E. Special Types of Disbursements Procedures

E.1 Legally Encumbered Payments

E.1.1 General Overview

E.1.2 Third Party Demand

E.1.3 Garnishing Order

E.1.4 Commercial Assignments

E.1.5 Bankruptcy and Insolvency Act

E.1.6 Making Payments to Encumbered Vendors

E.1.7 Set-offs & Temporary Holds

E.1.8 Specific Procedures for Set Offs and Temporary Holds – Vendors

E.1.9 Specific Procedures for Set Offs – Employees

E.1.1 General Overview

The Legal Encumbrance Branch, OCG is responsible for capturing and processing payments that have become legally encumbered. Payments become encumbered if

• a third party demand,
  
  
• a garnishing order, or
  
  
• an assignment is legally served on the government.

Once the legality of the encumbrance is established, the Legal Encumbrance Branch places the debtor name(s) on stop pay status on the CGI and CAS Oracle accounts payable system and, for employees, sets up an automatic payroll deduction on the CHIP payroll system. Legal Encumbrance Branch cannot exercise discretion in complying with the requirements of legally served encumbrances. Any deviation could result in the government being held liable for payments not processed correctly and place the government and responsible employee in contempt of court.

The Legal Encumbrance Branch cannot provide payroll source information to persons or agencies outside of government.

Assignments of debt are frequently established in the normal course of business by vendors in cooperation with their financiers. These encumbrances facilitate adequate financing for vendors to perform major contract work for the government or could be established for other reasons.
If a ministry becomes aware of an encumbrance, including assignments of book debts, they must

• not sign the document,
  
  
• immediately advise the Legal Encumbrance Branch by telephone, and
  
  
• forward the encumbrance documentation to the Legal Encumbrance Branch.

Legal Encumbrance Branch also stops payments to vendors if a set-off or temporary hold is created by a ministry of the government.

E.1.2 Third Party Demand

Third Party Demands are issued by Federal Government agencies and Provincial agencies that have the power, under legislation, to seize money which third parties owe to the debtor. Most third party demands received by the Legal Encumbrance Branch are issued from one of the following sources:

• family maintenance notice of attachment – court orders initiated by the Director of Maintenance Enforcement
  
  
• income tax, GST, and CPP – Canada Revenue Agency
  
  
• payment of wages – Employment Standards Branch, Ministry of Labour and Citizen's Services
  
  
• employment insurance – Human Resources Development Canada
  
  
• social service & corporation capital tax –Taxation Revenue Collections Branch, Ministry of Small Business and Revenue.

E.1.3 Garnishing Order

A Garnishing Order is a court order directing that a payment to be made by a third party, such as the Province, be paid directly into court instead of to the judgement debtor. Garnishing orders can be used by any judgement creditor. Following are two examples:

• quick lending and major financial institutions for overdue loans and interest; and
  
  
• individuals and companies for unpaid rent, home and auto repairs, and utilities.

Garnishing Orders affecting any public servants' salary or wages must be served on the Deputy Minister of Finance, Legal Encumbrance Branch, Office of the Comptroller General, Room 234 - 617 Government Street, Victoria, BC, V8W 9V1.

Copies of garnishing orders pertaining to public servants, who are not on the CHIPs payroll system, must also be served on their employers. The legal requirements for service are set out in Section 6 of the Court Order Enforcement Act. Examples of employers not on CHIPs are, British Columbia Ambulance Service, BC Liquor Stores, and most Crown Corporations and Public Agencies.

All other garnishing orders relating to vendors must be served on the Ministry of Attorney General, Legal Services Branch, 1001 Douglas Street, Victoria, BC, V8W 9J7. The documents cannot be simply dropped off with the security or support staff. Service must be in accordance with Section 8 of the Crown Proceeding Act.

E.1.4 Commercial Assignments

An Assignment of accounts is the transfer of the right to funds in an account from one party, to another.

As assignments of debts are often executed by a business as security for a loan and are commonly used by the government's major contractors, amounts can be significant. Ministries must forward copies of the relevant contracts for goods or services to Legal Encumbrances Branch. Upon receipt of the financial assignment and copies of the contracts for goods and services, Legal Encumbrances Branch will ensure the names on all documents are the same before proceeding further.

The government honours properly executed assignments of book debts. Ministries may sign for receipt of documents from, for example, a courier. However, ministries must not sign assignment documents. All such documents must be immediately forwarded to Legal Encumbrance Branch.

The government does not accept employees' voluntary assignment of wages.

E.1.5 Bankruptcy and Insolvency Act

Assignments which may require Legal Encumbrances Branch to divert payments are:

• Assignments in Bankruptcy pursuant to the Bankruptcy and Insolvency Act, and
  
  
• Orderly Payment of Debts, (OPDs).

These result in an obligation for the government to pay a trustee in bankruptcy rather than the bankrupt.

E.1.6 Making Payments to Encumbered Vendors

Ministries process payments to vendors that are on stop pay status in the same manner as any other payment, and must insure the correct supplier number is utilized.

The Legal Encumbrance Branch will activate a stop and will divert payments in the CGI and CAS Oracle accounts payable system to their clearing account STOB for further processing.

To avoid bypassing the system stop payment controls, ministries need to alert themselves to potential existing legal encumbrances by:

• ensuring that new supplier number requests and new address sites are legitimate, and are not the result of a supplier attempting to avoid a "payment diversion" arising from a legal encumbrance;
  
  
• confirming suppliers are not encumbered when paid from SFO bank accounts, through Government Agents, or within payment programs coded to a Block supplier number; and
  
  
• confirming suppliers are not encumbered when changing payment practice from accounts payable to petty cash accounts and charge cards, such as the Purchasing Card.

The financial danger is that funds, which should be attached, are missed and the government becomes liable to the third party for the amount paid to the debtor. In the event that the government becomes liable to make good a payment to a claimant that was inadvertently paid to an encumbered debtor, the ministry who made the payment to the debtor will absorb the cost.

E.1.7 Set-offs & Temporary Holds

A set-off is originated internally within government by ministries that are owed money by an employee, a vendor or other entity that could receive payments from government. Section 38 of the Financial Administration Act and Core Policy 7.3.8 provide that the amount owed to the government can be deducted in calculating the final amount to be paid to the debtor.

A temporary hold is initiated internally within government to protect the government by stopping and holding payments to a vendor. The ministry should consult with its legal counsel if there is any doubt as to the legality of holding the payment. Temporary holds are frequently subsequently replaced with a set-off.

E.1.8 Specific Procedures for Set Offs and Temporary Holds – Vendors

Set-offs and temporary holds are internal to the government and there is no serving of legal documents as is the case with the other forms of legal encumbrances. Set-off policy is contained in Part II, Section 7.3.8.

• Initially for both temporary holds and set-offs a ministry sends a short memo or email to the Legal Encumbrance Branch requesting a stop flag be placed against the supplier. The request needs to contain the supplier's name(s), existing supplier number(s), location number(s) and a file reference number.
  
  
• When funds are actually diverted to their STOB, Legal Encumbrance Branch faxes details of the diversion to the requesting ministry. The ministry is requested to either reconfirm the diversion or allow Legal Encumbrance Branch to release the payment to the supplier. The ministry can also request Legal Encumbrances Branch to temporarily hold the funds.
  
• If the funds are to be diverted, in order to comply with section 38 of the Financial Administration Act, the Comptroller General must approve the set-off. The set-off request is a one-time authorization. The memorandum requesting approval from the Comptroller General can cover the balance of a debt due from the vendor. In other circumstances it will be more appropriate to deal with individual payment amounts as they are diverted. The memorandum to the Comptroller General shall contain:
  
  
  • a declaration confirming that the requirements of Part II, Section 7.3.8 of the Core Policy and Procedures Manual and section 38 of the Financial Administration Act have been met,
    
    
  • a brief summary of what gave rise to the receivable and what the ministry has done to collect, and
    
    
  • a completed Details of Stopped Payment form which is available from Legal Encumbrance Branch

E.1.9 Specific Procedures for Set Offs – Employees

The Legal Encumbrance Branch will divert up to 30% of an employee's net pay to their clearing account STOB for further processing. The normal timeline to process an approved set-off is five working days before payday. These procedures apply only to employees who are paid by the CHIPs payroll system.

• Ministries must notify their employees in writing that set-off action is pending as a result of failure to remit the amount owing to government. Notification can be by email or letter.
  
  
• In order to comply with Section 38 of the Financial Administration Act, the Comptroller General must approve the set-off. The memorandum to Comptroller General must be forwarded to the Legal Encumbrance Branch, shall contain:
  
  
  • a declaration confirming that the requirements of CPPM 7.3.8 and Section 38 of the Financial Administration Act have been met;
    
    
  • a brief summary of what gave rise to the receivable and what the ministry has done to collect; and
    
    
  • the employee name, employee number, ministry contact and telephone number, total funds owing and set-off instructions.

The set-off request is a one-time authorization that will remain in effect until the debt is paid in full, or is cancelled or withdrawn by the requesting ministry.

A sample approval request memo can be obtained from the Legal Encumbrance Branch.

E.2 Government-Approved Chargecards

CPPM 4.3.19 describes policy for the use and maintenance of government approved chargecards by public servants for the acquisition of certain goods and services. In accordance with the policy, three types of cards are described in these procedures:

• the travel card;
  
  
• the Province of British Columbia Service Card (Vehicle Service Card); and
  
  
• the Purchasing Card.

For purposes of these procedures, TELUS Calling Cards are not considered to be government-sponsored credit cards or government-approved chargecards.

Ministries may wish to consider issuing corporate telephone calling cards to senior executives who have to make a large number of business related telephone calls while on travel status. This would save the additional hotel surcharges for operator assisted calls.

E.3 Travel Card

Core Policy - 4.3.19; 10.3.13

E.3.1 General

E.3.2 Liability

E.3.3 Eligibility and Restrictions on Use

E.3.4 Administrative Responsibilities

E.3.5 Cardholder Responsibilities and Procedures

E.3.6 Headquarters Outside of Canada

E.3.7 Procedure for Cancellation

E.3.8 BMO details Online

The objectives for using the travel card are to:

• replace accountable advances, except in circumstances where the card cannot provide the required service and the employee does not qualify for a travel card;
  
  
• offer an easier and simpler method of travel planning by supporting the use of an internationally recognized multi-use travel card for use while on travel status;
  
  
• provide employees with a less costly and more efficient access to cash required for government approved travel; and
  
  
• accumulate expenditure information by supplier for central agency decision making or negotiation of discounts.

E.3.1 General

A special agreement has been negotiated to allow provincial government employees to use the Bank of Montreal MasterCard travel cards to pay approved travel related expenses and obtain travel cash advances. The cardholder is responsible to pay the monthly statement balances directly to the Bank of Montreal and claim for reimbursement by completing and submitting a travel expense report via iExpense.

The card also carries the following insurance:

• MasterRental
  
  
  • Collision Damage Waiver
    
  • Car Rental Accidental Death and Dismemberment
    
  • Car Rental Personal Effect
  
  
• MasterTrip

• Unexpected Return Home
  
• Assisted Services
  
• Common Carrier Accidental Death and Dismemberment
  
• Baggage Delay
  
  
• MasterLegal

• Legal Referral and Payment Assistance

Note: For full details of the terms and conditions of the above and other benefits associated with the use of the card, employees should consult the information package received with their cards.

Renewal of the card is at the option of the card issuer. A ministry, the Office of the Comptroller General or the cardholder may also request cancellation of a card.

E.3.2 Liability

The travel card provided by the Bank of Montreal is a personal pay / shared liability product. The Province is liable for all legitimate travel expenses for which the employee has not been reimbursed, and the employee is liable for any unauthorized charges and for approved travel expenses for which he/she has already been reimbursed. It is the employee's responsibility to pay the monthly statement balance in full by the due date. It is therefore essential that employees and ministry staff submit and process travel voucher reimbursements in a timely manner to avoid account delinquencies and interest charges.

E.3.3 Eligibility and Restrictions on Use

Any provincial government employee, or incumbent of a government position (i.e. an individual seconded from an organization outside the provincial government, but not a contractor, volunteer, etc.) or Order-in-Council appointee is eligible to apply for a travel card.

The travel card is used to make purchases that are in the name of the employee and reimbursed through the submission of a travel claim or business expense approval form. Reimbursable purchases are not exempt from the federal Goods and Services Tax (GST).

• While on travel status, cardholders use the travel card to pay for meals, accommodations and local transportations (such as car rentals and cab fares). The card may also be used to pay for minor incidental travel and business expenses.
  
  
• While within headquarters, cardholders use the travel card to pay for reimbursable business expenses and local travel, such as parking and taxis.

The card should not be used for:

• purchases for personal use;
  
  
• cash withdrawals that are for personal use; and
  
  
• purchases made in the name of the government (that are GST-exempt) for which the Purchasing Card or other government approved charge card should be used (such as airfare and hotel conference rooms).

E.3.4 Administrative Responsibilities

a) Common Business Services Responsibility

Procurement and Supply Services also has access to a central registry of all government approved travel card cardholders and a listing of ministry travel card coordinators. At least on an annual basis, ministry travel card coordinators are required to reconcile and confirm their ministry cardholders to the central registry.

Procurement and Supply Services also has access to a central registry of all government approved travel card cardholders and a listing of ministry travel card coordinators. At least on an annual basis, ministry travel card coordinators are required to reconcile and confirm their ministry cardholders to the central registry. At least on an annual basis, ministry travel card coordinators are required to reconcile and confirm their ministry cardholders to the central registry.

b) Senior Financial Officer Responsibilities

Ministries are responsible for:

• establishing eligibility guidelines;
  
  
• appointing a ministry travel card coordinator/alternate by completing a Commercial Card Coordinator/Alternate Change Application (FIN 182), and forwarding it to the Government Card Coordinator;
  
  
• ensuring that adequate controls are in place to prevent the misuse of the card including duplicate payments and reimbursements;
  
  
• processing travel claims promptly to enable the employee to avoid delinquency fees; and
  
  
• appropriately limiting the issue of accountable advances.
  

c) Travel Card Coordinator Responsibilities

Travel card coordinators are responsible for:

• ensuring that the BMO ePurchasing Solutions Corporate MasterCard Account Agreement Program Card Request (FIN 643) is complete, accurate and authorized;
  
  
• ensuring that cardholders understand their responsibilities and receive appropriate training in the use of the travel card;
  
  
• ordering travel cards and maintaining cardholder information using the BMO details Online system;
  
  
• maintaining program documentation including a registry of cardholders that is to be annually reconciled to the central registry available from Procurement and Supply Services;
  
  
• monitoring the Travel Card Program; and
  
  
• ensuring that travel cards are cancelled for cardholders leaving the ministry.

E.3.5 Cardholder Responsibilities and Procedures

a) Cardholder Responsibilities

Cardholders are responsible for understanding and abiding by all the terms and conditions of being a cardholder. This includes:

• using the card for approved purchases relating to government travel only;
  
  
• reviewing monthly statements and reporting fraudulent use of the card;
  
  
• taking reasonable steps to ensure that the outstanding monthly statement balance on the card is paid in full and on time;
  
  
• claiming reimbursement for expenses on a timely and systematic basis to avoid late payment fees and delinquent accounts;
  
  
• ensuring that the card is used directly with merchants wherever possible and that cash advances are kept to a minimum;
  
  
• declaring to the expense authority if any benefits have been received from the use of the card or insurance claims are pending under the cardholder agreement; and
  
  
• safeguarding the card from loss or misuse.
  

b) Application Procedures

Individuals who wish to apply for a Bank of Montreal travel card should:

• request from the ministry travel card coordinator a BMO ePurchasing Solutions Corporate MasterCard Account Agreement Program Card Request (FIN 643); and
  
  
• complete the employee information section clearly and legibly, sign and date the form, and forward to the appropriate ministry expense authority for approval. The employee should read the attached appendixes and seek clarification from the travel card coordinator if necessary.
  

The expense authority is to complete the Employee Account Authorization Controls section by indicating the transaction, monthly and daily cash advance limits before signing the form and sending it to the ministry travel card coordinator.

The ministry travel card coordinator is to review the form for accuracy and completeness and order the travel card using the BMO details Online system.

The bank will normally mail the card (usually within two weeks) to the travel card coordinator who will forward the card to the employee. The Personal Identification Number (PIN) for cash access at automated teller machines (ATM) will be sent under separate cover about one week later directly to the cardholder.

c) Cardholders on Leave of Absence

Cardholders who go on leave of absence for a period of more than two months shall surrender their card to the senior financial officer. The card's account status should be changed to "Closed" in the BMO details Online system. On the return of the cardholder, the card status can be changed to "Open" and the cardholder can start using the card again.

d) Cardholders Moving to Other Ministries

An employee who moves to another ministry must notify the travel card coordinator so the travel card can be cancelled. If the employee requires a travel card in the new ministry they are to request a new travel card following the application procedures above.

e) Payment of Outstanding Balances

Travel card monthly statements must be paid in full by the due date by the cardholder. Interest will be charged on outstanding balances starting on the 31st day after the statement cut-off, which is the third of the month.

Cardholders are responsible to claim reimbursement for expenses on a timely and systematic basis to avoid late payment fees. The ministry has the responsibility to process travel claims promptly. If due to no fault of their own, cardholders are not reimbursed in time to avoid the late fees, the expense authority may authorize reimbursement of the late fees.

Payments must be received by the Bank of Montreal by the due date and can be made:

• by cheque mailed to the Bank of Montreal
  
• by cash at any Bank of Montreal
  
• by automated teller machine
  
• by telephone banking
  
• by internet payment
  
• by electronic funds transfer (EFT) from a cardholder's back account
  
• by pre-authorized debit (PAD) from a cardholder's bank account
  

f) Delinquent Accounts

The Bank of Montreal will not commence any legal action against the cardholder to collect amounts owing without first receiving written confirmation from the Province that such amounts do not represent the reimbursable portion of any authorized expense which was reimbursed.

Temporary accountable travel advances may not be available to employees whose own actions result in the cancellation of the travel card.

g) Transaction Costs

The Bank of Montreal does not charge automated teller machine (ATM) fees for cash advances made at a Bank of Montreal ATM terminal. ATM fees may apply to cash advances taken from ATMs operated by other financial institutions. The Bank of Montreal also charges interest on cash advances at a rate determined by the Bank of Montreal's prime lending rate plus 2% from the day the advance is taken until the day the advance is repaid.

Cardholders will be reimbursed for ATM fees incurred (if any) and the interest charged on the travel related cash advance.

To simplify and help reduce the tracking and claiming of the exact interest amounts, interest charges will be reimbursed at a flat 1% of the travel cash advance.

Employees should make every effort to minimize ATM fees by using Bank of Montreal ATMs and minimize interest on cash advances by repaying the advance as soon as possible.

h) Completing the Travel Expense Report

Expense authorities may authorize the following expenses (enter as miscellaneous and attach the receipts and/or statements):

• the fees charged on cash advances as noted above under "Transaction Costs"; and
  
  
• late payment charges if the charges resulted from the cardholder not being reimbursed in time to avoid the late fees. (Attach a copy of the Bank of Montreal statement and a brief explanation of why the statement could not be paid on time).
  

The expense authority should review the amount of cash advance for reasonableness for the type and destination of the travel. If the amount is not reasonable, the claim for the cash advance fee should be reduced.

i) Personal Identification Numbers

Shortly after the cardholder receives his/her travel card, they will receive their Personal Identification Number (PIN) by mail. The Personal Identification Number is required for cash advances and is to be kept confidential. Do not reveal your PIN to anyone. Do not write your PIN on your card. Do not keep your card and PIN in the same location, i.e., wallet, purse, etc.

j) Reporting Lost or Stolen Cards

When a charge card is lost or stolen, the cardholder must immediately advise a Bank of Montreal's customer service representative by telephone:

• In Canada & the USA call toll free: 1 800 361-3361 or 1 866 267-7834
  
  
• Elsewhere call: COLLECT 0 416 232-8020
  

The cardholder must also immediately advise the ministry card coordinator that the card was reported lost or stolen. This notification will be done initially by telephone, followed up in writing. The card company will issue a replacement card to the employee.

There is no liability to the employee for transactions on cards which have been reported lost or stolen. In cases where transactions have occurred on a card before the cardholder has reported a loss or theft, the Bank of Montreal will review the timeliness of the reporting and the fraudulent transactions and, in most cases, will waive all liability, including the usual $50 liability cap. The cardholder may be required to sign an affidavit of forgery stating that she/he did not make the charges. In the event that he/she refuses to sign the affidavit, all charges will be considered his/her responsibility.

E.3.6 Headquarters Outside of Canada

The travel card may be used and statements may be paid in local currency funds by cardholders whose headquarters are outside Canada. Expense authority on the travel expense report will continue to be exercised in the usual way.

E.3.7 Procedure for Cancellation

Travel card coordinators should ensure that travel cards are cancelled and destroyed if:

• requested by the ministry or Office of the Comptroller General;
  
  
• the cardholder leaves the employment of the ministry;
  
  
• the card is reported lost or stolen; or
  
  
• the card is no longer required.
  

Normal cancellations, which become effective within 24 to 48 hours, can be requested through the BMO details Online system. For emergency cancellations, travel card coordinators can call the Bank of Montreal to immediately request the cancellation. Travel card coordinators are to immediately change the account status to "Closed" in BMO details Online.

Note: Travel cards must be suspended (account status changed to "Closed") for the duration that an employee is on extended leave. The card can be temporarily reinstated (account status changed to "Open") if, for example, the employee is required to travel while on extended leave for medical travel assistance (i.e., leave for medical and dental care in accordance with the terms and conditions of employment/master agreement provision).

E.3.8 BMO details Online

Travel card coordinators will use the BMO details Online system to perform numerous administrative activities including:

• requesting new cards;
  
  
• changing the status of cards;
  
  
• requesting the cancellation of cards;
  
  
• updating cardholder information;
  
  
• resetting cardholder account passwords;
  
  
• changing the hierarchy "reports to" structure for cards;
  
  
• reviewing cardholder statements and transactions; and
  
  
• generating various travel card reports.
  

Cardholders have access to the BMO details Online system and can:

• review individual transactions within 24 hours of the transactions being processed by the Bank of Montreal; and
  
  
• review and print monthly statements within 24 hours following the monthly billing cycle date (which is the 3rd of the month).
  

BMO details Online is accessible through the internet at https://bmodetailsonline.com. You will be asked for your username and password (which were provided by your travel card coordinator). The first time you enter BMO details Online, you will be asked to replace the password originally provided with a new confidential password that you supply. Functions that are available to you will be found on your HOME page.

If you require assistance in using BMO details Online, contact your travel card coordinator.

E.4 Business Transaction Account (BTA)

E.4.1 Benefits of Using Business Transaction Accounts

E.4.2 Appointing a Business Transaction Account Coordinator

E.4.3 Setting up a Business Transaction Account and a Business Transaction Account Acountholder

E.4.4 Account Use

E.4.5 Business Transaction Account Reconciliation and Payment

The Business Transaction Account is a MasterCard account number issued by the Bank of Montreal (BMO) to a ministry department, branch or office. The account number resides with a travel agency and is used to pay for travel tickets (airfare, bus or train) issued to a select group of individuals that have been identified to the travel agency. There is no plastic card issued and transactions are usually initiated with the travel agency by phone, fax or email.

When tickets are issued by the travel agency, they are to be accompanied by a "nil" invoice/itinerary billed in the name of the department/branch. This invoice/itinerary will be used to reconcile the monthly statement received from the Bank of Montreal and clear the inter-ministry journal voucher charge-back that is initiated by Purchasing Services Branch (Ministry of Labour and Citizens' Services). Purchasing Services Branch pays the monthly Bank of Montreal statements on behalf of all ministries and promptly charges back the ministry their business transaction account expenditures.

All purchases made on the business transaction account are GST-exempt and are to be billed in the name of the department/branch. Car rentals and hotel reservations are not to be booked on a business transaction account and must be paid directly by the employee.

E.4.1 Benefits of Using Business Transaction Accounts

In addition to consolidating GST-exempt travel charges into one payment, the business transaction account provides:

• Management Information – all travel information available on tickets purchased with a business transaction account is available electronically to the Province (i.e., who travelled, what common carrier was used, what travel agent was used, class of travel, when and where travelled). Ministries can also receive their choice of customized management information reports. These reports can be used to analyze trends in business travel to identify potential savings within ministries.
  
  
• Efficiency and Convenience – Travel agencies will provide efficiency and convenience in coordinating employee travel with the most up to date information on schedules, availability and fares.

E.4.2 Appointing a Business Transaction Account (BTA) Coordinator

The ministry senior financial officer is responsible for appointing a ministry Business Transaction Account Coordinator by completing a Commercial Card Coordinator/Alternate Change Application FIN 182. The completed form must be forwarded to the Government Card Coordinator at Purchasing Services Branch.

The business transaction account coordinator's responsibilities include:

• ensuring all forms for setting up a business transaction account are complete and accurate;
  
  
• ensuring that the business transaction account accountholders have completed the Business Transaction Account, Acknowledgment of Terms of Use and Consent FIN 178/A, and understand their responsibilities;
  
  
• ordering business transaction account numbers and maintaining business transaction account information in BMO details Online;
  
  
• maintaining a registry of business transaction account accountholders and annually reconciling this registry to the central registry available from Procurement and Supply Services;
  
  
• monitoring the business transaction account program; and
  
  
• informing the Government Card Coordinator of contact information changes.
  

E.4.3 Setting up a Business Transaction Account and Business Transaction Account Accountholder

A separate business transaction account should be established for each department, branch or office in a ministry (there is no limit to the number of business transaction accounts a ministry can use). The business transaction account should be at the level where expense authority and payment reconciliation will occur. This should not be done centrally (i.e., for the entire ministry or division) unless specific procedures have been developed to ensure timely reconciliation and payment.

To request a new business transaction account or update an exiting account, complete the Request to Open/Change a Business Transaction Account (BTA) FIN178. The business transaction account accountholder is the office contact that will be the custodian of the business transaction account number and function as the main contact with the travel agency. The business transaction account accountholder is to provide contact information for the department/branch and the travel agency. Transaction and monthly limits should be set annually based on actual requirements and must be within the budget allocation of the expense authority to whose budget the expenditures will be charged. The form is to be authorized by the expense authority and forwarded to the business transaction account coordinator along with the Business Transaction Account, Acknowledgment of Terms of Use and Consent FIN178/A which is to be completed by the business transaction account accountholder.

The business transaction account coordinator will inform the business transaction account accountholder when the account has been setup. The business transaction account accountholder will then complete and send the Notice To Vendor, Business Transaction Account FIN 179 to the travel agency, which includes contact information and the list of authorized users whose travel can be charged to the business transaction account.

The business transaction account accountholders responsibilities include:

• ensuring that the Request to Open/Change a Business Transaction Account (BTA) FIN178 is complete and accurate;
  
  
• completing the Business Transaction Account, Acknowledgment of Terms of Use and Consent FIN 178/A;
  
  
• ensuring that the Notice To Vendor, Business Transaction Account FIN 179 is complete and accurate;
  
  
• ensuring that the Authorized Users list is updated with the travel agency;
  
  
• reporting any unauthorized or misuse of the account to the senior financial officer and the BTA coordinator;
  
  
• informing the business transaction account coordinator of contact information changes; and
  
  
• reconciling monthly Bank of Montreal statements to the travel agency information and ensuring the reconciliation is approved by the expense authority.
  

E.4.4 Account Use

Business transaction accounts are used to pay for authorized travel tickets (airfare, train and bus). Tickets are purchased GST-exempt in the name of the traveller and are billed to the ministry department, branch or office. The business transaction account should not be used for personal travel or cash advances or other travel related expenditures for which the travel card should be used.

Procedures for Purchasing Travel Tickets

• order the ticket from the travel agent and bill to the business transaction account number. Tickets can only be ordered for individuals listed on the Authorized Users List;
  
  
• the ticket is received from the travel agency with an invoice/itinerary. The invoice/itinerary is to have a "nil" balance showing the charges and the credit for payment made with the business transaction account;
  
  
• the ticket is delivered to the employee. The employee as qualified receiver, signs the invoice to signify receipt of goods;
  
  
• the "nil" invoice is held in a pending file until the Bank of Montreal statement arrives;
  
  
• cross-reference the employee Travel Voucher number to the travel agency invoice (at the discretion of ministry expense authority).
  

E.4.5 Business Transaction Account Reconciliation and Payment

When the monthly Bank of Montreal statement is received, it will immediately be paid by the Purchasing Services Branch (Ministry of Labour and Citizens' Services) and charged-back to the ministry on an inter-ministry journal voucher to a ministry clearing account. The Bank of Montreal statement is to be coded and reconciled to the travel agency invoice/itineraries which should have been signed by the qualified receiver (traveller). Discrepancies must be resolved as soon as possible. (Travel agencies should be informed that all charges or credits must be referenced to the original transaction.) The reconciled and coded Bank of Montreal statement is to be sent to the expense authority for authorization and then entered into the CAS Accounts Payable module as a "zero invoice" to reallocate the expenditures to the appropriate accounts and clear the ministry clearing account.

E.5 Province of British Columbia Vehicle Service Cards

Core Policy - 4.3.19

E.5.1 Fleet Coordinator

E.5.2 Issuing Service Cards

E.5.3 Mandatory Red Card Use

E.5.4 Blue Card – Fuel Only

E.5.5 At-the-Pump Fuel Purchases

E.5.6 Spare Parts, After-Market Items and Equipment

E.5.7 Issuance of Cards – Authorized Contractors

E.5.8 Retail Promotional Programs

E.5.9 Receipts

E.5.10 Duplicate Payments

E.5.11 Storage of Card

E.5.12 Reporting Lost or Stolen Cards

E.5.13 Use of Petty Cash

E.5.14 Payment of Outstanding Balances

E.5.15 Discounts

E.5.16 Purchase Limits

E.5.17 Repair Authorization Process – Red Cards

E.5.1 Fleet Coordinator

The Fleet Coordinator is the individual designated by the ministry to be PHH's primary contact. In most ministries the coordinator is also the senior financial officer's delegate for the purpose of ordering and cancelling Service Cards.

E.5.2 Issuing Service Cards

Service Cards are to be issued as follows:

Red cards – for all vehicles leased from PHH and vehicles leased under the executive lease program (Ministers, Deputy Ministers and eligible Deputy Minister equivalents).

Blue cards – for all other vehicles (and equipment, marine vessels and aircraft) that require fuel purchased at-the-pump, except for daily rentals. Ministries also have the option of issuing red rather than blue cards to such vehicles.

E.5.3 Mandatory Red Card Use

The PHH red card is to be used for all normal motor vehicle operating expenses for vehicles leased from PHH and for vehicles in the executive lease program. This includes the purchase of tires and tire installation and the initiation of repairs and maintenance.

Purchases of car washes and interior detailing may be made with other purchase instruments if the PHH service card is not accepted by the supplier.

E.5.4 Blue Card – Fuel Only

The blue PHH service card is only to be used for the purchase of fuel, lubricants and incidental items. Operators of vehicles issued with a blue card must not tender the card for the purchase of maintenance or major repairs.

E.5.5 At-the-Pump Fuel Purchases

A Service Card is to be used for all at-the-pump purchases of fuel, lubricants and minor repairs for vehicles, equipment, marine vessels and aircraft. Alternate purchasing methods are only permissible in communities where the Service Card is not accepted.

Pay-At-the-Pump Systems

In order to prevent potential fraud, PHH Service Cards must not be used with pay-at-the-pump card reader devices. Pay the purchase by presenting the Service Card to the service centre attendant directly for processing.

E.5.6 Spare Parts, After-Market Items and Equipment

With the exception of minor replacement parts (e.g., wiper blades), the red Service Card cannot be used to purchase spare vehicle parts (except tires), after-market items installed on a vehicle (e.g., winches, special bumpers, canopies) or equipment issued to a vehicle.

E.5.7 Issuance of Cards – Authorized Contractors

The senior financial officer or delegate may authorize the use of the Service Card by a private contractor providing services to the ministry, and operating a government-operated vehicle, if specifically provided for under the terms of the contractor's general services contract.

E.5.8 Retail Promotional Programs

Employees must not accept any benefits derived from retail promotional programs including coupons, contests, other give-aways, or personal travel points from using the Service Card.

E.5.9 Receipts

For purposes of reconciling PHH's monthly invoice, ministries should retain receipts for all fuel purchases made with the PHH Service Cards, and copies of work orders for all repair and maintenance work made with the PHH red card (the work order is not an invoice).

E.5.10 Duplicate Payments

Red Card Vehicles. Service centres provide ministries with a work order describing the repairs performed on a vehicle. The work order is for reconciliation purposes only and is not an invoice. PHH pays the service centre. If a ministry pays the service centre causing a duplicate payment, the ministry, not PHH, is responsible for recovering the duplicate payment.

Blue Card Vehicles. If a blue card is erroneously used to pay for repairs and maintenance and PHH bills the ministry in duplication, the ministry, not PHH is responsible for recovering the duplicate payment. However, if the repair or maintenance work was approved in advance by a PHH VMA technician then PHH is responsible for recovering the duplicate payment.

E.5.11 Storage of Card

Service Cards are to be kept in a secure place when the vehicle is not in use. Vehicles must be locked at all times when left unattended.

E.5.12 Reporting Lost or Stolen Cards

When a PHH Service Card is lost or stolen, the vehicle operator must

• immediately advise PHH by phone (1 888 681-5426) and confirm by fax (1 888 681-3715) in the PHH prescribed format within 24 hours.
  
  
• Advise the senior financial officer or delegate by fax.

E.5.13 Use of Petty Cash

The use of petty cash for gas/oil purchases is permitted only in emergencies, and appropriate cross-references have to be noted on the petty cash replenishment documents for these expenses.

E.5.14 Payment of Outstanding Balances

PHH renders a single monthly Diversified Services Invoice to ministries to be paid in full by the due date of each billing cycle or interest may be charged on the total amount owing.

E.5.15 Discounts

Under the terms of the Fleet Management Services Agreement, the Province:

• receives the better of any discount negotiated by PHH with the oil companies or any discount offered directly to the Province by the oil companies;
  
  
• receives the National Account discount negotiated by PHH with the tire companies; and
  
  
• has established MSOs with service centres across the province.

To maximize cost savings, fuel purchases should be made from the company offering the greatest discount in a particular location. Information on discounts offered and preferred and optional suppliers is published on the internet (www.pc.gov.bc.ca/cmg/fuelsuppliers.htm).

E.5.16 Purchase Limits

There is no limit on the amount or value of fuel that may be purchased at a single time using the PHH Service Cards, or the number of daily purchases that may be made.

Purchases of lubricants and minor repairs made with both the red and blue PHH Service Cards are limited to $25.00 per purchase (including applicable taxes and levies) at most service centres. Attempts to purchase more than $25.00 of lubricants and minor repairs will be rejected by suppliers EPOS systems. PetroCan and Esso accept minor repair purchases to $50.00.

E.5.17 Repair Authorization Process – Red Cards

The following process applies to repairs and maintenance including tire purchases for vehicles issued with a PHH red card. Note: blue cards are not be tendered for repairs.

Initiating a Repair

Responsibility for identifying the need for a repair and initiating a repair transaction may be assigned to either the vehicle operator or a designated employee (e.g., an equipment supervisor).

Service Centre Procedure

The vehicle operator presents the red card to the service centre when the vehicle is delivered for service. Before proceeding with a repair, the service centre must determine the final cost of the work.

Value of Work Less than $750

Where the value of the repair is less than $750, the service centre must phone PHH's VMA toll-free line to obtain authorization to proceed. The VMS technician will confirm that the prices being charged are in accordance with the service centre's MSO. If PHH approves the specific work to be performed it will issue a PHH purchase order number to the service centre.

Value of Work Greater than $750

Where the value of the repair exceeds $750, PHH will obtain approval from a ministry contact designated by the appropriate expense authority before authorizing the service centre to proceed with the work. The threshold limit for the Ministry of Forests and Range is $500; however, for the Ministry of Transportation it is $1,000.

Invoice Amount

PHH will only pay the service centre the specific amount approved by the VMA technician. This is the amount that will appear on the PHH diversified services invoice.

Work Orders

The vehicle operator must sign and retain the service centre's work order at the time the work is completed and the vehicle is picked up.

E.6 Purchasing Card

Core Policy - 4.3.19

The Purchasing Card is the primary instrument for making small dollar value purchases. The authority to purchase is delegated to positions. Individuals holding those positions receive a Purchasing Card and authority to purchase.

Detailed information and Purchasing Card procedures are available in the Purchasing Card Manual.

E.7 Ministry Payments by Government Agent Cheques

E.7.1 General

E.7.2 Restricted Payments

E.7.3 Processing Procedures

E.7.1 General

Government Agent offices perform a wide variety of services across government. As agents for the Comptroller General, they issue cheques for ministry payment requests as designated by the Comptroller General. Effective April 1, 1999 payments are restricted to the conditions listed below. Ministries may further restrict payments by Government Agent offices.

Ministry signing authority officers must ensure that payment requests comply with this section and that pre-audit work is minimized. Any incomplete payment request must be returned by the Government Agent office to the originating ministry for correction and resubmission. The Comptroller General office will continue to record ministry payment requests received from Government Agent offices.

Regular payment requests must be submitted through ministry headquarters for cheque production, or use the Corporate Accounting System's Cheque On Demand capability for "rush" cheques. Note that ministry Purchasing Cards should be used to make timely, small dollar purchases.

E.7.2 Restricted Payments

In limited situations and when it is not possible to make timely regular or "rush" payments through ministry headquarters, ministry payments by Government Agent cheques are restricted to:

• Disasters, emergencies, floods or fires;
  
  
• Labour or work disruptions, or information system failures;
  
  
• Payments to comply with labour or employment standards;
  
  
• Temporary travel advances for employees who can demonstrate that they do not qualify for the government chargecard;
  
  
• Government Agency: suspense account, license supplier, out of court and victim restitution payments, and account collections (e.g., BC Hydro, ICBC); and
  
  
• Prompt payment situations.

Prompt payment situations are limited to circumstances in which prior plans or payment for goods or services could not be made, or were not foreseeable. This would not normally be expected when the timing of payment, or events requiring payment, were known or ought to have been known by a local ministry office outside of the time needed to make a regular or "rush" payment through ministry headquarters (i.e., the time to process a requisition and to produce and to remit a cheque by mail or courier).

E.7.3 Processing Procedures

Local Ministry Offices (When Local Ministry Office Prepares Payment Request)

Complete the Payment Request Form (FIN 188) accurately and completely.

• Ensure that the payment type is designated by this section.
  
  
• Ensure that the request is signed by designated expense authority officer. (Note: Expense authority is not required on a request if it has been exercised on an invoice or other appropriate documentation.)
  
  
• Attach supporting documentation (invoices, etc.) to the request.
  
  
• Submit request to the Government Agent office in sufficient time to permit document review, cheque preparation and issuance.

Local Ministry Office (When Government Agent Office Prepares Payment Request)

The Government Agent office will prepare a payment request (when required) on behalf of a ministry based on an Authorization for Advance Through Government Agent Form (FIN 343). Instructions are as follows:

• Complete the Application for Accountable Advance Form (FIN 299) accurately in accordance with instructions;
  
  
• Request ministry headquarters to initiate an Authorization for Advance Through Government Agent Form (FIN 343) for RAPIDFAX to the Government Agent office;
  
  
• Ensure that the FIN 299 is signed by the employee receiving the advance and attached to the Payment Request to be prepared by the Government Agent office; and
  
  
• Ensure that the information on the FIN 299 is consistent with that on the FIN 343, and that expense authority has been obtained for the disbursement. If the advance has received expense authority certification at the ministry headquarters on a form FIN 343, the local ministry office will leave the expense authority signature sections blank on the FIN 299. The Government Agent office will make the appropriate cross-reference notation on the FIN 299 form of the FIN 343 authority.
  

Government Agent Offices

Review of Payment Request Prepared by Local Ministry Office

• Ensure that the payment request has been completed correctly and fully. Common errors or omissions include:
  
  
  • unauthorized payment type;
    
    
  • no vote number, or if not a voted disbursement, "000";
    
    
  • no date stamp;
    
    
  • no STOB code;
    
    
  • incorrect totals;
    
    
  • no cheque stub printout code; and
    
    
  • incorrect or incomplete entries in the cheque stub printout box.
    
    
• Ensure that expense authority and qualified receiver have signed the payment request.
  
  
• Verify the expense authority signature against specimen signature cards.
  
  
• Where errors or omissions are observed, consult with the originator to obtain corrections. It is the responsibility of the local ministry office to supply accurate and complete information.
  
  
• If all criteria have been met, issue a cheque to the payee.

Review of Request for Accountable Advance

• Refer to the Application for Accountable Advance Form (FIN 299), and Advances Through Government Agents (section B.2.3). It is important to cross-reference the FIN 299 received from the local ministry office with the FIN 343 received by RAPIDFAX from ministry headquarters.
  
  
• Ensure that signing authority officers have certified, signed and approved the FIN 299 or FIN 343 (as applicable).
  
  
• Verify that the expense authority signature matches the signature on the specimen signature card. Common errors or omissions on the FIN 299 include:
  
  
  • no expense authority;
    
    
  • no account number or STOB code;
    
    
  • no employee number;
    
    
  • no signature of employee requesting the advance; and
    
    
  • no identification obtained from the cheque recipient (i.e., Driver's license).

Reconciliation of Ministry Payments

Ministries are responsible for ensuring that:

• all payment requests forwarded to the Office of the Comptroller General via GA offices have been processed;
  
  
• only authorized payments have been processed;
  
  
• payments have been accurately coded; and
  
  
• payments have been recorded on a consistent basis in all financial reports.

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