Convenience Cheque

Instructions to clients:

When Convenience Cheques can be used

Chief Financial Officer Branch (CFOB) Procurement allows the use of convenience cheques for low dollar value and low risk service transactions where the acquisition card is appropriate but the vendor or individual does not accept the acquisition card. Convenience cheques, which are drawn on an acquisition card, are used only exceptionally for urgent payments for operational requirements and where there is no other payment alternative (B.2.2.1.4.2 Directive on Payments); For example, a convenience cheque could be used to:

  • provide remuneration to focus group participants;
  • pay Elders providing traditional knowledge and teachings.
  • pay landlord/property management invoices related to unforeseen events (false alarms, locksmith services) when the AC is not accepted.
  • provide payment to low dollar value service providers in vulnerable segments or remote areas where only one vendor can perform the service, the acquisition card is not accepted, and they cannot wait for payment.

Convenience cheques are not to be used for the following:

  • Where a contract can be put in place.
  • To replace or avoid the procurement process or the use of the acquisition card, or in place of a confirming order.
  • Interdepartmental transactions (except CORCAN).
  • Obtaining cash advances.
  • To pay an invoice for a good or service that has already been delivered (other than property management invoices for unforseen events).
  • Operating and maintenance expenses of fleet vehicles, except vehicle license fees, routine procurement of vehicle supplies for the sole purpose of accumulating an inventory of items (e.g., batteries, tires, oil, filters, spare parts) or when a fleet credit card is not accepted by a supplier.
  • Travel status-related expenses.
  • Services where Intellectual Property or security is involved.
  • Reimbursement of any type to a GoC employee.

A justification must be provided to the convenience cheque coordinator by the client in order to use a convenience cheque. The use of a convenience cheque is at the discretion of the convenience cheque coordinator.

Example justification:

{Branch name} is conducting a consultation for ___. In the past, using normal procedures, it has been very difficult to attract citizens to attend this consultations. To ensure the success of this effort, we recommend the use of convenience cheques as the only viable approach to encourage engagement participants to attend; as such participants require payments which are simple and timely. These participants do not accept credit cards, being private citizens.

Roles and responsibilities

Convenience Cheque Coordinator: The Convenience Cheque Coordinator is the only individual authorized to issue convenience cheques. Convenience cheques are issued against the cheque coordinator's acquisition card. The coordinator is responsible for tracking and keeping a record of all convenience cheque transactions. They are also responsible for safeguarding the convenience cheques by keeping them in a locked area (such as a cabinet or drawer), at the office.

Cheque Requester: The cheque requester is responsible for providing the request and applicable forms to the convenience cheque coordinator. The client authority is also responsible for preventing the loss, theft and unauthorized use of convenience cheques in their possession.

How to request a convenience cheque

  • When the cheques can be issued after the services are delivered

    NOTE: Convenience Cheque Justification Form must be provided to and approved by a Convenience Cheque Coordinator prior to the services being rendered in order to use this method. If the services have already been rendered, and you are contacting a Convenience Cheque coordinator for the first time, you will be required to do a Confirming Order (except in the case of property management services for unforseen events).

    1. The cheque requester must first confirm that the proposed vendor does not accept the acquisition card.
    2. The cheque requester must fill out the Convenience Cheque Justification Form and send it to the Convenience Cheque Coordinators.
    3. If the request to use convenience cheques is approved by a Convenience Cheque Coordinator, the cheque requester may proceed with the convenience cheque process.
    4. A Convenience Cheque Issuance Form must be filled out for each cheque requested. After the services are rendered, the fully signed Convenience Cheque Issuance Form must be sent to the Convenience Cheque Coordinator.
    5. The Convenience Cheque Coordinator will issue the cheques. The Convenience Cheque Coordinator will make every effort to have the cheques filled out and sent to the cheque requester or the vendor(s) within three business days. The cheque number will be recorded on the Convenience Cheque Issuance Form.
    6. Purchases will be reconciled against the monthly Acquisition Card statement, and the amounts will be JV’d back to the appropriate cost centres.
  • When the cheques are required in advance of the services being rendered:
    1. Cheques can be issued in advance of the services being rendered in certain circumstances, such as:
      1. Remuneration of focus group participants where payment must be handed to the individual participants on the day of the focus group.
      2. Remuneration for Elders providing traditional knowledge and teachings, where payment must be handed to the Elder on the day of the event.

      Ensure that the cheques are requested well in advance of when they are required. While requests can be processed on an urgent basis, it may take several days to receive the cheques via mail, particularly where the cheques are required outside of the NCR.

    2. The cheque requester must first confirm that the proposed vendor does not accept the acquisition card.
    3. The cheque requester must fill out the Convenience Cheque Justification Form and send it to the Convenience Cheque Coordinators.
    4. If the request to use convenience cheques is approved by a Convenience Cheque Coordinator, a Convenience Cheque Issuance Form must be filled out for each cheque requested, and sent to the Convenience Cheque Coordinator.
    5. The Convenience Cheque Coordinator will issue the cheques post-dated to the date of the event. The Convenience Cheque Coordinator will make every effort to have the cheques filled out and sent to the cheque requester or the vendor within three business days. The cheque number will be recorded on the Convenience Cheque Issuance Form.
    6. Any unused cheques in the cheque requester’s possession must be returned to the Convenience Cheque Coordinator. The Convenience Cheque Coordinator will destroy the unused cheque(s) and keep a record of all unused convenience cheques.
    7. Purchases will be reconciled against the monthly Acquisition Card statement, and the amounts will be JV’d back to the appropriate cost centres.

When travel and hospitality are required

The cost of travel and hospitality may be included in the total amount of the convenience cheques, provided that the Travel, Hospitality, Conference and Event Expenditures (THCEE) policy is followed.

Where travel and/or hospitality costs are to be included in the convenience cheque total, the convenience cheque will only be issued after the service has been rendered and receipts have been submitted for the travel and hospitality portion. Cheques will be issued based on actual travel and hospitality amounts and not on estimated amounts.

Note that travel and hospitality will only be paid by convenience cheque in the event that a cheque is being requested for remuneration of an individual. Cheques will not be issued for travel and hospitality charges alone.

Where possible and as applicable, please use the departmental travel card.

Constraints

Convenience Cheques may be issued for amounts up to $ 1000.00. Exceptions to the limit must be approved by the Executive Director of Asset Management Policy and Procurement (AMPP). Convenience Cheques can only be issued in Canadian (CAD) funds.

Convenience cheques must only be used to make authorized official government purchases and payments, and all purchases must respect government and departmental legislation, regulations and policies including limits to delegated authority and the card limits. Convenience Cheques cannot be issued for requirements involving the creation or modification of Intellectual Property (IP), where there are security requirements, where the Acquisition Card can be used, or to bypass the contracting policies.

Convenience Cheques are not to be used to pay honoraria. ESDC does not have the authority to pay honoraria, as per section 4.4.2 iv of the Departmental Travel, Hospitality, Conference and Event Expenditures Policy.

It is important to note that where a vendor or individual is in receipt of $500/year, whether in one payment or a cumulative total of payments, a T1204 will be issued.

The Acquisition Card Coordinator and the Convenience Cheque Coordinator must be notified in writing within 24hrs in the case of loss, theft, unauthorized use or suspected misuse of convenience cheques.

Interest charges for cheque usage and the cost of cheques are currently being covered by CFOB.

Inquiries relating to the Convenience Cheque program should be directed to:
ESDC.GIPA.ChequesDepannage-ConvenienceCheque.IPPM.ESDC