Revolving Funds and Departmental Corporations - Identification of Accounting Policy Differences
DATE:
TO: Senior Full Time Financial Officers
SUBJECT: Revolving Funds and Departmental Corporations - Identification of Accounting Policy Differences
The FIS Transition Protocol document for fiscal year 2001-02, issued , stated that revolving funds and departmental corporations:
- May continue to follow their own accounting policies, which are different from those for departments and the Government of Canada; and
- Must adjust trial balances submitted to the Central Financial Management Reporting System (CFMRS) for transactions and opening balances to be consistent with policies to be followed by departments per the protocol.
Both the Treasury Board Secretariat (TBS) and the Receiver General need to ensure that the CFMRS will not contain systemically duplicate or erroneous data. Therefore in order to ensure data integrity, we need you to identify where accounting policies presently in use for your Revolving Funds and Departmental Corporations differ from those specified for departments in the Treasury Board Accounting Standards (TBAS) and the FIS Transition Protocol document.
Attached, as Annex A, is a checklist of accounting policy differences which may exist between departmental accounting policies, and revolving fund/ departmental corporation adopted accounting policies, as at . I would ask that you review this checklist and identify which differences apply to your organization.
Would you please send the completed Annex A to Lance Mitchell, Analyst, Government Accounting Policy Division, TBS by .
TBS staff will be undertaking a review of unique revolving fund/ departmental corporation accounting policies now in use in order to develop a strategy for adopting a single harmonized set of accounting policies for all departments and their component organizations. As a result of this review it is expected that the (1997) TBS Revolving Fund Guide will be amended. Requests for participation of your staff in this review process may be made from time to time.
If you have any questions on these matters, please have your staff contact either myself or Lance Mitchell, at 954-0117, or by Email at mitchell.lance@tbs-sct.gc.ca.
John Morgan
Acting Assistant Comptroller General
Acting Assistant Secretary
Financial Management Policy and Analysis Sector
Annex A
Revolving Fund/ Departmental Corporation
Checklist of Accounting Policies in use (as at )
Which are non-compliant with TBAS and FIS Transition Protocol
Please complete for each Revolving Fund and Departmental Corporation, and return by to:
Mr Lance Mitchell
Analyst, Government Accounting Policy Division
Treasury Board Secretariat
8th Floor, West Tower
300 Laurier Ave West
Ottawa, Ontario, K1A 0R5 Fax: 952-9613
| Non- TBAS Compliant Accounting Policy |
Recorded in Revolving Fund / Departmental Corporation Financial System? YES / NO |
Has this been Eliminated from the CFMRS? YES / NO / N/A |
|---|---|---|
| Section 1 - Recognition of Assets (including related impact on revenues / expenses) |
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| 1. Computer software. Record computer software costs incurred prior to 1 Apr 01 as assets. Reference: TBAS 3.1.1 and FIS Transition Protocol document. |
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| 2. Leasehold Improvements. Record leasehold improvement costs incurred prior to 1 Apr 01 as assets (allowed exception: buildings or infrastructure erected on leased land). Reference: TBAS 3.1 and FIS Transition Protocol document. |
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| 3. Capitalization of Interest Costs. Capitalize any interest expense for constructed capital assets. TBAS 3.1. |
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| 4. Intangible Assets. Record any intangible assets (eg. copyrights, trademarks, patents, easements, rights-of-way). Reference: TBAS 3.1 and FIS Transition Protocol document. |
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| 5. Allowances for Valuation. Record any allowances for valuation of loans, investments or advances. Reference: FIS Transition Protocol document. |
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| 6. Other. Specify any other assets recorded in the revolving fund / departmental corporate trial balance which are not specifically allowed under TBAS policy or the FIS Transition Protocol document: |
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| Section 2 - Recognition of Liabilities (including related impact on revenues/ expenses) |
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| 7. Record Employee Termination / Severance Pay liabilities. (an undevolved TBS responsibility). FIS Transition Protocol document. |
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| 8. Record Retirement / Post-Employment Benefits. Any other retirement or post- employment benefits. (an undevolved TBS responsibility). FIS Transition Protocol document. |
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| 9. Record Employee Pension liabilities. (an undevolved TBS responsibility). FIS Transition Protocol document. |
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| 10. Record Contingent Liabilities. (an undevolved TBS responsibility). FIS Transition Protocol document. |
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| 11. Record Environmental Liabilities. (an undevolved TBS responsibility). FIS Transition Protocol document. |
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| 12. Other. Specify any other liabilities (including unsigned union agreements), provisions (including inventory provisions) or equity accounts recorded in the revolving fund / departmental corporation trial balance which are not specifically allowed under TBAS policy or the FIS Transition Protocol document: |
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| Section 3 - Other Areas | ||
| 13. Services provided or received without charge. If the revolving fund / departmental corporation records via accounting entries for the provision of services provided or received without charge. |
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| 14. Other (please explain) |
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Organization: ____________________________________________
Contact Person for further details: ____________________________
Phone: __________________
Signed by: _____________________________ Date:____________
Position/Title: ___________________________________________
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