Recipient Guide - Requesting a Claim for Payment

Note to Readers

This document contains information and guidance on requirements to be met by recipients when preparing claims for reimbursement of eligible costs. The information contained herein is provided for ease of reference only and is subject to change without notice at the sole discretion of Innovation, Science and Economic Development Canada (ISED). Recipients should always refer to the relevant provisions of the contribution agreement (CA), which take precedence over this document in case of conflict or discrepancy.

This document does not limit or prejudice in any manner any right or discretion of the Minister, the Minister’s representatives, the Auditor General of Canada, or anyone acting on behalf of the Auditor General of Canada, including, without limitation or prejudice to the generality of the foregoing, any of their rights or discretion under the CA to request and obtain from recipients or third parties information or documents in addition to, or different from, those specified herein.

Table of contents


1. Purpose of this guide

The purpose of this document is to provide guidance to recipients, who have entered into a contribution agreement (CA) under the Connect to Innovate (CTI) Program, on how to submit a claim for reimbursement of eligible expenses. Information and guidance are provided both for the reimbursement of eligible costs, and requests for an advance payment of contributions, where applicable.

2. The Contribution Agreement

The CA sets out the terms and conditions to be met by recipients in carrying out their projects funded by the CTI Program, including requirements for the submission of claims. Recipients should familiarize themselves with the provisions of their agreement, in particular:

  • Section 5: Requirements for Submitting Claims;
  • Schedule B: Costing Memorandum, and Eligible and Ineligible Costs;
  • Section 6: Progress, Performance and Financial Reporting Requirements; and
  • Schedule C: Reporting Requirements.

3. The Claims Process

Once claims are submitted, recipients will receive a request for copies of specific invoices and other supporting documents. Once program officers receive all requested documents, they will review costs claimed for eligibility against the CA, after which claims will be processed for payment. All payments will be made through direct deposit as cheques are no longer issued, except in exceptional circumstances.

Upon receipt of complete claims, ISED aims to have them processed within 45 calendar days. This does not include the time it takes for recipients to provide requested supporting documents.

The following is a summary of steps undertaken by CTI program staff to process claims.

3.1 Completeness check

Program officers will ensure that submitted claims, supporting schedules, and progress reports have been completed correctly. Claim documents must include all necessary information, such as dates, invoice numbers and descriptions for expenses claimed. Program officers will contact recipients if there is any missing information.

3.2 Request for a sample of supporting documents

For each claim, program officers will request specific documents (invoices, timesheets, etc.) that recipients will be required to submit to substantiate amounts being claimed. Note that program officers will be requesting documents for a sample of costs claimed, which can cover one or more of the six cost categories described in Section 4 below. The nature and extent of samples will be based on a risk assessment of funded projects. Examples of the types of supporting documents that can be requested are described in Annex A of this guide.

3.3 Claims document verification

Program officers along with technical officers assigned to projects, will examine requested supporting documents and assess the eligibility and reasonableness of costs claimed in relation to the CA. Program officers will review the financial aspects of claims while technical officers will verify that items claimed are consistent with technical design components outlined in the CA.

In addition, both officers will examine progress reports submitted with claims as well as any milestone documentation, and assess the appropriateness of costs claimed in relation to progress in implementing projects, and the achievement of milestone deliverables set out in the CA.

Program officers may contact recipients to ask questions about claims and / or progress reports, and to request additional supporting documents, if deemed necessary.

Once claim documents have been reviewed and assessed, program officers will advise recipients if any further information or actions are required. Any issues, including potential claim adjustments, arising from the claim review will be discussed and clarified. Claims may be adjusted if costs are not eligible, supported or reasonable. The CTI program reserves the right to determine eligibility of costs. Depending on the nature of adjustments, program officers may expedite processing the eligible portion of claims while following up and seeking clarification or supporting documentation for any adjustments raised.

3.4 Claim approval and payment processing

Program and technical officers will recommend claims for payment once the claim review has been completed, issues have been resolved, and all CA conditions for claims and progress reports have been addressed.

Holdbacks on CTI program funding may also be applied where it has been identified that recipients are late and/or deficient in submitting reports, and/or project progress and milestones are behind schedule. Holdbacks may also be applied to mitigate certain risks associated with projects. The amount of holdbacks will be based on a risk assessment of funded projects, and will be discussed with recipients by program officers in advance.

4. How to prepare a claim for payment

4.1 General instructions

For the CTI program, recipients must submit all claims electronically using the CTI Excel Claim Workbook, unless otherwise agreed to by both recipients and the CTI program. Please do not submit hard copy claim forms.

The CTI Claim Workbook contains the following worksheets (denoted by TABS located at the bottom of each worksheet) that must be completed:

  1. Recipient Claim Summary, outlining overall claim information, including recipient information, total eligible costs and CTI funding amount.
  2. Detailed Claim Form, outlining a summary of total eligible costs for each of the six cost categories, and updates to forecasts of project funding from sources other than recipients and the CTI program.
  3. Cost Schedules (6), containing details of project expenses for which a request for reimbursement is being made.
  4. Progress Report, outlining:
    • the status of project implementation, including changes to project plans or scope; and,
    • changes to project budgets, including a revised project cost breakdown by fiscal year.
  5. Request for Advance, outlining advance amounts requested, the reason for advance requests, and supporting cash flow forecasts.

To assist in the completion of the above worksheets, further information and an example of a completed claim are included in separate TABS in the CTI Claim Summary Workbook. Additional guidance is also included in each of the worksheets, where appropriate.

Recipients are required to submit claims on a quarterly basis (i.e., April 1 to June 30, July 1 to September 30, October 1 to December 31 and January 1 to March 31). Claims should be submitted no later than 45 days following the last day of the quarter, with the exception of the final claim, which is due no later than 60 days following project completion. The federal government fiscal year ends on March 31 and in no circumstance can a claim period overlap two fiscal years.

4.2 Submitting claims for reimbursement of costs

4.2.1 Recipient claim summary

Recipients must complete all data entry fields that are highlighted in yellow. Information to be entered in these fields includes:

  • Recipient information (e.g., name, address, coordinates, contact information);
  • Project information (e.g., project number, key dates); and,
  • Claim information (e.g., period covered).

Once the entire claim is completed, an authorized representative of the recipient can sign the Claim Certification section.

4.2.2 Detailed claim form

This worksheet contains:

  1. A summary of total amounts claimed for each cost category, which is automatically calculated as the cost schedules are completed; and,
  2. An update of total project funding from sources other than recipients and the CTI program, which must be completed by recipients, as applicable. Recipients must segregate funding by other government and industry, and must enter the amount of funding both from project commencement to the current claim period, and for the remainder of projects.

4.2.3 cost schedules (6)

General information

Recipients should implement a project cost accounting system to track, record and report on eligible costs related to CTI projects in an accurate and complete manner. This is particularly important for recipients who manage a number of projects, and where costs may be incurred, such as direct labour, and charged to a number of projects.

Recipients must complete all data entry fields highlighted in yellow in each project cost schedule. Data entry requirements are described in column headings in the worksheets, and further explanations are provided, where appropriate. Fields highlighted in brown in the worksheets are automatically calculated. Only those costs incurred for CTI projects, and meet requirements set out in Annexes A and B of the CA, are eligible for reimbursement and should be entered.

As noted in Section 3 of this guide, program officers will be requesting supporting documents based on a sampling of claimed costs. Annex A of this guide provides examples of supporting documents which may be requested for each cost category.

Program officers may also request proof of payment; therefore recipients must maintain complete and accurate records demonstrating proof of payment. Examples of suitable proof of payment are described in Annex B of this guide.

Direct labour costs

Direct Labour Costs are gross wages or salaries incurred for work performed on CTI projects, and must only be claimed for employees on the recipient’s payroll.

Direct labour rates must exclude all overtime and other premiums, shift differentials, any reimbursement or benefit conferred in lieu of salaries or wages, vacation pay and worker compensation benefits, as well as payment in terms of shares, stock, stock options, discretionary bonuses or performance related payments of any kind.

Only hours / days spent by employees on work directly for CTI projects can be claimed, i.e., no claims for indirect time, non-project related time, holidays, vacation time, and paid sick leave.

Once the CA is signed, program officers will contact recipients to obtain an understanding of methodologies used for tracking, costing, recording and claiming Direct Labour Costs.

Note that costs for time spent by subcontractors and other third party service providers on CTI projects must be claimed under Other Direct Costs.

Direct material / equipment costs

Direct Material / Equipment Costs are those directly used for CTI projects.

Materials / equipment purchased during the CTI project period must be recorded at the net laid down cost to recipients.

Materials / equipment claimed for CTI projects may also include those issued from the recipient’s general stocks (inventory), provided that they are directly used for CTI projects. Materials / equipment must be taken out of inventory at “cost” in accordance with methods used consistently by recipients in pricing material / equipment inventories. Recipients should enter “Inventory” in the “Invoice Number” cell in the Direct Materials and Equipment Cost Schedule, and the date on which the item was taken out of inventory in the “Invoice Date” cell.

Note that where a number of different types of materials or equipment are included on one invoice, each type must be entered on a different line in the Cost Schedule.

Direct fibre costs

Direct Fibre Costs are those directly used for CTI projects. Fibre purchased during the CTI project period must be recorded at the net laid down cost to recipients. The rules for fibre issued from recipient inventory are the same as those for materials / equipment, as described above.

Direct satellite costs

Direct Satellite Costs are the portion of direct purchase or lease of bandwidth or capacity delivered over the physical medium of satellite that is directly used for CTI projects. These costs will be measured in units of Mbps, MHz, or a quantity of satellite transponders. Bandwidth or capacity purchased or leased must be recorded at the net laid down cost to recipients.

Direct travel costs

Direct Travel Costs are those necessary to the performance of CTI projects, and considered reasonable. Direct Travel Costs claimed must be supported by travel logs or other documentation which clearly demonstrates the purpose of each trip. Information such as when and where the travel occurred must also be included.

Note that Direct Travel Costs claimed must be only for travel taken by employees of recipients. Travel costs incurred by contractors and other third party service providers must be recorded in the Other Direct Costs schedule.

Recipients should consider the following items when entering specific information in the Direct Travel Costs schedule:

  • Economy fares must be used in the booking of airfare and other public transportation, and change and cancellation fees are not eligible.
  • Daily accommodation rates must be reasonable and based on actual receipts and “no show” or cancellation expenses are not eligible.
  • For meals, per diem rates must only be used (i.e., no receipts), and must be reasonable, with rates published in the National Joint Council Travel Directive used as a reference point.
  • Where a personal automobile is used, a kilometre (mileage) allowance must be used and must be reasonable, with allowances published in the National Joint Council Travel Directive used as a reference point.
  • Where a commercial vehicle is used, recipients may claim mileage at rates consistent with the type of vehicle used and services provided in accordance with the recipient’s established travel policy or directives. In the absence of an established travel policy or guideline, the allowance will be based on rates outlined in the National Joint Council Travel Directive plus 20%.
  • Road toll charges for vehicle travel on approved CTI project business are eligible; however, parking fines, traffic violation fines (including photo radar), and impoundment / towing fees are not eligible.

Note that meal per diem rates and vehicle mileage rates contain Harmonized Sales Tax (HST), Goods and Services Tax (GST), Provincial Sales Tax (PST) and/or Quebec Sales Tax (QST), which must be backed out when entering travel costs. Only the portion of HST, GST, PST and / or QST which is not refundable / recoverable by the Canada Revenue Agency or provincial tax authority can be claimed as an eligible cost and recorded separately on cost schedules (this is further explained below).

Other direct costs

Other Direct Costs are those directly incurred for CTI projects, but do not fall within the categories of Direct Labour, Direct Equipment, Direct Material, Direct Fibre, Direct Satellite Capacity, or Direct Travel Costs.

Other Direct Costs include project management services, engineering services, and other services / labour performed by subcontractors, as well as travel costs incurred by subcontractors.

Recipients should be prepared to demonstrate the reasonableness of these costs if requested by program or technical officers, particularly where these costs could be perceived as unreasonably high. An example of supporting documents may include agreements with subcontractors and third parties showing details of how costs are determined and charged to CTI projects.

Items applicable to more than one cost category

Recipients should consider the following information and guidance that apply to more than one of the above six cost categories.

Invoices where a portion of items is being claimed

Where an invoice includes some items that are being claimed for CTI projects, and others that are not, the items and related amounts being claimed should be clearly identified on invoices.

Related party transactions

Materials, equipment, project management and contracted labour acquired from related parties must be valued at cost to the supplying entity, and must not include any mark up for profit or return on investment.

Purchases from non-Canadian suppliers

Goods purchased from suppliers from a country other than Canada must be reported in Canadian dollars, with an appropriate exchange rate used (the Bank of Canada rate should be used as a benchmark).

Sales taxes

Only the portion of HST, GST, PST and/or QST which is not refundable / recoverable by the Canada Revenue Agency or provincial tax authority can be claimed as an eligible cost. Note that the HST, GST, PST and/or QST must be entered separately for each purchase in the cost schedules. The treatment of HST, GST, PST and QST is complex, and rules vary among provinces and territories, and vary depending on whether or not the recipient is a private sector corporation, non-profit organization, government entity or other entity, such as an Aboriginal organization. Recipients are encouraged to seek advice either from a tax advisor or program officers in advance of submitting their first claim, if there is any uncertainty.

Submitting claims

Once claims have been completed, recipients should print the Recipient Claim Summary Form and have the Chief Financial Officer, or other duly authorized person, sign and date the "CERTIFICATION" section in the space provided on the form. After certification is obtained, recipients should scan the signed copy of the Recipient Claim Summary Form in PDF format. The completed CTI Claim Summary Workbook, along with the PDF scanned copy of the signed Recipient Claim Summary Form, should be sent as attachments to an email to program officers.

4.3 Submitting requests for advances

4.3.1 Recipient claims summary

Recipients must complete all data entry fields that are highlighted in yellow. Information to be entered in these fields includes:

  • Recipient information (e.g., name, address, coordinates, contact information);
  • Project information (e.g., project number, key dates); and,
  • Claim information (e.g., period covered).

Once the entire claim is completed, a duly authorized person of the recipient can sign the Claim Certification section.

4.3.2 Request for advance

Recipients must complete the “Request for Advance” schedule to request an advance payment of contributions to meet immediate cash flow requirements for CTI projects. Recipients must complete all data entry fields highlighted in yellow, which include:

  • Monthly forecasts of eligible CTI project costs for up to three months for each of the six cost categories, where applicable; and,
  • Justifications for requests for an advance.

Requested advance amounts, based on total forecasted CTI project costs for the advance period and the CTI program funding percentage, will be automatically calculated.

Requests for an advance should be received no later than the first day of the first month of the advance period in order to receive timely advance payments. Accounting for advances, both expended and unspent, must be provided by recipients within 30 days of the end of each advance period through the submission of a report detailing the actual amounts of eligible costs incurred during the advance period. At no time shall more than one advance period be unaccounted for.

Note: requests for advance payment are subject to approval by the Minister and will take into account a variety of factors including a recipient’s cash requirements and the overall risk assessment for the project.

4.3.3 Submitting claims

Once claims have been completed, recipients should print the Recipient Claim Summary Form and have the Chief Financial Officer, or other duly authorized person, sign and date the "CERTIFICATION" section in the space provided on the form. After certification is obtained, recipients should scan the signed copy of the Recipient Claim Summary Form in PDF format. The completed CTI Claim Summary Workbook, along with the PDF scanned copy of the signed Recipient Claim Summary Form, should be sent as attachments to an email to program officers.

4.4 Final claims

Final payments of contributions are made after projects are completed and final claims have been received and approved. Subject to the provisions of the CA, the amount of final contributions are calculated based on actual total eligible costs incurred for CTI projects up to the completion date. Final contribution payments are limited to the maximum allowable CTI program funding share of eligible costs or the maximum amount, whichever is lower.

An attestation letter (see the Recipient Toolkit section of the CTI website for a copy of this form) must be submitted along with a Final Implementation Report addressing elements specified in Schedule C, Section 2, of the CA and any outstanding deliverables as required in the CA.

Annex A - Examples of Documents to Support Claims

Examples of Documents to Support Claims
Cost category Supporting documents
Direct labour
  • Project time recording system / process / methodology used to track, cost, record and claim Direct Labour Costs, particularly where recipients manage multiple projects and employee time is charged to multiple projects.
  • Employee time sheets or time logs, clearly demonstrating the number of hours / days worked on CTI projects.
  • Employee pay stubs or other related documents to support salary rates used and demonstrate payments of salary to employees.
Direct materials and equipment
  • Copies of original receipts and invoices for purchases made during the project period for direct use in CTI projects.
  • For materials and equipment taken out of inventory for direct use in CTI projects, documentation demonstrating that items were taken out of inventory at “cost” such as:
    • Printouts of inventory account sub-ledger clearly identifying the description of material / equipment, the date of removal from inventory, quantity removed, and cost amount
    • Invoices for materials / equipment at the time of purchase when they were put into inventory (or a recent invoice for the same materials / equipment from any supplier).
  • Documented evidence of tendering, contractor selection process, or sole source justification if the process is not competitive, to support the reasonableness of amounts claimed where they may be perceived as high.
Direct fibre
  • Copies of original receipts and invoices for purchases made during the project period for direct use in CTI projects.
  • For fibre taken out of inventory for direct use in CTI projects, documentation demonstrating that items were taken out of inventory at “cost” such as:
    • Printouts of inventory account sub-ledger clearly identifying the description of fibre, the date of removal from inventory, quantity removed, and cost amount
    • Invoices for fibre at the time of purchase when they were put into inventory (or a recent invoice for the same fibre from any supplier).
  • Documented evidence of tendering, contractor selection process, sole source justification if the process is not competitive, to support the reasonableness of amounts claimed where they may be perceived as high.
Direct satellite
  • Copies of original receipts and invoices for purchases and leases entered into during the project period for direct use in CTI projects.
  • Documented evidence of tendering, contractor selection process, sole source justification if the process is not competitive, to support the reasonableness of amounts claimed where they may be perceived as high.
  • Agreements with satellite provider showing details of how costs are determined and charged to CTI projects. When the acquired satellite capacity is used in part for the CTI project and in part for other purposes, a detailed calculation showing that the amount claimed is proportional to the capacity dedicated to the project
Direct travel
  • Travel logs or similar documentation identifying the purpose of each trip (which must relate to CTI projects), names of travellers, starting and ending locations, and distance travelled.
  • Airfare - a copy of original airline tickets (E-tickets are acceptable when clearly marked e-ticket by carriers) which clearly demonstrates flight itinerary and name of passenger, class of travel, date of travel and cost breakdown, and a copy of boarding passes if possible.
  • Hotel Accommodation - a copy of original invoices / receipts showing transactions making up the total cost, and evidence that accommodation charges are reasonable, with the National Joint Council Travel Directive used as a reference point.
  • Private Accommodation - a copy of original signed receipts or signed letter from individuals providing accommodations.
  • Car Rental - a copy of original receipts. (Note: gas will only be paid for vehicles required to be refuelled to complete trips or as a requirement of car rental contracts – an explanatory note should be provided).
  • Personal Vehicle Use - Proof that CTI project-related travel took place (e.g., supported by travel logs), distance travelled, and kilometric rates as per recipient travel policies, which must be reasonable, with the National Joint Council Travel Directive used as a reference point.
  • Commercial Vehicle Use - Proof that CTI project-related travel took place (e.g., supported by travel logs), distance travelled, and kilometric rates as per recipient travel policies. In the absence of an established travel policy or guideline, the allowance will be based on rates outlined in the National Joint Council Travel Directive plus 20%.
  • Meal Allowance – Proof that employees incurred meals while working on or in transit to CTI projects (e.g., supported by travel logs), and per diem rates as per the recipient travel policies which must be reasonable, with the National Joint Council Travel Directive used as a reference point.
  • Parking - a copy of original receipts.
  • Train / Bus - a copy of original transportation tickets.
  • Taxi - a copy of original receipts / chits.
Other direct
  • Contractor Labour - contractor invoices, and supporting documentation to demonstrate that labour costs / rates are reasonable.
  • Contractor Travel - contractor invoices, and supporting documentation to demonstrate that travel costs are reasonable.
  • Agreements with subcontractors and third parties showing details of how costs are determined and charged to CTI projects.

Annex B - Examples of Suitable Proof of Payment

Copies of invoices marked paid may be requested and are the most typical proof of payment document. It is recognized, however, that there are other forms of suitable proof of payment that can serve to support an expenditure being claimed for reimbursement.

This table below provides examples of other suitable proof of payment documents. Note that the list is not exhaustive. If there are any questions concerning the suitability of a document to be provided please contact the CTI program officer assigned to the project.

Examples of Suitable Proof of Payment
Payment method Examples of Suitable Proof of Payment
Payment by cheque
  • photocopy of the front and back of the cancelled cheque;
  • copy of a bank statement that clearly shows the payment made to the vendor; or
  • Statement of Account, or letter from the vendor showing a contact name and phone number, verifying receipt of payment in full including dates.
Direct payment
  • photocopying of the bank statement clearly indicating the date of the withdrawal from the account and the vendor name; or
  • Statement of Account, or letter from the vendor showing a contact name and phone number, verifying receipt of payment in full including dates.
Payment by credit card
  • copy of the credit card receipt that indicates payment by credit card; or
  • copy of a credit card statement showing the charge to the supplier.
Payment by cash
  • copy of the cash receipt showing the vendor name, address, phone number, transaction number (if applicable) and contact name; or
  • Statement of Account, or letter from the vendor showing a contact name and phone number, verifying receipt of payment in full with dates.