Rescinded [2009-10-01] - Policy on Departmental Bank Accounts

1. Two different kinds of departmental bank accounts may be used:
   • Zero-balance departmental bank accounts: Zero-balance departmental bank accounts are normally used for accounts in Canada in Canadian Funds. These accounts are set up by the Receiver General for Canada in a financial institution in Canada, in the name of a department. The department may issue cheques on this account from any authorized cheque-issue location in Canada.
   • Imprest accounts: These bank accounts in the name of the department are funded through an advance from the Consolidated Revenue Fund pursuant to the Accountable Advances Regulations. Imprest accounts are normally accounts in foreign funds in Canada and foreign or Canadian Funds outside Canada. In this case the department may make deposits to as well as issue cheques on this accounts.
2. Departmental bank accounts should not be used for:
   • issuing standing advances, although expenditures made from a standing advance may be reimbursed from departmental bank accounts if necessary;
   • supplier account payments subject to the standard 30-day payment policy.
3. A department may establish, within the $5,000 limit established by the Cheque Issue Regulations, 1997, or higher limits established with the approval of the Treasury Board, different limits by cheque-issuing location for classes of payments, or by class of payment, or by a combination of both. Departments may pre-print the appropriate maximum dollar limits on the face of the departmental bank account cheques.

PART II, DEPARTMENTAL BANK ACCOUNTS

7. (1) The appropriate Minister of a department who is required to make expenditures in locations where the normal facilities for the issue of Receiver General cheques are not immediately available may apply to the Receiver General for the establishment of a departmental bank account in the name of that department or a branch or division of that department.

(2) On the receipt of an application under subsection (1), the Receiver General may establish a departmental bank account in the name of the department, or branch or division of the department, referred to in that subsection, from which only the following classes of expenditures may be made:

1. emergency salary advances;
2. accountable travel advances, where the use of a travel credit card or participation in the traveller's cheque program is not a satisfactory alternative to the appropriate Minister;
3. reimbursement of travel and removal expenses;
4. payment of supplies and services acquired under local purchase authority where immediate payment is required;
5. reimbursement of expenditures made from petty cash advances;
6. brokerage fees and customs duties payable to an independent customs broker;
7. postage; and
8. payment of salaries and wages to part-time and term employees who are employed locally under the Locally-EngagedStaffEmploymentRegulations, 1995 and who are not paid through the Canadian Forces, Royal Canadian Mounted Police or public service pay systems under section 12 of the Department of Public Works and Government Services Act.

(3) Two signatures are required on any cheque drawn on a departmental bank account for the expenditures referred to in subsection (2), unless, at the request of the appropriate Minister of the department, the Treasury Board authorizes a single signature.

(4) Subject to subsection (5), no expenditure in excess of $5,000 shall be made from a departmental bank account without the approval of the Treasury Board.

(5) Expenditures in excess of $5,000 may be made from a departmental bank account without the approval of the Treasury Board for the purpose of

1. paying locally engaged employees, if the department has the authority to make such payments; or
2. issuing an emergency salary advance under paragraph 4(b) of the Accountable Advances Regulations.

8. (1) Where a departmental bank account has been established by the Receiver General, or the establishment of such an account is being applied for, under section 7, the appropriate Minister of the department may apply to the Treasury Board for authorization to make from that account expenditures other than those set out in subsection 7(2).

(2) On the receipt of an application under subsection (1), the Treasury Board may grant an authorization to the appropriate Minister, which authorization must be in writing and set out

1. the classes of expenditures for which the authorization is granted; and
2. the number of signatures required on any cheque drawn on the departmental bank account for those expenditures.

9. Despite the establishment of a departmental bank account by the Receiver General under section 7 or the granting of any authorization in respect of that account by the Treasury Board under section 8, the Receiver General may direct the appropriate Minister of the department to

1. direct the financial institution in which that account is established to refuse payment of any cheque drawn on that account;
2. withdraw the authority given to any person to draw cheques on that account; or
3. discontinue that account and pay the balance remaining in it to the Receiver General.

PART III, DEPARTMENTAL BANK ACCOUNT CHEQUES

10. The Receiver General is responsible for

1. procuring and numbering the forms of cheques to be drawn on every departmental bank account; and
2. establishing procedures to be followed for the operation of departmental bank accounts.

11. Every cheque drawn on a departmental bank account must

1. bear the signature of one or more signing officers, as the case may be;
2. bear the name of the payee;
3. be for a specified amount;
4. bear no alteration in its amount or in the name of the payee; and
5. bear the date of the day on which it is issued or on which the payment in respect of which it is issued is due.

12. (1) Subject to subsection (2), where the payee of a cheque drawn on a departmental bank account reports that the cheque has not been received by the payee, or the payee or holder for value of such a cheque reports that the cheque has been lost, destroyed or stolen, one or more signing officers, as the case may be, shall issue a replacement cheque to the payee or holder for value, in the name of the payee or holder for value, for the same amount as the original cheque, if the payee or holder for value provides

1. a form of undertaking that meets the requirements of subsection 5(2); and
2. where the original cheque was for an amount greater than $5,000, an affidavit or statutory declaration sworn or declared before a commissioner for oaths, justice of the peace or other person before whom affidavits or declarations may be lawfully sworn or declared in Canada or abroad, respecting the non-receipt, loss, destruction or theft of the original cheque.

(2) No replacement cheque shall be issued in accordance with subsection (1) unless

1. the original cheque has not been cashed; and
2. a stop payment direction has been given to the financial institution in respect of the original cheque.

1. Specific Treasury Board approval must be obtained for departmental bank account expenditures which are outside of standard classes of payments, exceed the maximum amounts allowed by the Cheque Issue Regulations, 1997, or carry only one signature. The department must prepare a Treasury Board submission providing the following information, as applicable:
   • the name of the account;
   • the cheque-issuing location(s);
   • the proposed classes of payments to be made from the account, including the estimated number of payments that will be made monthly;
   • the number of signatures required on cheques at each cheque-issuing location;
   • the position titles and levels of the proposed signing officers; and
   • the reason for the exception to the policy.
2. The submission must include the amount of the advance needed to fund the account, if it is an imprest account. The amount of the advance and the reimbursement cycle must be minimized.