Internal Support Services under Section 29.2 of the Financial Administration Act

FRA coding rationale

Since services were received within the period, operating expenses must be recorded. A corresponding credit is made to OGD Accounts Payable, as the services were acquired internally.

Authority coding rationale

Since this is a legitimate charge against an operating appropriation, it would be recorded against either B11A or B12A, depending on whether the department has a program expenditures vote or an operating expenditures vote. OGD Accounts Payable does not affect the appropriations, thus R300 would be used.

B11A/B12A

Program expenditures vote or operating expenditures vote.

R300

Total (or net, as applicable) amounts of all other assets and of all other liabilities.

Object coding rationale

Depending on the nature of the services acquired, the appropriate economic object under Standard Object 04 - Professional Services should be used (see the following table). Object code 6299 is used to record the establishment of an account payable

6299

Net increase or decrease to other liability accounts.

FRA coding rationale

At this point, Department A should recognize the revenue since the amount is known, the risks and rewards of ownership have been transferred to the buyer and the seller has completed all significant acts. A receivable must be set up to record the amount to be received from the OGD.

Authority coding rationale

Since there are no impacts on the authorities for receivables, R300 would be used. The credit entry for the revenues should be made to D215.

D215

User charges for internal support services.

R300

Total (or net, as applicable) amounts of all other assets and of all other liabilities.

Object coding rationale

Depending on the nature of the services provided, the appropriate object code under Reporting Object 462 - Services to Other Government Departments as per section 29.2 of the Financial Administration Act should be used (see the following table). Object code 5399 is used to establish an interdepartmental account receivable.

5399

Net increase or decrease in accounts receivable.

FRA coding rationale

The department providing the services would record the receipt by debiting the IS Debit Control Account and crediting the OGD Accounts Receivable.

Authority coding rationale

The IS Debit Control Accounts have no impact on an appropriation, so the authority code must be zero-filled. OGD Accounts Receivable has no impact on appropriations; therefore, R300 is used.

R300

Total (or net, as applicable) amounts of all other assets and of all other liabilities.

Object coding rationale

To indicate the net impact on accounts receivable, object code 5399 is used. Object code 9DDD is used for interdepartmental settlements and would be used to identify the department that receives the services.

5399

Net increase or decrease in accounts receivable.

9DDD

Interdepartmental settlement.

FRA coding rationale

This transaction is strictly recorded for authority purposes only. To ensure there is no effect on FRAs, the same FRA is debited and credited for the same amount.

Authority coding rationale

When a department has authority to respend revenue, it can only be respent when the revenue is actually received (i.e., on a cash basis). To reflect the department's ability to expend the revenues, the cash received is credited to authority code B13A. The debit will be made to authority code F218.

B13A

Revenue credited to the vote (credited to the program or operating vote for the program).

A5XX

Revolving funds authority code.

F218

Contra offset for revenue credited to votes.

Object coding rationale

This is strictly an authority transaction. To ensure there is no effect on objects, the same object code 7099 is debited and credited for the same amount, so it will have a nil effect on objects.

7099

Net increase or decrease in other transactions.

Note: Departments with statutory respending authority are able to spend the amount received by charging expenditures directly against their relevant statutory authority code. It is up to the department to ensure that only amounts collected are spent and that the total amount charged does not exceed the amount eligible to be respent.

All transactions are considered to be internal; therefore, an "I" indicator should be used.