This chapter contains the entire text of the policy as revised June 1, 1996. Chapter 3-2 of the "Comptrollership" volume dated October 1, 1994, is cancelled and replaced by this policy and Chapter 3-5, Policy on Receivables Management.
To ensure that all receipts of money are accurately accounted for and adequately controlled to prevent or reduce error, fraud, or omission.
It is government policy that all receipts of money be recorded in both departmental accounts and the accounts of Canada.
This policy applies to all organizations considered to be departments under section 2 of the Financial Administration Act.
5.1 Departments must establish procedures to ensure that:
5.2 Departments must classify receipts of money into either public or non-public moneys. Please refer to Appendix A for their definitions.
5.3 Departments must record the following receipts of money in the accounts of a fiscal year that has just ended:
5.4 Departments must record repayments of revenues and receipts of money in the fiscal year in which the repayment is made:
5.5 Departments must provide a complete audit trail of their recording process:
5.6.1 By using paper or electronic documents that serve as proper authorization and objective evidence (e.g., inventory release memoranda, official receipts and cash register slips) to generate, authorize, and support accounting entries. These documents must contain the same authorizations and information as those required by the operational staff to provide the goods or services.
5.6.2 Departments must provide for control of the serial-number sequence of accounting documents and Electronic Funds Transfer (EFT) transactions, both at the time of issue and periodically thereafter; and
5.6.3 The audit trail must permit the tracing of any transaction from its inception to the final outcome and from the accounting records back to the original transaction.
6.1 Departments must separate the duties of employees who deal with receipts of money. A complete separation of duties is the ideal. However, depending on the organizational structure, availability of staff, materiality, alternative controls and other pertinent conditions, departments must at the very least, combine duties judiciously of the functions related to granting credit, maintaining accounting records, and handling and reconciling cash.
6.2 Employees must not control any one function continously for an extended period of time. Mandatory annual leave and job rotation can reveal any undesirable practices.
6.3 Departments must design control accounts, which summarize and provide a total of all related individual receipts of money, to ensure the integrity and reliability of the individual accounts.
7.1 Departments must ensure that their recording of receipts of money activities are effective and efficient.
7.2 Departments should undertake periodic reviews and audits of their recording of receipt of money to ensure that they are established and operated in accordance with this policy.
7.3 The Treasury Board Secretariat will monitor the effectiveness of this policy by reviewing departmental audit reports and performance reports.
This policy is issued pursuant to the Financial Administration Act.
Financial Administration Act (R.S.C., 1985, Chapter F-11) sections 2, 17, 17.1, 20, 39 and 159.
Receipt and Deposit of Public Money Regulations, C.R.C., c. 728, as amended by SORs/80-449, 83-828 and 94-402.
Repayment of Receipts Regulations, C.R.C., c. 729, as amended by SOR/81-920 and SOR/93-258.
Revenue Trust Account Regulations, C.R.C., c. 730, as amended by SORs/83-829, 93-258 and 94-402.
Policy on Deposits, chapter 3-3, "Comptrollership" volume of the Treasury Board Manual.
Policy on Specified Purpose Accounts, chapter 5-7, "Comptrollership" volume of the Treasury Board Manual.
Chart of Accounts volume, Treasury Board Manual, sections 8.2.2 and 8.3.2.
Receiver General Directive on year-end procedures.
Please direct enquiries about this policy to your departmental headquarters. For interpretation of this policy, departmental headquarters should contact:
Financial Management Policy Division
Financial and Contract Management Sector
Financial and Information Management Branch
Treasury Board of Canada, Secretariat
Ottawa, Ontario
K1A 0R5
Telephone: (613) 957-7233
Facsimile: (613) 952-9613
Section 2 of the Financial Administration Act (FAA), defines those terms:
Non-public moneys are those that are specifically defined as non-public money in a statute, such as the National Defence Act. They also include money that the Government of Canada receives in error.
Note:
The Chart of Accounts volume of the Treasury Board Manual provides further details on the classification of revenues and receipts of money.