a claim can be processed, your Program Officer will check to ensure that the Applicant's Claim Summary and/or Advance Claim Form has been completed correctly. If the form is missing information or is incomplete, your Program Officer will contact you.

3.2 Request for supporting documentation

Before a claim can be processed, your Program Officer will request that you submit specific supporting documents (invoices, timesheets, etc.) that have been selected for verification. The Program has adopted a risk-based approach for its oversight of funded projects. Prior to the execution of the CA, the Program conducted a project and recipient risk assessment to determine the risk associated with each project. The risk rating is used to determine the risk management strategies for several areas, including the level of supporting documentation that is required for claims verification. The approach is also intended to reduce administrative burden on the recipient by not requiring that all invoices be submitted unless needed. You will also be asked to send by mail the signed copy of the form. The Program Officer will make sure that the form bears the appropriate signatures.

3.3 Claims verification

The Program Officer will examine the costs claimed in relation to the CA. Analysis is performed to assess whether costs claimed are eligible and properly documented. The Program Officer may call you to ask questions about the claim. He or she may examine any project progress reports submitted to date to better understand the claim or assess the appropriateness of the claim in relation to the progress in implementing the project, in particular looking at what milestone deliverables set out in Schedule A of the CA have been submitted and the timing of those milestones.

3.4 Finalizing the review

As the review is being finalized, the Program Officer will advise if any further information or actions are required. Any major issues arising from the review will be discussed with you. Upon completion of the review, the Program Officer makes a payment recommendation. Note that payments can only be released once all documents have been received and satisfactorily reviewed and any specific conditions have been addressed.

4. How to Prepare a Claim for Reimbursement of Eligible Costs and/or a Request for an Advance

The Applicant's Claim Summary and/or Advance Claim Form can be found at Recipient Toolkit. This form contains four sections:

• The form summary page
• The claim - Eligible project costs schedules
• The detailed claim – Eligible project costs (including Funding sources and Updated forecasts of project costs tables)
• Applicant's Costs Forecasts – Advance request

Please note that a claim for reimbursement and a request for advance must be for a period that occurs within a Government of Canada fiscal year (April 1^st to March 31^st). For example, a claim from January 1^st to May 31^th would not be acceptable. The claim period must end no later than March 31st.

4.1 Claim form to seek reimbursement of eligible costs

When filling the form to seek reimbursement of eligible costs, the first three sections have to be completed.

At the top of the form, first page, check the box "Claim" to indicate that the request is for a claim for reimbursement and check the box "Yes" for "Is this form for the Connecting Canadians program?".

Click on the "Go to Claim" box.

This will automatically bring you to the eligible project costs schedules on page 2.

Completing the supporting direct project cost schedules

The first step is to complete the following eligible project costs schedules of the claim section of the Applicant's Claim Summary and/or Advance Claim Form:

• Schedule 1 - Direct Labour Costs
• Schedule 2 - Direct Materials
• Schedule 3 - Direct Equipment
• Schedule 4 – Other Direct Costs
• Schedule 5 – Travel
• Schedule 6 – Use for Direct satellite capacity costs

Only those costs which were incurred for the purpose of carrying out the project and which are eligible under the requirements set out in Annex A of the CA are eligible for reimbursement.

Schedule 1 - Direct labour costs

Eligible labour cost is the portion of gross wages or salaries incurred for work which can be specifically identified and measured as having been performed on the project. The payroll rate to be used is the actual gross pay for each employee (normal periodic numeration before deductions) working on the project. The payroll rate excludes all premiums (e.g. overtime), shift differentials, and any reimbursement or benefit conferred in lieu of salaries or wages. Unless otherwise described in the CA, the hourly rate or fixed salary paid to the employee should be reasonable in that it compares favourably with the hourly rate or salary paid for similar work or expertise in the marketplace.

The following supporting information must be recorded in Schedule 1 for direct labour costs claimed for reimbursement:

• Position or title of employee
• Daily/hourly rate of pay (gross salary rate, excluding the employer's portion of the salary benefits) – select from the drop down menu hourly or daily rate
• Number of days/hours worked
• Time period covered by days/hours worked - select date from the drop down menu
• Net amount of direct labour being claimed for reimbursement (excluding the employer's portion of the salary and benefits), the amount will automatically be calculated
• Advance in lieu of fringe benefits - this section does not apply to this program

Click on the "+" sign to add lines.

The total amount of direct labour costs will automatically be calculated.

Schedule 2 - Direct material costs

Eligible direct material costs are those that can be specifically identified and measured as having been used for the performance of the project in accordance with the following:

1. In addition to materials purchased solely for the project and processed by the recipient, these materials may include those obtained from subcontractors, any other materials issued from the recipient's general stocks (inventory).
2. Materials purchased solely for the project or obtained from subcontractors shall be charged to the project at the net laid down cost to the recipient.
3. Materials issued from the recipient's general stocks (inventory) shall be charged to the project in accordance with the method as used consistently by the recipient in pricing material inventories.

The following information must be provided in Schedule 2 for each material cost claimed:

• Vendor
• Description of item
• Invoice number
• Invoice date (select date from the drop down menu)
• Total amount of eligible costs claimed for reimbursement
• Proof of payment reference, if applicable (e.g. cheque #, receipt #)

It is your responsibility to keep and maintain books of account and other records in which all receipts and disbursements in relation to the project are recorded. The description on the claim form should be consistent with the description of goods/services on the invoices.

Click on the "+" sign to add lines.

The total amount of direct materials will automatically be calculated.

Schedule 3 – Direct equipment costs

Eligible direct equipment costs include but are not limited to servers, switches, fibre optic cable, repeaters, radio equipment, towers, poles, back-up power supplies, shelters and network broadband connectivity devices including upgrades and adaptions.

The following information must be provided in Schedule 3 for each cost claimed:

• Vendor
• Description of item (include model number and manufacturer when appropriate)
• Invoice number
• Invoice date (select date from the drop down menu)
• Total amount of eligible costs claimed for reimbursement
• Proof of payment reference, if applicable (e.g. cheque #, receipt #)

Click on the "+" sign to add lines.

The total amount of direct equipment costs will automatically be calculated.

Schedule 4 – Other direct costs

Other eligible direct costs are those applicable costs not falling within the categories of direct labour, direct equipment, direct material, direct satellite capacity, or direct travel costs, but which can be specifically identified and measured as having been incurred in the performance of the project and which are so identified and measured consistently by the recipient's cost accounting practices as accepted by the Minister.

The following information must be provided in Schedule 4 for each other direct cost claimed:

• Vendor
• Description of item (provide sufficient detail to clarify what the item is)
• Invoice number
• Invoice date (select date from the drop down menu)
• Total amount of eligible costs claimed for reimbursement
• Proof of payment reference, if applicable (e.g. cheque #, receipt #)

Click on the "+" sign to add lines.

The total amount of other direct costs will automatically be calculated.

Schedule 5 – Travel costs

Eligible travel costs claimed under Schedule 5 are the costs of travel which is deemed necessary for the performance of the project. To be eligible, travel costs must clearly document the purpose of each trip. Travel expenses, at economy rates, shall be charged at actual costs, but only to the extent that they are considered reasonable by the Minister. This schedule is only for travel taken by employees of the recipient. Travel taken by contractors should be included in their invoices to the recipient and thus included in Schedule 4, Other Direct Costs.

Types of costs and required supporting documentation:

• Airfare - must be supported by a copy of the original airline ticket (E-tickets are acceptable when clearly marked e-ticket by the carrier).
• Mileage - where a personal automobile is used, kilometre (mileage) allowance will be based on current Treasury Board of Canada Travel Directives. Eligible costs shall be limited to the cost that would have been incurred and paid had normal public transportation at economy rates been used. Mileage claims must be supported by a copy of the original signed employees' expense form which clearly indicates the # of kilometres travelled and the rate of reimbursement.
• Meals - meal rates will be based on current Treasury Board of Canada Travel Directives. Please note all receipts are to be kept for all items except meals. Note: tips and alcohol are not eligible expenses as they are not deemed necessary for the purpose of carrying out the project.
• Hotel Accommodation - a copy of the original receipt showing all transactions making up the total cost must be provided. Note: movies and personal phone calls are not eligible expenses as they are not deemed necessary for the purpose of carrying out the project.
• Private Accommodation - a copy of the original signed receipt from the individual who provided the accommodation (can be in the form of a signed letter). Note: Cost claimed may not exceed the Treasury Board prescribed rate.
• Car Rental - a copy of the original receipt must be provided. Note: gas will only be paid when a vehicle was required to be refuelled to complete a trip or as a requirement of the car rental contract. A note to this effect should be provided.
• Parking - a copy of the original receipt must be provided.
• Train / Bus - must be supported by a copy of the original transportation ticket.
• Taxi - a copy of the original receipt must be provided.

The following information must be provided in Schedule 5 for each travel cost claimed:

• Traveller (position, title or role on the project of the traveller)
• Time Period Covered by Travel (select date from the drop down menu)
• Total amount of eligible costs claimed for reimbursement (net of any taxes)
• Proof of Payment reference, if applicable (e.g., cheque #, receipt #)

Click on the "+" sign to add lines.

The total amount of travel costs will automatically be calculated.

Schedule 6 – Direct satellite capacity costs

The title of Schedule 6 is blank in the form. If applicable, you are required to add "Direct satellite capacity costs" in the form itself. Eligible direct satellite capacity costs includes the purchase or lease of bandwidth or capacity delivered over the physical medium of satellite which can be specifically identified and measured as having been used or to be used in the performance of the project. These costs will be measured in units of Mbps, MHz, or a quantity of satellite transponders.

The following information must be provided in Schedule 6 for each cost claimed:

• Vendor
• Description of item
• Invoice number
• Invoice date (select date from the drop down menu)
• Total amount of eligible costs claimed for reimbursement
• Proof of payment reference, if applicable (e.g. cheque #, receipt #)

Click on the "+" sign to add lines. The total amount of satellite capacity costs will automatically be calculated.

Detailed claim section

Once you have entered all eligible costs in the schedules, you can fill the Detailed Claim section. The Eligible Project Costs section of the form summarizes all the eligible costs in one table. The name of the recipient and the total amounts for each eligible cost category reflected in the eligible project costs schedules will be automatically transferred from the corresponding cost categories in the Claim section. The total eligible costs will automatically be calculated. The project number and claim number boxes are to be left blank.

The purpose of the next section is to document the funding sources that have or will be used to fund total project costs (eligible AND ineligible) associated with the project from its effective date until the end of the current Government of Canada fiscal year (March 31st). This information will be use to help manage the Program's contribution budget.

In the fields "From" and "To" under the section "Claim Period", indicate the period during which eligible costs were incurred for this claim (use the drop down menu). In the same section, under the field "Actual" enter the amount from each source of funding for the claim period.

In the first column under the section "Sources of Funding", indicate the effective date of the project in the field "From" as specified in paragraph 1.1 l) of the CA (use the drop down menu). In the same section, in the column under the field "Actual" enter the amount from each source of funding for the period between the effective project date and the end date of this claim. The total of this column is the total sources of funding received or to be received to cover the amount spent on the project from the effective date to the end of the current claim period.

In that same section, under the column titled "March 31^st", indicate the forecasted sources of funding from the day after the current claim period until the next March 31^st. The total of this column is the total forecasted amount of funding received or to be received from the day after the current claim period end date until March 31^st.

The next section is to document total costs incurred or to be incurred (eligible AND ineligible), per cost category, on the project during the current Government of Canada fiscal year (April 1^st to March 31^st).

In the column under the section "Actual" enter the amount incurred per cost category (including ineligible costs) for the period between April 1^st of the current fiscal year to the current claim period end date. The total of this column is the total costs incurred on the project from April 1^st to the end of the current claim period end date.

In the column "Forecasted", provide a forecast of costs per category from the day after the current claim period end date until March 31^st of the current fiscal year. The total of the column is the total forecasted amount of spending on the project from the day after the current claim period until March 31^st (the year-end of the Government of Canada). This total should be the same as the "Total Project Funding" under the column "March 31^st" of the previous table in the form (ex. $48,000).

The next section only applies if you have previously received an advance. As stated in section 5.8 of your CA, you are required to report interest earned on advance payments. Such interest will be applied to reduce the amount of the contribution to be disbursed.

In this section, enter the amount of interest earned on the advance payment from the previous advance period.

Completing the Applicant's Claim Summary and/or Advance Claim Form (first page)

Complete the applicant information on the top left section of the form. Note that the applicant information can also be completed before the direct costs schedules and the detailed claim sections.

• The "Program" box will always be Connecting Canadians.
• "Projet Start" and "Project Completion" boxes should reflect the dates in Schedule A, section B of the CA.
• The "Commercial Production" box does not apply and should be left blank.

The next section is a summary of the eligible costs claimed.

In the box "1. ELIGIBLE COSTS" check the box "Incurred" to indicate that the eligible costs to be reimbursed have been incurred, OR check the box indicating "Paid" if these costs have also been paid at the time of submitting the claim package. If the claim is a mix of incurred and paid, check "Paid".

In the section "Period Covered" under the section "Current", indicate the period during which eligible costs were incurred for this claim (the claim period). In the "Total to Date" section indicate the total period covered between the effective date as specified in paragraph 1.1 L) of the CA and the end date of this claim.

In the section "Total Eligible Costs" under the section "Current" (the claim period), indicate the current amount of eligible costs, as per the amount shown in the detailed claim cost form. In the "Total to Date" section indicate the total cumulative amount of eligible costs incurred up to the end of this claim period.

In the section "Industry Canada Share", indicate the percentage that Industry Canada agreed to reimburse as set out in section 3.2 a) of the CA. The amounts of the share will automatically be calculated.

The program reserves the right to make the final determination of eligible costs, to disallow expenditures and to recover funds that have been paid out to recipients. To avoid a situation where costs may later be deemed ineligible, the recipient is advised to contact their Program Officer if it foresees a problem in complying with the program guidelines.

Once completed, print the form and sign and date the "CERTIFICATION" section in the space provided on the form. However, before you print and sign it, save an electronic copy in .pdf format to be sent to your Program Officer. Certification must be provided by an Authorized Official of the recipient satisfactory to the Minister; the title of the person certifying also has to be identified.

Please send an electronic copy of the form (in .pdf format, not a scanned copy) to your Program Officer and the original signed copy by mail to the attention of: Connecting Canadians Program, 235 Queen Street, CD Howe Building, Floor 01W, Ottawa, Ontario K1A 0H5.

Final claim

The final payment of the contribution is made after the project is completed and the final claim has been received and satisfactorily reviewed. Subject to the provisions of the CA, upon project completion, the amount of the final contribution is calculated based on the actual total eligible costs incurred for the project. The final contribution is limited to the maximum allowable program funding share of eligible costs or the maximum amount, whichever is lower.

If the request for payment represents a final claim, an attestation letter (see the Recipient Toolkit section of the CCP website for a copy of this form) must be submitted along with a final implementation report addressing the elements specified in Schedule C, Section 2, of the CA and any outstanding deliverables as required in the CA.

If you are using the Applicant's Claim Summary and/or Advance Claim form to submit a final claim, check the "Yes" box on the top of the form indicating that this is a "Final Claim".

4.2 Request for an advance

Prior to the execution of the CA, the Program conducted a project and recipient risk assessment to determine the risk associated with each project. The risk rating is used to determine the risk management strategies for several areas, including the ability to request an advance payment and the maximum length of such an advance payment. Current risk ratings have been conveyed by Program Officers.

According to the Treasury Board of Canada Policy on Transfer Payments, in order to be issued, advance payments have to be essential to the achievement of the project and are based on the recipient's cash flow requirements. The policy states that approval of advances is at the Minister's discretion. Contribution payments are intended to reimburse for costs already incurred by a recipient; therefore, the recipient is expected to make the disbursement and then claim for reimbursement. It is the recipient's responsibility to demonstrate up-front that advance payments are essential to achieve the objectives of the project.

To request an advance payment to meet immediate cash flow requirements for eligible costs for the project, the recipient must fill the applicant's costs forecast of the Applicant's Claim Summary and/or Advance Claim Form specifying the requested advance amount with a cash flow forecast of those eligible costs specified in the project budget that will be incurred during a period not to exceed three to six months (the advance period) based on the period identified as part of the project risk assessment. In most cases, the advance period should be within one Government of Canada fiscal year (April 1^st to March 31^st).

The request must be received no later than the 15th of the month in order to receive an advance payment to meet that month's and/or subsequent months' cash flow requirements covering the advance period. For example: a request for an advance payment to meet cash flow requirements for the months of April, May and June would have to be received no later than April 15^th. If received after April 15^th, but before May 15^th, the advance payment, if approved, will be calculated based on the cash flow requirements for the months of May and June only.

Any subsequent advance during the fiscal year will only be made upon receipt, in addition to the items described above, of satisfactory reporting on progress and a claim for the eligible costs incurred during the previous advance period, certified by an authorized official of the recipient satisfactory to the Minister.

The recipient shall use each advance to pay for eligible costs as soon as possible following receipt of the advance. Any portions of the advance not used immediately shall be invested in an interest bearing account. Each advance payment and interest earned thereon must be accounted for by the recipient.

When filling the form to request an advance, the first and last sections of the form have to be completed.

At the top of the form, on the first page, check the box "Forecast" to indicate that the request is a claim for an advance and check the box "Yes" for "Is this form for the Connecting Canadians program?".

Click on the "Go to Forecast" box.

This will automaticcaly bring you to the applicant's cost forecasts section.

Completing the applicant's cost forecast

The "Program" and "Name of Applicant" boxes will be automatically filled based on information from page 1 of the form. The boxes for "Project Number", "Endeavor" and "Claim Number" have to be left blank.

In the "FORECASTS OF DISBURSEMENTS" section, fill in the period covered by the advance request. (Note that the period must be in the future – a request for a June advance in July will not be accepted).

Write down the cost category and identify the anticipated costs on a monthly basis for the period of the advance that is being requested within the space provided on the form. (Note that it is expected that costs should generally vary from month to month unless they are fixed costs such as rental expenses, service fees, etc.)

Click on the "+" sign to add lines.

The total forecasted amount will automatically be calculated.

In the section "Advance (IC contribution)", enter the percentage that the Government of Canada agreed to reimburse as set out in section 3.2 a) of the CA. The total amount of the advance request will automatically be calculated.

Provide the reason for the advance payment request in the "ADVANCE PAYMENT – JUSTIFICATION" section.

Completing the Applicant's Claim Summary and/or Advance Claim Form (first page)

Transfer the total amount of the advance request on the applicant's cost forecast form to section "2. ADVANCES" on the Applicant's Claim Summary and/or Advance Claim Form (first page).

Complete the basic project information sections on the left side of the form.

Once completed, sign the certification section of the form.

4.3 Combined claim for reimbursement of eligible costs and request for an advance

Recipients can submit a combined claim for reimbursement of eligible costs and a request for an advance by filling both sections of the form. The steps for preparing a combined claim and advance request are identical to those described above. Ensure that both boxes, "Claim" and "Forecast", are checked. When filling the form to request a reimbursement and a request for advance, all four sections of the form have to be completed.

5. Project Accounting and Reporting

The following is to assist you in establishing a system or process for project cost accounting and reporting. It is essential to establish an audit trail that supports all claims to the Connecting Canadians Program for the funding of project costs.

In cases where the methods described below are not applicable or appropriate, it is advisable to inform the Program so a more appropriate method can be considered.

Project accounting and reporting system

A project accounting and reporting system should be established to track and record costs attributable to the project. Accounting software may have a module with the capability to establish cost centres, with a cost centre representing the project. Alternatively, a stand-alone system (i.e., separate from the accounting system) could be established.

All project costs should be recorded in the appropriate project cost centre.

Audit trail for project costs

An appropriate and well-documented audit trail should support the recording of all project costs. As specified in the CA, supporting documents and records, either hard copy or electronic, should be retained, safeguarded, and available for audit purposes. All costs amounts entered into the project accounting system should agree with the amount shown on supporting documentation. Supporting documentation should specifically identify the project for which the costs were incurred.

Project costs other than direct labour should be supported by third party invoices and contracts, purchase orders, or requisitions for the procurement of goods or services, which should identify the project.

Direct labour costs should be supported by timesheets completed by all employees whose time is charged to a project and by approved salary levels and rates for these employees. Time reporting should be authenticated by employees and approved by the appropriate supervisor or manager. An adequate time-tracking system should allow clear identification and segregation of costs incurred for each project. Where employee time is entered in an automated time reporting system, reports should be printed on a periodic basis – monthly or more frequently – for review and signature by employees and approved by the appropriate supervisor or manager. The time recorded on these signed, printed timesheets should be reconciled to direct labour costs recorded in the project accounting system.

6. Eligible Direct Cost Categories

Principle

The total eligible costs of the project shall be the sum of the applicable direct costs which are or will be reasonably and properly incurred and/or allocated in the performance of the project, less any applicable credits.

Reasonableness

A cost is reasonable if, in nature and amount, it does not exceed that which would be incurred by an ordinary prudent person in the conduct of a competitive business.

In determining the reasonableness of a particular cost, consideration shall be given to:

• whether the cost is of a type generally recognized as normal and necessary for the conduct of the performance of the project;
• the restraints and requirements by such factors as generally accepted sound business practices, arm's length bargaining, federal, provincial and local laws and regulations, and CA terms;
• the action that prudent business persons would take in the circumstances, considering their responsibilities to the owners of the business, their employees, customers, the Government of Canada and public at large;
• significant deviations from the established practices of the recipient which may unjustifiably increase the eligible costs; and
• the specifications, delivery schedule and quality requirements of the particular project as they affect costs.

7. Other Matters

Credits

The applicable portion of any income, rebate, allowance, or any other credit relating to any applicable eligible costs, received by or accruing to the recipient, will be credited to the project (and the eligible costs to be reimbursed under the CA).

Goods and Services Tax or Harmonized Sales Tax

Only the portion of the Goods and Services Tax or the Harmonized Sales Tax which is not refundable by the Canada Revenue Agency as an Input Tax Credit or as a Rebate can be claimed as an eligible costs. Only that portion of the Provincial Sales Tax which is also not refundable by the respective provincial tax authority can be claimed as an eligible cost.

Related parties

Costs of goods or services acquired from parties related to the recipient, including intermediate third parties, must be valued at the cost to the supplying entity and shall not include any mark up for profit or return on investment and shall not exceed fair market value. The eligibility of such costs might not be considered unless access is provided to the relevant records of the supplying entity.

Foreign Currency Transactions

Foreign currency transaction must be reported in Canadian dollars in accordance with the usual recipient's policies and procedures (e.g., using the market exchange rate in effect at the time the expenditure is recorded in the account, at the invoice date or at the payment date). If a recipient enters into a foreign exchange contract for a specific transaction to protect itself against fluctuations in the foreign exchange rate, the program will accept that the contract rate be used to report the transaction. However, there must be a direct relationship between the foreign exchange contract and the transaction (i.e., same amount, same date of settlement of the contract and expected payment to the supplier).

8. Annex 1

Example of suitable proof of payment

Copies of invoices marked paid may be requested and are the most typical proof of payment document. It is recognized, however, that there are other forms of suitable proof of payment that can serve to support an expenditure being claimed for reimbursement.

This list below provides examples of other suitable proof of payment documents. Note that the list is not exhaustive. If there are any questions concerning the suitability of a document to be provided please contact the CCP Program Officer assigned to the project for direction in advance of submitting the expenditure for reimbursement.

Regardless of the type of proof of payment provided, a note of explanation is required when only a portion of the expenditure is being claimed.

Payment by cheque

• photocopy of the front and back of the cancelled cheque;
• copy of a bank statement that clearly shows the payment made to the vendor; or
• letter from the vendor showing a contact name and phone number and verifying receipt of payment in full including dates.

Direct payment

• photocopying of the bank statement clearly indicating the date of the withdrawal from the account and the vendor name; or
• letter from the vendor showing a contact name and phone number and verifying receipt of payment in full including dates.

Payment by credit card

• copy of the credit card receipt that indicates payment by credit card; or
• copy of a credit card statement showing the charge to the supplier.

Payment by cash

• copy of the cash receipt showing the vendor name, address, phone number, transaction number (if applicable) and contact name; or
• letter from the vendor showing a contact name and phone number and verifying receipt of payment in full with dates.

While the program may not request all proof of payment, the recipient must maintain complete and accurate records for expenditures and pay attention to the following factors in preparing invoices to ensure that:

• amounts are arithmetically correct and totals add up;
• ensure that before an invoice is paid, the goods are signed off as received (or services performed);
• invoice descriptions clearly show what the expenditure is for;
• invoices for equipment contain sufficient detail (e.g. model numbers) and are consistent with the equipment list in the CA;
• the expenditure (e.g. cost type; quantity) aligns with the work expected to be performed in the CA and milestone reporting; and
• the invoices specifically identify the portion of expenditures that are considered eligible expenses under the Program.