F.1
Journal Voucher Approval
Core
Policy - 4.3.18
Accounting transfers
are recorded in the Corporate Accounting System by journal voucher.
By the use of journal vouchers, expenditures and other accounting data
can be transferred between ministries (or within a single ministry).
This also provides the means for one ministry to charge-back another
ministry for goods or services.
As the charge-back
type of journal voucher has the same impact on available appropriations
as payments or receipts, ministries should ensure that there are appropriate
controls in place over the accounting transfer. Where necessary, ministry
staff with the knowledge and skills to understand the impact and effect
of a proposed transfer should assist with the related transaction.
Expense Authority
For accounting transfers
the ministry expense authority should meet policy (as in CPPM
4.3.2) and ensure:
- for an expenditure
leading to a charge-back, that the expenditure amount and charge initiated
is appropriate and in accordance with their authority;
- for other types
of journal vouchers, that a correction, allocation, accrual or adjustment
is appropriate and in accordance with their authority; and
- that their monthly
financial management reports are reviewed and corrective action is
taken for discrepancies.
Qualified Receiver
For accounting transfers,
a qualified receiver in the receiving ministry should meet policy (as
in CPPM 4.3.2) and, as
applicable, confirm that goods or services have been received or that
work has been performed.
Revenue Authority
For accounting transfers
related to cost recovery transactions, approval is required by an officer
in the issuing ministry with revenue authority for journal vouchers
(as in CPPM 7.3.5).
F.2
Processing Journal Vouchers
Ministries should
adhere to the following criteria when submitting journal
vouchers (FIN 264):
- journal vouchers
should not be raised unless the sum of all transactions exceeds $100.
- journal vouchers
with total transactions of less than $100 should be accumulated and
processed periodically (i.e., quarterly, semi-annually, or annually).
Some exceptions may be necessary such as monthly or year-end close-out
entries necessary to correct reconciliations.
- journal vouchers
should be processed on a regular basis.
- a batch must
be comprised of a reasonable number of journal vouchers (recommend
a maximum of 30).
- a batch must
contain vouchers belonging to only one fiscal year.
- journal vouchers
may be accumulated over a short period; ministries with very low volumes
are to process them in time for month-end cut-off.
Standard for
Ministry Identifier
The two-digit ministry
alpha or numeric code is the standard ministry identifier for manual
journal batch headers and journal names. The alpha or numeric standard
is in sync with naming conventions for Oracle budget names, AP invoice
batches and security responsibility standards. The alpha or numeric
identifier, followed by the two-digit fiscal year identifier, is the
Oracle standard for the first four characters of all manual journal
batch names. Ministries can then institute their own standards for the
remainder of their batch names.
A clear and consistent
batch and journal naming convention that is unique to each ministry/agency
allows GL transactions to be more easily tracked and reviewed.
Ministry alpha identifiers
are on the OCG intranet under Chart of Accounts/Current Client Listing:
http://gww.fin.gov.bc.ca/ocg/resources.stm#cofa (government access only).
In the event a voucher
is repeatedly rejected, a copy of the voucher may be sent to the Manager,
Financial Reporting and Advisory Services, OCG for assistance in clearing
the item.
F.3
Initiating an Inter-Ministry Journal Voucher
Where a central
agency is recovering costs under a specifically assigned STOB, the receiving
client's account combination will be charged with an appropriate STOB
specified for that purpose. For example, recoveries under STOB 8809,
Operating Costs Recovered would be charged by the receiving client to
STOB 5798, Internal Transfers/Recoveries.
All exceptions to
the STOB matching rules must be cleared with Financial Reporting and
Advisory Services, OCG.
Inter-Ministry
Transfer Errors
Procedures for correcting
inter-ministry transfer errors:
- the Posting Execution
report identifies the rejected inter-ministry journal voucher(s) to
the issuing client (journal vouchers fed through CGI with errors will
be rejected back to the ministry);
- where an incorrect
account combination has been charged in error, the issuing client
issues the correcting journal voucher;
- if a receiving
client believes that it has been charged an incorrect amount or charged
for goods and services that it has not received, the receiving client
is to notify the issuing client and request a credit;
- notification
may be by memorandum or electronic mail; and
- notification
must be given within 60 days of the date that the client account was
debited.
Dispute Resolution
Process
In the event of
a dispute, the resolution should follow the procedures below:
- the issuing and
receiving clients are to make every effort to resolve the situation
through negotiation;
- if the parties
cannot agree on a resolution within 30 days of notification by the
receiving client, the dispute is to be referred to the Director, Financial
Reporting and Advisory Services, OCG for a decision;
- an appeal of
the Director's decision may be made to the Comptroller General within
14 days of the issue of the Director's decision; and
- if the final
decision is in favor of the receiving client, the Director, Financial
Reporting and Advisory Services, OCG will instruct the issuing client
to make the necessary adjustments (e.g., issuing a credit).
Documentation
Supporting Inter-Ministry Transfers
The initiating ministry
is responsible for retaining all source documents (depending upon program
requirements) to ensure that the journal/invoice batch naming convention
is consistent as agreed between the ministries.
F.4
Inter-Ministry Chargeback System – Authorized Electronic Journal
Vouchers
The inter-ministry
chargeback system is an electronic method that allows an issuing client
to debit a receiving client's account for goods or services supplied.
A client must be authorized to use the inter-ministry chargeback system.
A listing of authorized client ministries is available on the OCG
1-Stop Information & Resources Portal (government access only).
Notification
to CFO Council
Chargeback agencies
have a responsibility to provide the CFO Council with early warnings
regarding implementation of new chargeback programs, major changes to
existing programs or significant increases in costs. This will provide
ministries with an opportunity to examine their financial plans and
possibly adjust current budget submission.
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