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B.
Expenditure Control Procedures
B.1
Financial Signing Authorities
Core
Policy - 4.3
Signing Authorities
Matrix
- The original
matrix is to be signed by the ministry Delegating Authority and
the ministry Signing Authorities Officer.
- Ministries must
review all delegation instruments at least yearly, and revise if changes
are made.
- Additions/changes/deletions
as a result of organizational structure and responsibility must be
made by revising the existing matrix and having it signed by the delegating
authority and the ministry signing authorities officer.
- Documentation
with respect to managerial restrictions imposed on delegated expense
authorities, are maintained by ministries. Permanent restrictions
are handled as changes to the matrix.
CSAS
- CSAS is a cross-government
web application used to create, maintain and review ministry signing
authorities and signature cards, and extract authorities data. For
additional information, refer to the CSAS website:
http://gww.former.gov.bc.ca/csas_gendocs/ or contact your ministry
CSAS Administrator.
Government agents
- For managerial
restrictions imposed on government agents, appropriate supporting
documentation and signature cards or notices signed by the signing
authorities officer must be sent to Revenue and Financial Systems,
Ministry of Labour and Citizen's Services.
B.2
Accountable Advances
B.2.1
Salary Advances
B.2.2 Relocation Advance For
Transfer Between Ministries
B.2.3 Advances Through Government Agents
B.2.4 Petty Cash Advances
B.2.5 Repayment of Accountable Advances
B.2.6 Employee Account Credit Balances
B.2.7 Repayment by Payroll
Deduction
General
Core
Policy 4.3.9
- Accountable advances are
issued by completing an Application for Accountable
Advance form (FIN 299) and obtaining the appropriate approvals.
- The BCAP080 Prepayment
Status report in Oracle Accounts Payable provides information on transactions
and details of current period balances to facilitate reconciliation
of a ministry's accountable advance records to those of the Corporate
Accounting System. In addition to reconciliation, ministries are required
to prepare a quarterly report listing all outstanding accountable
advances for review by the ministry senior financial officer.
- A series of receivable
STOBS (1820 to 1828) have been established in the General Ledger to
control accountable advances. Coupled with appropriate use of service
line and responsibility centre coding, ministries can control advances
at major branch or divisional levels.
- Advances to contractors/non-employees
shall be controlled as accounts receivable and whenever possible shall
be time-limited. Use STOB 1826 for all contractor/non-employee accountable
advances
B.2.1
Salary Advances
Core
Policy 4.3.9
- A salary advance is used
for emergency replacement of a regular payroll cheque, which has been
issued but has not arrived at the payee's office on pay day. It is
a Government Agent advance issued in the net amount of current earned
salary.
- A salary advance will
not be issued for a final cheque on termination of employment.
B.2.2
Relocation Advance For Transfer Between Ministries
- An accountable advance
required for relocation expenses when an employee is transferred to
another ministry may be issued by either of two methods.
B.2.3
Advances Through Government Agents
Ministry
- The head office of the
ministry concerned shall complete form FIN
343.
- Ministry headquarters
provides:
- location of the government
agent who is to issue the advance,
- employee name(s) and
number(s) (leave the number area blank if it has not yet been
issued),
- amount of each advance,
- all financial coding;
and
- expense authority
approval.
- After payment issue, the
ministry will receive from the Government Agent a copy of form FIN
343 with cheque requisition and application for accountable advance.
The ministry office enters the payment as an invoice into CAS Oracle
A/P and records the cheque number. Please see the CAS Oracle A/P User
manual for complete instructions.
Government Agent
- The Government Agent:
- receives form FIN
299 Copies 1, 2 and 3, from employee;
- receives rapidfax
information of form FIN 343 from ministry (with the exception
of the Ministry of Forests and Range, and the Ministry of Environment);
and
- prepares (or receives)
a cheque requisition.
- If advances are to be
given out all at once, use a cheque requisition
- Cross off document
control number on cheque requisition.
- Insert the six-digit
FIN 343 document control number prefixed with an asterisk (*).
- If advances are to be
given out over a period of time, use a cheque requisition for each
advance.
- Cross off document
control number on cheque requisition.
- Insert the last five
digits of the FIN 343 document control number on each requisition
prefixed with an asterisk (*) and the number that corresponds
to the employee name listed on FIN 343 (i.e., FIN 343 document
control number 012345 requesting two advances. The cheque requisition
document control number for the first employee would read *112345
while the cheque requisition document control number for the second
employee would read *212345).
- Issue a government agent
cheque against the ministry accountable advances account and enter
the GA cheque # in the appropriate box on the cheque requisition.
- Return form FIN 299,
Copy 3 (pink) with cheque to employee. The employee must be prepared
to answer any queries of ministry headquarters if necessary; and
- Send a copy of form FIN
343 with cheque requisition and application for accountable advance
to the ministry office, which requested the advance for keying into
CAS. These vouchers are to be mailed daily to the appropriate ministry.
B.2.4
Petty Cash Advances
Core
Policy 4.3.9
Petty Cash Imprest
Accounts are available as an alternative to, or to supplement cash disbursements
from, petty cash. Regular policies on opening bank accounts and obtaining
accountable advance approvals apply.
Permissible and
Non-Permissible Expenditures
- Ministries can pay any
authorized local minor purchase item (goods and/or services) up to
$100 by petty cash. Where the Purchasing Card is not accepted, the
transaction limit is $200. These limits include taxes.
- Permissible expenditures
include (but are not limited to):
- business meeting expenses;
- all allowable travel
expenses that total less than $100 for infrequent travellers (travel
is not more than once per year). Routine claims for mileage or
other types of travel expenses must be reimbursed via iExpenses);
- staff development
or training fees, when procedures are in place to capture this
information; and
- non-cash ministry
approved suggestion awards.
- Non-permissible expenditures
include:
- small dollar value
purchases that should be acquired using the Purchasing Card;
- stationery and other
items stocked by the Queen's Printer, Office Products Centre,
except on an emergency basis;
- items stocked in the
Product Distribution Centre, Ministry of Labour and Citizen's
Services, except on an emergency basis;
- any form of grant,
contract or lease payment;
- gas/oil purchases
for ministry owned, leased or rented vehicles, and for private
vehicles when on travel status. (Fuels obtained for power saws,
camp stoves, etc. are not restricted by this clause); and
- rental of equipment
for more than one month.
Ministries may
further restrict the above.
Increase of Petty
Cash Limit
- The ministry senior financial
officer (or designated officer) may apply to the Comptroller General
to increase the petty cash limit. Before such application is made,
the ministry's financial controls must be reviewed with the Financial
Management Branch, OCG.
Payments
in U.S. Funds
- Ministries are requested
to make payments in US Funds from petty cash for amounts up to the
Canadian equivalent of the current petty cash limit. These money orders
or drafts should preferably be purchased from the Province's principal
banker, if made available free of a service charge. Where the bank
or other financial institution charges a fee, ministries must include
the service charge to STOB 8506 on the replenishing cheque requisition
(bank service charges may be lumped together for various payments
but may not include the US$ exchange differential).
- The replenishing cheque
requisition must show the CA$ (equivalent) purchase amounts by chart
of account codes (CA$ amounts are calculated as US$ amounts plus or
minus US$ exchange).
Items Appearing
to be of a Personal Nature
- For payment of items
that may appear to be of a personal nature, indicate on the supporting
documentation (receipts, invoices marked paid cash, etc.) "for
client purpose only."
Transfer of Petty
Cash Advance
- The transfer must be
promptly posted into the accounting records. Please see chapter 8
of the CAS Oracle A/P manual for instructions on transferring a prepayment
from one employee to another.
- The refund of an advance
recorded in CAS Oracle A/P must be processed as an invoice and applied
against the outstanding prepayment.
- Transfer of a petty cash
fund recorded as a prepayment in CAS Oracle A/P must be done in A/P
and not with a journal voucher. Please see the CAS Oracle A/P User
manual for complete instructions.
- If no prepayment entry
exists, the transfer of a petty cash fund may be made by a journal
voucher crediting the former holder, and debiting the new holder of
the fund, supported by an authorized application for advance form
and reconciliation of the fund balance and receipts for expenditure.
- Petty cash or any other
working capital fund may not be recovered from payroll deduction.
B.2.5
Repayment of Accountable Advances
- Repayment credit entries
are derived from the invoices applied against the prepayment in A/P.
The source documents that can be used to recover accountable advances
include:
- travel vouchers;
- payment requests;
- journal vouchers;
- deposit forms; and
- payroll deductions.
All of these documents
may be directly coded to the specific advance STOB (payroll deductions
are directly coded to ministry accounts). Travel vouchers are limited
to one employee; payment requests, and deposit forms allow for multiple
coding distribution.
Cheques repaying
accountable advances should be made payable to "Minister of Finance."
- To recover a salary advance,
Payroll Accounting prepares a journal voucher debiting the government's
payroll account and crediting the accountable advance account.
- A relocation travel advance
must be repaid within three months of an employee's start of employment
in the new ministry.
B.2.6
Employee Account Credit Balances
- Credit balances that
result from coding errors may require reallocating journal voucher
entries, or other correcting entries. Ministry headquarters should
analyze the erroneous coding and track down the advances requiring
correction.
B.2.7
Repayment by Payroll Deduction
- Payroll deductions used
to recover outstanding advances require the following payroll deduction
codes:
| Payroll
Code |
Advances
Type |
STOB |
| SALADV |
Salary Advance |
1824 |
| TRASTB |
Travel - Standing |
1822 |
| TRATEM |
Travel - Temporary |
1821 |
| TRVSEA |
Travel - Seasonal
|
1823 |
Note:
Payroll deduction code TRVSEA may be used to recover single additional
advance account per ministry. Ministries must provide the Response
and Service Line codes to the Payroll Accounting Office, POIM for
inclusion in the G/L interface Exception Deductions table.
- Working capital advances,
STOB 1820, may not be recovered from payroll deduction.
- Ministry payroll offices
shall ensure that the payroll code and the amount of advance to be
recovered are entered on the employee pay sheet.
B.3
Bank Accounts
Core
Policy 4.3.11; 4.3.12
B.3.1
Ministry Bank Accounts
B.3.2 Ministry Senior Financial Officer
Bank Accounts
General
- The bank account reconciliation
shall show:
- the title of the bank
account;
- the location of the
bank account;
- the bank account
number;
- the ledger account
number;
- the outstanding items;
- the beginning and
end date of bank reconciliation.
- The employee reconciling
the bank accounts shall:
- receive or obtain
bank statements and supporting documentation directly from the
bank and retain them until the reconciliations are completed and
approved,
- ensure that all reconciling
items are properly identified, clearly described, and adequately
resolved within a reasonable length of time. These items shall
be substantiated by adequate written documentation for future
reference, and
- receive the unclaimed
and undelivered cheques directly from the mail clerk.
- The ministry senior financial
officer shall have records maintained of all deposits to accelerated
transfer accounts. Such records shall be filed by each ministry in
a central location(s) and shall be made available to the Office of
the Comptroller General upon request. This procedure is in effect
as long as bank statement transmittal reports for accelerated transfer
accounts are not made available to ministries or until such time that
the Office of the Comptroller General instructs otherwise. Ministries
shall verify deposits to the ledger transaction reports and shall
report discrepancies to the Financial Reporting and Advisory Services
Branch, Office of the Comptroller General.
- The ministry senior financial
officer shall formally declare the division of duties to each person
involved with control of bank accounts.
- Division of duties is
recognized as the principal and most effective means of preventing,
or at least diminishing, the possibility of fraud or error by employees.
Ministries are required to establish, to the extent possible, the
maximum division of responsibilities throughout the activities carried
out in the account verification and payment requisition process.
- Two models provide a
guideline for the division of duties for SFO bank accounts:
- Generally, the prescribed
procedures for ministry bank accounts state that the cheque signer
cannot be the bank reconciler. In exceptional cases in respect of
a ministry SFO bank account, however, the cheque signer is permitted
to be the bank reconciler if the cheque signer is restricted from
being responsible for such disbursement functions as accounts payable
requisitioning, accounts payable reviewing, SFO cheque writing, SFO
cheque custody, SFO cheque supply requisitioning, SFO cheque distributing,
and OCG cheque requisitioning. This exceptional case should be reviewed
with OCG.
- Where the SFO permanently
designates the signing of SFO cheques and replenishing OCG cheque
requisitions, the designate should also be controlling cheque cancellations
and maintaining the control ledger. They must be restricted from the
duties of a cheque custodian, cheque writer, cheque signer, and bank
reconciler for that batch of cheques.
B.3.1
Ministry Bank Accounts
Core
Policy 4.3.11
B.3.1.1
How to Establish a Ministry Bank Account
B.3.1.2 Changes to Bank Accounts
B.3.1.3 Transferring a Ministry Bank
Account
B.3.1.4 Closing a Ministry Bank Account
B.3.1.5 Annual Review of Ministry Bank
Accounts
B.3.1.6 Cheque Stock Printing Orders
B.3.1.7 Bank Service Charges
B.3.1.8 Bank Interest Earned
B.3.1.1
How to Establish a Ministry Bank Account
Ministry
- Applications to establish
ministry bank accounts are made using an Application
To Establish A Ministry Bank Account Form FIN 126. Applications
shall be signed by one of the following: the deputy minister, the
ministry's executive financial officer, or senior financial officer,
and shall be forwarded to the Senior Manager, Banking Policy and Contracts,
Provincial Treasury.
- When submitting an application
for an expenditure bank account to Provincial Treasury, ministries
are to submit a Specimen
Signature Form FIN 167.
- If specimen signature
forms are not enclosed with the application form, Provincial Treasury
will notify the financial institution that the authorized signing
officers will provide specimen signatures. In this instance, the authorized
signing officers must deal personally with the financial institution
to establish a specimen signature form.
- The senior financial
officer (or designated officer) records the new bank account in the
ministry-wide Ministry Bank Account Registry (MBAR) when it is approved
by Ministry of Finance.
Provincial Treasury
- Provincial Treasury establishes
approved ministry bank accounts directly with the branch of the financial
institution on behalf of the ministry requesting the account, provides
written confirmation and records the new bank account in the government-wide
Central Bank Account Registry (CBAR).
B.3.1.2
Changes to Bank Accounts
Ministry
- As soon as a change is
required to a ministry's bank account information, the ministry must
inform the Senior Manager, Banking Policy and Contracts, Provincial
Treasury, of the new information in a memo signed by the ministry
senior financial officer (or designated officer).
- When the list of authorized
cheque signing officers is changed, submit a FIN 167 form with the
new signer's specimen signature with the memo.
- The ministry updates
its MBAR system when it receives confirmation from Provincial Treasury
that the changes have been made.
Provincial Treasury
- Provincial Treasury communicates
with the financial institutions, forwarding the original signature
form(s) to the financial institution, along with the appropriate correspondence
advising of the change.
- Provincial Treasury adjusts
the CBAR system to reflect the changes, and forwards confirmation
of the change to the ministry senior financial officer (or designated
officer).
B.3.1.3
Transferring a Ministry Bank Account
To Another Bank
- The Ministry SFO shall
forward a letter to the Senior Manager, Banking Policy and Contracts
requesting the closure of the bank account:
- stating that a completed
Application to Establish a Ministry Bank Account is attached to
establish an account for the same purpose at a new bank, and
- specifying the date
on which the old account should be closed.
- Provincial Treasury instructs
the bank to establish the new account. A copy of the instruction letter
is sent to the SFO or equivalent, as notice of the new account number
and that the account has been established. Subsequently:
- the ministry must
inform the Bank Control Clerk in Provincial Treasury of the date
when the ministry will commence using the new account,
- Provincial Treasury
then instructs the bank to close the old account, unless the ministry
has requested a later closure date,
- accounts that remain
open will continue to incur a standard annual fee from Provincial
Treasury's bank billing chargeback process.
To Another Ministry
- When responsibility for
a bank account is to be transferred to another ministry, the senior
financial officer (or designated officer) currently responsible for
the account must notify the senior financial officer (or designated
officer) of the accepting ministry and the Senior Manager, Banking
Policy and Contracts, Provincial Treasury of the transfer and the
account particulars.
- The senior financial officer
(or designated officer) of the accepting ministry must sign and forward
a memo to the Senior Manager, Banking Policy and Contracts, Provincial
Treasury (copying the senior financial officer or designated officer
currently responsible) accepting responsibility for the account. The
memo must include the following information:
- the date the
transfer should take effect,
- changes in
signing officers with completed specimen signature forms attached,
- change in officer
and address to whom bank statements will be sent,
- change in local
ministry representative, and
- change in General
Ledger coding if it is an AFT account.
- Until the signed memo
from the accepting ministry has been received, all activity will continue
to be recorded to the original ministry. Once new coding is in place,
it is the responsibility of the two ministries to process any required
adjusting journal vouchers.
B.3.1.4
Closing a Ministry Bank Account
- Prior to closing a ministry
bank account, the ministry must ensure that all pending transactions
have been processed.
- For expenditure bank accounts,
ministries must ensure that:
- all cheques have been
resolved (i.e., cashed or cancelled);
- no other bank debit
or credit memos are outstanding; and
- the remaining balance
was repaid to the Ministry of Finance, Accountable Advances -
Working Capital Account. Two ways of doing this are:
- Ministries will issue
a final journal voucher to:
- debit the expenditure
accounts, and
- credit the Accountable
Advance account.
The accountable
advance is settled when both the final replenishing journal voucher
and the Deposit Form clear the advance account in full. The officer
responsible for the account will verify these transactions with the
ministry senior financial officer (or designated officer) before the
ministry bank account is closed.
- For deposit bank accounts,
ministries shall ensure that all deposits processed by the ministry
have been recorded in the bank account and that all funds have been
transferred via accelerated transfer or other prescribed method to
the Minister of Finance. Ministries will trace these transactions
to the general ledger accounts to ensure that they are completely
and properly accounted for before the ministry bank account is closed.
- After all pending transactions
have been resolved, a request to close the account shall be sent to
the ministry senior financial officer (or designated officer). At
the request of the senior financial officer (or designated officer),
Provincial Treasury will arrange with the financial institution to
close the account and provide confirmation that the account is closed.
- When closed, the ministry
shall remove the Standard Signature Card (form FIN 167) from the active
file and place it in the inactive file of the Ministry Bank Account
Registry (MBAR); the date the account was closed will be indicated
on it. For expenditure accounts, the date and the method of blank
cheque stock destruction will be indicated on the card. Ministries
shall destroy blank cheques by formal means, according to government-wide
policies and procedures on document disposal.
B.3.1.5
Annual Review of Ministry Bank Accounts
The ministry senior
financial officer will request that the officer responsible for each
account review the ministry bank account and confirm such a review.
The senior financial officer will develop a ministry-wide format or
form for reviewing and confirming bank accounts.
For expenditure
bank accounts, this review (CPPM
4.3.11.15) should be done at the same time as the review and confirmation
of accountable advances is done (CPPM
4.3.9.4).
B.3.1.6
Cheque Stock Printing Orders
Cheque orders are
processed through Provincial Treasury.
When ordering cheque
stock for ministry imprest accounts, ministries are to complete a Cheque
Stock Order Request (form FIN 137) and send it to:
Bank Control Clerk
Banking/Cash Management Branch
Provincial Treasury
PO Box 9414 Stn Prov Govt
Victoria BC V8W 9V1
Before ordering,
please note the following:
- Only cheques
may be ordered on the form. ONEWRITE binders and other equipment are
ordered separately according to your ministry purchasing policy.
- Ministries will
include a voided cheque or a photocopy of current cheque stock if
the order is to replenish current stock.
- Cheques take
from four to six weeks to be delivered commencing with the submission
of the order to Queen's Printer from Provincial Treasury.
- Provincial Treasury
will request that all cheques be printed to conform to current security
standards.
B.3.1.7
Bank Service Charges
Bank service
charges are directly charged by financial institutions (chartered
banks and other savings institutions) to the Ministry of Finance according
to service agreements arranged by Banking/Cash Management Branch,
Provincial Treasury. Ministries shall ensure that financial institutions
do not charge them for service charges for transactions concerning
ministry bank accounts; however, if a financial institution insists
on making the charge directly to the ministry or ministry bank account
or does not comply with the terms and conditions of the agreement,
the ministry will subsequently notify Banking/Cash Management Branch.
B.3.1.8
Bank Interest Earned
Ministry officers
responsible for ministry bank accounts will inquire of Provincial
Treasury whether or not interest on bank balances is in fact being
credited to the Minister of Finance. Ministries will notify the Cash
Management Branch, Provincial Treasury, if they suspect that interest
is being overlooked.
Interest received
centrally for ministry trust funds is periodically credited to ministry
accounts in the general ledger and interest is calculated by Provincial
Treasury at standard interest rates and in accordance with the guidelines
of the related enactments. Ministries must confirm the accuracy and
completeness of these transactions as part of their regular reconciliation
procedures. Where interest on individual ministry bank account trust
funds is required before such credit has been made, ministries will
make arrangements with Provincial Treasury to access the interest
ledger accounts established for this purpose.
B.3.2
Ministry Senior Financial Officer Bank Accounts
Core
Policy 4.3.12
B.3.2.1
Authorized Payments
B.3.2.2 Rejection by Cheque Writer
B.3.2.3 Cheque Completion and Error
Correction
B.3.2.4 Unused Cheque Stock
B.3.2.5 Signing of Cheques
B.3.2.6 Dating of Cheques
B.3.2.7 SFO is Expense Authority
B.3.2.8 SFO is Payee
B.3.2.9 Cheque Cancellations
B.3.2.10 Control Ledger
B.3.2.11 SFO Bank Account Replenishment
Report
B.3.2.12 SFO Bank Account Unpresented
Cheques Liability
B.3.2.13 Placing Stop Payment with
the Bank
B.3.2.14 SFO Bank Account Reconciliation
B.3.2.1
Authorized Payments
- A ministry bank account
must not be used for:
- business (hospitality)
expenses;
- overnight travel
expenses to employees;
- any form of grant,
contract or lease payment;
- gas/oil purchases
for ministry vehicles;
- stationery items
stocked by the Queen’s Printer (except for emergency
supplies up to $10, which may be purchased after following the
instructions for Emergency Requirements in the Queen’s Printer
Stationery Catalogue);
- petty cash
replenishment;
- reimbursement of staff
development or training fees (where the reimbursement is a
taxable benefit to the employee; and
- accountable advances.
- For payment of travel
expenses such as meals, distance allowance, parking and/or ferries,
a travel voucher is to be completed and signed by both the employee
seeking reimbursement and the appropriate ministry expense authority,
and attached to the replenishment report. A travel voucher is not
necessary for payment of travel expenses that are $30 or less; other
appropriate supporting documentation duly approved may be submitted
in lieu.
B.3.2.2
Rejection by Cheque Writer
The cheque writer
prepares a cheque for each account presented for payment by the account
reviewer (or accounts payable clerk), rejecting and returning to the
account reviewer all accounts presented for payment that do not have
the following:
- A signature for
expense authority with the statement: “Certified that the amount
to be paid":
- is correct;
- is in accordance
with the appropriate statute or other authority for payment and/or
the contract; and
- where applicable,
that the work has been performed, the goods supplied, the service
rendered and/or other conditions met”; and
- Initials by the
account reviewer that is a sign-off indicating that the:
- extensions
on the invoice have been checked;
- chart of
account codes are correct;
- supplier
code is correct;
- applicable
purchase order number and prices are correct;
- the expense
authority is correct; and
- invoice is
to be paid by SFO cheque.
B.3.2.3
Cheque Completion and Error Correction
- The SFO cheque and stub
must be complete in all the required areas. The numerical amount on
the cheque must not touch the straight line beneath it, nor the dollar
sign to the left of it.
- The address on the cheque
must include the postal code. The purpose on the cheque stub must
include the information concerning the invoice, claim or statement
being paid that would have been provided in the cheque stub field
10 had a cheque requisition been used (see cheque requisition procedures).
- The cheque writer must
correct
- minor cheque errors
made in the cheque stub codes
- the address of payee
- the cheque stub purpose
information and
- the counterfoils.
- The cheque writer must
void all SFO cheques with errors in the payee name, dollar amount
(in words and in figures) and date. The appropriate cheque cancellation
entry shall be made in the:
- SFO Bank Account Replenishment
Report (FIN
212), and
- SFO Bank Account Cheque
Cancellation Register.
- The cheque writer will
maintain a control of breaks in cheque numbers being issued (i.e.,
where not recorded in sequential order). Cheque stock should be used
in numerical sequence.
- The account reviewer must
ensure that the cheque cancellation register entry has been made before
requisitioning a SFO cheque replacement.
B.3.2.4
Unused Cheque Stock
The cheque custodian
must
- keep the SFO
cheques in a secure location at all times, and
- maintain an unused
cheque register and record “in” and “out” movements
of unused cheque stock. The unused cheque register should be checked
to the unused cheque .
The cheques shall
be issued in sequential order.
When reordering,
provide a complete voided sample set for the printer consisting of the
original cheque, and white counterfoil.
B.3.2.5
Signing of Cheques
SFO cheques shall
not be pre-signed by either of the two cheque signers. The SFO shall
ensure that there are cheque signers (at least three are suggested)
on file with the bank so that when the regular cheque signers are absent,
acting SFO bank account cheque signers can sign SFO cheques. Amendments
to the application establishing the SFO bank account shall be by memorandum
to the OCG and to the Provincial Treasury, Ministry of Finance and,
as a minimum, shall include the cheque signer names, position titles,
and specimen sample signatures. Reference is to be made to the application
number that established the SFO bank account. The SFO shall ensure that
a proper division of duties is maintained when the acting cheque signers
are on duty.
| Note: |
Consideration
should be given to acquiring a cheque imprinting machine to imprint
the dollar amount in words on the SFO cheque. |
B.3.2.6
Dating of Cheques
SFO cheques should
not be post-dated nor distributed prior to the date of the cheque. See
also policy on Timing and Distribution of Payments in CPPM 4.3.8.
B.3.2.7
SFO is Expense Authority
Where the account
(invoice) is chargeable to a responsibility centre controlled by the
SFO as expense authority, the SFO must have that account (invoice) signed
by the qualified receiver in order that the requirements of CPPM 4.3.2
and 4.3.4 may be met.
B.3.2.8
SFO is Payee
Where the payee
and expense authority, or just expense authority, of the SFO bank account
cheque is the SFO, the SFO shall have that account (invoice) countersigned
for spending by a fellow officer delegated ministry-wide administrative
functional authority (such as a personnel officer or administrative
office manager) and by the EFO, or other superior officer, in order
that the requirements of CPPM 4.3.2 and 4.3.4 may be met.
B.3.2.9
Cheque Cancellations
- The cheque writer should
stamp “CANCELLED” twice across the face of the cheque and
once across the cheque stub. (The yellow and white counterfoils are
to be voided in the same manner.)
- The SFO shall control
cheque cancellations by ensuring that his staff maintain a separate
register of cheques cancelled and replaced or voided, entitled “SFO
BANK ACCOUNT CHEQUE CANCELLATION REGISTER” or in a manner that
is deemed best by the SFO.
- This register should contain,
as a minimum requirement, the following information:
- Name of person initiating
the cancellation (usually the account reviewer or SFO);
- SFO cheque number
(the cheque that is eligible for cancellation);
- SFO cheque date;
- SFO cheque amount;
- cancel entry OCG – CV – No
(means the Cheque Requisition I Document Number for the replenishment
report that cancels the SFO cheque); and
- replacement SFO cheque
number and date (if not replaced, indicate a reason such as undeliverable
or stale-dated and undeliverable or spoiled and not to be replaced
or issued in error).
- All SFO cheques on hand
that have been cancelled by the ministry (i.e., those that have not
been "cashed"), must have the cancel entry OCG - CV - No
(OCG Cheque Requisition I document number) indicated on them and be
filed with the cashed cheques in SFO cheque number order within the
month they were replaced or voided, or filed in a manner that is deemed
best by the SFO.
B.3.2.10
Control Ledger
SFO Bank Account
Control Ledger
- Cheque signers are responsible
for the prescribed SFO Bank Account Ministry Control Ledger or a control
ledger as prescribed by the SFO. They should reconcile this control
ledger with the advance account in the corporate accounting system
at least annually, if not monthly.
- The ministry control ledger
should contain, as a minimum requirement, the following columns of
information:
- dates of reports and
documents;
- cheque issued report
page (or batch) number and, when submitted, the OCG cheque requisition
number (document control number);
- EFT deposit amount;
- cheque issued amount;
and
- bank balance.
- The bank balance shall
be indicated after each cheque report (or batch) total has been recorded
or if needed sooner, on the ministry’s copy of the cheque replenishment
report page. The cheque signers must ensure that no SFO cheques are
issued that would cause the ministry vote control ledger to be in
an overdraft position, even if there is money in the actual bank account.
At no time are SFO cheques to be issued without sufficient funds in
the SFO bank account. The bank balance shall be indicated after each
EFT has been made and recorded.
B.3.2.11
SFO Bank Account Replenishment Report
- Each reimbursement to
the SFO bank account shall be made by a payment request (FIN
188) with the original of the SFO Bank Account Replenishment Report
(FIN
212 or approved facsimile); the examples following illustrate
the SFO Bank Account Replenishment Report. Supporting documentation
shall include: paid receipts (or the original of the supplier’s
invoice) or in the case of pre-payment, a copy of the order form.
- Ministries must code
the batches as vouchers batch type B150 and shall include only SFO
bank account transactions in the batch. Indicate: "EFT SFO BANK
ACCOUNT" in section 10 of the cheque requisition.
- The SFO Bank Account Replenishment
Report (FIN 212) or authorized computer generated report shall be
in the format prescribed for the ministry SFO bank account cheque
register. The report shall be signed as follows:
- by the person who
is the ministry cheque writer; and
- by the financial officer
(or supervisor) who is designated as the replenishment report
signer.
- All SFO cheque cancellations
must be entered on the replenishment report as a "CR" to
the right of the amount and the SFO cheque number is to be bracketed.
The amount should be left blank only in the cases where the SFO cheque
has not yet been shown on a replenishment report (a cancel entry cannot
be made for a cheque that has not yet been entered as a cheque issue).
- SFO cheque cancellation
entries should not be made for forged endorsements because that cheque
will have been cashed by the forger. Upon application and acceptance
of the circumstances, the bank will issue a credit memo to credit
the SFO bank account statement for the loss. When the credit memo
has been credited to the SFO bank account, reversing entries should
be made by the ministry.
- The bank requires the
original forged cheque and a signed copy of the statutory declaration
forgery form (refer to the examples). The ministry must retain photocopies
of the front and back of the cheque and the statutory declaration
and a memo accounts receivable forgeries file until settled or otherwise
resolved.
- The Office of the Comptroller
General shall perform a post-audit review of senior financial officer
bank account transactions identified in the same fashion as any other
financial system transaction.
B.3.2.12
SFO Bank Account Unpresented Cheques Liability
- Where SFO cheques are
undeliverable, the account (invoice) remains an account payable and
should be recorded as a memo contingent liability until such time
as the supplier or employee requests an in-lieu replacement cheque.
As undeliverable or stale dated cheques are contingent liabilities,
they must be reported as such at fiscal year-end in accordance with
the policies and procedures described in this manual.
- All stale dated SFO cheques
that have not been presented for payment at the bank and are not "in
hand" shall be duly cancelled on a SFO Bank Account Replenishment
Report and shall be recorded as a memo contingent liability until
such time as the supplier or employee requests an in-lieu replacement
cheque.
B.3.2.13
Placing Stop Payment with the Bank
The original of
the stop payment order shall be presented to the bank and two photocopies
shall be filed in the ministry, one with the cancelled counterfoil (white)
and the other with the bank reconciler. After six months the bank reconciler
shall file it as he/she does voided cheques and cashed cheques.
This applies to:
- lost cheques
being replaced based on a Bond of Indemnity, and
- old cheques being
reversed because they were not cashed, and, after reasonable effort,
the payee cannot be traced.
B.3.2.14
SFO Bank Account Reconciliation
The SFO bank account
shall be reconciled according to the standard
instructions prescribed for reconciling the ministry bank accounts.
A formal bank reconciliation summary shall be prescribed by the SFO
and shall be completed by the bank reconciler.
B.4
CAS/CGI Processing
Cheque on Demand
All Cheque on Demand
requests must be entered, approved and authorized in CAS Oracle at least
thirty minutes prior to the cheque generation time or they will not
generate cheques in that run. This means that all requests must be authorized
before 1:30 p.m. to be included in the 2:00 p.m. cheque run. Payments
missing this deadline will be produced during the overnight payment
process.
Processing Authority
Electronically encrypted
batches received through CGI and CAS Oracle payments are accepted on
the ministry's authorization. The transactions will be automatically
processed for payment and the general ledger updated. Ministries are
required to implement internal measures to maintain records of authorization.
See the CAS/CGI
web for more information.
B.5
Delegated Purchasing/Payment Instruments
In addition to the
Purchasing Card, other purchasing instruments are
- Purchase Order
on a Standing Offer (POSO);
- Library Purchase
Order (LPO), and
- Emergency Purchase
Order (EPO).
A POSO, LPO and
EPO must be approved by an Expense Authority; and the Order number must
be indicated on the supporting documents.
Contact Common
Business Services – Purchasing Services Branch for more information
regarding the use of these forms.
B.6
Federal Goods and Services Tax (GST)
GST Tax Free Status
Do not invoke our
GST tax-free status for purchases made by petty cash or for purchases
made in the name of an employee including the travel card while on travel
status (e.g., hotels, meals, car rentals).
GST on airline tickets
is avoided by direct billing tickets to the ministry or by using Quick
Tickets. Merchants are entitled to receive the tax-free certification
clause with each purchase, and tax-free treatment is only available
if the purchase is billed to the government or a tax-free entity.
Certification
Clause
By agreement with
the federal government, the Province and certain Crown corporations,
boards, agencies and commissions do not pay the federal Goods and Services
Tax (GST) on their purchase of goods and services. For a listing of
the GST tax-free government entities, see Schedule
A (government access only). In order for merchants to distinguish
legitimate provincial government tax-free purchases, the federal government
developed a tax-free certification clause for use by provinces that
should be either stamped onto or embedded into the wording of purchasing
documents. The certification clause reads as follows:
This is to certify
that the property and or services ordered/purchased hereby are for the
use of, and are being purchased by the Province of British Columbia
(or other ministry/institutional name) with crown funds, and are therefore
not subject to the goods and services tax.
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