Certify and Process Payments

Certify and Process Payments is a contract-management activity in the Government of Canada. The responsible procurement official confirms that the conditions for paying a supplier have been met, then processes that payment. The Supply Manual lists it as activity 5.4.6 and assigns it to the procurement officer (PO). See the Supply Manual responsibility matrix.

The activity sits in the contract administration phase. It follows acceptance of contract deliverables and comes before contract close-out. For a supplier, it is the step that turns delivered work and a valid invoice into a payment from the Crown.

Where activity 5.4.6 sits in the contract lifecycle

The Supply Manual responsibility matrix sets out who does what at each stage of a federal contract. Certify and Process Payments is numbered 5.4.6 and is assigned to the PO. In the matrix, it comes after the activity of accepting contract deliverables and before closing out the contract.

This order matters. Payment certification depends on acceptance having already taken place. The department cannot certify payment for goods or services it has not accepted. CanadaBuys guidance on agreements with the Department of National Defence also identifies the activity in its material on roles and responsibilities.

Certification under sections 33 and 34 of the Financial Administration Act

The activity rests on two provisions of the Financial Administration Act (FAA). Section 34 certification confirms that the goods or services were received, that contract performance and price are acceptable, and that the payee is entitled to payment. Treasury Board guidance states that all payments and settlements must be certified under section 34. The relevant guidance is in the Treasury Board financial management material and a second Treasury Board policy instrument.

Section 33 is the payment authority. The payment requisition is certified and authorized before it is sent for payment. Treasury Board guidance states that financial services manages payment requisitions, certifies payments under section 33, and records payments.

How a payment moves from invoice to issue

Before payment, the section 34 process includes three steps:

• Determining the payee's entitlement to payment.
• Verifying the account.
• Preparing a payment requisition.

Once the requisition is authorized and submitted, the Receiver General issues the payment. The federal payment process draws on several kinds of information:

• Invoice information and payment details.
• Deliverable-acceptance dates and due dates.
• Amounts.
• Vendor data.
• Financial coding.

A gap in any of these items can slow the requisition, so the data on the invoice and in the contract should match.

What it means for a supplier bidding on Canadian public contracts

Suppliers do not carry out this activity, but their actions feed it directly. After delivering the required goods or services, or reaching an applicable milestone, a supplier submits a valid invoice and the supporting information the contract calls for. The department then checks the account and entitlement, confirms acceptance of the deliverables, certifies the payment requisition, and sends it through the federal payment process.

Bid teams should read the contract's invoicing and acceptance terms closely and keep records that show when deliverables were provided and accepted. Vendor information should be accurate and complete. Clear acceptance and invoice details support the certification steps the procurement officer and financial services must complete before the Receiver General issues payment.