1.1 This directive takes effect on October 1, 2009.
1.2 It replaces the following:
2.1 This directive applies to departments as defined in section 2 of the Financial Administration Act.
2.2 Those portions of sections of this directive that provide for the Comptroller General to monitor compliance with this policy within departments and/or request departments take corrective action, do not apply with respect to the Office of the Auditor General, the Office of the privacy Commissioner, the Office of the Information Commissioner, the Office of the Chief Electoral Officer, the Office of the Commissioner of Lobbying, the Office of the Commissioner of Official Languages and the Office of the Public Sector Integrity Commissioner. The deputy heads of these organizations are solely responsible for monitoring and ensuring compliance with this policy within their organizations, as well as for responding to cases of non-compliance in accordance with any Treasury Board instruments that address the management of compliance.
3.1 This directive supports the objectives of the Policy on Internal Control by outlining the duties and responsibilities of departmental chief financial officers when administering receipts of money by the Government of Canada. This directive provides for a consistent approach that ensures effective financial controls resulting in timely and effective management of receipts, deposits and recording of money.
3.2 Because of the significant value of money received by the Government of Canada and to ensure prudent stewardship of taxpayers' money, sound safeguards and controls are required to be in place. All money received is to be adequately controlled, promptly deposited (except contract bonds and unsecured letters of credit), and accurately accounted for in order to prevent or reduce error, fraud or omission.
3.3 Receipts that are deposited in the Consolidated Revenue Fund (CRF) are properly classified and promptly recorded in both the accounts of the department and the accounts of Canada. Note that the Policy on Special Revenue Spending Authorities and sections 17 and 39 of the Financial Administration Act apply. Only Parliament has the authority to approve spending of revenues received.
3.4 This directive is issued pursuant to sections 7, 17(1) and 39 of the Financial Administration Act.
3.5 This directive is to be read in conjunction with the Receipt and Deposit of Public Money Regulations and the Policy on Internal Control.
Definitions to be used in the interpretation of this directive are in Appendix A.
To ensure that all money received by the Government of Canada is appropriately controlled, deposited and accounted for in an accurate and timely manner.
The chief financial officer is responsible for establishing risk-based management practices and controls to ensure effective internal control over financial management of all money received by the Government of Canada as follows:
6.1.1 Ensuring that training has been provided as specified in the Policy on Learning, Training and Development and the Directive on the Administration of Required Training for those departments to which the policy and directive apply. For organizations not subject to this policy and directive, the chief financial officer or a person designated by the deputy head is required to establish training requirements relevant to this directive.
6.1.2 Safeguarding all money received by ensuring the following:
6.1.3 Managing deposits by ensuring the following:
6.1.4 Managing security deposits received from contractors following a request for tender by ensuring the following:
6.1.5 Managing bonds, standby letters of credit and other financial security instruments held by the Crown under a term of a contract or a transfer payment agreement by ensuring the following:
6.1.6 Managing reconciliations by ensuring the following:
6.1.7 Managing a complete audit trail of receipt, deposit and recording processes by ensuring the following:
6.1.8 Maintaining an adequate separation of duties of employees who deal with receipts, deposits and recording of money by ensuring the following:
6.1.9 Recording receipt of money by ensuring the following:
6.1.10 Accounting for and depositing the full amount of the revenue into the CRF, when public money is collected under a federal authority (legislation or regulation, etc.) by a province (or other collector) acting as a federal delegate;
6.1.11 Recording as an expenditure amounts retained or withheld, when a collector retains or withholds a certain portion of fee revenue as a commission or compensation for costs incurred under an agreement. Note that section 17.1 of the Financial Administration Act and section 5 of the Receipt and Deposit of Public Money Regulations, 1997 apply;
6.1.12 Recording in the accounts of the fiscal year that just ended, money deposited and credited by March 31 to the Receiver General by the Bank of Canada or any other financial institution;
6.1.13 Depositing in the CRF and reflecting as an adjustment in the accounts of the fiscal year that just ended, money received after March 31 that impacts an appropriation of the fiscal year that just ended (e.g. old year budgetary expenditure), as specified in the year-end timetable and procedures issued every year by the Receiver General; and
6.1.14 Identifying receipts of money related to expenditures made in a prior fiscal year that do not impact an appropriation of the fiscal year that just ended, depositing such receipts in the CRF, and accounting for them as a credit to refunds of previous years' expenditures. Any goods and services tax (GST) or harmonized sales tax (HST) refunded are credited to the current year. Note that the Policy on the Application of the Goods and Services Tax and the Harmonized Sales Tax in the Departments and Agencies of the Government of Canada - For FIS compliant Departments and Agencies applies.
6.2.1 Performing an analysis of benefits and costs to both the department and the Government of Canada prior to determining whether or not credit cards should be accepted as means of payment. If determined advantageous for all concerned, all cards for which the Receiver General has negotiated a Master Agreement are accepted;
6.2.2 Ensuring that credit or charge cards are not accepted as a means of payment for interdepartmental settlements. Note that the Directive on Acquisition Cards applies;
6.2.3 Ensuring that applications to establish new services or to revise existing arrangements for deposits to the CRF be submitted to the Receiver General; and
6.2.4 Following procedures and terms of all agreements established by the Receiver General.
6.3.1 Promptly reporting to the Departmental Security Officer, who will contact the police, receipts of counterfeit money or fraudulent receipts using a debit or credit card. In the case of counterfeit money and credit card receipts, if the person can be identified, an account receivable is to be promptly reinstated or set up. Otherwise, the amount is written off as a loss of money. Note that the Debt Write-off Regulations apply; and
6.3.2 Promptly reinstating or setting up an account receivable and applying administrative charges when a cheque that was deposited in the CRF is dishonoured. Note that the Interest and Administrative Charges Regulations apply.
6.4.1 Chief financial officers are responsible for supporting their deputy head by overseeing the implementation and monitoring of this directive in their departments, bringing to the deputy head's attention any significant difficulties, gaps in performance or compliance issues and developing proposals to address them, and reporting significant performance or compliance issues to the Office of the Comptroller General; and
6.4.2 The Comptroller General is responsible for monitoring departments' compliance with the requirements of this directive and conducting a review within five to eight years.
7.1 In instances of non-compliance, deputy heads are responsible for taking corrective measures within their organization with those responsible for implementing the requirements of this directive.
7.2 In support of the responsibility of deputy heads to implement the Policy on Internal Control and related instruments, chief financial officers are to ensure corrective actions are taken to address instances of non-compliance with the requirements of this directive. Corrective actions can include requiring additional training, changes to procedures and systems, the suspension or removal of delegated authority, disciplinary action, and other measures as appropriate.
7.3 Individuals are reminded that sections 76 to 81 (Civil Liabilities and Offences) of the Financial Administration Act as well as sections 121 (Frauds against the Government), 122 (Breach of Trust), 322 (Theft) and 380 (Fraud) of the Criminal Code may apply.
This section identifies other significant departments with respect to this directive. In and of itself, it does not confer an authority.
8.1 Public Works and Government Services Canada (PWGSC) is responsible for the following:
8.2 The Department of Finance is responsible for the following:
8.3 The Treasury Board Secretariat, Office of the Comptroller General is responsible for development, oversight and maintenance of this directive and for providing interpretation advice.
Please direct enquiries about this directive to your departmental headquarters. For interpretation of this directive, departmental headquarters should contact:
Financial Management Policy Division
Financial Management and Analysis Sector
Office of the Comptroller General
Treasury Board Secretariat
Ottawa ON K1A 0R5
E-mail: fin-www@tbs-sct.gc.ca
Telephone: 613-957-7233
Fax: 613-952-9613
For enquiries related to the operational aspects of this directive, departmental headquarters should contact:
Banking and Cash Management Sector
Accounting, Banking and Compensation Branch
Public Works and Government Services Canada
Gatineau, QC K1A 0S5
Telephone: 819-956-2945
Fax: 819-956-7595
Section 2 of the Financial Administration Act, defines those terms as follows:
Is public money is defined under section 2 of the Financial Administration Act as all money belonging to Canada received or collected by the Receiver General or any other public officer in his official capacity or any person authorized to receive and collect such money, and include:
The Government Contracts Regulations define security deposits as follows:
The following are common examples of receipts that are credited to an appropriation against which the related expenditure, advance or payment was charged, provided that they meet the requirements included in this directive: