Contribution Funds for Non-governmental Organizations - a Handbook

6.0 Payments

6.1 PROGRESS PAYMENTS

Progress payments are made in accordance with the agreement’s schedule of payments, when there is one. Otherwise, progress payments are made upon receipt and acceptance of an interim financial report or a PA-4 form – Request for Interim Payment (see Appendix B) and, in some cases, activity reports. All expenditures and revenues, including in-kind, should be reported on this Request for Interim Payment. In some cases, advance payments may be made to the recipient, as detailed in the agreement, and those payments would then be based on cash flow requirements.

Progress payments can be made by the Department of Justice Canada up to the total amount of the project deficit, while not exceeding the maximum amount of the contribution, and at the same time respecting the holdback condition in the contribution agreement. All contribution agreements specify a percentage of holdback that the Department retains until it can verify that the recipient has fulfilled all of the financial and non financial reporting requirements of the agreement.

6.2 FINAL PAYMENT

Final payments are based on the final claim and are released after the recipient has met all conditions stated in the agreement. Conditions include the submission of all reports required by the agreement and acceptance of these reports by the Department of Justice Canada.

The final claim is usually submitted on a standard form (See sample PA-1 – Final Claim in Appendix A). It must include all revenues and expenses, including in-kind, stated in the budget and incurred for the project during the period covered by the agreement. The claim should be signed and dated, and all budget variances greater than what is permitted in the agreement should be explained.

The final claim is usually accompanied by an audited financial statement of revenues and expenses that corresponds with the items set out in the budget of the project, or by a Statement of Disposition of Federal Contribution funds (PA-5 – See Appendix C) certified by an independent professional accountant (a C.A., C.M.A., or C.G.A). The recipient should refer to the agreement for the date this final claim must be submitted to the Department of Justice Canada.