Compliance 101 for development initiatives
Context
Once an agreement is signed between ¶¶ÒùÊÓƵ (GAC) and a partner organization for a development grant or contribution, the recipient organization must adhere to several financial clauses and administrative requirements.
Purpose
Since financial documentation contained in these agreements is often long and complex, GAC's Financial Compliance Unit (FCU) has come up with a simple way to convey the information and its underlying intent.
Below you will find links to animated YouTube videos that will help you understand certain requirements in your grant or contribution agreement. These videos are intended to:
- create awareness and inform partner organizations about GAC's financial clauses and administrative requirements
- avoid the need for future adjustments in the event of a compliance audit
- improve the financial management of the projects implemented by GAC's partner organizations
Videos
Determine the differences between a direct and an indirect cost.
Select proper methodologies for allocating shared and administrative costs.
Comply with financial requirements when receiving or making advance payments.
Learn the principles around remuneration.
Understand airfare principles for travel arrangements.
Understand requirements concerning authorized travel costs and expectations related to supporting documentation.More information
Tips
Ineligible travel costs
- Travel insurance and related custom fees
- Vaccinations, medications, medical exams or tests
- Hospitality or gifts
- Emergency health Insurance
- Transportation tickets purchased with airmiles
- Covid related costs, except if specifically approved by GAC
- 1st class / business class ticket
- Passport costs
- Remuneration related to waiting or travel time to obtain visas
Travellers going abroad for a long duration must determine whether the Foreign Assignment Directive applies to their situation and comply with it.
Remember
Key supporting documents and considerations - Airfaire
- The organizaion’s pre-approval form that authorizes the travel
- Airline ticket and invoice supporting the cost claimed and indicating the fare paid
- Travel expense report and other documents (eg. boarding passes, original hotel invoice) corroborating that the trip was taken
- Procurement records evidencing that the lowest economy-class fare was chosen
Key supporting documents and considerations - Other Travel Expenses
- All exchange rates used for costs incurred in a foreign currency must be disclosed
- Receipts and invoices for accommodation and other expenditures must match the expense report and corroborate the dates and number of days claimed for the meals and incidental allowances
- Travellers on long term assignment must follow the Foreign Asssignment Directive
- Standard expense report must indicate the traveller, purpose and location of the trip, and detail the rates for meals and incidentals, mileage claimed for private vehicles, accommodation, etc
Understand the underlying principles and eligible costs of the Directive
About the Financial Compliance Unit
In addition to managing auditing and compliance for grant and contribution agreements, the FCU is also responsible for financial capacity-building activities (FCBA). We provide several value-added services to partner organizations:
- guidance on the financial terms of their agreements
- support in strengthening their financial information systems and internal controls for sound financial management of projects
- direction on increasing their capacity to produce financial reports that meet GAC's requirements
- advice on increasing their capacity to meet administrative requirements in managing their agreements
- feedback on the compliance and eligibility of their expenses
Contact us
Submit your suggestions for future video topics you would like to see on this page by emailing the FCU at CFO-FCU@international.gc.ca
Related information
- Financial Policies for International Development Assistance
- Guidance on eligible costs for Development initiatives
- ¶¶ÒùÊÓƵ forms
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