Finance

"ACH" (Automatic Clearing House)

The ACH Direct Deposit (PDS) and EFT services facilitate the disbursements of recurring payments (e.g. Expense and Accounts Payable payments to business or individuals). Payments require a one to two day lead time depending on the destination bank.

"EFT" (electronic fund transfer)

A service which the Government provides to individuals or organizations to have funds transferred electronically to a specified bank account.

" FEDI" (Financial Electronic Data Interchange) (EDI)

This service facilitates payments from business to business. The payment is pre-validated prior to delivery to the respective financial institutions of your payments beneficiaries. The payment most often is delivered for processing on the same day except when dealing with non-standard banks.

"wire transfers"

This service gives you the flexibility to transfer funds between your bank accounts or make payments to corporations and individuals. These payments are pre-validated by the bank prior to delivery. Validated payments are processed the same day.

Deputy Ministers shall designate payments from the list of payments in Directive 4.1.6 which are eligible for issuance to their departments

Finance officers, authorized by Directors of Finance and Administration (or equivalent), shall request that eligible cheques be issued to their departments.

Cheques shall not be issued to the originator of the transaction, but shall be released to a finance officer designated by Directors of Finance and Administration (or equivalent).

Departments shall maintain a register which includes a record of disposition for all cheques returned to the department.

Payments eligible for issuance by cheques to Departments include the following:

1. Payments involving legal transactions which are: i) Real estate acquisitions; or, ii) Damage claim releases (this does not include payments against Crown debts which have been assigned or are subject to a power of attorney).
2. Payments requiring formal presentation which are grants or other payments presented personally by Ministers, Deputy Ministers or Regional Directors; or,
3. Cash, which is required for immediate service for: i) Postage meter charging and other postal charges; ii) Customs clearance; iii) Sheriffs fees; or, iv) Petty cash advances and replenishments.
4. Payments which are delivered by diplomatic courier.
5. Fur auction payments (the Department responsible for issuing fur payments must ensure adequate compensating internal controls are established in accordance with Financial Administration Manual (FAM) Policy 1813 - Departmental Cheque Issue Systems .)

Cheques must not be issued between departments.

The Comptroller General may exempt departments from the directives of this policy and authorize cheques to be issued to departments in other circumstances where warranted.

Direct Deposit

Direct Deposit is the preferred method of payment of funds. All Vendors should be encouraged and provided the opportunity to participate.

Individuals or organizations must specifically request and authorize in writing for any payment from the government to be directly deposited to their bank account. All payments due from the government within Canada are eligible for direct deposit.

A detailed remittance advice must be provided with each direct deposit in order to notify the individual or organization of the payment credited to their bank account.

Employees not selecting direct deposit for travel reimbursements or advances must have their cheques mailed to their home address.

In instances where a vendor/client has been established with direct deposit but a physical cheque is required for Ministerial presentation, an oversized replica should be considered.