Transfer payments
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Table of contents
- Defining the Activity
- Relationship to Other GVT
- Business Processes
- Retention
- Business Value and Retention Recommendations
How to use this tool
- This tool is designed for IM specialists to use with relevant business areas when identifying information resources of business value (IRBV) and retention specifications.
- The IRBV and retention specifications contained in this document are recommendations only and should be customized to apply in each institutional context. The complete document should be read before using any recommendations.
- This Generic Valuation Tool does not provide Government of Canada institutions with the authority to dispose of information. Generic Valuation Tools (GVT) are not Records Disposition Authorities (RDA) and do not replace the Multi-Institutional Disposition Authorities (MIDA).
Validation: The business processes and IRBV of this GVT have undergone a comprehensive validation process with the relevant communities of practice across the Government of Canada. In October 2011, a facilitated session was held with the sitting members of the Business Design and Process Work Group and the Centre of Expertise on Grants and Contributions, as well as a representative from the disbanded working group that produced the draft Common Business Process Model for Manage Grants and Contributions in collaboration with the Office of the Comptroller General of Canada. The GVT was also validated with relevant policy centres at TBS including the Centre of Expertise on Grants and Contributions (December, 2011).
Defining the Activity
The Transfer Payment process is a common operational activity carried out by Government of Canada (GC) institutions through grants, contributions, and other transfer payments. It involves transferring money, goods, services, or assets to individuals, organizations or other levels of government based on established eligibility requirements, where funds may or may not be repayable under specific conditions.
Grants, contributions, and other transfer payments are defined as follows:
Grants: A transfer payment subject to pre-established eligibility and other entitlement criteria. A grant is not subject to being accounted for by a recipient nor normally subject to audit by the department. The recipient may be required to report on results achieved. Footnote1
Contributions: A transfer payment subject to performance conditions specified in a funding agreement. A contribution is to be accounted for and is subject to audit. Footnote2
Other Transfer Payments: A monetary payment, or a transfer of goods, services or assets made, on the basis of an appropriation, to a third party, including a Crown Corporation, that does not result in the acquisition by the Government of Canada of any goods, services or assets. Transfer payments are categorized as grants, contributions and other transfer payments. Transfer payments do not include investments, loans or loan guarantees. Footnote3
The management of transfer payments in done in accordance with the Policy on Transfer Payments and the Directive on Transfer Payments, while the accounting of transfer payments is done in accordance with the Accounting Standard 3.2.—Treasury Board—Transfer Payments (Grants and Contributions).
This GVT does not address the funding of capital plans and projects, including Crown projects. Capital plans and projects refer to circumstances where the federal government will be the owner of, prime user of, or entity responsible for the end product. In contrast, projects funded through grants, contributions, and transfer payments are to develop, create, or improve end products that are used, owned, or operated by entities other than the federal government.
This GVT should be used in conjunction with the GVT for Management and Oversight Services. It is important to examine the recommendations in Management and Oversight before proceeding with the analysis of the recommendations for the Transfer Payments activity. This approach is taken to ensure all overlapping processes are addressed correctly. For policy relating to transfer payment programs, the recommendations in the GVT for Management and Oversight should be used. Similarly, for information resources relating to evaluations, the recommendations from the GVT for Management and Oversight should be used. Transfer payment programs are also subject to audits; however, the audit procedure is wholly contained in the Management and Oversight sub-sub-activity and does not appear in the business processes relating to transfer payments. For this reason, the GVT for Management and Oversight should be used for any information resources relating to operational audits. Operational program audits are not to be confused with recipient audits performed as part of the Transfer Payments business processes, which are included in the recommendations in this GVT. Used in conjunction, the two GVTs provide recommendations for all aspects of the Transfer Payments activities.
Relationship to Other GVT
Business processes and activities often overlap. When the IRBV from an activity is identified in another GVT , there is a note in the table of IRBV and retention recommendations (below) to direct the user to the proper tool.
Business Processes
The sub-activities and business processes are very well defined according to the Gs and Cs Process Reference Model (November 2011) developed by the Business Design and Process Work Group in collaboration with the Centre of Expertise on Grants and Contributions. The business processes relating to the financial aspects of Gs and Cs payments have been determined and documented by the Office of the Comptroller General as part of the Common Financial Management Business Process Initiative. The draft (September 2011) Common Business Process Model for Manage Grants and Contributions defines the common financial management business processes for grants and contributions payments.
The Transfer Payments activity has three sub-activities, with a number of associated business processes.
1. Program Development:
This sub-activity involves the identification of the needs for a program through policy initiatives, followed by the planning and development of the program particulars including eligibility, assessment criteria, parameters, and requirements. The business processes include:
- designing/redesigning programs;
- approving programs;
- implementing programs;
- marketing programs; and
- conducting evaluation. Footnote4
2. Program/Project Administration:
This sub-activity involves all aspects of the application process and the management of case files. It encompasses the receipt, review and acceptance (or rejection) of applications; the preparation of funding agreements; funds dispersal; recipient monitoring arrangements; and file close out. The business processes include:
- receiving funding opportunities;
- assessing and recommending funding opportunities;
- making final decisions;
- communicating decisions;
- developing Funding Agreements;
- approving Funding Agreements;
- monitoring, analyzing and reporting on progress;
- managing grants and contributions (Gs and Cs) payments;
- processing Agreement amendments;
- auditing recipients; and
- closing files.
3. Managing Grants and Contributions Payments:
This sub-activity involves all of the financial aspects of grants and contributions payments typically performed by a separate business area. The business processes include:
- initiating expenditures and controlling commitments
- managing issuance of payments
Retention
Recommended retention specifications in GVT are determined based on traditional or best practices, a review of government-wide legislation and policy, and validation with subject matter experts. Retention periods are suggestions only; departments must take into account their own legislative requirements and business needs.
Recommended retention specifications were identified by a thorough review of the Policy on Transfer Payments and the Accounting Standard 3.2.—Treasury Board—Transfer Payments (Grants and Contributions).
Business Value and Retention Recommendations
Note: Table includes correspondence documenting decisions or substantive opinions, and substantive drafts (i.e., drafts reflecting substantive content-based modifications rather than simple editorial alterations).
1. Program Development
| Business Processes | Recommendations: Information Resources of Business Value (IRBVs) | Recommendations: Retention Period |
|---|---|---|
|
Designing / redesigning program Approving program Implementing program Marketing program |
Program templates |
6 years after superseded, based on traditional retention practice applied to policy and procedure IRBV of the Comptrollership function |
|
Needs analysis report |
6 fiscal years after the end of the fiscal year in which the program closes, based on traditional practice applied to IRBV pertaining to financial transactions |
|
|
Conducting Evaluation Notes: Evaluation is an activity of Management and Oversight but is part of the process cycle of Transfer Payments (see enduring value recommendation). Evaluation appears at the beginning and end of the Funding process to assess outcomes and to inform program development. |
For IRBV please see Management and Oversight GVT |
For retention please see Management and Oversight GVT |
2. Program / Project Administration
| Business Processes | Recommendations: Information Resources of Business Value (IRBVs) | Recommendations: Retention Period |
|---|---|---|
|
Receiving Funding Opportunities Assessing and recommending funding opportunities Making final decision Communicating decision Developing Funding Agreement Approving Funding Agreement Monitoring, Analyzing and Reporting on Progress |
Communications materials |
6 fiscal years after the end of the fiscal year in which the file closes, based on traditional practice applied to IRBV pertaining to financial transactions |
|
Monitoring Grants & Contributions payments Processing Agreement amendments Auditing Recipient Closing File |
Payment documentation |
6 fiscal years after the end of the fiscal year in which the file closes, based on traditional practice applied to IRBV pertaining to financial transactions |
3. Managing Grants & Contributions Payments
| Business Processes | Recommendations: Information Resources of Business Value (IRBVs) | Recommendations: Retention Period |
|---|---|---|
|
Initiating Expenditure and Controlling Commitments Managing Issuance and Recovery of Payments / Overpayments |
Please note that some of the following recommended IRBV may be produced through the Program Administration sub-activity and should be managed in the business area in which they are outputs. Delegation of authorities instruments Note: when the above noted IRBV are entered into and/or managed in a financial management system, the system / database itself is the IRBV, not the individual documents. |
6 fiscal years after the end of the fiscal year in which the file closes, based on traditional practice applied to IRBV pertaining to financial transactions |