Directive on Delegation of Spending and Financial Authorities

Provides Chief Financial Officers their responsibilities for delegating, maintaining and management and oversight of spending and financial authorities.
Date modified: 2021-01-18

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Appendix A: Mandatory Procedures for Individuals With Delegated Spending and Financial Authorities

A.1 Effective date

  • A.1.1These procedures take effect on .
  • A.1.2These procedures replace parts of the following Treasury Board directives:
    • Directive on Delegation of Financial Authorities for Disbursements ()
    • Directive on Expenditure Initiation and Commitment Control ()
    • Directive on Account Verification ()

A.2 Procedures

  • A.2.1These procedures provide details on the requirements set out in subsection 4.1 of the Directive on Delegation of Spending and Financial Authorities.
  • A.2.2Mandatory procedures are as follows:
    • A.2.2.1Individuals with delegated spending and financial authorities are responsible for the following:
      • A.2.2.1.1Ensuring they are aware of their responsibilities;
      • A.2.2.1.2Acquiring and maintaining their knowledge; and
      • A.2.2.1.3Exercising their delegated authorities in accordance with this directive and the departmental delegation chart;

      Commitment authority (FAA, section 32)

      • A.2.2.1.4Reviewing each planned expenditure to confirm that there is sufficient unencumbered balance to cover all applicable costs and that related policy restrictions are considered;
      • A.2.2.1.5Authorizing the planned expenditure before entering into a contract, human resources action or other arrangement, and making a commitment against the budget;
      • A.2.2.1.6Recording commitments at the expected itemized value or seeking advice from the CFO if it is impractical to record commitments individually;

      Certification Authority (FAA, section 34)

      • A.2.2.1.7Verifying and documenting that the work has been performed, the goods supplied, or the services rendered as per the contract or agreement terms;
      • A.2.2.1.8Certifying in a timely manner prior to making a payment, including interdepartmental settlements, that the contract or agreement terms and conditions have been met, including price, quantity and quality;
      • A.2.2.1.9Ensuring that the payee is entitled to or eligible for the payment;

      Payment Authority (FAA, section 33)

      • A.2.2.1.10Providing quality assurance and verifying payments, including interdepartmental settlements, so that:
        • A.2.2.1.10.1Sufficient auditable evidence exists that demonstrates that the account verification practices set out in section 34 of the FAA have taken place and that certification has been performed;
        • A.2.2.1.10.2A payment is not made if it:
          • A.2.2.1.10.2.1Represents an unlawful charge against the appropriation; or
          • A.2.2.1.10.2.2Will result in the appropriation being exceeded when existing commitments are also factored in;
        • A.2.2.1.10.3All high-risk transactions are reviewed to ensure that the requirements of the FAA’s certification authority (section 34) have been met;
        • A.2.2.1.10.4A sample of medium- and low-risk transactions are reviewed to ensure that the requirements of the FAA’s certification authority (section 34) have been met; and
        • A.2.2.1.10.5The transaction is returned to the FAA’s certification authority (section 34) for corrective action when required.

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