Rescinded [2017-04-01] - Directive on Receipt, Deposit and Recording of Money

6.1.1 Ensuring that training has been provided as specified in the Policy on Learning, Training and Development and the Directive on the Administration of Required Training for those departments to which the policy and directive apply. For organizations not subject to this policy and directive, the chief financial officer or a person designated by the deputy head is required to establish training requirements relevant to this directive.

6.1.2 Safeguarding all money received by ensuring the following:

• All money received by mail is opened and registered. Note that the Mail Management in Government Departments and Agencies handbook published by Library and Archives Canada applies. Any registered information (e.g., card number, account number, etc.), whether in electronic or paper format, is safeguarded to ensure protection of information;
• All cheques and other negotiable instruments received are promptly endorsed, "For Deposit to the Account of the Receiver General for Canada";
• All money, including money awaiting deposit and security deposits received from contractors or received in respect of any debt, obligation or claim, is safeguarded at all times. The establishment of a follow-up system is necessary to ensure that post-dated cheques are always deposited on the date of the cheque or within appropriate time frames. Note that the Receipt and Deposit of Public Money Regulations, 1997 applies;
• Arrangements for safeguarding money held during and after working hours and for transporting money are in accordance with security standards, as advised by the Departmental Security Officer;

6.1.3 Managing deposits by ensuring the following:

• All money is deposited to the credit of the Receiver General for Canada in the Consolidated Revenue Fund (CRF) as soon as possible and within appropriate time frames. Note that the Receipt and Deposit of Public Money Regulations, 1997 applies; and
• All money collected or received is deposited in an account at a financial institution, other deposit facility or other designated financial agent that the Receiver General has established for that purpose;

6.1.4 Managing security deposits received from contractors following a request for tender by ensuring the following:

• A certified cheque submitted as a security deposit with a tender for a contract is held uncashed until the successful bid is selected or for up to one year, whichever occurs first. Note that security deposits received from contractors are dealt with according to Part II of the Government Contract Regulations.
• When a tender is accepted and the certified cheque is required as security until completion of the contract, the cheque is deposited in the Consolidated Revenue Fund.
• When a tender is rejected, or accepted, and the certified cheque submitted with the tender is not required as security until completion of the contract, the cheque is returned to the contractor.
• Simple interest is paid on all security deposits deposited to the Consolidated Revenue Fund. If the term of the deposit is less than 12 months, interest is paid when the security deposit is returned to the contractor. Otherwise, the interest is paid annually on the anniversary date of receipt of the security deposit or at the end of the fiscal year, whichever method departments find easier to administer. Note that the Policy on Payables at Year-End (PAYE) applies to accrued interest that remains unpaid at year-end as long as payment of interest is provided for under the tender document.
• Interest is not paid on cheques that are held and not cashed or when the contractor has tendered a surety bond or pledged a security or other form of performance instrument that is simply held in trust.
• Interest is calculated according to rates published monthly by the Department of Finance and, pursuant to Order in Council P.C. 1970-300 dated February 17, 1970.
• Interest paid on security deposits is a statutory expenditure and is recoverable from the Public Debt Section, Finance and Administration Directorate, Department of Finance. Departments preparing and submitting interdepartmental settlements to recover such interest expenses are to provide pertinent information to substantiate the interest payment; and
• Other security deposits that are received in respect of any debt, obligation or claim are handled according to the legislation that authorizes the acceptance of such security deposits.

6.1.5 Managing bonds, standby letters of credit and other financial security instruments held by the Crown under a term of a contract or a transfer payment agreement by ensuring the following:

• The money is registered, and all registered information is safeguarded to ensure protection of information;
• The party who provided a bond, standby letter of credit or other financial security instrument is provided with a receipt;
• The money is treated as Protected in accordance with the Policy on Government Security; and
• The money is returned to the party who provided the bond, standby letter of credit or other financial security instrument in accordance with the applicable agreement and the Crown receives a receipt from that party.

6.1.6 Managing reconciliations by ensuring the following:

• A reconciliation between daily receipts and daily records of deposits and deposit details received from the Government Banking System (GBS) is performed the day following receipt of deposit details from GBS. Note that the Receiver General Manual – Chapter 5 – Government Banking System and Departments applies;
• Cash shortages are reported, investigated and accounted for. Note that the Directive on Losses of Money or Property applies. When it is determined that the cash shortages are the responsibility of employees, the shortages are recovered from the responsible employees. Note that sections 76 and 78 of the Financial Administration Act apply;
• Cash overages are deposited, and if the source of the overage cannot be identified, the receipt is recorded in a miscellaneous other revenue account. If the source of the overage can be identified, it is treated as an overpayment and refunded. Note that the Repayment of Receipts Regulations, 1997 applies;

6.1.7 Managing a complete audit trail of receipt, deposit and recording processes by ensuring the following:

• All accounting entries be generated, authorized and supported by source documents (paper or electronic) that provide objective evidence and proper authorization (e.g., inventory control justification, official serially numbered receipts and cash register slips) of the transaction;
• The audit trail permits the tracing of any transaction from its inception to the final outcome and from the accounting records back to the original transaction;

6.1.8 Maintaining an adequate separation of duties of employees who deal with receipts, deposits and recording of money by ensuring the following:

• A complete separation of duties related to creating invoices, maintaining accounting records, and handling and reconciling cash is implemented whenever possible;
• When a complete separation of duties cannot be implemented because of organizational structure, availability of staff, materiality or alternate controls, duties are judiciously combined to ensure maximum separation of the functions;
• Employees do not control any function continuously for an extended period of time unless alternate controls, such as independent periodic verification, are implemented;

6.1.9 Recording receipt of money by ensuring the following:

• Every person who collects or receives money maintains a record of all receipts and deposits. Note that the Receipt and Deposit of Public Money Regulations, 1997 applies;
• Receipts of money are properly and promptly recorded in both the accounts of the department and of the Receiver General;
• When crediting receipts of money to appropriations is permitted pursuant to Appendix B, receipts are credited only if received before the appropriation related to the original disbursement lapses (in most cases, in the same fiscal year, including extended accounting periods). Otherwise, refunds, recoveries and repayments are credited to refunds of previous years' expenditures. Note that section 39 of the Financial Administration Act applies;
• When administering statutory appropriations, receipts be recorded as follows:
  • Receipts of refunds of expenditures and recoveries of overpayments of statutory appropriations be credited to the statutory appropriations in the fiscal year when the refund or recovery is actually received;
  • Receipts of repayments of advances that have been issued from statutory appropriations and repayments of budgetary loans are credited to the statutory appropriation in the fiscal year when the repayment is actually received;
  • Security deposits received following a request for tender are recorded in the relevant financial reporting account and in the Public Accounts as both assets and liabilities, regardless of whether they are still on hand or have been deposited in the CRF. Only negotiable securities, considered redeemable, as defined in the definition of security deposit in the Government Contract Regulations are recorded.

6.1.10 Accounting for and depositing the full amount of the revenue into the CRF, when public money is collected under a federal authority (legislation or regulation, etc.) by a province (or other collector) acting as a federal delegate;

6.1.11 Recording as an expenditure amounts retained or withheld, when a collector retains or withholds a certain portion of fee revenue as a commission or compensation for costs incurred under an agreement. Note that section 17.1 of the Financial Administration Act and section 5 of the Receipt and Deposit of Public Money Regulations, 1997 apply;

6.1.12 Recording in the accounts of the fiscal year that just ended, money deposited and credited by March 31 to the Receiver General by the Bank of Canada or any other financial institution;

6.1.13 Depositing in the CRF and reflecting as an adjustment in the accounts of the fiscal year that just ended, money received after March 31 that impacts an appropriation of the fiscal year that just ended (e.g. old year budgetary expenditure), as specified in the year-end timetable and procedures issued every year by the Receiver General; and

6.1.14 Identifying receipts of money related to expenditures made in a prior fiscal year that do not impact an appropriation of the fiscal year that just ended, depositing such receipts in the CRF, and accounting for them as a credit to refunds of previous years' expenditures. Any goods and services tax (GST) or harmonized sales tax (HST) refunded are credited to the current year. Note that the Policy on the Application of the Goods and Services Tax and the Harmonized Sales Tax in the Departments and Agencies of the Government of Canada - For FIS compliant Departments and Agencies applies.

6.2.1 Performing an analysis of benefits and costs to both the department and the Government of Canada prior to determining whether or not credit cards should be accepted as means of payment. If determined advantageous for all concerned, all cards for which the Receiver General has negotiated a Master Agreement are accepted;

6.2.2 Ensuring that credit or charge cards are not accepted as a means of payment for interdepartmental settlements. Note that the Directive on Acquisition Cards applies;

6.2.3 Ensuring that applications to establish new services or to revise existing arrangements for deposits to the CRF be submitted to the Receiver General; and

6.2.4 Following procedures and terms of all agreements established by the Receiver General.

6.3.1 Promptly reporting to the Departmental Security Officer, who will contact the police, receipts of counterfeit money or fraudulent receipts using a debit or credit card. In the case of counterfeit money and credit card receipts, if the person can be identified, an account receivable is to be promptly reinstated or set up. Otherwise, the amount is written off as a loss of money. Note that the Debt Write-off Regulations apply; and

6.3.2 Promptly reinstating or setting up an account receivable and applying administrative charges when a cheque that was deposited in the CRF is dishonoured. Note that the Interest and Administrative Charges Regulations apply.

6.4.1 Chief financial officers are responsible for supporting their deputy head by overseeing the implementation and monitoring of this directive in their departments, bringing to the deputy head's attention any significant difficulties, gaps in performance or compliance issues and developing proposals to address them, and reporting significant performance or compliance issues to the Office of the Comptroller General; and

6.4.2 The Comptroller General is responsible for monitoring departments' compliance with the requirements of this directive and conducting a review within five to eight years.