CAUBO honours its outstanding volunteers for 2020

Each year, CAUBO’s Recognition Awards celebrate and honour our volunteers who promote excellence, collaboration, leadership, and information-sharing in the Canadian higher education administration sector.

Generally, we present these awards to the winners in person at CAUBO’s annual conference. However, due to the cancellation of this year’s conference, we were unable to do so. Instead, we honour them in a video, which you can view now on the CAUBO website, and with a dedicated section in the upcoming summer issue of University Manager magazine.

The 2020 Recognition Award winners are:

Cindy Taylor, Assistant Vice-President Human Resources at Carleton University — Emerging Leader Award
Robert Munro, Executive Lead, Service Excellence Transformation at the University of Alberta — Emerging Leader Award
Gabrielle Morrison, Vice-President Finance and Administration at Saint Mary’s University — Distinguished Service Award
Nancy Walker, Vice-President Finance and Administration at the University of Lethbridge — Ken Clements Distinguished Administrator Award

Please join us in congratulating these outstanding members for their dedication and service to CAUBO, their institutions, and the sector.

 

Tax Note – Honorariums and Payments to Indigenous Individuals

The new Tri-Agency Guide on Financial Administration is now in effect for all eligible administering institutions as of April 1, 2020.

To support members during the transition to the new principles-based Guidelines, CAUBO has developed a series of resources. As the Guide is no longer prescriptive, institutions will need to rely on their own institutional policies to assess whether expenses charged to a research grant are compliant.

Last spring, CAUBO administered a series of surveys to gather information on existing institutional polices and practices related to grant administration. The results provide a detailed overview of the policies and procedures already in place at member institutions and reveal the extent to which they meet the requirements of the new Guide. The survey results revealed that the majority of institutions did not have a policy related to payments for Indigenous individuals.

To address this need, KPMG was retained to develop a note to clarify the tax treatment of payments made to indigenous individuals.

Institutional members can access this new technical tax note by clicking here.

The technical note outlines the income tax treatment and reporting requirements of universities in Canada on their payment of honorariums to recipients in Canada. Two types of payments are discussed in the note: research participant fees and honorarium or other fees paid to indigenous individuals.

Register now for the webinar – Payments to Indigenous Peoples for Services, June 18, 2020, 12:00-1:15 PM ET

Important Notice: Customs Clearance Changes – CBSA Assessment and Revenue Management (CARM)

Canada Border Services Agency (CBSA) is changing several processes relating to the import of goods that will directly affect all importers of commercial goods in Canada, including universities.

The CBSA Assessment and Revenue Management (CARM) project is a multi-year initiative to transform the collection of duty and tax for imported goods.  More information can be found at https://www.cbsa-asfc.gc.ca/prog/carm-gcra/menu-eng.html.  This project is scheduled to be phased in over a 12 to 14-month period.  The implementation timeline has been delayed from fall 2020 and will be added once CBSA operations normalize following the Covid-19 pandemic.

Release 1: This phase includes the introduction of the CARM Client Portal with basic functionality, including management of payment processing with timelines, tariff classification tool, tariff data management, case management functionality for Customs rulings and revenue reporting.

Release 2: This phase includes registration and enrolment for all CBSA clients, including universities.  There will be additional functionality offered in the CARM Client Portal.

What does this mean for Canadian universities?

Typical Current Process

Anticipated Process under CARM

  • Use customs broker to release, file and account for all imports
  • Use customs broker to release, file and account for all imports
  • Broker posts security (bond) to cover all duties, taxes and penalties for university shipments so goods can be released prior to payment
  • University posts security (bond) to cover all duties, taxes and penalties for university shipments so goods can be released prior to payment
  • University authorizes the final Customs accounting prior to submission
  • University authorizes the final Customs accounting prior to submission
  • Broker accesses university Statement of Account through CBSA Client Portal and matches to the entries on file
  • University accesses their Statement of Account through CBSA Client Portal and matches entries on file
  • Broker pays CBSA monthly Statement of Account through CBSA Client Portal
  • University pays CBSA monthly Statement of Account through CBSA Client Portal
  • Broker provides accounting documents and import entry data
  • Broker provides accounting documents and import entry data
  • Broker invoices university for authorized transactions – duty, taxes, brokerage and other ancillary fees
  • Broker invoices university for brokerage and other ancillary fees only
  • University reviews the import documents/data and pays broker’s invoices
  • University reviews the import documents/data and pays broker’s invoices
  • University requests adjustments or corrections (amends or refunds) to entries, as required
  • University requests adjustments or corrections (amends or refunds) to entries, as required
  • University distributes the import costs internally
  • University distributes the import costs internally
NOTE: It is expected that this process will change depending on the final program requirements and functionality of the portal. Failure to meet these requirements will likely result in clearance delays, loss and possible penalties for the university.

Security Bond

Posting security is a mandatory CBSA requirement that allows for the release of shipments prior to payment (RPP) of duties and taxes. This is usually posted in the form of a bond through an approved surety company.

Under CARM, all commercial importers (universities) must post their own security. This will establish direct financial liability for debt to CBSA, on the importer. Mandatory security will be effective as of CARM Release 2 and once this is in place, universities will no longer be able to use the Broker’s security to obtain the release of shipments.

Universities will be responsible for managing the amount of RPP security (bond) posted.

CBSA has provided information regarding RPP financial security (bond) calculation:

  • The amount of RPP security will be based on the highest historic monthly accounts receivables (AR) over the previous 12-month period, including GST
  • The minimum AR amount required for a bond is $25,000
  • AR amounts over $25,000 will require security of 50% of the total AR
  • The estimated annual cost of a bond is $4 per $1,000 AR

Payment

Payment will be the direct responsibility of the university using edi or eft functionality available through the CBSA Client Portal. It is unclear at this time whether universities can assign account payment access to their customs broker.

Without security, your university will not be permitted to have shipments released prior to payment as of Release 2 go-live. This will make it necessary to pay all duties and taxes prior to the release of all goods.

It is extremely important to communicate with your Broker about these changes, as soon as possible. They should be able to assist with answering your questions and providing data regarding your RPP security requirements and use of the CBSA Client Portal.

Prepared by Ray Williamson, Manager Customs & Logistics, Procurement Services, Western University