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:
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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