5.4.1 Overview Accounting Control Procedures Commitment Control

Transcription

1 Chapter 5 Accunting and Cntrl f Expenditures Chapter 5 Accunting and Cntrl f Expenditures 5.1 INTRODUCTION 5.2 ACCOUNTING SYSTEMS Plicy Accunting Practices 5.3 ACCOUNTING METHODS 5.4 ACCOUNTING CONTROLS Overview Accunting Cntrl Prcedures Cmmitment Cntrl 5.5 SIGNING AUTHORITIES Plicy Statement Definitins Plicy Signing Authrities Limitatins Interpretatins Exceptins Signing Authrities Limitatins Chart Prcedures General Spending Authrity Payment Authrity Rejectin f Requisitins fr Payment Delegatin Prcess Signing Authrities Frms Interpretatin Guidelines Equipment Lease Cntracts 5.6 EXPENDITURE INITIATION 5.7 ACCOUNT VERIFICATION General Respnsibility fr Accunt Verificatin Accunt Verificatin Prcedures Preparatin and Verificatin f Jurnal Entries Applicatin f Signing Authrities Sectin 5. Table f Cntents Amended: 04/2013

2 Chapter 5 Accunting and Cntrl f Expenditures Prcedures Inter-departmental Jurnals 5.8 PAYMENT TIMING 5.9 GOVERNMENT TRANSFERS Plicy Statement Definitins Plicy Crrective Actins Respnsibilities Guidelines 5.10 PURCHASING OF GOODS AND SERVICES 5.11 TRAVEL 5.12 OPERATIONS AND MAINTENANCE AND CAPITAL EXPENDITURES 5.13 PAYMENTS Payments Directive Interest n Overdue Payments 5.14 CREDIT CARDS General Acquisitin Card Plicy 5.15 ASSIGNED DEBTS General Definitins Debt Assignment Sectin 5. Table f Cntents Amended: 03/2012

3 Chapter 5 Accunting and Cntrl f Expenditures 5.1 INTRODUCTION This chapter describes the plicies, prcedures, practices and guidelines within which departments receive authrity t initiate and apprve expenditure transactins fr which they are respnsible. It als sets ut sme f the respnsibilities f service departments fr cntrlling expenditure transactins, including their respnsibilities fr cheque preparatin, cntrl and delivery. There must be prper financial authrity and cntrl fr all gvernment expenditures. Authrity granted by statutes generally may be amplified by regulatins, directives and guidelines issued by the Executive Cuncil, the Deputy Minister f Finance r ther specified authrities. Departments and agencies, in initiating and apprving expenditures, are bliged t meet the requirements prescribed. Managers having peratinal respnsibility and budgetary spending authrity may initiate expenditures t carry ut their respnsibilities, as utlined in this manual and as prescribed by ther gvernment plicies and prcedures. Sectin 5.1 Intrductin Issue Date: 12/92

4 Chapter 5 Accunting and Cntrl f Expenditures 5.2 ACCOUNTING SYSTEMS Plicy All accunting systems shall cnfrm t the requirements prescribed in the Management Bard Directives. The gvernment maintains a centrally-administered accunting system knwn as the Financial Management Infrmatin System. Specialty accunting systems which may perate within departments require prir apprval f the Department f Finance t ensure the systems are cmpatible with the central system and meet gvernment accunting requirements Accunting Practices Departments must utilize the Gvernment accunting and reprting services in prcessing their financial transactins. The Financial Management Infrmatin System has a database cnsisting f files recrding all departmental accunting transactins. This database is the basis fr all Gvernment f the Yukn financial statements. Departmental accunting transactins are recrded and identified by reference cde numbers which cnsist f: a) supplier reference numbers b) pre-printed cntract dcuments c) departmental accunting cdes. While the accunting cde structure utilized is standardized, there is built-in flexibility t allw departments t meet their unique needs. The main cheque issuing centre is within the Department f Finance. Cheque issuance is cmputerized, althugh manual cheques are issued n an emergency basis. The use f manual cheques must be limited because they are cstly t prepare. Sectin 5.2 Accunting Systems Issue Date: 12/92

5 Chapter 5 Accunting and Cntrl f Expenditures 5.3 ACCOUNTING METHODS Bth the accrual and cmmitment accunting methds are used as the basis f gvernment accunting. Under the accrual accunting methd, accunting entries are made and ttal expenditures changed when gds r services are received. Under the cmmitment accunting methd, accunting entries are made and the cmmitted expenditure is changed when a cntract it made fr gds r services. The accrual accunting methd is required t meet statutry requirements and, as such, is required by the Management Bard Directives. The cmmitment accunting methd is required t ensure departments d nt exceed their budgetary apprpriatin by anticipating future expenditures. The Financial Management Infrmatin System utilizes bth f these methds. The accrual accunting system is the primary accunting tl fr the Gvernment f the Yukn. The cmmitment system is prvided as a management tl t assist in planning and cntrlling departmental expenditures. Sectin 5.3 Accunting Methds Issue Date: 12/92

6 Chapter 5 Accunting and Cntrl f Expenditures 5.4 ACCOUNTING CONTROLS Overview Accunting cntrls ensure the integrity f the accunting system. Accunting cntrl invlves ensuring that nly authrized data is entered and accepted int the system and that this infrmatin is entered, prcessed and reprted prperly. Accunting cntrl must be established during system develpment. These cntrls must be instituted and maintained thrughut the system. Cntrl techniques include, but are nt limited t: Prper system dcumentatin Segregatin f duties Adequate frm design Jb descriptins that accurately dcument respnsibilities Dcumented prcedures Pre-numbered frms Cntrl ttals Prper training Accunting Cntrl Prcedures The accunting system must have adequate cntrls t ensure the cmpleteness, accuracy and authrity fr and f all infrmatin. The accunting cntrl prcedures used must satisfy bth legislative and management needs in the cntrl f public funds. A mst imprtant element f financial cntrl is that exercised n individual transactins as expenditures are cntemplated, cmmitted and authrized. Departmental management are primarily respnsible fr cntrlling individual expenditure transactins. The basic elements f expenditure cntrl are as fllws: Departments must ensure that befre an expenditure is initiated there is a sufficient unencumbered balance available in the relevant apprpriatin, alltment, r item included in the estimates t discharge the cmmitment. Departments must certify with respect t each payment that the relevant services have been perfrmed r gds received at prices that are either in accrdance with cntract terms r are reasnable. Departments must nt requisitin a payment that wuld be an unlawful charge against an apprpriatin; wuld result in an Sectin 5.4 Accunting Cntrls Issue Date: 12/92

7 Chapter 5 Accunting and Cntrl f Expenditures (Cntinued) expenditure in excess f the apprpriatin; r wuld reduce the balance in the apprpriatin s that it wuld nt be sufficient t meet the cmmitments charged against it. Where a payment is t be made befre cmpletin f the wrk, delivery f the gds r rendering f the service, as the case may be, departments must ensure that the payment is in accrdance with the cntract. Departments must utilize the centralized accunting and reprting services f the Department f Finance t btain detailed accunting infrmatin. After payment authrity has been exercised, payment requisitins shuld be immediately frwarded t the Department f Finance t expedite the prcessing f transactins. This ensures that payment will be prmpt and that financial reprts are current. The accunting system must be designed t permit the peridic entry and reprting f infrmatin n undischarged cmmitments. This permits fficers exercising signing authrity r financial cntrl t be aware f free balances fr each apprpriatin and alltment n a peridic basis. In additin, the accunting system must be designed t prvide accurate, peridic cst infrmatin n the activity elements invlved in carrying ut departmental prgrams. This requirement prvides fr: Relating csts t benefits. Cmparing efficiency ver a perid f time r amng similar respnsibility centres. Determining the amunts t be recvered when services fr which a charge is apprpriate are prvided t the public r ther gvernments. Cmparing revenues recvered against related csts. Accrual infrmatin must be entered int the accunting systems t facilitate the prvisin f cst infrmatin and t meet statutry requirements. Accunting cntrls must be established ver inventries f materials and equipment wherever there is a need: Because f the value r nature f the inventries. Fr independent cntrl. Fr prviding infrmatin n changes in inventry levels. Fr asset recrding and evaluatin purpses in cnnectin with year-end financial statements and schedules. Sectin 5.4 Accunting Cntrls Issue Date: 12/92

8 Chapter 5 Accunting and Cntrl f Expenditures In summary, the accunting and internal cntrl system shuld be designed t include, as an integral part f the system, adequate accunting cntrls t ensure the cmpleteness, accuracy, and authrity f all infrmatin prvided by the system Cmmitment Cntrl The cmmitment system is an imprtant management tl fr financial cntrl. It assists in the decisin- making prcess as it allws management t plan fr the future. It assists in ensuring that adequate funds are available t pay fr all gds and services received in a fiscal year, and t ensure that required administrative plicies and prcedures have been fllwed in advance f disbursement. The recrding f a cmmitment in advance f the disbursement reduces the free balances f budgetary allcatins and ensures funds are reserved fr future expenditures. The cmmitment accunting prcess invlves the recrding f bligatins t make future payments at the time they are freseen. Under the Financial Administratin Act, Deputy Ministers are respnsible fr ensuring that they have an effective system f cmmitment cntrl. Finance has prvided, as a part f the Financial Management Infrmatin System, a mechanism t be utilized by all departments in recrding cmmitments. A cmmitment can be recgnized at any f the fllwing stages; i) When gds r services are frmally requisitined internally, but n actual cntractual bligatin is made, ii) when the actual cntractual bligatin is made, r iii) when there is a need t reserve funds t fulfill a future bligatin eg. grant payments. Cmmitments shuld be recrded as early in the prcess as pssible. Cmmitments, including adjustments t an amunt previusly cmmitted must be authrized by a public fficer with cmmitment authrity. Cmmitment authrity is the ability t initiate an expenditure sanctined under Sectin 24 f the Financial Administratin Act. This authrity is required prir t entry int the cmmitment system. Cmmitments recrded in the Financial Management Infrmatin System must nly pertain t the current fiscal year. Cmmitments that are expected t result in expenditures in future years must nt be recrded as encumbrances against current year s apprpriatins. Sectin 5.4 Accunting Cntrls Issue Date: 12/92

9 Chapter 5 Accunting and Cntrl f Expenditures (Cntinued) Cmmitment cntrl in the Financial Management Infrmatin System requires that all Requisitins fr Supplies, Purchase Orders and ther prpsed future expenditures nt expected t be decmmitted within thirty calendar days be cmmitted n the system. If the amunt f a payment exceeds a cmmitment created by a purchase rder, the transactin will be rejected unless the excess is within tlerated levels. The size f the tlerance fr invices that exceed purchase rder amunts is ten percent r $100, which ever is least. The tlerance is used t facilitate prcessing and is intended t accmmdate slight changes in prices r quantity which are acceptable t the spending department. Sectin 5.4 Accunting Cntrls Issue Date: 12/92

10 5.5 SIGNING AUTHORITIES Plicy Statement Authrity The plicy utlined in subsectins t f this manual is issued pursuant t Sectins 21, 23, 24, 29, 30 and 31 f the Financial Administratin Act, and was apprved by the Management Bard n March 13, 2002 (MBM# ). Therefre, these subsectins can be revised nly with the apprval f the Management Bard. Revisins t and were apprved by the Management Bard n March 7, 2012 (MBM # ) This plicy may be referred t as the Signing Authrities Plicy. Effective Date Original Plicy - April 1, 2002 Revisins t and March 7, 2012 Applicatin The Signing Authrities Plicy applies t all departments except as exempted by Item #8 f subsectin Objective The Financial Administratin Act requires certain certificatins t be made by apprpriate public fficers prir t any payments being issued frm the cnslidated revenue fund. The bjective f the Signing Authrities Plicy is t set ut the plicy fr assigning financial signing authrities t public fficers f the gvernment, and t prvide instructins regarding the respnsibilities and limits assciated with thse signing authrities Definitins a) "Sectin 23 (cntracting) authrity" means the signing authrity pursuant t Sectin 23 f the Financial Administratin Act, and is the authrity t enter int a cntract n behalf f the gvernment. b) "Sectin 24 (certificatin prerequisite fr cntracts) authrity" means the signing authrity pursuant t Sectin 24 f the Financial Administratin Act. It is the authrity t certify that: i) every payment ut f the cnslidated revenue fund cntemplated by the cntract is in accrdance with the Financial Administratin Act and any ther Act; and ii) there is sufficient mney in the vte r fund frm which the payments are made. This authrity is als referred t as "cmmitment authrity". Sectin 5.5 Signing Authrities Amended 03/2012

11 5.5.1 Definitins (Cntinued) c) "Sectin 29 (certificate f perfrmance) authrity" means the signing authrity pursuant t Sectin 29 f the Financial Administratin Act. It is the authrity t certify that: i) the prpsed payment is in accrdance with the cntract; and/r ii) all cnditins precedent t the making f the payment have been met. d) "Sectin 30 (requisitin fr payment) authrity" means the signing authrity pursuant t Sectin 30 f the Financial Administratin Act. It is the authrity t certify that: i) the payment may be lawfully made frm the vte r fund; ii) the making f the payment des nt cntravene any directive r plicy f the Management Bard; iii) there is sufficient mney in the vte r fund t make the payment; and iv) the making f the payment will nt reduce the balance f the vte r fund s that it wuld nt be sufficient t meet cmmitments fr ther payments t be made frm the vte r fund. e) "Assignment authrity" means the authrity t sign dcuments used t: i) assign respnsibility frm a spnsring department t a perfrming department fr a specific prject; ii) certify pursuant t Sectin 24 f the Financial Administratin Act maximum allwable expenditures in the fiscal year fr the assigned prject; and iii) delegate frm the spnsring department t the perfrming department limited authrity under Sectins 23, 29 and 30 f the Financial Administratin Act t carry ut the prject. Thse dcuments include the Prject Authrizatin and inter-departmental service agreements. f) "Authrizatin fr travel" means the authrizatin t undertake travel n gvernment business in accrdance with the plicy and directives set by the Management Bard. g) "Cntract" means any agreement r undertaking prviding fr the expenditure f public mney r the giving f any cnsideratin in exchange fr gds and services, and includes purchase rders, service cntracts, cnstructin cntracts, emplyment cntracts and cntributin agreements. Sectin 5.5 Signing Authrities Issue Date: 04/2002

12 5.5.1 Definitins (Cntinued) h) "Lans and guarantees" means the undertaking under the authrity f an Act t prvide a lan r t guarantee a debt r ther bligatin. i) "Payment authrity" is the same authrity as the "Sectin 30 (requisitin fr payment) authrity" - see d). j) "Public fficer" means a public fficer as defined in sectin 1 f the Financial Administratin Act, and des nt include a persn hired n a cnsulting r service cntract. k) "Requisitin fr gds r services" is a dcument that is certified by a public fficer f a department pursuant t Sectin 24 f the Financial Administratin Act, which enables the purchasing r cntracting fficer f the gvernment t enter int a cntract n behalf f the department. Examples f thse dcuments are the Request fr Purchase and the Request fr Transprtatin. l) "Spending authrity" means the authrity pursuant t Sectins 24 (certificatin prerequisite fr cntracts), 23 (cntracting) and 29 (certificate f perfrmance) f the Financial Administratin Act. m) "Transfer payments"-refer t the definitin in subsectin f this manual. Sectin 5.5 Signing Authrities Amended 03/2012

13 5.5.2 Plicy 1. N payment ut f the cnslidated revenue fund shall be made withut the certificatin by apprpriate public fficers pursuant t Sectins 24 (certificatin prerequisite fr cntracts), 23 (cntracting), 29 (certificate f perfrmance) and 30 (requisitin fr payment) f the Financial Administratin Act. 2. (a) A Minister and a Deputy Minister may sign pursuant t Sectins 24 (certificatin prerequisite fr cntracts), 23 (cntracting), 29 (certificate f perfrmance) and 30 (requisitin fr payment) f the Financial Administratin Act in an amunt nt exceeding the limits set ut in subsectin "Signing Authrities Limitatins Chart". (b) A Minister and a Deputy Minister shall deliver a sample signature t the Deputy Minister f the Department f Finance and t the Deputy Minister f the Department f Highways and Public Wrks. 3. A Deputy Minister may delegate t a public fficer f his/her department part f his/her signing authrities.* Such delegatin shall be made t apprpriate rganizatinal psitins in the department rather than t individuals. 4. Delegatin f signing authrities by a Deputy Minister shall be in writing. A cpy f such delegatin and a sample signature f the public fficer t whm the delegatin has been made shall be delivered t the Deputy Minister f the Department f Finance and t the Deputy Minister f the Department f Highways and Public Wrks. 5. Signing authrity delegated by a Deputy Minister shall nt be re-delegated. 6. A public fficer shall nt sign under Sectin 29 (certificate f perfrmance) and Sectin 30 (requisitin fr payment) fr the same payment. 7. Pursuant t Sectin 31 f the Financial Administratin Act, the Deputy Minister f the Department f Finance shall reject a requisitin fr payment where he/she is f the pinin that the requisitin des nt cmply with the prvisins f the Signing Authrities Plicy. Items # 2(b), 4 and 7 abve d nt apply t the Yukn Husing Crpratin, the Yukn Liqur Crpratin, the Yukn Wrkers' Cmpensatin Health and Safety Bard, the Yukn Develpment Crpratin and the Yukn Lttery Cmmissin. * On April 3, 2013, Management Bard authrized public fficers f the Yukn Legislative Assembly departmental ffice t be deemed public fficers f the Child and Yuth Advcate Office and the Electins Office (MBM# ) Sectin 5.5 Signing Authrities Amended: 04/2013

14 5.5.3 Signing Authrities Limitatins Interpretatins 1. The limitatins represent the upper limit f authrity that may be delegated by a Deputy Minister. Lwer levels may be delegated. 2. The applicatin f financial signing authrity limits is based n the cncept f a single transactin. Where a financial dcument, e.g. cheque requisitin, cntains mre than ne transactin (e.g. tw r mre unrelated invices), the limits stated apply t each financial transactin, nt t the ttal dcument amunt. 3. The limits specified fr Sectins 23 and 24 authrities apply t the ttal value f a particular bligatin, including the amunts f any increases r decreases f the bligatin, except fr cnstructin cntracts nted in Item # 2 f subsectin "Exceptins". 4. A public fficer exercising cntracting authrity must fllw Directive 2.6 f the General Administratin Manual, "Cntracting Directive", and any ther plicies r directives issued by the Cabinet r the Management Bard with regard t entering int a cntract with a third party. 5. Prject planning and implementatin shall cmply with Directive 2.17 f the General Administratin Manual, "Prject Planning and Implementatin" Exceptins 1. A purchase cntract, aircraft charter, cntract fr printing and publicatins, real prperty lease and third party equipment rental (e.g. heavy equipment rental including the prvisin f peratrs) must be entered int thrugh the Department f Highways and Public Wrks except that the Deputy Minister f the Department f Highways and Public Wrks may delegate t a department the apprpriate authrity. Such delegatin shall be in writing. 2. Where a cnstructin cntract amunt exceeds the Deputy Minister's limit, the Minister may delegate authrity t apprve change rders fr the specific cnstructin cntract. The Deputy Minister may re-delegate this authrity t a public fficer, nly if expressly permitted t d s in the delegatin frm the Minister. These delegatins must be in writing, and cpies f such delegatins must be sent t Cntract Services f the Department f Highways and Public Wrks and t the Department f Finance. 3. A Deputy Minister may nt delegate the signing authrity fr public fficers t travel ut f Territry except where specifically exempted in the travel plicy r directive set by the Management Bard. Sectin 5.5 Signing Authrities Amended: 06/2006

15 Signing Authrities Limitatins Chart (Effective April 3, 2013 MBM # ) < SPENDING AUTHORITY > PAYMENT < Sectin 24 (Certificate Prerequisite fr Cntracts) Authrity > AUTHORITY < Sectin 23 (Cntracting) Authrity > Sectin 29 Sectin 30 DEPARTMENT CONTRACTS LOANS & TRANSFER AUTHORI- REQUEST ASSIGNMENT (Certificate (Requisitin FOR GUARANTEES PAYMENTS ZATION FOR GOODS AUTHORITY f fr GOODS OR FOR OR Perfrmance) Payment) SERVICES* TRAVEL SERVICES Authrity Authrity Legislative MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit Assembly DM 35,000-5,000 5,000 35,000 35,000 N Limit N Limit Child And Yuth MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit Advcate Office DM 35,000-5,000 5,000 35,000 35,000 N Limit N Limit Electins MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit Office DM 35,000-5,000 5,000 35,000 35,000 N Limit N Limit Office f the MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit Ombudsman DM 35,000-5,000 5,000 35,000 35,000 N Limit N Limit Executive MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit Cuncil Office DM 100, ,000 10, , ,000 N Limit N Limit Cmmunity MIN N Limit N Limit N Limit N Limit N Limit N Limit N Limit N Limit Services DM 1,000, ,000 1,000,000 5, ,000 1,000,000 N Limit N Limit Ecnmic Develpment MIN N Limit N Limit N Limit N Limit N Limit N Limit N Limit N Limit DM 100, , ,000 5, ,000 50,000 N Limit N Limit Educatin MIN N Limit N Limit N Limit N Limit N Limit N Limit N Limit N Limit DM 500,000 6, ,000 5, ,000 1,000,000 N Limit N Limit Energy, Mines and MIN N Limit N Limit N Limit N Limit N Limit N Limit N Limit N Limit Resurces DM 150, , ,000 10, ,000 50,000 N Limit N Limit Envirnment MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit DM 150, ,000 5, , ,000 N Limit N Limit Finance MIN N Limit N Limit N Limit N Limit N Limit N Limit N Limit N Limit DM 50, , ,000 5,000 50,000 50,000 N Limit N Limit Finance MIN - N Limit N Limit N Limit N Limit Vtes 18, 19 and 22 DM - 10,000,000 10,000, N Limit N Limit Finance MIN - N Limit N Limit N Limit Vte 20 DM - 2,000, N Limit N Limit French Language MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit Services Directrate DM 50,000-50,000 5,000 50,000 50,000 N Limit N Limit Health and MIN N Limit N Limit N Limit N Limit N Limit N Limit N Limit N Limit Scial Services DM 750,000 10, ,000 5, , ,000 N Limit N Limit Highways and Public MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit Wrks DM 1,000,000-50,000 5, ,000 1,000,000 N Limit N Limit Justice MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit DM 250, ,000 5, , ,000 N Limit N Limit Public Service MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit Cmmissin DM 75,000-50,000 5,000 75,000 50,000 N Limit N Limit Turism and Culture MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit DM 100, ,000 5, , ,000 N Limit N Limit Wmen's Directrate MIN N Limit - N Limit N Limit N Limit N Limit N Limit N Limit DM 50,000-50,000 5,000 50,000 50,000 N Limit N Limit Yukn Husing Crpratin, Yukn Liqur Crpratin, Wrkers' Cmpensatin Health and Safety Bard, Yukn Develpment Crpratin and Yukn Lttery Cmmissin as authrized by the Crpratin/Bard/Cmmissin * Except fr as restricted by Exceptin 1 f

16 5.5.4 Prcedures The prcedures utlined in subsectin f this manual are issued by the Deputy Minister f the Department f Finance under the authrity f the Financial Administratin Act Sectin 7. The purpse f these prcedures is t help departments interpret and cmply with the Signing Authrities Plicy (5.5.0 t abve). Any changes t this subsectin, therefre, require apprval f the Deputy Minister f the Department f Finance General Respnsibility fr the cntrl and spending f public funds is placed n Ministers and Deputy Ministers by the Legislative Assembly thrugh Apprpriatin Acts, and thrugh the Financial Administratin Act and regulatins. While Ministers and Deputy Ministers are respnsible fr the cntrl f expenditures, in practice, this rle is carried ut by delegatin. Deputy Ministers may delegate financial signing authrity within their rganizatins in accrdance with the Signing Authrities Plicy. One f the bjectives f delegating signing authrity is t make individual managers primarily respnsible fr expenditures charged t their budgets. Signing authrities fr financial transactins may be divided int tw main areas f respnsibility, i.e. spending authrity and payment authrity. Spending and payment authrities shuld nt be exercised by the same persn with respect t a particular payment. This plicy recgnizes the need fr a divisin f duties t maintain internal cntrl. Public fficers shuld be granted either spending r payment authrity, but nt bth. Hwever, it is recgnized that, in a small department, this may nt be always pssible. In such circumstances, it may be necessary t delegate t ne particular fficer bth types f signing authrity. When this is dne, that fficer must nt exercise bth types f authrity n the same payment Spending Authrity Spending authrity is created by Sectins 23, 24 and 29 f the Financial Administratin Act. These Sectins make the Deputy Minister and his/her delegate accuntable fr all expenditures initiated against their vte r fund. Spending authrity shuld be granted in relatin t a psitin's budgetary respnsibility. Public fficers with spending authrity are required t indicate their apprval f each requisitin fr gds r services and frmulatin f a cntract, cnfirming that sufficient funds are available. Later in the prcess, these fficers are required t cnfirm cntract perfrmance and/r receipt f gds, thereby indicating that payment shuld be made. Spending authrity is usually delegated t public fficers with prgram respnsibilities, i.e. prgram managers, and wh are independent f thse fficers granted payment authrity. Respnsibility t implement the prcess f accunt verificatin (see 5.7 "Accunt Verificatin") and t enfrce related financial cntrls rest with thse fficials wh have delegated payment authrity. Hwever, primary respnsibility fr verificatin f individual accunts rests with thse fficials wh are given spending authrity. Sectin 5.5 Signing Authrities Issue Date: 04/2002

17 Spending Authrity (Cntinued) Public fficers with spending authrity have the respnsibility t prepare and btain all supprting dcumentatin necessary fr the accunt verificatin prcess including service cntracts, purchase rders, cntributin agreements, lease agreements, receipt dcumentatin and ther back-up. These dcuments are essential t verify the extent f cmmitment invlved, agreed prices fr the gds r services, precise specificatins r requirements, agreed cntract cnditins and cmplete expenditure cding. Spending authrity cnsists f three areas f authrities and assciating respnsibilities. 1. Sectin 24 (Certificatin Prerequisite fr Cntracts) Authrity This authrity is als referred t as "cmmitment" authrity, and is exercised when decisins are made t btain gds r services that will result in the eventual expenditure f the gvernment's funds. Examples f such decisins are: t hire staff t requisitin supplies r services t authrize travel t enter int sme ther expenditure arrangements with ther departments fr prgram purpses. When a public fficer signs the certificatin prerequisite fr cntracts, he/she is certifying that: (a) every payment ut f the cnslidated revenue fund cntemplated by the cntract in the then current fiscal year is authrized by the Financial Administratin Act r anther Act; and (b) there is sufficient mney in the vte r fund frm which the payments are t be made. 2. Sectin 23 (Cntracting) Authrity N gvernment cntract shuld be entered int, r enfrceable against the gvernment, unless it is entered int by a public fficer with the apprpriate cntracting authrity. Cntracting authrity shuld nt be exercised unless a certificatin pursuant t Sectin 24 has been made. Sectin 5.5 Signing Authrities Amended: 06/2006

18 Spending Authrity (Cntinued) 3. Sectin 29 (Certificate f Perfrmance) Authrity This is the authrity t cnfirm cntract perfrmance and price. By signing under this authrity, a public fficer is certifying that: (a) in the case f a payment fr gds that have been supplied r services that have been perfrmed under a cntract, a statement t that effect, and a statement that the prpsed payment is in accrdance with the cntract; (b) in the case f a payment fr gds that have yet t be supplied r services that have yet t be perfrmed under a cntract, a statement t that effect, and a statement that the prpsed payment is in accrdance with the cntract; (c) in the case f a payment nt prvided fr in (a) r (b), a statement as t the purpse f the prpsed payment, and a statement that all cnditins precedent t the making f the payment have been met; and (d) in any case, such further statements as the Management Bard, by directive r plicy, may require. A certificatin f perfrmance shuld be made n a frm authrized by the Deputy Minister f the Department f Finance Payment Authrity Payment authrity is created by Sectin 30 f the Financial Administratin Act. A public fficer wh has delegated payment authrity certifies that: (a) the payment may be lawfully made frm the vte r fund; (b) the making f the payment des nt cntravene any directive r plicy f the Management Bard; (c) there is sufficient mney in the vte r fund t make the payment; and (d) the making f the payment will nt reduce the balance f the vte r fund s that it wuld nt be sufficient t meet ther financial cmmitments. These certificatins entail verifying that the payment is fr the purpses f the apprpriatin as recrded in the Main and Supplementary Estimates, as well as verifying cmpliance with the enabling legislatin f the prgram cncerned. It is als necessary t cnfirm that the payment is in accrdance with any ther statute, regulatin r directive. The review f dcuments by the public fficer with payment authrity cnstitutes the final departmental check n the apprpriateness f the spending authrity exercised, accunt verificatin and payment requisitining. Fr these reasns, payment authrity shuld be delegated t financial fficers, wh are sufficiently senir t have the experience and judgment necessary fr exercising payment authrity. Financial fficers with payment authrity als shuld understand principles f internal cntrl. In additin t examining specific transactins, they shuld satisfy themselves that varius administrative prcesses and apprvals given t them prvide sufficient segregatin f duties and independence in rder t preclude any likelihd f imprper r Sectin 5.5 Signing Authrities Amended: 06/2006

19 Payment Authrity (Cntinued) inaccurate payments taking place. Fr example, in rder t exercise an apprpriate internal cntrl (r segregatin f duties), payment authrity shuld nt be delegated t psitins where the primary duties require clse invlvement in the preparatin f cheque requisitins, perfrmance certificatin r data input int the accunts payable system. A requisitin fr payment shuld be made n a frm authrized by the Deputy Minister f the Department f Finance Rejectin f Requisitins fr Payment Pursuant t subsectin 31(1) f the Financial Administratin Act, the Deputy Minister f the Department f Finance may reject a requisitin fr payment when he/she is f the pinin that the requirements f any Act have nt been cmplied with. The Deputy Minister f the Department f Finance may reject a requisitin fr payment: (a) if a requisitin fr payment has nt been signed by a public fficer authrized t d s in accrdance with the Signing Authrities Plicy; r (b) if the Department f Finance has nt received a sample f the signature f the public fficer; r (c) if he/she is f the pinin that the requirements f any Act have nt been cmplied with. When the Deputy Minister f the Department f Finance rejects a requisitin fr payment under this authrity, he/she must, at the request f the Deputy Minister respnsible fr the relevant vte r fund, state the reasn in writing (subsectin 31(2) f the Financial Administratin Act). Subsectin 31(4) f the Financial Administratin Act prvides the Deputy Minister f the Department f Finance the authrity t delegate any emplyee f any department the functin f reviewing payment requisitins. Based n this authrity, the Deputy Minister f the Department f Finance has delegated the functin described in subsectin 31(1) f the Financial Administratin Act t thse public fficers granted payment authrity. The Deputy Minister then instructed the Department f Finance t perfrm pst-audit f accunts payable transactins in rder t ensure that this functin is exercised prperly Delegatin Prcess Thrugh written delegatin f financial signing authrities, Deputy Ministers delegate respnsibilities bestwed upn them by legislatin r regulatins t apprpriate public fficers in the departments. Delegatin f signing authrity by a Deputy Minister t fficers f his/her department is primarily intended t facilitate the prcess f spending the funds that are made available fr departmental prgrams. Such delegatin, hwever, als accmpanies the respnsibility t ensure that all the related managerial and financial cntrls are Sectin 5.5 Signing Authrities Issue Date: 04/2002

20 Delegatin Prcess (Cntinued) effectively enfrced and that all the nrmal requirements f prbity and prudence are bserved. It is imprtant, therefre, that the delegatin f financial signing authrities be carried ut and cntrlled by the Deputy Minister with the bjective f achieving the mst effective cntrl ver spending. Pursuant t the Signing Authrities Plicy, the fllwing rules apply t the delegatin f financial signing authrities: 1. The right t delegate signing authrities is limited t Deputy Ministers, and such delegatin must be made in writing. 2. Signing authrities must be delegated t psitins rather than t individuals. 3. The signing authrities f a psitin may be exercised by a public fficer wh is acting in the psitin, nly if (a) a written ntificatin f the acting appintment has been issued by his/her supervisr and such ntificatin has been received in the Department f Finance; and (b) a specimen signature f the public fficer has been received in the Department f Finance. 4. Public fficers may nt exercise signing authrities with respect t a payment frm which they r their relative may benefit. This includes any payments made payable t themselves fr the purpse f travel r curses. Fr delegatin f signing authrities, the fllwing steps shuld be fllwed. Step 1: Deputy Minister's Delegatin Deputy Minister's delegatin shuld be in the frmat shwn in Frm A - "Delegatin f Financial Signing Authrity Chart". Signing authrities must be delegated t apprpriate rganizatinal psitins in the department rather than t individuals. Amendments t this delegatin will nly be required fr changes in rganizatinal structure and respnsibility. Amendments will nt be required fr persnnel changes. When there is a change f delegating authrity, i.e. a new Deputy Minister, a new delegatin chart must be apprved and signed by the new Deputy Minister. Departments must then submit the signed delegatin t the Department f Finance and the Department f Highways and Public Wrks by the methd prescribed by the respective Department. The signed Delegatin f Financial Signing Authrity Chart shuld be accessible by all units and branches in the department where signing authrities must be verified. Step 2: Filling Out a Specimen Signature Card A Specimen Signature Card ( Frm B) must be used t prvide a sample f the incumbent's signature. A Specimen Signature Card als serves t clearly indicate t the delegate the respnsibilities and limitatins assciated with the delegated signing authrities. Sectin 5.5 Signing Authrities Amended: 07/2012

21 Delegatin Prcess (Cntinued) A Specimen Signature Card shuld be filled ut as sn as a new incumbent assumes the psitin with delegated signing authrities. Departments must then submit the Specimen Signature Card t the Department f Finance and the Department f Highways and Public Wrks by the methd prescribed by the respective Department. The incumbent shuld als retain a cpy t ensure that signing authrities are exercised apprpriately. When a public fficer acts in a psitin with delegated signing authrities, the supervisr f the psitin must issue a written ntificatin f the acting appintment, (Nte: the Deputy Minister may issue a written ntificatin f the acting appintment fr his/her wn psitin), and a cpy f such ntificatin must be submitted t the Department f Finance. The department must als ensure that a Specimen Signature Card fr the acting psitin is in place fr the public fficer. Departments must submit written ntificatins t the Department f Finance and the Department f Highways and Public Wrks, t revke the card as sn as the incumbent ceases t be in the respective psitin. Review and Maintenance f Signing Authrities Delegatin Dcuments Deputy Ministers must arrange fr an annual review f delegated signing authrities t determine their cntinuing validity. Departmental administratrs shuld ensure that all signing authrities delegatin dcuments are valid at all times. Departmental administratrs must als ensure that branches and units have access t the mst current signing authrities delegatin dcuments. In keeping with the Deputy Minister f Finance's rle and respnsibilities under the Financial Administratin Act, the Department f Finance is respnsible fr retaining the fficial recrds f signing authrity delegatin fr cntrl and audit purpses Signing Authrities Frms Frm A - Delegatin f Financial Signing Authrity Chart (If there are multiple pages, every page requires signatures.) Frm B - Specimen Signature Card Sectin 5.5 Signing Authrities Amended: 07/2012

22 Sectin 5.5 Signing Authrities Amended: 07/2012

23

24 5.5.5 Interpretatin Guidelines Equipment Lease Cntracts When a department has determined that leasing as ppsed t wning a piece f equipment represents the best value, and therefre wishes t enter int an equipment lease cntract, the department must, first f all, determine if the lease is cnsidered t be an perating lease r a capital lease. In accrdance with generally accepted accunting principles, an equipment lease wuld be cnsidered t be a capital lease if ne r mre f the fllwing cnditins are present: a) There is reasnable assurance that the gvernment will btain wnership f the leased equipment by the end f the lease term. Reasnable assurance wuld be present when the terms f the lease wuld result in wnership being transferred t the gvernment by the end f the lease term r when the lease prvides a bargain purchase ptin*. b) The lease term is f such duratin that the gvernment will receive substantially all f the ecnmic benefits expected t be derived frm the use f the leased equipment ver its life span. The gvernment, as a lessee, wuld nrmally be expected t receive substantially all f the ecnmic benefits when the lease term is equal t a majr prtin (usually 75% r mre) f the ecnmic life f the leased equipment. c) The lessr wuld be assured f recvering the investment in the leased equipment and f earning a return n the investment as a result f the lease agreement. This cnditin wuld exist if the present value, at the beginning f the lease term, f the minimum lease payments, excluding any perating csts (e.g. insurance, maintenance csts, etc.), is equal t substantially all (usually 90% r mre) f the fair value f the leased prperty, at the inceptin f the lease. *Bargain purchase ptin is defined as a prvisin allwing the gvernment, at its ptin, t purchase the leased equipment fr a price that is sufficiently lwer than the expected fair value f the equipment at the date the ptin becmes exercisable, that exercise f the ptin appears, at the inceptin f the lease, t be reasnably assured. Sectin 5.5 Signing Authrities Issue Date: 06/2006

25 Equipment Lease Cntracts (Cntinued) If an equipment lease is determined t be an perating lease, this cntractual agreement is cnsidered t be a service cntract. Hwever, if an equipment lease is determined t be a capital lease, this lease agreement must be cnsidered t be a purchase cntract. In this instance, the department must frward a Request fr Purchase with the prpsed lease agreement t Supply Services. Supply Services will review the lease agreement and sign the lease as the cntracting authrity. As fr the applicatin f the Cntracting Directive, an perating lease is deemed t be a price-driven cntract while a capital lease is deemed t be a gds prcurement cntract. The dllar value, in applying the surcing threshlds under sectin 18 f the Cntracting Directive, must be based n the ttal lease payments under the lease, nt the present value. Regardless f whether a lease is cnsidered t be perating r capital, departments shuld frward all equipment lease agreements t Supply Services fr their review befre signing. If (a) an equipment lease is cnsidered t be a capital lease, and (b) the present value f minimum lease payments is ver the threshld fr capitalizatin, the equipment must be capitalized and reprted in accrdance with subsectin f the Tangible Capital Assets Accunting Plicy, Capital Lease. Sectin 5.5 Signing Authrities Issue Date: 06/2006

26 5.6 EXPENDITURE INITIATION Expenditure initiatin refers t any actin taken by a Minister, Deputy Minister r public fficer which will result in an bligatin t make a disbursement f gvernment funds. Expenditure initiatin may invlve: A requisitin fr gds. A memrandum directing the payment f a grant r cntributin. An applicatin r requisitin fr an accuntable advance. Authrity fr travel r remval dcumentatin. Hiring f an emplyee. Other prcurement actin. Departments must acquire their gds and services in accrdance with gvernment plicies and prcedures. Purchases f gds and service must be in accrdance with Cabinet and Management Bard plicies and directives. Whatever methd is used fr initiating expenditures, such initiatin must have the written apprval f the respnsible spending fficial wh has authrity fr the budgetary allcatin t be charged. The apprval f the spending authrity at this pint indicates that the prpsed expenditure is necessary fr the cnduct f gvernment business and that funds are available in the budget fr which he r she has signing authrity. If dllar r ther limits are placed n the signing authrity f the spending fficer fr initiating expenditure transactins, these limits must be adhered t. At the beginning f each fiscal year, nce the Apprpriatin Act is passed, the relevant budget amunts are entered int the Financial Management Infrmatin System and this defines the limits within which Prgram Managers must wrk. Expenditures are cntrlled by cmparisn t the budget by prgram/activity and standard bject f expenditures as recrded within the Financial Management Infrmatin System. Expenditures shall nt be initiated which exceed budgetary allcatins r which lack specific apprvals where such apprvals are prescribed. Sectin 5.6 Expenditure Initiatin Amended: 04/02

27 5.7 ACCOUNT VERIFICATION General The expenditure prcess within the gvernment must be cnducted with a high degree f prbity at all times. This is especially imprtant in the apprval fr payment prcess. Cnfirmatin f cntract perfrmance and price by the prgram manager and payment authrity by the finance fficer are critical functins. T achieve and maintain a high standard f prbity in their payment functins, Deputy Ministers shuld establish a divisin f duties and respnsibilities thrughut the entire chain f prcurement f gds and services - cnfirmatin f cntract perfrmance, accunt verificatin, cheque requisitin preparatin and cheque requisitin signatures. The divisin f duties is recgnized as the principal and mst effective means f preventing, r at least diminishing, the pssibility f fraud r errrs. A secnd imprtant principle in establishing and maintaining high standards f prbity in the payment functins is t establish apprpriate prcedures that must be fllwed fr the verificatin f accunts befre payment Respnsibility fr Accunt Verificatin Prgram Managers Prgram Managers must cnfirm cntract perfrmance and price ensuring that all payments are: 1. In accrdance with all relevant acts, regulatins, directives, and plicies and prcedures. 2. In accrdance with the terms, cnditins and specificatins as cntained in cntracts, agreements r ther arrangements. 3. Fr wrk that has been perfrmed, gds supplied r services rendered, as applicable. 4. Accurately requisitined and cmplete in terms f having all necessary supprting dcumentatin including cntracts, leases, purchase rders, prgram arrangements and receipt dcumentatin. 5. Identified crrectly. 6. Authrized by apprpriate levels r authrity. 7. A prper charge against the apprpriatin, r if nt an expense item, that the payment is fr the purpse fr which its mney was made available. 8. Available within the dllar limits f an apprpriatin and that payment will nt reduce the balance t a level less than the cmmitments charged against it. Sectin 5.7 Accunt Verificatin Amended: 04/02

28 5.7.2 Respnsibility fr Accunt Verificatin (Cntinued) Financial Officers Financial fficer is respnsible fr ensuring that all accunt verificatin prcedures have been carried ut and that the infrmatin appearing n a cheque requisitin is accurate. The primary respnsibility fr the enfrcement f the financial prcedures and cntrls rests with the departmental financial fficer. Sectin 30 f the Financial Administratin Act requires that n payment shall be requisitined by a department that wuld nt be a lawful charge against the apprpriatin. This entails verifying that the payment is fr the purpses f the apprpriatin, as defined in the Main r Supplementary Estimates, and includes verifying cmpliance with the enabling legislatin f the prgram cncerned. It is als necessary t cnfirm that the payment is in accrdance with any ther statute, regulatin r plicy directive. The review f dcuments by the financial fficer exercising payment authrity cnstitutes the final departmental check in the prcess f expenditure initiatin, accunt verificatin and payment requisitining. Signing by the financial fficer under Sectin 30 f the Financial Administratin Act means that: 1. Sectins 23, 24 and 29 f the Financial Administratin Act have been prperly exercised. 2. Accunt verificatin prcedures (see 5.7.3) have been adequately carried ut. 3. The charge is within the authrity f the apprpriatin. 4. Adequate funds exist in the budget t pay the charge. 5. Cntracts, purchase rders r ther prcurement arrangements were duly executed. 6. Generally accepted accunting principles fr handling the financial data have been adhered t. 7. Accunting principles invlved in prcessing the accunts have been applied n a basis cnsistent with that f the preceding year. 8. Authrity has been exercised accrding t the delegated signing authrity dcuments. 9. Where a debt has been assigned, the payment is requisitined in favur f the assignee. 10. The apprpriate cding is identified n the requisitin. Officers wh exercise payment authrity shuld carry ut adequate test checks t assess the quality f the review at the primary level f respnsibility. Hwever, care shuld be taken t avid intrducing a duplicate verificatin prcess. Sectin 5.7 Accunt Verificatin Amended: 04/02

29 5.7.3 Accunt Verificatin Prcedures General The prcess f accunt verificatin shuld begin at the earliest pssible mment. The prcurement prcess fr gds and services may be relatively shrt and simple, eg. requisitining a simple purchase thrugh Supply Services, r it may be prtracted and cmplex, eg. entering int a cnstructin cntract. Receipt f Accunts All invices received by departments r agencies shuld be date-stamped by the mail clerk when received and immediately passed t the invice clerk fr prcessing. Actin by Invice Clerk Persns respnsible fr invice prcessing shuld take the fllwing actin: Cnfirm that invices have been date stamped. Cmpare invices with prcurement rders and receipt dcuments t cnfirm that the gds were received and that the descriptin, quantity, and prices are in agreement with the relevant purchase rders, cntracts r ther prcurement dcuments. Cmpare invices being prcessed with previus payments t ensure that the supplier has nt received settlement fr any item shwn n the invice being prcessed fr payment, and that the invice is nt a duplicate f an invice previusly passed fr payment. When an invice is fr services, btain certificatin f satisfactry perfrmance frm an apprpriate signing authrity. Check arithmetical crrectness f invices. Segregate discunt invices, prcess them prmptly and ensure they are frwarded fr payment withut delay. When an invice des nt include a discunt althugh the applicable cntract r agreement prvides fr ne, nrmal discunt actin shuld be taken and the invice prcessed accrdingly. When an invice is adjusted fr any reasn, the riginal figures recrded n the invice shuld nt be altered. The adjusted amunts, with an apprpriate explanatin, shuld be written in red beside the riginal figures. Cnslidate invices fr the same supplier under ne cheque requisitin. Cmplete Cheque Requisitin frm YG358 and staple it t the frnt f the invice and related back-up. Sectin 5.7 Accunt Verificatin Amended: 04/02

30 5.7.3 Accunt Verificatin Prcedures (Cntinued) Credit Ntes When feasible, credit ntes shuld be deducted frm the ttal f the related invice. Hwever, when the related invice has been prcessed fr payment befre the credit nte is received, the nte may be deducted frm anther invice f that supplier r submitted separately if the supplier receives payments regularly. When a credit nte cannt be applied against an invice as utlined abve, a gvernment invice must be raised and frwarded t the supplier. Payment Requisitin Prcedures When cheque requisitins are received frm the invice clerk, the supervisr shuld review all the dcuments t ensure that the actins utlined in Sectin were fllwed. The apprpriate signing authrities must then be btained. On cmpletin f payment certificatin, the invices and supprting dcuments shuld be returned t the invice clerk fr batching and accunts payable data prcessing. Sectin 5.7 Accunt Verificatin Amended: 04/02

31 5.7.4 Preparatin and Verificatin f Jurnal Entries In this sectin, the term jurnals is used t mean jurnal entries r jurnal vuchers. General ledger entries fr payrll transactins thrugh the payrll system and accunts receivable general ledger entries thrugh the creatin f gvernment invices in the accunts receivable mdule are excluded frm this sectin Applicatin f Signing Authrities 1. As nted in the Plicy Statement f the Signing Authrities Plicy (subsectin f this manual), the Signing Authrities Plicy was issued pursuant t Sectins 21, 23, 24, 29, 30 and 31 f the Financial Administratin Act. These sectins apply t payments ut f the cnslidated revenue fund; therefre, the Signing Authrities Plicy des nt apply t jurnals that d nt result in issuance f payments. 2. Departments, hwever, must apply Sectins 29 (certificate f perfrmance) and 30 (requisitin fr payment) authrities n jurnals as a means f internal cntrl. That is, the relevant cmpnents f cntrl expressed in these Sectins must be utilized fr the certificatin f jurnals. Fr the purpse f cmplying with the dllar limits assciated with Sectins 29 and 30 authrities, in a jurnal, each line is cnsidered t be a transactin. Care shuld be taken in hw a jurnal is prepared s that the intent f these Sectins is apprpriately applied Prcedures The bjective f this set f prcedures is t ensure that jurnals are prperly managed, authrized and accunted fr accurately and in an efficient manner. Primarily, prcedures shuld be established such that: all jurnals are created as sn as they are recgnized as being required. They shuld nt be left t accumulate, particularly if the amunts invlved are material. if there are material effects t the budget, apprpriate recrding f the changes in cmmitments shuld be recrded and tracked. Secndly, prcedures shuld be established such that all staff wh manage a budget: and wh have apprpriate signing authrity either directly apprve the jurnal that affects their budget, r are prperly infrmed f such jurnals that will affect their budget in a timely manner. Sectin 5.7 Accunt Verificatin Issued: 04/2010

32 Prcedures (Cntinued) Jurnals are t be prperly cded and perid-dated, ensuring that there is apprpriate supprting dcumentatin. As nted under subsectin , fr internal cntrl purpses, signatures certifying apprval f a jurnal under Sectin 29 (certificatin f perfrmance) and Sectin 30 (requisitin fr payment) f the Financial Administratin Act must be appended prir t the jurnal being psted t the general ledger Inter-departmental Jurnals Fr an inter-departmental jurnal, each department must apprve its wn general ledger cdes, unless the jurnal transactins fall within a valid Standing Assigned Jurnal Authrity (see belw). Standing Assigned Jurnal Authrity (i) Definitins Standing Assigned Jurnal Authrity means that, fr specified types f systemgenerated chargeback jurnals, the Deputy Minister f the spnsring department has made a standing assignment f Sectin 29 (perfrmance certificatin) and Sectin 30 (requisitin fr payment) authrities under the Financial Administratin Act fr his/her department t the Deputy Minister f the perfrming department. Spnsring department means a department which has budget authrity fr a prject r services t be rendered. Perfrming department means the department which perfrms wrk n a prject r renders services. (ii) Objective The bjective f the Standing Assigned Jurnal Authrity is t facilitate timely prcessing f lw-risk chargeback jurnals generated frm a sub-system. (iii) Rules fr Exercising Standing Assigned Jurnal Authrity 1. The Standing Assigned Jurnal Authrity nly applies t jurnals. It must nt be used fr issuing f payments, i.e. cheque requisitins. The Signing Authrities Plicy (subsectin 5.5 f this manual) prhibits the Deputy Minister f a department t delegate his/her signing authrities fr payments utside his/her department. Sectin 5.7 Accunt Verificatin Issued: 04/2010

33 Inter-departmental Jurnals (Cntinued) 2. The spnsring department must identify the standing assignment f Sectins 29 (perfrmance certificatin) and 30 (requisitin fr payment) signing authrities fr electrnic chargeback jurnals t the Deputy Minister f anther department n its Delegatin f Financial Signing Authrity Chart (Frm A). 3. A chargeback is cnsidered t be lw-risk when the dllar amunt is relatively lw and the perfrming department is anticipating the charge prir t its actual psting. That is, there are n surprises. 4. The Standing Assigned Jurnal Authrity is nly perative if a valid Sectin 24 (cmmitment authrity) assignment has been executed fr the transactin, e.g. Central Stres Requisitin, Fleet Vehicle Request, Pl Vehicle Service Agreement, etc. Sectin 24 (cmmitment authrity) assignment will at a minimum indicate: the type f gds r services t be prvided, the expected cst r a maximum cmmitted cst, GL cde f the spnsring/requesting department; and the indicatin f Sectin 24 sign-ff by the apprpriate public fficer. 5. The Deputy Minister f the perfrming department may delegate the Standing Assigned Jurnal Authrity t public fficers f his/her department. This delegatin must be dne by utilizing the Delegatin f Financial Signing Authrity Chart (Frm A). 6. During the prcess f electrnic chargebacks, there must be auditable evidence f Sectins 29 (perfrmance certificatin) and 30 (requisitin fr payment) signing authrity executins by tw separate public fficers wh have the apprpriate Standing Assigned Jurnal Authrity. 7. The Deputy Minister f the spnsring department may unilaterally withdraw all r part f the standing assignment jurnal authrity at any time by issuing a mem that indicates what authrities have been withdrawn and nting the reasn. Sectin 5.7 Accunt Verificatin Issued: 04/2010

34 (iv) A Sample Mem fr Establishing Standing Assigned Jurnal Authrity Frm: << Name f DM >> Deputy Minister Name f the Spnsring Department T: << Name f DM >> Deputy Minister Name f the Perfrming Department Re: Standing Assigned Jurnal Authrity This mem assigns limited authrity fr apprving Sectins 29 and 30 f the Financial Administratin Act n ur Department s entries n inter-departmental jurnals. The limitatins are that this assignment is valid nly fr (1) the Expenditure types listed belw r attached and (2) when a Sectin 24 Assignment fr the transactin(s) has been executed. This frm recrds (check bx): Set-Up (new) X Changes: Additin... Withdrawal... (nting reasn fr change) (Reasn: ) Date Effective: 02/Dec/2009 Date t Renew: Nne, as Indefinite (ptinal fr date) Type f Expenditures (Descriptin) (r appended List) Type f Expenditure (Sample) FVA - Pl Vehicle mnthly/annual Rental FVA - Pl Vehicle Kilmeter Charges FVA - Vehicle Fuel Csts FVA - Vehicle daily/weekly Rentals Central Stres Csts Signed: Date: << Name f DM >> Deputy Minister f Spnsring Department (Assigning) CC: Department f Finance Sectin 5.7 Accunt Verificatin Issued: 04/2010

35 CONTRACTS FOR GOODS OR SERVICES LOANS & GUARANTEES TRANSFER PAYMENTS AUTHORIZATION FOR TRAVEL REQUEST FOR GOODS OR SERVICES ASSIGNMENT AUTHORITY (SECTION 29) CERTIFICATE OF PERFORMANCE PAYMENT AUTHORITY (SECTION 30) REQUISITION FOR PAYMENT (v) Frm A f Spnsring Department - Example Delegatin f Financial Signing Authrity Chart Effective Date: MMMM/DD/YYYY FORM A SPENDING AUTHORITY DEPARTMENT: AAAAAAAAA (SECTION 23 &/OR SECTION 24) ($000) PROGRAM/BRANCH : Aaaaa,aaaaa,aaaaaaa POSITION TITLE *AREA OF AUTHORITY **DEPUTY MINISTER All Departmental Cdes xxx xxx xxx x xxx xx NL NL Deputy Minister Highways & Public Wrks All Departmental Cdes fr: Central Stres Supplies (Chg Back jvs) FVA Vehicle Expenses (Chg Back jvs) Every fficer f the Department appinted t a psitin listed abve, including any fficer appinted fficially n an acting basis, and upn cmpletin f the Specimen Signature Card fr this psitin, is hereby granted financial signing authrity in respect t the area f the Department fr the functins as indicated. *Area f Authrity - can be in text Example: O&M and Capital, the regin the psitin is respnsible fr Recmmended: All departmental assets and liability accunts Date Departmental Administratr **Sectin 23 &/r Sectin 24 fr Deputy Minister Apprved: - Dllar amunt must be typed in. (See ) Date Deputy Minister NL = N limit Distributin: Original - t Accunting Services, Department f Finance Cpy 2 - Department Cpy 3 - Supply Services REV. 04/03 xx xx