There are situations when a payment is required but no standard process can be applied. For example, it is not possible to submit a Purchase Order for the transaction in question, or no invoice exists to support a payment. The purpose of this Policy is to define the limited instances for which a Payment Request may be used as a method of payment.
Refer to the Procedures for details regarding the implementation and interpretation of the following policies.
- A Payment Request is used to issue a payment when no other method is appropriate, such as Purchase Requisition, PCard, Payroll and Expense Reimbursements.
- Payment Requests are issued when an amount is owed to a third-party without any good or service having been purchased.
- Donations are not eligible on Payment Requests
- Please refer to Procedures to determine when a Payment Request is appropriate.
P2. Approvals and Responsibilities
- All Payment Requests require the wet signature of the Fund Financial Manager/Principal Investigator (FFM/PI) of each fund/grant charged.
- If the payee is the FFM/PI or has a personal relationship with the FFM/PI, then their direct superior must approve the request.
- The delegation of approval in certain circumstances is permitted. Refer to the Delegation of Signing Authority Regulation.
- The FFM/PI is responsible in ensuring the Payment Request is:
d) For University business purposes only
e) In accordance with University and Granting Agency policies and guidelines
f) Includes sufficient and adequate supporting documentation
g) Charged to the correct FOAPAL(s) and no deficit exists or will exist on the fund(s) charged
PR1. Administrative Responsibility and Process
- The administration of Payment Requests is under the responsibility of the Accounts Payable Office, in Financial Services. Any issues regarding the application of these guidelines will be resolved by the Manager, Transaction Services.
- All Payment Requests must be originated by completing and submitting the Payment Request Form found under the Financial Services website.
- Accounts payable will not process a Payment Request until the duly signed paper form and supporting documentation is received.
PR2. When a Payment Request is Appropriate
- Payments to public and health institutions, such as hospitals, universities, granting agencies and government
- In many cases, the issuance of a University formal purchase order is not applicable (e.g. lab fees for a research project). In other cases, the payment does not relate to a good or service but rather an institutional advance relating to a joint project or grant.
- It should be noted, however, that a University formal purchase order is preferred in certain cases, such as construction services acquired through University teaching hospitals.
- Payments to government offices and life insurance companies
- These relate to the standard and ongoing payments originated by Human Resources relating to withholding taxes, benefits, pension and insurance premiums.
- Payments to McGill student societies from university funds
- These relate to contributions from a McGill unit, or the remittance of society fees collected from students by central administration. The letter of agreement should be submitted as supporting documentation or must be on file in Financial Services.
- Refunds of amounts originally paid and credited to a University fund (FOAPAL)
- Refunds typically originate from units providing services such as Residences, Athletics and the Executive Institute. Proof of the original payment and/or the calculation used to arrive at the refund amount is required as supporting documentation.
- Subject Fees
- Used when cheque payments are made directly to the subject (i.e. the participant in a research study). Supporting documentation is not required.
- Such payments should not exceed $100 per person per day. Any subject fee payments exceeding this limit will be reviewed by Financial Services to ascertain whether they should be treated as employment income.
- Living Allowances
- Instances when the payment is made directly to the recipient (for which the nature and amount of the allowance is stipulated in granting agency guidelines). In this case, supporting documentation need not be provided.
- Payments made on behalf of Trust Funds
- Fund codes starting with ‘8’ are owned by affiliated yet legally separate entities, for which the University provides book-keeping services. It is not appropriate for trust funds purchases to be processed through a University formal purchase order or by PCard, therefore Payment Requests are the only means by which these separate entities can initiate payment to another 3rd party. Note: Personal Reimbursements charging a Trust Fund may be processed via Minerva Finance (Fund) Administration /Employee, Advances and Expense Reports menu.
PR4. Glossary of Terms
- Glossary of Finance Terms available in the Financial Services Knowledge Base
PR5. Links to Related Documentation
Publication Date: November 29, 2006
Revision Date: December 19, 2017 - V 2.0
Related Memorandums, Announcements, and Revision Notes
December 19, 2017 - Version 2.0: Updated P1 and P2 and removed PR4.
February 24, 2017 – Version 1.4: Replaced the phrase “academic staff or administrative and support staff” with "academic, researcher, or administrative staff"; Updated policy name reference for the Reimbursement of Travel and Other Expenses Policy.
February 3, 2017 – Version 1.3: Replaced the labeling convention "P1., P2., etc." in the Procedures section to "PR1., PR2., etc.".
March 16, 2016 – Version 1.2: Replaced the phrase “faculty or staff” with “academic staff or administrative and support staff”.
May 9, 2013 - Announcement from Cristiane Tinmouth, Controller, Financial Services about Delegation of Temporary Signing Authority Procedures For All Fund Financial Managers | Channels News.