To ensure effective control of the issue and delivery of the
Receiver General cheques.
Note: The controls pertaining to Receiver General
cheques apply also to Unemployment Insurance warrants,
departmental bank account cheques and travellers cheques.
It is the policy of the government to control cheques issued
by the Receiver General for Canada by reducing the risk of fraud
and ensuring, to the extent practicable, that such cheques reach
the intended payees.
This policy applies to all agencies designated as departments
under the Financial Administration Act.
For purposes of this chapter, "payments to employees" cover
payments to all persons employed under the Public Service
Employment Act and members of the Canadian Armed Forces and
the Royal Canadian Mounted Police.
1) Receiver General cheques must be mailed directly to the
payee except for the classes of payments that are listed in
Appendix A. Those payments may be returned to the department for
other delivery to the payee.
2) For the classes of payments listed in Appendix A the deputy
head may designate officers who can request that cheques be sent
to other agents of the department.
3) Payments for supplies and services, including consultants
fees and personal service contracts or other similar
arrangements, but excluding those requiring a contract release,
and, payments representing refunds of revenues and receipts, may
not be returned to departments for handling.
4) Departments must establish appropriate policies and
procedures to ensure sound internal control over cheques returned
to the department for distribution, including:
(a) a cheque must never be placed in the hands of a person who
has participated in either spending or payment authority with
respect to that payment;
(b) the distribution of cheques to employees must not be
performed by officers engaged in any part of the staffing,
classification, salary and wage assessment function or in the
preparation and signing of reports of staffing transactions and
pay input documents.
5) Sufficient information must accompany each cheque so that
the person distributing cheques can correctly identify each
payee.
6) When the payee for the cheque is an individual, the cheque
requisition must contain at least the following information:
- pay cheque: the surname, initials and social insurance number
of the payee or some other form of identification; and
- other cheques: the surname of the payee and at least one
given name and one initial. An exception to this rule can be made
when there is to be an official presentation of the cheque to the
payee by a member of Parliament. However, no cheques are to be
sent to a member of Parliament without the prior approval of the
minister responsible for the program under which the cheque is
issued. Such approval may be granted for an individual payment or
for a category of payments, such as grants or contributions
associated with a specific program.
7) All systems for the production of payment requisitions and
payment instruments, other than payroll systems, must have the
capacity for recording and printing on the payment instrument a
surname and at least one given name and initial. Payroll systems
must provide for the printing on the payment instrument of the
payee's name and initials and for the printing on the attachment
or stub of the payee's social insurance number or other such
unique identifier.
8) The identification of the payee on a cheque or money order
must be complete to avoid errors such as endorsement by some
person other than the payee. Consequently, initials are not
sufficient.
9) The traditional method of representing numbers (period as
the decimal marker; commas to separate triads of numbers; and the
dollar sign on the left) must be used for recording an amount in
dollars on payment instruments and other settlement instruments
as well as on all other documents related to a payment or receipt
that could be falsified.
10) Once the minister's approval has been obtained, cheques to
be presented by members of Parliament must be sent to the senior
financial officer of the program, who in turn must send them
directly to the members of Parliament concerned. No cheques are
to be delivered or sent to an officer who has requested the
payment or who has participated in some manner in the payment
approval process.
The internal audit unit of the department will verify the
control of Receiver General cheques.
Cancellation
This chapter cancels chapter 3-17 of the "Financial
Management" volume dated April 1, 1992; and
this policy replaces Chapter 9.6 of the Treasury Board
Guide on Financial Administration dealing with the control
of Receiver General cheques.
Inquiries concerning this policy should be directed to your
departmental headquarters. For interpretation of this policy,
departmental headquarters should contact:
Comptroller Sector
Program Branch
Treasury Board Secretary
Ottawa, Ontario
K1A 0R5
Telephone: (613) 957-7233
Facsimile: (613) 952-9613
Classes of Payments for Which Deputy Heads may Authorize the
Forwarding of Receiver General Cheques to Their Departments
Eligible classes
1) payments to employees
Examples:
- salaries and wages
- allowances
- travel, relocation, and other reimbursable expenses
- advances relative to the above
- foreign-service loans
2) payments involving legal transactions (This class does NOT
include payments against Crown debts that have been assigned or
are subject to a power of attorney)
Examples:
- real estate acquisitions
- contract releases
- damage claim releases
3) payments involving special banking transactions
Examples:
- contributions and subsidies to be deposited for rapid
transfer
- funds to be transferred abroad
4) payments to be transmitted by diplomatic courier
5) payments requiring classified security handling
6) payments to other governments and Crown corporations
Examples:
- loan payments to be exchanged for promissory notes
- large payments to be transmitted under special
arrangements
7) payments requiring formal presentation (This class does NOT
include payments to contractors, consultants, etc.)
Examples:
- grants to be presented personally by ministers, Members of
Parliament or deputy heads
- honoraria and expenses to be paid to visiting lecturers and
seminar speakers
- suggestion and merit awards
- per diem fees paid to board and commission members
8) cash required for immediate service
Examples:
- postage meter charging and other postal charges
- customs clearance
- vehicle licences
- bus and toll tickets
- sheriffs' fees
- petty cash advances and replenishment
9) recurring payments requiring administration
Examples:
- transportation contracts
- administered pensions and allowances
- payments to native peoples
- social welfare-special payments
10) loan payments to individuals to be exchanged for
promissory notes
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