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CAI Payment Processing Pathway - Coggle Diagram
CAI Payment Processing Pathway
$50K and Above
CAI staff complete payment requisition form and upload file to Pre-Approved Folder on Sharepoint (Form to be updated and include: link to CA or other supporting documents, comment section for staff to leave a note and Board approval section), options for payment methods (cheque, Telpay, E-Transfer, visa)
Automated Email is sent to ED for review/approval
Upon Approval of the ED, the file is sent to Board member for review/approval
Automated email is sent to Board member for review/approval.
Upon Board approval, file is moved to Approved Folder on Sharepoint for payment processing
Automated Email is sent to ED for review/approval.
Upon ED Approval, file is moved to Approved Folder on Sharepoint for payment processing.
Accountant updates list on Quickbooks
Updated list sent to Telpay for payment processing
Payment Issued
With respect to grants, CAI's books and records must allow the CRA to check whether:
CAI's grants meet the accountability requirements
the grantee's use of resources can be verified
the grantee continues to use the grant's resources on the purposes and activities set out in the grant's terms.
Grant Payment Installments
Staff & volunteer expense claims
Honoraria Payments
$50K and Below
Establish how the grant furthers the CAI's mission & purpose.
Assess the grant’s overall risk level: high, medium, or low risk.
Consider the accountability tools the CRA recommends to implement, based on the grant’s risk level.
Accountability Tools
a due diligence review of the grantee, which does not necessarily apply to existing relationships
As part of the due diligence review,
CAI should document:
purpose & mission of grantee
programs
history/reputation
staff/volunteer
experience/capacity to carry on the grant activity
potential use of funds
Review Format could include:
Independent research
In-person visits
virtual meetings
requesting information from grantees (governance documents, and website links related to grant activities)
letter of reference or support
a description of grant activity, including its intended outcome and charitable purpose
Review/document grant activity with grantee helps manage risk. Should consider including:
activity and purpose it furthers
location of grant operations (reach)
start and end dates, and other relevant timelines
public benefit
deliverables and performance objectives
partners, contractors the grantee intends to use to carry out the grant activity
a written agreement, including minimum standards, milestones, outcomes, and budgets
CAI can mitigate risk by formally settling on the grant’s terms and conditions with the grantee. Creating a written agreement (CA)
documents the grant, including its charitable purpose and budget;
clarifies expectations, including roles & responsibilities
confirms the grant terms and conditions;
keeps grant arrangements on track
document the right to terminate the grant and have the grantee return any unused resources.
monitoring and reporting, including final reports, and interim reports if suitable
To track how resources are being used: Grants need to be monitored/reviewed. Elements to consider:
final reports with supporting documentation
interim reports (if appropriate)
expense receipts/financial statements, bank records
records of communication by telephone, zoom, or email
photographs/videos
audit reports
on-site visits from the CAI's staff
a transfer schedule, for longer-term or higher-risk grants
In longer term or higher risk situations, CAI should consider transferring resources in periodic installments, rather than in one lump sum.
separately tracked funds, such as a separate ledger
Asking the grantee to track CAI's funds is an accountability tool that will help both the grantee and CAI properly document the use of resources.
grantee’s books and records contain enough detail to allow it to track the use of grant funds and report back to CAI.
grantee track each grant separately from its other funds in its books and records, if feasible
Determine how to apply the accountability tools to mitigate risk and meet the accountability requirements. (Review Accountability Tools pathway)
High Risk
CAI has never worked with this grantee before.
Grantee is a burgeoning group/organization with limited experience working within the MHSU sector.
Lack of infrastructure with limited access to bank and internet
high grant amount or significant transfer of resources per grant (<$50,000)
long-term grants (2-3 years)
Medium Risk
CAI has some experience/built relationship with grantee (Grantee received 1 or 2 grants in past)
Grantee has some related experience working within the MHSU sector.
Grantee has some basic infrastructure, such as banks or reliable internet access
moderately high amount or significant transfer of resources per grant ($5,000 - $50,000)
longer term grants with an end date (1-2 years)
Low Risk
CAI has experience/built relationship with grantee (Grantee receive multiple grants from CAI)
Grantee is well-established and has experience working with MHSU sector.
strong organizational infrastructure
Grant amount is low or limited transfer of resources per grant (i.e. below $5,000)
short-term grant (>1yr)