Payment Request Policy and Procedures

Payment Request Policy and Procedures

Purpose and Scope

The Payment Request Policy and Procedures applies when a payment is required without any good or service having been purchased and therefore a Purchase Order is not possible. 

Refer to the Procedures for details regarding the implementation and interpretation of the following policies.

Policy

P1. General

P1.1.

The Payment Request Process/Form is to be used when a payment is required without any good or service having been purchased.

P1.2.

The Payment Request Process/Form cannot be used for Donations.

P1.3.

Please refer to Procedures to determine when a Payment Request is appropriate.

 

P2. Approvals and Responsibilities

P2.1.

All Payment Requests require the signature/approval of the Fund Financial Manager/Principal Investigator/Delegate (FFM/Delegate) of each fund/grant charged.

P2.2.

Options for Signatures/Approvals

Please note: each option has specific requirements in order to mitigate risks associated with the Payment Request Form/Process.
 

OPTION 1:

P2.2.1 FFM/Delegate provides their approval via email (i.e. approval email)

• The Payment Request Form/email sent to paymentrequest [at] mcgill.ca for processing must include the approval email as supporting documentation and FFM/Delegate do not have to be included in the c.c.

OPTION 2:

P2.2.2 FFM/Delegate approves/signs using Adobe Fill & Sign

• The Payment Request Form/email sent to paymentrequest [at] mcgill.ca for processing MUST include the FFM/Delegate in the c.c. if they are not the ones submitting the Payment Request.

OPTION 3:

P2.2.3 FFM/Delegate physically signs the paper Payment Request Form (i.e. wet signature)

• The physically signed (i.e. wet signature) Payment Request Form must be emailed to paymentrequest [at] mcgill.ca and MUST also include the FFM/Delegate in the c.c. if they are not the ones submitting the Payment Request.

P2.3.

If the payee is the FFM/Delegate or has a personal relationship with the FFM/Delegate, then their direct superior must approve the request.

P2.4.

The delegation of approval in certain circumstances is permitted. Refer to the Delegation of Signing Authority Regulation.

 

P2.5.

The FFM/Delegate is responsible in ensuring the Payment Request is:
a) Legitimate
b) Appropriate
c) Reasonable
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

 

Procedures

PR1. Administrative Responsibility and Process

PR1.1.

The administration of Payment Requests is under the responsibility of Expense Payment Services, Transaction Services, in Financial Services. Any issues regarding the application of these guidelines will be resolved by the Associate Director, Transaction Services.

PR1.2.

All Payment Requests must be originated by completing and submitting the Payment Request Form (sign-in is required) found under the Financial Services website.

Note: In order to mitigate risks associated with duplicate payments, all Payment Requests must be sent via email to paymentrequest [at] mcgill.ca in the following format:

• One email = one payment request = one invoice/pdf document (even when there are multiple invoices for the same supplier/payee – i.e. if there are three invoices for the same payee, one will need to submit three payment requests/PDF documents for each of the three invoices).
• The one pdf document must include: the payment request, supporting documentation and the acknowledgements/approvals
• If the format is not respected, Expense Payment Services - Accounts Payable will reject these documents
• Prior to submitting a Payment Request, please refer to How To Submit a Payment Request  

PR2. Allowable Types of Payment Requests

PR2.1. Payments to public and health institutions, such as hospitals, universities, granting agencies, government

Payment requests examples are, but not limited to: inter-institutional agreements, institutional advances for research grants and contracts, contributions, and for academic purposes such as student supervision.

If a good or service was purchased (including memberships), the Payment Request will be rejected.

All purchases of goods and services must be processed via a Purchase Order in MMP for government reporting purposes.

ONLY when Procurement Services advises the Requestor that a Payment Request is permitted for the purchase of a good or service, will Expense Payment Services, Transaction Services, accept the Payment Request.

Travel-related expenses (including airfare, conferences fees, etc.) must be processed via Minerva ADV and EXR Menu.

Please refer to the Payment Request or Procurement Channel (PO/PCard) Table below to help identify the best method of payment/purchase.

Payment Request or Procurement Channel (PO/PCard) Table
* applicable regardless of fund type

Type of Payment/Purchase	Type of Entity	Method of Payment/Purchase
Supervision Fees for students as part of their academic program	To any type of entity including but not limited to Universities, Schools and companies/corporations	Payment Request
Reimbursement of non-McGill Salaries	To any type of entity but most often to a University or Hospital	Payment Request
Reimbursement of goods not purchased by McGill (e.g. materials & supplies)	To any type of entity but most often to a University or Hospital	Payment Request
Reimbursement of any kind, including but not limited to: training, research project, etc.	To any type of entity but most often to a University or Hospital	Payment Request
Memberships and membership dues	To any type of entity (Professional Orders (CPA, Infirmiere, CRHA), Bar Associations, Other Professional Associations, University Associations, other Universities, etc..)	Procurement Channel: PO/PCard
Memberships/registrations for students in a learning program, curriculum program, and/or course not delivered by McGill	To any type of entity	Procurement Channel: PO/PCard
Goods and services purchased by McGill	From any type of entity including but not limited to Universities and Schools	Procurement Channel: PO/PCard

PR2.2. Payments to Corporations/Companies

Payment Requests payable to Corporations/Companies are only permitted when the purpose is for an award, contribution, and/or stipend.

All other payments to Corporations/Companies must be processed via a Purchase Order in MMP for government reporting purposes.

PR2.3. Payments requested by Central Admin Units

Examples of payments submitted by Central Admin Units are to pay deductions at source, withholding taxes, union dues, benefits, pensions, insurance premiums, and in-trust payments to law firms and notaries.

PR2.4. 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.

PR2.5.Refunds of amounts originally paid and credited to a University fund (FOAPAL)

Refunds typically originate from units providing services such as HR/Payroll, 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.

PR2.6. Payments made to Annuitants

These are submitted by the Office of Investments. Please refer to: Charitable gift annuities

PR2.7. Legal Settlements & Moral Damages

• Legal settlements & Moral Damages where a conciliator/arbitrator has been appointed are non taxable and can therefore be processed on a payment request.
• Legal settlements & Moral Damages where no conciliator/arbitrator has been appointed are taxable and must be processed via payroll.

PR2.8. 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.

PR3. Links to Related Documentation

Payment Request form

Overview of Procurement and Payment Methods

Research Administration Roles and Responsibilities

How to Submit a Payment Request

 

Publication Date: November 29, 2006
Revision Date: September 25, 2023- V 3.7
Effective Date: September 25, 2023