Financial Management
Table of contents
How to use this tool:
- This tool is designed for IM specialists to use with relevant business areas when identifying information resources of business value (IRBV) and retention specifications.
- The IRBV and retention specifications contained in this document are recommendations only and should be customized to apply in each institutional context. The complete document should be read before using any recommendations.
- This generic valuation tool (GVT) does not provide Government of Canada institutions with the authority to dispose of information. GVTs are not Records Disposition Authorities (RDA) and do not replace the Multi-Institutional Disposition Authorities (MIDA).
Validation: The business processes and IRBV of this GVT have been validated by subject matter experts from the following departments: Treasury Board Secretariat, National Research Council and Parks Canada. As well, the business process analyses on which this GVT is based were validated by numerous Government of Canada institutions through the Financial Management Business Process Initiative out of the Office of the Comptroller General.
Defining the Activity
Financial Management is identified at the sub-program level of the Treasury Board Secretariat's (TBS) Guide on Internal Services Expenditures: Recording, Reporting and Attributing.1
Treasury Board Secretariat defines financial management services as "activities undertaken to ensure prudent use of public resources in an effective, efficient and economic manner, and their stewardship. The activities include those of planning, budgeting, accounting, reporting, control and oversight, analysis, decision support and advice, and financial systems."Note2
There is a financial component to most Government of Canada functions and activities. This GVT has attempted to describe only business processes and IRBV directly related to finance. In order to capture all the processes and IRBVs of a function, users will need to consult other GVTs as noted below.
Financial Management Services are prescribed through a number of legislative, regulatory and policy instruments including: Financial Administration Act (1985), Policy Framework for Financial Management (2010), Policy on Financial Management Governance (2009), Policy on Internal Control (2009), Policy on Financial Resource Management, Information and Reporting (2010), Policy on the Stewardship of Financial Management Systems (2010).
Relationship to Other GVTs
Business processes and activities often overlap. When the IRBV from an activity is identified in another GVT, there is a note in the table of IRBV and retention recommendations (below) to direct the user to the proper tool.
The business processes for financial management are very closely related to those in the GVTs for Real Property, Materiel Services, Acquisition and Human Resource Management. While every effort has been made to identify only the financial aspects of these activities within this GVT, overlaps are inevitable and users should also consult the GVTs above.
The creation of quarterly and annual financial statements is described as part of Performance and Reporting in the Management and Oversight GVT.
Business processes and IRBV relating to the management of a grants and contributions program can be found in the Transfer Payments GVT.
Business Processes
All business processes and IRBV within this GVT are based, with permission, on the work of the Common Financial Management Business Process (FMBP) Initiative managed by the Office of the Comptroller General. This exhaustive project has identified all the activities and associated data surrounding financial management in the Government of Canada. In each description of the business processes below, the version of guideline consulted has been identified. The alignment between the service groupings of the Treasury Board Secretariat's Guide on Internal Services Expenditures: Recording, Reporting and Attributing (2015) and the FMBP is described in Appendix A.
Financial Planning and Budgeting
1. Manage Planning and Budgeting
Manage planning and budgeting describes the business processes in the internal departmental planning drafting and approval of all plans and budgets, including the revenue, operating, transfer payment and investment (capital) budget. The IRBV identified include the data used to decide on budgetary needs, the draft and final integrated budgets. These final plans and budgets are inputs in other financial activities.
Guideline on Common Financial Management Business Process, 1.1 Manage Planning and Budgeting, Version 1.0 2013-02-27, RDIMS REFERENCE: TBSSCT-# 996789 v1
2. Manage Forecasting and Budget Review
The forecast and budget review describes the creation of an integrated year-to-date review and forecast package. IRBV identified include the data compiled for the review, such as prior year information and year-to-date (YTD) financial results for all expenditure areas, the analysis of this data and the development of forecasts for the coming fiscal year. These forecasts are challenged and approved and the results actioned through revisions to the budget. This review and forecast process is done at minimum quarterly.
Guideline on Common Financial Management Business Process, 1.2 Manage Forecasting and Budget Review DRAFT v1.0, 2011-10-07, RDIMS REFERENCE: TBSSCT-#973612 v4
Expenditure Control and Payments
3. Manage Departmental Chart of Accounts
The departmental chart of accounts is "a list of departmental accounts and codes for all fields used to classify, record and report financial transactions in the government-wide coding block."Note3 The business processes for managing the chart of accounts involve managing the request to create, update or suspend an account code which is completed by updating the departmental chart of accounts with the change requested and conducting a periodic review of the departmental chart of accounts. The IRBV for these processes would include the complete departmental chart of accounts as well as supporting documentation for their change and review.
Guideline on Common Financial Management Business Process 7.3, Manage Departmental Chart of Accounts DRAFT v0.1, 2013-01-08, RDIMS REFERENCE: TBSSCT - #1149546 v2
4. Manage Delegation of Financial and Spending Authorities
The business processes for manage financial and spending authorities include the delegation of financial and spending authorities, changes to those authorities, and the updating and annual review of the departmental delegation document. Authority is delegated to positions, not individuals and all the authorities are usually summarized in a departmental delegation document. These business processes are only for the management of the authorities; the process of exercising the authority and validating expenditures under Section 33 or 34 are described within the processes that require verification and certification.
Guideline on Common Financial Management Business Process, 7.4 Manage Delegation of Financial and Spending Authorities DRAFT v0.1, 2012-04-13, RDIMS REFERENCE: TBSSCT-1098068 v1
5. Manage Procure to Payment
Procure to Payment activity describes the business processes for "expenditures that involve operational or capital procurement using a purchase order or other type of contract." (Guideline, p.3) The processes of procuring services and entering into contracts with third-party providers is described in the Acquisition Services GVT. While there are overlaps, this GVT attempts to isolate the financial processes of managing payments and describes the IRBV created in identifying, verifying and submitting payments requests to the Receiver General.
Guideline on Common Financial Management Business Process, 3.1 Manage Procure to Payment Final Version, RDIMS REFERENCE: TBSSCT-#941089
6. Manage Travel
Most business processes for travel by a government employee will be found in the Travel and Other Administrative Services GVT. This GVT describes the business processes and IRBV created in verifying, authorizing and issuing payments for travel expenses.
Guideline on the Common Financial Management Business Process, 3.2 Manage Travel v 1.0, 2013-01-07, RDIMS REFERENCE: TBSSCT-#1020360 v5
7. Manage Other Payments
"Other payments" are those common payment transactions not covered in other business processes. Other Payments fall into the four following categories as described in the Guideline:
- Other Operational Payments: expenditures that result in a reduction in appropriations… such as awards, repayable loans, employee reimbursements, refunds….These payments do not use a purchase order to initiate a transaction and do not require a formal procurement process.
- Legal Payments: expenditures resulting in a reduction in appropriations such as ex gratia payments, legal settlements, claims against the Crown, and nugatory payments. These transactions are typically triggered by a legal obligation and are not initiated from a program requirement. Since there is no acquisition of goods and services, there is, therefore, no procurement process. In addition, there are usually additional approvals required such as a legal opinion before the payment can be made.
- Payments Not Impacting Appropriations: expenditures that do not cause a reduction of the appropriations such as garnishments, other deductions, tax remittances, payments against imprest funds and repayment of contractor holdbacks. These transactions do not impact appropriations and there is no acquisition of goods and services, however the need to obtain certification and payment authority is still present.
- Periodic Payments:regular (usually monthly) payments as a result of a multi-year agreement established in Manage Procure to Payment. These payments can be a fixed amount or usage-based.
Also included in this section are the processes for managing petty cash and managing expenses related to employee relocation.
Guideline on Common Financial Management Business Process 3.3 Manage Other Payments Version 1.1 2013-05-30RDIMS REFERENCE: TBSSCT-# 1-39469
8. Manage Administration of Acquisition and Fleet Cards
Acquisition cards are credit cards issued to Government of Canada employees for the procurement and payment of goods and services that are authorized government business. A fleet card is a credit card that is normally assigned to a single government vehicle for the purchase of fuel and other operating and maintenance expenses related to the vehicle. The business processes described are for the issuance, monitoring and cancelling of the cards. The IRBV include those required for the approval of the card, logs and other documentation surrounding the use of the card and user information.
Guideline on Common Financial Management Business Process 3.4 Manage Administration of Acquisition and Fleet Cards, DRAFT v0.3, 2012-12-11, RDIMS REFERENCE: TBSSCT-# 1139042 v2
9. Manage Vendor Master Data File
"Vendor records are datasets used in departmental financial management systems to uniquely identify, record and maintain information about organizations or individuals who supply goods or services to the Government of Canada for which an accounts payable will be established." (Guideline, p. iii) The business processes include the creation, updating or deactivating of a vendor record and the periodic review of the Master Data File. The IRBV for this activity would include the complete dataset.
Guideline on Common Financial Management Business Process, Manage Vendor Master Data File DRAFT v0.1, 2012-03-13, RDIMS REFERENCE: TBSSCT #1060479 v1
10. Manage Post-payment Verification
As per the Directive on Account Verification,Note4
departments are required to perform post-payment verification on a sampling of medium- and low-risk transactions to ensure quality control. The business processes include creating one or more post-payment verification sampling plans, conducting post-payment verification and reporting on the results. All high-risk transactions are to be reviewed which is described in the business process "Manage Procure to Payment."
Guideline on Common Financial Management Business Process, 8.1: Manage Post-payment Verification, DRAFT v 0.3, 2012-04-12, RDIMS REFERENCE: TBSSCT-# 1067997 v1
11. Manage Financial Close
The business process focuses on activities such as reconciliations and adjustments to the accounts receivable and accounts payable leading to the submission of timely and accurate trial balances submitted to the Central Financial Management Reporting System in support of the preparation of financial statements and other period end requirements.
Guideline on Common Financial Management Business Process, 8.2 Manage Financial Close DRAFT v0.1, 2013-02-08, RDIMS REFERENCE: TBSSCT-# 1159190 v2
12. Manage Pay Administration (HR/Finance interactions)
Many activities identified in the Guideline on Common Financial Management Business Process for Manage Pay Administration are described and the IRBV identified in the Human Resources Management GVT. The activities included here are those solely related to the financial management process and include the payment requisition, section 33 and 34 verification and authorization of the payment transaction.
Guideline on Common Financial Business Process, 5.1 Pay Administration v2.0, 2013-01-28, RDIMS REFERENCE: TBSSCT-# 793829
Transfer Payments
13. Manage Grants and Contributions
Many activities identified in the Guideline on Common Financial Management Business Process for Manage Grants and Contributions are described and the IRBV identified in the Transfer Payments GVT. The activities included here are those solely related to the financial management process and include managing funds, formalizing the funding agreement, performing section 33 and 34 authorizations and overseeing recipient audits done by independent auditors.
Guideline on Common Financial Management Business Process, 6.1 Manage Grants and Contributions DRAFT v0.3, 2012-03-14, RDIMS REFERENCE: TBSSCT-# 1060850 v1
Collections and Receivables
14. Manage revenue, receivables and receipts
Manage revenue, receivables and receipts includes the processes to establish financial arrangements and billing requests, to manage invoices/receivables, to manage receipts and reconciliation of deposits and to determine financial coding and revenue recognition. IRBVs include the approved financial arrangement and supporting documentation as well as the invoices and receipt documentation involved in reconciling deposits.
Guideline on Common Financial Management Business Process, 2.1 Manage Revenue, Receivables and Receipts DRAFT v0.1, 2011-12-12, RDIMS REFERENCE: #1036369 v11
15. Manage Interdepartmental Settlements
"Interdepartmental settlements are transactions that are settled through the Receiver General's Standard Payment System/Interdepartmental Settlements sub-system (SPS/IS)."(Guideline, p.iii) The process "begins with identifying the need for an IS transaction request with another government department and is completed with reconciling the corresponding IS transaction between departments and recording the IS transaction in the proper account." (Guideline p. 3) The IRBV include the terms and conditions of the interdepartmental arrangement, the transaction details and the information resources that the support the processing of the transaction.
Guideline on Common Financial Management Business Process, 2.2 Manage Interdepartmental Settlements DRAFT v 0.1, 2011-12-15, RDIMS REFERENCE: TBSSCT-#1037298 v1A
16. Manage Collection of Overdue Receivables
The collection of overdue receivables "involves the identification of overdue accounts and is completed with the collection of the receivable, or the write-off, remission and/or forgiveness of debts as required." (Guideline, p. iii) IRBV include documentation about the debt and customer, the financial transaction when the debt is paid and supporting documentation to support the decision regarding the right-off or forgiveness of debt. Note that the collection of taxes is not included in these business processes.
Guideline on Common Financial Management Business Process, 2.3 Manage Collection of Overdue Receivables DRAFT v1.0, 2012-11-16, RDIMS REFERENCE: TBSSCT-#1033550 v10
17. Manage Customer Master Data File
The TBS Standard on Customer Record (2012)Note5 outlines the data requirements for a customer record. The customer record is the dataset used in the departmental financial and material management system to uniquely identify and consistently record information about a customer. These records are kept in a database which can be integrated with the department's departmental financial and materiel management system (DFMS). This business process includes the creation, updating or deactivating of a customer record and the periodic review of the customer master data file. The entire dataset would have business value, as is indicated in the table below. The process to change the data requires evidence of permission or authority, which is reflected in the IRBV.
Guideline on Common Financial Management Business Process, 7.2 Manage Customer Master Data File DRAFT v1.0, 2012-10-15, RDIMS REFERENCE: TBSSCT-#1077599 v6
Accounting for Assets and Liabilities
18. Manage Other Capital Assets
Most of the activities described in the Guideline on Common Financial Management Business Process for Manage Other Capital Assets are described and the IRBV identified in the Materiel Management GVT. "Materiel" is defined as all moveable assets. The activities described in this GVT are those which are only of a financial nature and include updating the financial record for assets to reflect changes to the value of assets due to amortization, assessment or disposal.
Guideline on Common Financial Management Business Process, 4.1 Manage Other Capital Assets v1.1, 2013-01-10, RDIMS REFERENCE: TBSSCT-#989872
19. Manage Real Property
Many activities identified in the Guideline on Common Financial Management Business Process for Manage Real Property are described and the IRBV identified in the Real Property GVT. The activities included here are those solely related to the financial management process and include updating the financial record for real property to reflect changes to the value of real property due to amortization, assessment or disposal.
Guideline on Common Financial Management Business Process, 4.2 Manage Real Property DRAFT v0.1, 2012-09-07, RDIMS REFERENCE: TBSSCT-#1116253-v1
20. Manage Inventory
When describing the activities for managing inventory, it is difficult to separate financial management and materiel management, especially if the inventory systems are integrated with the accounting systems. As indicated in the TBS Policy on Accounting for Inventories, "Departments must possess reliable inventory records to support the amounts recorded in their financial statements."Note6 However, many activities identified in the Guideline on Common Financial Management Business Process for Manage Inventory are described and the IRBV identified in the Materiel Management GVT. The activities included in this GVT are those solely related to the financial management process and include recording journal entries to reflect the consumption, write-off or transfer of inventory.
Guideline on Common Financial Management Business Process, 4.3 Manage Inventory DRAFT v 0.2, 2012-07-16, RDIMS REFERENCE: TBSSCT- # 1117447 v1
Retention
Recommended retention specifications in GVTs are determined based on traditional or best practices, a review of government-wide legislation and policy, and validation with subject matter experts. Retention periods are suggestions only; departments must take into account their own legislative requirements and business needs.
As per the Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))(Section 230) the retention period for financial information resources is "six years from the end of the last taxation year to which the records and books of account relate."Note7 Since this is a stable and traditional retention schedule, it is the recommended period for all IRBV described below and therefore the column for retention recommendations, present in other GVTs, is excluded here. Departments may wish to assign shorter retention periods for information resources that are included in subsequent summary information resources. An example of this would be a quarterly statement where the information is captured in the annual statement.
Business Value and Retention Recommendations
Financial Planning and Budgeting
1. Planning and Budgeting
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Develop notional budget allocations
Confirm ARLU budget allocations
Estimate departmental carry-forward
Identify TB approved funding adjustments
Develop notional budget allocations
Develop and communicate integrated planning package
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Notional budget allocations
Annual Reference Level Updates (ARLU)
TB confirmation of funding adjustments (e.g. TB submissions, collective agreement adjustments, frozen allotments, budget reductions, etc.)
Carry forward estimate
Current year forecasts
Integrated planning package
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Conduct operational planning |
Please see Management and Oversight GVT.
|
Develop revenue budget
Review historical revenue trends
Review current revenue information
Develop revenue assumptions
Develop revenue budget by source or by program
Validate revenue budget; revise as required
Draft revenue budget
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Revenue budget
Analysis of historical and current revenue information
Revenue assumptions
Updated revenue information
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Develop Operating Budget
Identify operational resource requirements
Develop operating assumptions
Develop salary budget
Develop non-salary budget
Identify operation budget pressures, surpluses and risks
Validate operating budget, pressures, surpluses and risks; revise as required
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Operating budget:
Operating assumptions
Non-salary operating budget
Salary budget; including capitalized salary
Operating budget pressures and surpluses
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Develop Transfer Payment Budget
Develop transfer payment assumptions
Develop transfer payment budget
Identify transfer payment budget pressures, surpluses and risks
Validate transfer payment budget, pressures, surpluses and risks; revise as required
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Transfer payment budget:
Transfer payment assumptions
Transfer payment budget pressures and surpluses
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Conduct Project Planning and Budgeting |
For IRBV related to project planning, please refer to the Management and Oversight GVT. |
Conduct Capital Asset Lifecycle Planning and Budgeting
Analyze capital asset lifecycle requirements
Prioritize capital asset lifecycle requirements
Revise capital asset lifecycle plan and budget
Revise and validate capital asset lifecycle plan and budget
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Capital asset lifecycle plan and budget:
Asset assessment results
Analysis of capital asset lifecycle requirements
Validated capital asset lifecycle requirements
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Conduct Acquired Services Planning and Budgeting
Summarize capital asset lifecycle and project portfolio acquired services
Estimate other acquired services requirements
Update acquired services plan and budget
Validate acquired services plan and budget
Revise acquired service plan and budget as required
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Acquired services plan and budget:
Historical acquired services actual expenditures
Estimate of other acquired services requirements
Summary of capital asset lifecycle acquired services requirements
Summary of project portfolio acquired services requirements
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Conduct Project Portfolio Planning and Budgeting
Confirm budget allocation for in-progress projects
Confirm budget allocation for new approved projects
Estimate budget allocation for validated potential projects
Rebalance project portfolio plan and budget
Validate project portfolio plan and budget
Revise Project Portfolio Plan and Budget as required
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Project portfolio plan
Project portfolio budget:
Budget allocation for in-progress projects
Budget allocation for new approved projects
Estimated budget allocation for validated potential projects
Approval by Investment Management Governance
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Update Internal Investment Plan and Budget |
Updated internal investment plan and budget
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Consolidate and Approve plans and budgets
Consolidate budgets, pressures and surpluses
Review, challenge and approve budgets, re-allocation decisions and plans
Communicate approved budget allocations
Finalize budgets in Departmental Financial Management System (DFMS)
Determine if investment plan must be submitted to TBS
Prepare and submit investment plan to TBS (see Management and Oversight GVT)
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Approved consolidated budgets for:
internal investment plan and budget
operating plan and budget
revenue budget
transfer payment budget
Drafts which contain substantial changes not reflected in the final information resource
Consolidated pressures and surpluses
Approved budget allocations
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2. Forecasting and Budget Review
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Initiate Forecasting and Budget Review
Compile year to date (YTD) financial information
Develop and distribute integrated YTD review and forecast package |
Integrated YTD review and forecast instructions
Year to date financial results and performance results
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Analyze revenue financial results and develop forecast
Review YTD revenue
Update YTD revenue
Compare YTD revenue with approved budget and prior year results
Identify and explain significant variances
Develop total annual revenue forecast
Identify revenue risks
Validate revenue forecast
Revise revenue forecast
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Total annual revenue forecast (includes forecast and relevant changes in operations, risks, uncertainties and assumptions)
Supporting documentation which may include:
Comparison of YTD results to budget and comparative period
Revenue variance analysis
Information to support revisions to revenue forecast
YTD Revenue and forecast analysis
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Analyze Operating Financial Results and Develop Forecast
Review YTD operating expenditures
Review operating commitments
Update YTD operating expenditures and/or commitments
Compare YTD operating expenditures with approved budget and prior year results
Identify and explain significant variances
Develop total annual salary forecast
Develop total annual non-salary operating forecast
Identify operating forecast pressures, surpluses and risks
Validate operating forecast, pressures, surpluses and risks
Revise operating forecast
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Comparison of YTD results to budget and comparative period
Operating budget variance analysis
Information to support revisions to operating forecast
Total annual operating forecast (includes forecast, pressures and surpluses, as well as relevant changes in operations, risks, uncertainties and assumptions)
Operating expenditure and forecast analysis
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Analyze transfer payment financial results and develop forecast
Review YTD transfer payment expenditures
Review transfer payment commitments
Update YTD transfer payment expenditures and/or commitments
Compare TYD transfer payment expenditures with approved budget and prior year results
Identify and explain significant variances
Develop total annual transfer payment forecast
Identify transfer payment forecast pressures, surpluses and risks
Validate transfer payment forecast, pressures, surpluses and risks
Revise transfer payment forecast
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Comparison of YTD results to budget and comparative period
Transfer payment variance analysis and explanations
Information to support revisions to transfer payment forecast
Total annual transfer payment forecast (includes forecast, pressures and surpluses, as well as relevant changes in operations, risks, uncertainties and assumptions)
Transfer payment expenditure and forecast analysis
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Analyze Capital Asset Financial Results and Develop Forecast
Review YTD capital asset additions
Review YTD proceeds from disposals of capital assets
Review capital asset commitments
Update YTD capital asset additions, proceeds and/or commitments
Compare YTD capital asset additions and proceeds with approved budget and prior year results
Identify and explain significant variances
Develop total annual forecast of capital asset additions
Develop total annual forecast of capital asset disposals
Identify capital asset forecast pressures, surpluses and risks
Validate capital asset forecast, pressures, surpluses and risks
Revise capital asset forecast
|
Comparison of YTD results to budget and comparative period
Capital asset variance analysis and explanations
Information to support revisions to capital asset forecast
Total annual capital asset forecast (includes forecast, pressures and surpluses, as well as relevant changes in operations, risks, uncertainties and assumptions)
|
Analyze project financial results and develop forecast
Review YTD project expenditures
Review project commitments
Update YTD project expenditures and/or commitments
Compare YTD project expenditures with approved budget
Identify and explain significant variances
Develop total project forecast
Identify project forecast pressures, surpluses and risks
Validate project forecast, pressures, surpluses and risks
Revise project forecast
|
Comparison of YTD results to budget and comparative period
Project variance analysis and explanations
Information to support revisions to project forecast
Total project forecast by fiscal year (includes forecast, pressures and surpluses, as well as relevant changes in operations, risks, uncertainties and assumptions)
Project expenditure analysis and forecast
|
Analyze performance results |
YTD performance results
Performance indicators
Analysis of YTD performance results
|
Consolidate, review and challenge results and forecasts
Develop integrated financial and performance report
Review report and identify proposed actions to be taken
Validate report and proposed actions to be taken
Update plans
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Budgeting assumptions and constraints (e.g. carry forward limitations)
Integrated financial and performance report (includes YTD analysis, forecasts, pressures, surpluses and risks)
Proposed actions to be taken (e.g. budget re-allocations, risk mitigation strategies)
Information to support update to plans (e.g. revised budgets, revised prioritization of activities, performance indicators)
Approved revised plans
Proposed budget re-allocations
Proposed departmental funding adjustments
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Review and action budget reallocations
Complete budget reallocation request
Review and approve budget reallocation request
Action budget reallocation in financial system
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Approved budget re-allocation request
Approved revised budget
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Expenditure Control and Payments
3. Departmental Chart of Accounts
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Manage Departmental chart of accounts |
Departmental Chart of Accounts
|
Initiate request to create, update or suspend an account code
Identify need to create, update or suspend an account code
Obtain advice to define request within acceptable parameters
Define Financial Coding Block Elements and/or Account Code Requirements
Conduct Impact Assessment
Create Request
Recommend Request for Approval
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Receiver General release notes
Request to create, update or suspend an account code
Supporting documentation for validation of request
Acceptable parameter-related supporting documentation
Related supporting documentation
Financial coding block requirements
Related supporting documentation proposed and historical transaction
|
|
Process Request to Create or Update an Account Code
Receive Request and Supporting Documentation
Verify That Request was Appropriately Approved
Conduct Challenge Function to Assess Request for Reasonableness
Determine Compliance and Map to Government-Wide Chart of Accounts
Predetermine Value and Cross-Validation Rules
Identify Data and Supporting Documentation Requirements
Validate Request Against Supporting Documentation
Provide Final Approval of Request
Inform Requestor of Refusal
|
Approved request and supporting documentation
Other independent sources of data
Memo or email to inform requestor (including reason for refusal)
|
Process Request to Suspend an Account Code
Receive Request and Supporting Documentation
Verify that Request was Appropriately Approved
Conduct Challenge Function to Assess for Reasonableness
Confirm That Account Code and Coding String Exist and Have Not Been Suspended in System
Assess Impact on Government-wide and Departmental Chart of Accounts
Check for Outstanding Balances and Pending Transactional Activities
Identify Data and Supporting Documentation Requirements
Validate Request Against Supporting Documentation
Provide Final Approval of Request
Inform Requestor of Refusal
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Analysis of account code
Impact assessment
Account balance
Report for outstanding invoices and commitments
Anticipated transactions
Approval to suspend account code
Memo or email to inform requestor (including reason for refusal)
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Carry Out the Request to Create, Update or Suspend an Account Code
Enter Requested Change into System to Create, Update or Suspend an Account Code and Verify Input Data
Communicate Completed Action to Appropriate Parties
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Communication to appropriate parties
Completed action
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Plan Periodic Review
Conduct Risk Assessment
Develop Approach and Review Procedures
Prepare or Update Planning Document
Review and Approve Planning Document
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Approved planning document
Departmental periodic review risk assessment
Stakeholder comments and feedback on chart of accounts
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Implement Periodic Review
Gather Information Required to Perform Periodic Review
Perform Periodic Review
Document and Analyze Results
Revise Departmental Policies and Procedures for Departmental Chart of Accounts
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Periodic review risk assessment
Receiver General exception and error reports
Extracts and reports from the Chart of account database and other documentation from Chart of account stakeholders
Documented results and analysis from the periodic review
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4. Delegation of Financial and Spending Authorities
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Maintain Financial and Spending Authorities Delegation Instrument
Review Current Delegation Instrument
Update Delegation Instrument and Obtain Internal Approval
Brief and Request Signature of the or Deputy of the Minister or Both as Applicable
Communicate Approved Change to Delegation of Financial Authorities Instrument
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Requirement to review current delegation instrument
Results of the annual review of delegated financial and spending authorities
Memorandum of Understanding between departments or other circumstances where financial authorities are delegated
Approved revised financial and spending authorities delegation instrument
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Maintain Authorities Delegated to Incumbents
Identify Requirement to Create Signing Authorities Delegated to Incumbents
Identify Requirement Change Signing Authorities Delegated to Incumbents
Identify Requirement to Suspend or Remove Signing Authorities Delegated to Incumbents
Confirm Completion of Required Training and/or Revalidation
Complete Required Training and/or Revalidation
Complete and Submit Specimen Signature Document
Complete and Submit Required Change to Signing Authorities
Complete and Submit New Specimen Signature Card noting changes made
Complete and Submit Required Removal of Signing Authorities
Process Request
Advise Designated Superior and Designated Official that Request has Been Completed
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Human resource requirements
Ad-hoc requirement to create, change, or suspend or remove authorities delegated to incumbents
Proposed changes to specimen signature documents
Completed specimen signature document
Training logs and records
Approved financial and spending authorities delegation instrument
Completed financial and spending signing authority request
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Perform Annual Review of Delegated Financial and Spending Authorities
Plan or Update and then Communicate Review of Delegation of Financial and Spending Authorities
Conduct Review of Financial and Spending Authorities Delegation Instrument
Conduct Review of Specimen Signature Documents
Conduct Review of Processes for Maintaining Delegations of Financial and Spending Authorities
Document and Analyze Results
Revise Processes for Maintaining Delegations of Financial and Spending Authorities
Obtain Approval of Delegation Instrument
Communicate Revised Instrument
|
Proposed changes to delegation instrument
Proposed changes to specimen signature documents
Proposed changes to processes for maintaining delegation of financial and spending authorities
Delegation instrument
Plan to review delegated financial and spending authorities
Delegated financial and spending authorities review results
Approved delegation instrument
|
5. Procure to Payment
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Determine Requirements |
For IRBV related to procurement, please refer to the Acquisitions GVT. |
Determine/Exercise Expenditure Initiation Authority
Determine Required Expenditure Initiation Authority
Exercise or Obtain Authority
Submit Requisition for Goods/Services
|
Delegation documents/proof of authorization
Requisition description, type of good/service, estimated cost, quantity, etc.)
Financial coding (authority, object, sub-activity, responsibility centre, etc.)
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Verify Unencumbered Balance
Determine Unencumbered Balance
Provide Authorization
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Commitment authorization
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Manage Commitments
Record/ Update Commitment
Close Out Commitment
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Commitment record
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Manage Contracts |
For IRBV related to any contracting of services, please refer to the Acquisitions GVT. |
Administer Contracts and Deliverables |
For IRBV related to any contracting of services, please refer to the Acquisitions GVT. |
Manage Payables
Verify That Supporting Documentation Is Complete
Confirm That Contract Terms Are Met
Confirm That Payee Is Entitled to Payment
Validate That Three-Way Matching Occurred
Ensure That Payee Information Is Accurate
Ensure That Financial Coding Is Correct
Verify That Relevant Regulations, Policies and Directives Were Followed
Verify Accuracy of Transaction
Resolve Discrepancies
Exercise or Obtain Authority
|
Invoice or credit memo
Certification pursuant to FAA, section 34
Request for payment
Financial coding
Certification authority
Delegation documents
Expenditure initiation authority
Transaction authority
|
|
Perform Payment Authority
Receive Request for Payment
Perform Quality Assurance
Calculate Interest
Exercise FAA, Section 33 Certification (Including EAA Key)
Submit Payment Requisition to Receiver General
|
Quality assurance results
Section 33 certification (signature)
Electronic authorization and authentication section 33 details
Section 34 verification and certification
Approved payment requisition
|
Issue Payments (Receiver General)
Issue Payment
Process Return Payment File
Finalize Payment
|
Payment return file
|
6. Travel
Most of the business process surrounding travel will be found in the Travel and Other GVT. This chart reflects only the activities involving the financing of travel.
Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Manage Commitment
Record or Update Commitment
Close Out Commitment
|
Commitment record
Commitment authorization
Travel request (includes estimated costs and updates)
Prepaid credit card statement
Travel claim
|
Perform Payment Authority (FAA, section 33)
Receive Request for Payment
Perform Quality Assurance
Exercise FAA, Section 33 Certification (Including EAA Key)
Submit Payment Requisition to Receiver General
|
Request for payment
Payment requisition to Receiver General
Section 34 verification and certification
Travel advance request form
Approved payment requisition
Quality assurance results
Section 33 certification (signature)
|
Issue Payment (Receiver General)
Issue Payment
Process Return Payment File
Finalize Payment
|
Payment return file
|
7. Other Payments
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Determine Requirements
Identify Needs
Examine and Select Vendor
|
Estimated costs
Supporting documentation
|
Determine/Exercise Expenditure Initiation Authority
Determine Required Expenditure Initiation Authority
Exercise or Obtain Authority
|
Authorization form
Legal settlement notice
Delegation documents/proof of authorization
Description and type of good/service
Estimated costs
|
Verify Unencumbered Balance
Determine Unencumbered Balance
Provide Authorization
|
Authorization documentation
|
Manage Commitments
Record / Update Commitments
Close Out Commitments
|
Commitment authorization
|
Manage Payables
Verify That Supporting Documentation Is Complete
Obtain Legal Opinion
Confirm That Requirements are Met
Confirm Payee Is Eligible for Payment
Ensure That Amount or Price Is Reasonable
Ensure That Payee Information Is Accurate
Ensure That Financial Coding Is Correct
Verify That Relevant Regulations Were Followed
Verify That Balance Is Sufficient
Verify Accuracy of Transaction
Resolve Discrepancies
Exercise or Obtain Authority
|
Request for payment
Supporting documentation
Legal opinion (if applicable)
Evidence of FAA, section 34 certification
Liability account or commitment balance
Credit memo data (if applicable)
Certification authority
Evidence of expenditure initiation authority (if applicable)
Evidence of transaction authority (if applicable).
|
Perform Payment Authority
Receive Request for Payment
Perform Quality Assurance
Calculate Interest
Provide FAA, Section 33 Certification (includes EAA key)
Submit Payment to Receiver General
|
Payment requisition
Legal opinion (if applicable)
Evidence of provision of spending authority
Section 34 of the FAA verification and certification
Quality assurance results
Approved payment requisition
Section 33 certification (signature)
Electronic authorization and authentication section 33 details
Payment requisition file
|
Issue Payment
Issue Payment
Process Return Payment file
Finalize Payment
|
Payment to payee
Payment return file
|
Manage Petty cashNote8
Establish or change custodian of petty cash or other imprest fund
Reconciliation of funds and receipts
Investigate cash shortages
|
Approval from Public Services and Procurement Canada for establishment of fund
Documentation of authority of custodian (written statement to transfer fund)
Reports on reconciliation
Reports on shortages
|
Manage (expenses related to) relocation of employeesNote9
Initiate expenditure
Exercise commitment control
Manage payables
Perform payment authority (FAA section 33)
Issue payment from Receiver General
Update payment records
|
Approved letter of offer or equivalent (input from human resources process)
Invoice from Central Removal Service
Departmental travel expense account invoice
Invoice from CRSP (Contracted Relocation Service Provider)
Invoice from moving company
Certification pursuant to FAA section 34
Request for payment
Payment authority pursuant to FAA section 33
Updated payment records
|
8. Administration of Acquisition and Fleet Cards
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Issue Card
Complete Application
Recommend Application for Approval
Process and/or Approve Card Application
Secure Card
Obtain Training
Conduct Pre-issuance Activities
Issue Card
Use Card
|
Card application or request (acquisition card); Card request form (fleet card)
Delegation documents /proof of authorization
Card tracking
Proof of training
Card information
Signed acknowledgement form
Vehicle log (fleet card only)
|
Monitor Cards
Review Card or Fleet Usage
Report to Management
Investigate Issues
Take Appropriate Action
Monitor Acquisition Cardholder Activity
Review Notification and Reports
|
List of active cards
Card and fleet reports (to managers)
Reports regarding issues and resolution of issues
Fleet management service provider notification and reports
Vehicle log
Purchase log
Results of investigation
|
Maintain Cards
Review and Accept Information
Update Card Data
|
Ad hoc request
Card information
Card or fleet status
Credit limit
Financial coding
|
Cancel Card
Perform Due Diligence
Determine Recoveries
Close Account
Destroy Card
|
Cancellation notification
Ad hoc cancellation notification
Notice sent to card holder
Card statement
Record of fleet usage data
Account receivable information
|
9. Vendor Master Data File
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Manage Vendor Master Data File |
Vendor Master Data File dataset
|
Process request to Create or Update Vendor Record
Receive Vendor Record Request and Supporting Documentation to Create or Update
Verify That Request was Approved by an Appropriate Individual
Conduct a High-Level Challenge Function to Assess Request for Reasonableness
Confirm Status of Vendor in the Vendor Master Data File
Identify Data and Supporting Documentation Requirements Given Category of Vendor
Validate Request Against Supporting Documentation
Refuse Request and Inform Requestor
|
Vendor record Request and related supporting documentation
Approval of request by requestor and/or designated individual in compliance with departmental policy and mandate
Needs/requirements analysis
List of acceptable requestors
Memo or e-mail to inform requestor
|
Process Request to Deactivate Vendor Record
Receive Vendor Record Request and Supporting Documentation to Deactivate Vendor Record
Verify That Request was Approved by an Appropriate Individual
Conduct a High-level Challenge Function to Assess Request for Reasonableness
Confirm that Vendor Exists and has not Been Deactivated in the Vendor Master File
Check for Outstanding Balances, Contracts and Purchase Orders
Identify Required Supporting Documentation
Validate Request Against Supporting Documentation
Refuse Request and Inform Requestor
|
Request to deactivate vendor record and related supporting documentation
Approval of vendor record request by requestor or designated individual in compliance with departmental policy/mandate
Departmental delegation of financial signing authority
Verification information such as:
HR employee departure documentation
HR employee termination notification
Notification from program area (close out of program)
Outstanding invoice reports
Searches for duplicate vendors
Memo or email to inform requestor
External vendor notification
|
Carry Out Request to Create, Update or Deactivate Vendor Record
Enact and Verify Creation, Updating or Deactivation of Vendor Record in the Vendor Master Data File
Perform Quality Assurance
Exercise FAA, section 33 Certification (Including EAA Key)
Submit Payment Requisition to Receiver General
Complete Test for Electronic Banking Information (Accuracy, Completeness and Validity)
Inform appropriate parties that action to vendor record has been completed, as required
|
Approved vendor record request
Related supporting documentation
FAA, section 33 verification and certification
Approved payment requisition
Quality assurance results
Confirmation from vendor that test payment was successful
SPS payment return file
Supporting documentation for banking information (may include a VOID cheque)
Documentation to evidence that the request was carried out
Memo or email (e.g., to inform vendor record has been created)
|
Plan periodic Review
Conduct Risk Assessment
Create or Update Periodic Review Approach and Review Procedures
Develop or Update Periodic Review Planning Document
Review and Approve Periodic Review Planning Document
|
Trigger to review: regular data maintenance activities or a request made after an issue is found e.g. internal audit reports and vendor record stakeholder feedback and other comments
Departmental periodic review risk assessment and supporting documentation
Vendor record stakeholder comments/feedback
Periodic review approach and procedures document
Periodic review planning document
|
Implement Periodic Review
Gather Information Required to Perform Periodic Review
Perform Periodic Review
Document and Analyze Periodic Review Results
Revise Vendor Master Data File Departmental Policies and Procedures, as Required
|
Extracts and reports from the vendor master data file database and other documentation from vendor record stakeholders
Documented results and analysis from the periodic review
Documentation to update vendor record
Departmental vendor master data file policies and procedures (revised)
|
10. Post-Payment Verification
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Create or Update, Review and Approve the Post-payment Verification Sampling Plan(s)
Gather Information Required to Create/Update the Post-payment Verification Sampling Plan(s)
Create or Update the Post-payment Verification Sampling Plan(s)
Review the Post-payment Verification Sampling Plan(s)
Approve the Post-payment Verification Sampling Plan(s)
|
Sampling framework
Approved post-payment verification sampling plan(s)
|
Obtain Population(s) and Extract Samples
Obtain Population(s)
Extract Samples
Identify Required Supporting Documentation for Verification
Communicate Request for Supporting Documentation
|
Post-payment verification population
Population extracts
|
Perform Post-payment verification and document results
Obtain Sample Documentation
Conduct Post-payment Verification
Compile and Document Results of Post-payment Verification
Validate and Approve Results of Post-payment Verification
|
Required sample documentation such as: Invoices, contracts, purchase orders, letter of offer or other supporting documentation (copies, as required)
Post-payment verification documented results, such as:
A spreadsheet of high-level verification performed;
Checklist for each transaction verified and the results.
|
Communicate and Address Individual Errors found during Post-Payment Verification
Prepare and Review Individual Error Communication
Communicate Individual Errors to Required Managers
Correct Error, if Required
Follow-up on Errors, if Required
|
Individual errors communication
|
Analyze and report on the overall Functional and Recurring results of the Post-Payment Verification
Analyze Post-payment Verification Results
Determine and Document Required Functional and/or Systemic Corrective Action
Determine and Recommend Consequences Related to Errors
Develop Action Plan to Address Required Functional and/or Recurring Corrective Action
Prepare High-level Overview Results Report
Approve High-level Overview Results Report
Communicate High-level Overview Results Report
|
Approved high-level overview results report
List of consequences related to errors
Action plan
|
Request Corrective action on Overall Functional and Recurring Issues
Request Corrective Action on Overall Functional and/or Recurring Issues
Take Corrective Action
Follow-up on Overall Functional and Recurring Corrective Actions
|
Request to required stakeholders
Follow-up report
|
11. Financial Close
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Perform Ongoing Reconciliations and Adjustments
Perform RG-GL / PS-GL Reconciliations
Perform Treasury System Reconciliations
Perform Account Analysis
Record Adjustment
|
Treasury system details
Control data
Receiver General Exception reports
DFMS control account balances
PS-GL control data
RG-GL control data
DFMS Control account details
Account balance details
Suspense account details
Prior Year account balances
Adjustment data
|
Establish and communicate Internal Closing Schedule
Review Receiver General Closing Schedule and Guidance
Prepare Internal Closing Schedule
Communicate Period End Schedule
|
Internal closing schedule
RG info sessions
RG year-end requirements
|
Process Accounts Payable Adjustments
Analyze Commitments
Estimate Value of Accruals
Confirm Interdepartmental Settlement With other government departments
Record Accruals
Validate commitment balances
Adjust or close out commitments
|
Accounts payable data
Commitment data
Contract data
Deliverables receipt data
Interdepartmental settlement data
Estimated amounts
FAA, section 34 certification
Financial data (commitments, actuals to date)
Entry in DFMS to record accrual
|
Process Accounts Receivable Adjustments
Review Financial Arrangements
Estimate Value of Revenue Earned
Confirm Interdepartmental Settlement with OGD
Record Receivables
Review External Aged Receivables Schedule
Estimate Value of Doubtful Accounts
Record Adjustment to Allowance for Doubtful Accounts
Review Deferred Revenue Balance
Estimate of Value of Goods/Services Delivered
Record Adjustment to Deferred Revenue Balance
|
Provisions relating to cost recoveries
Actual revenues
Inventory records (if applicable)
Shipping documentation
Interdepartmental settlement data
Receivables data
Aged receivables schedule
Customer credit information
Allowance for doubtful accounts
Deposit documentation
Receipt documentation
Adjustment details
Deferred revenue balance
Estimated amounts
|
Process Other Adjustments
Identify Compensation-Related Accruals
Estimate Value of Compensation-Related Accruals
Record Compensation-Related Accruals
Review Prepaid Expense Balance
Estimate Value of Goods/Services Consumed
Record Adjustment to Prepaid Expense Balance
Identify Other Adjustments
Estimate Other Adjustments
Record Other Adjustments
|
Estimated amounts
Prepaid expense balance
Prepaid expense schedule
|
Prepare Trial Balance and Submit to CFMRS
Generate Trial Balance
Verify Trial Balance for Exception Report Errors
Reconcile RG-GL / PS-GL
Conduct Variance Analysis
Record Adjustments
Close Period
Submit Trial Balance to CFMRS
Prepare and Submit Certificate of Representations
|
Validation report
Certificate of representations
Control accounts
Trial balance
PS-GL data
RG-GL data
Adjustment amount
Financial coding
Certificate of Representations
|
12. Pay Administration (HR/Finance interactions)
Many activities identified in the Guideline on Common Financial Management Business Process for Manage Pay Administration are described and the IRBV identified in the Human Resources Management GVT. The activities included here are those solely related to the financial management process. Please also see the Human Resources Management GVT.
Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Determine HR Requirements |
Please see Human Resources Management GVT. |
Determine and Exercise Expenditure Initiation Authority
Determine Required Expenditure Initiation Authority
Exercise or Obtain Expenditure Initiation Authority
|
HR request for expenditure initiation (description, type of change or service, estimated cost, quantity, etc.)
Delegation instruments and proof of authorization
|
Manage Funds Availability
Determine Funds Availability
Provide Authorization (FAA section 32)
|
Delegation instrument and proof of authorization
Financial coding (authority, object, sub-program, responsibility centre, etc.)
|
Manage Commitment
Record and Update Commitment
Close Out Commitment
|
Commitment record
Commitment authorization
|
Update Salary Forecast
Maintain Salary Forecast
|
Salary Forecast
Planned employee- and position-related data
Forecast amounts
|
Manage HR Pre-Payroll
Determine Required Transaction Authority
Exercise or Obtain Transaction Authority
Exercise or Obtain FAA Section 34 Authority
|
Supporting employee and position documentation (from request for payment, letter of offer, request for overtime payment, etc.)
Expenditure initiation authority
FAA section 34 certification and transaction authority
|
Manage Pay Pre-Payroll |
Please see Human Resources Management GVT. |
Perform Account Verification (Compensation)
Verify That Supporting Documentation Is Complete
Confirm That Requirements Are Met
Confirm That Payee Is Eligible for Payment
Ensure Employee Information Is Accurate
Verify That Relevant Regulations, Policies and Directives Were Followed
Verify Accuracy of Transaction
Resolve Discrepancies
|
Supporting documentation
Request for pay transaction
Authorizations (expenditure initiation, commitment, HR, transaction)
|
Perform Payment Authority
Receive Request for Pay Transaction
Perform Quality Assurance
Exercise FAA Section 33 Certification (electronic or manual)
|
Approved request for pay transaction
Section 34 verification and certification
Delegation instruments and proof of authorization
Quality assurance results
Section 33 certification (signature)
|
Issue Payment
Note: most steps of “issue Payment” are out of scope for this GVT since they are the responsibility of Public Services and Procurement Canada, and not of the individual departments.
Stop Payment
|
Payroll control data report
Control account balance report
Internal journal voucher report
Detailed expenditure extract file
Stop payment intercepts and recalls
|
Manage Post-payroll
Distribute Pay Stubs
Record Pay Transactions
Record Other Salary Transactions
|
Approved payment release (payroll register)
Detailed pay expenditure file
Government-wide payroll control totals (trial balance)
Data and supporting documentation relating to Pay and Other Salary transactions
|
Complete Account Verification
Verify That Supporting Documentation Is Complete
Confirm That Payee Is Eligible for Payment
Validate That Three-Way Match Occurred
Ensure Financial Coding Is Correct
Verify Accuracy of Transaction
Resolve Discrepancies
|
Supporting documentation
FAA section 34 verification completed
Authorizations (expenditure initiation, commitment, HR, transaction)
Request for pay transaction
|
Transfer Payments
13. Grants and Contributions
Many activities identified in the Guideline on Common Financial Management Business Process for Manage Grants and Contributions are described and the IRBV identified in the Transfer Payments GVT. The activities included here are those solely related to the financial management process. Please also see the Transfer Payments GVT.
Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Determine and Exercise Expenditure Initiation Authority
Determine Required Expenditure Initiation Authority
Exercise or Obtain Authority
|
Delegation of authorities instruments or proof of authorization
Funding agreement application (if applicable)
|
Manage Funds Availability
Determine Funds Availability
Authorize (section 32)
Decline Proposal or Amendment
|
Funding information
Section 32 authorization
Notice of agreement status
|
Manage Commitments
Record/Update Commitment
Close out Commitment
|
Commitment record
|
Formalize Funding Agreement or Funding Agreement Amendment
Conduct or Update Recipient Risk Assessment
Obtain Minister Approval for Exceptions to Terms and Conditions
Develop Funding Agreement or Funding Agreement Amendment
Review funding Agreement
or Funding Agreement Amendment and Support File
Exercise or Obtain Authority and Approval of Funding Agreement/or Funding Agreement Amendment
Resolve Issues
Close Application
Update Funding Agreement Information
Comply with Disclosure Requirements
|
Signed and approved funding agreement or funding agreement amendment
Individual recipient risk assessments
Other relevant information to assess risk
|
Perform Section 34 Verification and Certification for Grants
Ensure Recipient Information is Accurate
Confirm that Recipient is Entitled to Payment
Confirm that Funding Agreement Terms are Met
Ensure Financial Coding is Correct
Verify that Relevant Policies, Regulations and Directives were Followed
Verify Accuracy of Transaction
Exercise or Obtain Authority
Resolve Discrepancies
|
Request for payment
Funding agreement
FAA section 34 certification
|
Perform Section 34 Verification and Certification for Contributions
Record Claim
Ensure Recipient Information is Accurate
Confirm that Recipient is Entitled to Payment
Confirm that Funding Agreement Terms are Met
Ensure Financial Coding is Correct
Verify that Relevant Policies, Regulations and Directives were Followed
Verify Accuracy of Transaction
Verify Supporting Documentation Based on Risk
Exercise or Obtain Authority
Resolve Discrepancies
|
Request for payment
Claim
Funding agreement
Supporting documents
FAA section 34 certification
|
Perform Section 34 Verification and Certification for Contribution Advances
Confirm Amount of Advance
Ensure Recipient Information is Accurate
Ensure all Criteria for Advances are Met
Confirm that Recipient is Entitled to Payment
Confirm that Funding Agreement Terms are Met
Ensure Financial Coding is Correct
Verify that Relevant Policies, Regulations and Directives were Followed
Verify Accuracy of Transaction
Exercise or Obtain Authority
Resolve Discrepancies
|
Request for payment
Funding agreement
Supporting documentation
FAA section 34 certification
|
Perform Section 34 Verification and Certification for Claims Related to Contribution Advances
Record Claim
Ensure Recipient Information Is Accurate
Confirm That Recipient Is Entitled To Payment
Confirm That Funding Agreement Terms Are Met
Ensure Financial Coding Is Correct
Verify that Relevant Policies, Regulations and Directives were Followed
Verify Accuracy of Transaction
Verify Supporting Documentation Based on Risk
Determine Balance Owing to or From Recipient
Authorize Claim
Apply Expense to Advance
Exercise or Obtain Authority
Resolve Discrepancies
|
Request for Payment
Funding agreement
Claim
Supporting documentation
FAA section 34 certification
|
Perform Section 34 Verification and Certification for Contribution Progress and Milestone Payments
Record Progress and Milestone Payment
Ensure Recipient Information is Accurate
Confirm that Recipient is Entitled to Payment
Confirm that Funding Agreement Terms are Met
Ensure Financial Coding is Correct
Verify that Relevant Policies, Regulations and Directives were Followed
Verify Accuracy of Transaction
Verify Supporting Documentation Based on Risk
Validate Expenses And Reconcile Total Payments
Exercise or Obtain Authority
Resolve Discrepancies
|
Supporting documentation for progress or milestone payment
Funding agreement
Claim
Supporting documentation for claim
FAA section 34 certification
|
Perform Section 33 Payment Authority
Receive Payment Requisition
Perform Quality Assurance
Provide Section 33 Certification (Incl. Electronic authorization and authentication [EAA] Key)
Submit Payment Requisition to Public Services and Procurement Canada
|
Payment requisition
Delegation of authority instruments and proof of authorization:
Funding agreement data
Section 34 verification and certification
Approved payment requisition
Quality assurance results
Section 33 certification (signature)
|
Issue Payment
Issue Payment (Receiver General)
Process Return Payment File
Upload Return File
|
Payment to vendor
Payment return file
|
Recover Overpayments
Record Receivable
Determine Recovery Method and Notify the Recipient
Record Receivable/Payable Offset
|
Supporting documentation for the recovery
Receivable entry
Recipient notification
|
Manage Recoveries for Repayable Contributions
Monitor Re-Payment Schedule
Monitor Re-Payment Conditions
Record Receivable
Inform Recipient
Offset Receivable with Payable
Remove Conditional Receivable
|
Repayable funding agreement
Recipient supporting documentation
Written notification or invoice
|
Terminate Funding Agreement
Assess Financial Impact
Prepare, Approve and Send Termination or Acknowledgement Letter (Out-of-scope)
Update Funding Agreement Information
|
Signed termination or acknowledgement letter
Updated Funding agreement
|
Plan Recipient Audits
Assess Alternative Sources Of Assurance
Update Recipient Audit Plan (Program Level)
Update Recipient Audit Plan (Department Level)
Coordinate with Other Programs or Departments to Plan a Single Audit
Update And Communicate Risk-Based Audit Plan to Relevant Stakeholders
|
Risk based Approved recipient audit plan (program level)
Risk based Approved recipient audit plan (department level)
|
Conduct Recipient Audits
Determine Required Assurance Level
Determine Recipient Audit Scope, Standards And Criteria
Select Independent Auditor
Develop Recipient Audit Planning Memorandum
Notify Recipient of Audit
Monitor Recipient Audit Progress
Discuss Draft Recipient Audit Report and Findings
Communicate Results to Recipient and Stakeholders
|
Recipient Audit planning memorandum
Documentation of Assurance level
Recipient audit scope, standards, criteria
Signed agreement for recipient audit services
Recipient audit working papers
Budget analysis
Final recipient audit report
For IRBV related to contracting of independent auditor, please see the Acquisitions GVT |
Collection and Receivables
14. Revenue, receivables and receipts
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Create Financial Arrangement
Receive Request for Financial Arrangement
Cancel request
Accept Request and Define Requirements
Establish Terms and Conditions for Financial Arrangement
Develop Financial Arrangement Document
|
Request (high-level description, type of good/service; estimated cost, quantity, etc.)
Description of requirements
Financial arrangement document
|
Manage Customer Credit Risk
Conduct Appropriate Credit Risk Assessment
Obtain Authorization to Grant Credit
Create Credit Documentation and Credit File
Revise Terms and Conditions
Cancel Request
|
Credit assessment documentation
Request (description, type of good/service; estimated cost, quantity, work and technical specifications, milestones and delivery dates, etc.)
Revised terms and conditions
Credit file
Credit documentation
|
Validate and Approve Documentation for Financial Arrangement
Exercise or Obtain Departmental Authority/ Approval
Cancel Financial Arrangement
Adjust Financial Arrangement Documentation
Obtain Customer Approval
|
Financial authority documentation
Changes to financial arrangement
Final/approved financial arrangement document
|
Transfer Transaction to Invoicing/Receivables
Create Billing Request;
Approve Billing Request
Monitor Billing Requests (Completeness of Processing)
|
Approved billing request
|
Create Invoice/Credit Memo
Validate Billing request to financial arrangement
Create and verify Invoice/Credit memo
Review and approve Invoice/Credit memo
|
Customer cancellation/refund request
Other notification of need for credit memo
Invoice or credit memo sent to customer
Evidence of review and approval process
|
Record Receivable
Record entry for receivable
Verify entry (e.g. validity, completeness, accuracy including coding)
Create/verify adjustment
|
Receivable entry
|
Process Cash Receipts and Cheques
Provide Customer Confirmation of Payment
Safeguarding Receipts and Supporting Documentation
Record Receipt or Update Receivable
Create Deposit/ Complete Deposit slip
Record Deposit/Conduct End of Day Close and Daily Reconciliation Process
Deposit Receipts at Financial Institution
|
Cash receipts and cheques and the supporting documentation
Confirmation of customer payment
Accounting entry of receipt or updated receivable
Stamped deposit slip
Receiver General deposit detail file
Confirmation documentation (e.g. cashier receipt, etc.)
Invoice
Receivable documentation
Receipt documentation (e.g. cash blotter, etc.)
Deposit documentation
Daily deposit reconciliation
|
Process Electronic Receipts and Third Party Service Provider Remittances
Third Party Processes Receipts\Card Acceptance (out-of-scope)
Third Party Deposits funds into the Consolidated Revenue Fund (out-of-scope)
Receipts Processed by Third party: Validation of Remittance Information by Program Area
Receipts Processed by Third party: Record and/or Adjust Receipt, Deposit, or Receivable
Credit/Debit card: Department Initially Processes Credit/Debit Card Transaction
Credit/Debit card: Provide Confirmation of Payment to Customer
Third Party Service Provider Obtains Funds and Forwards to Financial Institution (out-of-scope)
Credit/Debit card: Record Receipts/ Conduct End of Day Close and Daily Reconciliation Process
Pre-authorized Debit: Department Creates Pre-authorized Debit file
Pre-authorized Debit: Record Receipts/ Deposits; Update Receivable in the Departmental Financial and Materiel Management System as Required
Pre-authorized Debit: Create Requisition File in the Departmental Financial and Materiel Management System/Send to Standard Payment System
Pre-authorized Debit: Adjust Pre-authorized Debit Information/Process and Clear Reject File
|
Electronic receipts, third party service provider remittances
Receipt documentation
Remittance information
Confirmation of payment to customer documentation
Daily deposit reconciliation
Pre-authorized debit file
Standard Payment System requisition file
Deposit documentation
Standard Payment System reject file
|
Reconcile Deposits
Reconcile and Identify Variances Between Deposit and Government Banking System Deposit Detail File
Record Approved Entry for Adjustments
Review and Approve Reconciliation
|
Receiver General deposit detail file
Departmental financial and materiel management system deposit listing/report
Third party remittance information
Journal entry and supporting documentation
Non-sufficient funds remittance and financial institution documentation
Reconciliation
|
Determine financial coding and revenue recognition
Identify Financial Coding
Analyze Revenue Recognition Criteria
For Special Considerations: Confirm Compliance with Authorities and Appropriate Accounting Policy/Treasury Board Secretariat Policies and Directives (i.e. Revolving Fund, Net Vote/ Re-spendable Revenues, Specified Purpose Accounts, Interest Revenue)
For Deferred Revenue: Identify Financial Coding and Record Approved Entry
Monitor Deferred Revenue Balance
Entry Not Required at this Time; Identify Financial Coding Only
For Revenue Earned: Identify Financial Coding and Record Approved Entry
|
Final approved financial arrangement
Invoice/receivable supporting documentation
Receipts, remittance file/information, Government Banking System deposit detail file
Accounting entry documentation
Deposit documentation
Financial coding
Receipt documentation
Related supporting documentation
Remittance information
General ledger balances
|
15. Interdepartmental Settlements
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Confirm the requirement for an IS transaction (Request for Goods or Services; Request for Transfer of funds; Request for Recoveries)
For Debtor Only: Confirm Compliance of IS Request to Mandate/Legislative Requirements
Review Request and Define High-level IS Transaction Requirements
For Debtor Only: Determine and Exercise/Obtain Required Expenditure Initiation Authority
|
IS request
Other government department request for a business arrangement
Request for goods and services
Request for transfer of funds
Request for recoveries
Documentation of high-level IS transaction requirements and authority
Requisition/Human Resource agreement (high-level description, type purpose and type of IS transaction, date (s) required, estimated cost/billings, quantity, etc.)
Delegation of authorities instrument/proof of authorization
|
Establish Terms and Conditions with other Government Department
Determine Transaction Terms and Conditions (e.g. Specifications, Cost, Supporting Documentation Requirements, Initiator of the IS Transaction, etc.)
For Debtor Only: Determine Funds Availability
For Debtor Only: Authorize in Accordance with FAA, section 32
For Debtor Only: Record/Update Commitment
For Debtor Only: Obtain Appropriate IS Codes and Details/Financial Coding; Include in Written Terms and Conditions
Confirm Terms and Conditions (e.g. for Accuracy, Validity and Completeness)
|
Written terms and conditions with other government department
Delegation of authorities instrument/proof of authorization
|
Apply and Confirm Departmental Authority/Approval
Determine Required Departmental Authority/Approval; and
Exercise or Obtain Departmental Authority/Approval
|
Delegation of authorities instrument/proof of authorization
Approved and signed IS transaction details
|
Process Creditor-Initiated IS Transaction by Creditor-Initiator
Create Invoice and Verify Details Including IS Codes and Financial Coding
Send Invoice to Other Government Department Recipient
Create IS Requisition for SPS/IS
Apply EAA Key
|
Request for credit memo by other government department
Invoice
IS return/notification file
Billing requests (as appropriate)
IS requisition
Delegation of authorities instrument/proof of authorization
|
Process Creditor-Initiated IS Transaction by Debtor-Recipient
Load Files in Departmental Financial and Materiel Management System
Monitor IS Transactions Pending Approval in SPS/IS
Verify that Supporting Documentation is Complete and IS Transaction Details are Met
Ensure Financial Coding is Correct
Resolve Discrepancies
Exercise or Obtain Authority in Accordance with FAA, section 34
Update/Close Commitment
|
Documentation for receipt of goods/services/event triggering IS has been completed
Invoice
IS return/notification files
FAA section 34 certification
Acceptance of deliverables data, deliverables receipt data, and/or evidence that event triggering IS has been completed
Auditable evidence of account verification
IS return/notification file
Approved IS detail document (including terms and conditions)
Invoice data
Certification authority
Delegation of authorities instrument/proof of authorization
Departmental authority/approval
Expenditure initiation authority
Commitment authorization
Financial data (budget, commitments, actuals to date)
Goods receipt data
Requisition amount
|
Process Debtor-Initiated IS Transaction by Debtor-Initiator
Verify that Supporting Documentation is Complete and IS Transaction Details are Met
Ensure Financial Coding and IS Codes are Correct
Resolve Discrepancies Where Applicable
Exercise or Obtain Authority in Accordance with FAA, Section 34
Update/Close Commitment
Create IS Payment Requisition
Perform Quality Assurance
Exercise FAA, Section 33 Certification (Including EAA)
Submit Payment Requisition to Receiver General (SPS/IS)
|
Acceptance of deliverables data and/or evidence that event triggering the IS has been completed
Approved IS detail document (including terms and conditions)
Certification authority
Departmental authority/approval
Expenditure initiation authority
Commitment authorization
Goods receipt data
Payment requisition (including payment details)
Evidence of FAA section 34 verification and certification
FAA section 33 certification (signature)
EAA FAA section 33 details
Quality assurance results
Approved payment requisition including payment details
SPS/IS requisition file
|
Process Debtor-Initiated IS Transaction by Creditor-Recipient
Load Files in Departmental Financial and Materiel Management System
Monitor IS Transactions Pending Approval in SPS/IS
|
IS return/notification file
Acceptance of deliverables data, deliverables receipt data, and/or evidence that event triggering the IS has been completed
|
Monitor and Clear IS Suspense Account Items
Analyze/Investigate IS Suspense Account Items
Verify that Supporting Documentation is Complete and IS Details are Met
Clear IS Suspense Account
|
Supporting documentation is retained to provide an audit trail of how the IS suspense account item was resolved.
Acceptance of deliverables data, deliverables receipt data, and/or evidence that event triggering the IS has been completed
Approved IS details document including terms and conditions
Financial coding
Invoice
IS coding
IS return/notification file
Other government department data
Supporting documentation for adjustments
|
Investigate and Discuss Issues with Other Government Department
Contact and Discuss Options for Resolving Issues/ IS Suspense Account Item
Obtain Necessary Information to Explain Issues/IS Suspense Account Item
Senior Management to Discuss/Resolve Issues or IS Suspense Account Items
Prepare a New IS Transaction for Processing (Including Credit Memos)
Cancel Original IS Transaction by Questioning (as Part of Agreement with Other Government Department)
Adjust Existing IS Transactions in Departmental Financial and Materiel Management System
|
Confirmation of agreement to resolve IS transaction
Acceptance of deliverables data, deliverables receipt data, and/or evidence that event triggering the IS has been completed
Accounting adjustments
Approved IS detail document (including terms and conditions)
Invoice
Payment requisition (including payment details)
Tax remittance (goods and services tax, harmonized sales tax)
Transfer of funds
Briefing memo of key issues/ areas under dispute
Supporting documentation for the new IS transaction
|
Question IS Transaction
Department Conducts Selective IS Questioning Method in SPS/IS
Further Discussion Between the Departments/Senior Management as Required
Department Does Not Approve IS transaction pending in SPS/IS within 15 working days
|
Confirmation by other government department regarding questioning of IS
Confirmation of agreement to resolve IS issue/concern (by questioning the original IS transaction or further discussion)
Other related supporting documentation.
|
Record IS Transaction in the Appropriate Account |
Acceptance of deliverables data, deliverables receipt data, and/or evidence that event triggering IS has been completed
Confirmation of agreement to resolve IS transaction
Invoice and credit memo data
IS coding
Original approved IS transaction details document including terms and conditions
Other supporting documentation for the manual entry/adjustment
|
16. Collection of Overdue Receivables
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Identify Overdue Accounts Based on Terms
Track Payment Due Dates
Monitor Debtor Relationship
Identify and Confirm Amount/Details of Overdue Accounts
Calculate Interest As Required
Create and Verify Adjustment/ Credit Memo
Record the Approved Adjustment/
Credit Memo
Prioritize and Plan Collection Activities
|
Receivable aging report or account statements
Account statements sent to debtor if required
Supporting documentation
Invoice report
Customer statement
Deposit documentation
Receipt documentation
Receivable documentation
Revised financial arrangement document
Invoice (e.g. date, amount)
Journal entry and supporting documentation
Accounts payable report indicating amounts owing to customer (for set-off purposes)
|
Notify Debtor of Amount Overdue and Conduct Collection Activities
Contact Debtor
Identify Reason for Debtor Non-Payment
Update Debtor Credit Status as Required
Billing Error Identified:
Create and Verify Adjustment/ Credit Memo if Required
Record Approved Adjustment/Credit Memo
Debtor Willing to Pay:
Re-establish Payment Terms
Inform Debtor of Potential Set-off Arrangement in Writing
Obtain Approval from Appropriate Parties for Set-off Arrangement
Apply Set-off to Receivable Balance
Review and Approve All Payment Terms, Conditions and Schedule by Appropriate Parties
Debtor Not Willing to Pay:
Assess Collectability and Determine Collection/Debt Deletion Activities As Required
|
Phone calls, dunning letters, e-mails, and debtor account statements
Legal advice
Debtor information/supporting documentation
Deposit documentation
Journal entry and supporting documentation
Receipt documentation
Receivable documentation
Amended financial arrangement document
Description of roles and responsibilities
Revised payment methods
Written documentation to communicate potential set-off arrangement
Written documentation outlining set-off procedures, terms and conditions
Overdue account information for period-end
Returned statements from debtor
Third party collection information (e.g. cost, timing, roles and responsibilities, etc.)
|
Manage Third Party Collection Activities
Assess Need to Update/ Change Collection Activities
|
Receivable aging report
Third party collection activity status report
Third party invoice for commission and fees
Third party overdue receivable information for period-end and/or third party’s recommendations for write-offs
For IRBV related to any contracting of services, please refer to the Acquisitions GVT. |
Manage Legal Actions
Identify and Discuss Proposed Legal Action
Ensure All Required Approvals to Commence or Continue Legal Action is Completed
Monitor Impact of Legal Action on Overdue Accounts
Assess Need to Continue Legal Proceedings
|
Correspondence with debtor
Supporting documentation regarding status and history of debtor
Receivable aging report
Request or supporting documentation to initiate legal action
Third party collection activity status report
Third party overdue receivable information for period-end
Compromise Settlement agreement (where legal action is to continue)
Court documents (where legal action is to continue)
Delegation of financial authorities document/proof of authorization
Departmental legal services recommendation and/or authorization for legal action
Compromise settlement terms and conditions
Receipts from debtor
Cost benefit analysis (litigation costs versus recoveries from debtor)
Legal opinion
Please see also the Legal Services GVT. |
Manage Write-offs, Remissions and/or Forgiveness
Identify Uncollectible Debt
For Forgiveness/ Remission of Debt:
Perform Initial Assessment for the Forgiveness/ Remission of Debt (including waiving of interest)
Prepare proposed Forgiveness/ Remission and Obtain Appropriate Approval
For Write-offs:
Perform Initial Assessment of Criteria Required for Debt Write-off
Prepare Documentation for Proposed Write-off
Obtain Assessment of Write-off by Departmental Review Committee
For Forgiveness, Remission and/or Write-offs:
Prepare Treasury Board Submission and Obtain Required Departmental Approval
Ensure Review and Approval by Minister or Delegated Authority, As Required
Record Accounting Entry
Verify Entry (e.g. Validity, Completeness, Accuracy Including Coding)
|
Court documents
Receivable aging report
Third party collection activity reports
Debtor information and history
Analysis and supporting documentation and conditions for forgiveness/remission
Compromise settlement document (including payment terms and conditions)
Documentation for Debt Write-off Review Committee
Draft Treasury Board submission for write-off
Other analysis and supporting documentation for write-off
Recommendation by Debt Write-off Review Committee
Treasury Board submission for remission/forgiveness of debt (reviewed and approved internally by Department)
Departmental recommendation for approval to proceed with forgiveness, remission or write-off
Other supporting documentation
Analysis and supporting documentation for remission, forgiveness, write-off
Approval document from Minister or delegated authority to proceed with write-off
Approval from Treasury Board, Governor in Council or Parliament
Departmental approval document for remission/forgiveness
Accounting entry documentation
Please see also Treasury Board Submissions GVT. |
17. Customer Master Data File
| Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Manage Customer Master Data File |
Customer Master Data File dataset
|
Process Request to Create or Update Customer Record
Receive Customer Record Request and Supporting Documentation to Create or Update
Verify That Request was Approved by an Appropriate Individual
Conduct a High-Level Challenge Function to Assess Request for Reasonableness
Confirm Status of Customer in the Customer Master Data File
Identify Data and Supporting Documentation Requirements Given Category of Customer
Validate Request Against Supporting Documentation
Refuse Request and Inform Requestor, As Required
|
Customer record request approved by requestor or designated individual for compliance with departmental policy and mandate
Related supporting documentation
Departmental financial authority documentation
List of acceptable requestors
Other independent sources of data such as postal code checks, financial institution files, customer correspondence, memoranda, legal name change and other legal documents
Memo or email to inform requestor
|
Process Request to Deactivate Customer Record
Receive Customer Record Request and Supporting Documentation to Deactivate
Verify That Request was Approved by an Appropriate Individual
Conduct a High-level Challenge Function to Assess Request for Reasonableness
Confirm that Customer Exists and has not Been Deactivated in the Customer Master Data File
Check for Outstanding Balances, Financial Arrangements or Sales Orders
Identify Required Supporting Documentation
Validate Request Against Supporting Documentation
Refuse Request and Inform Requestor, As Required
|
Request to deactivate customer record
Accepted customer record request approved by requestor or designated individual for compliance with departmental policy and mandate
Related supporting documentation
Departmental financial documentation
Established list of acceptable requestors
Memo or email to inform requestor
Customer notification
Notification from program area (close out of program)
HR documentation of employee departure requiring a recovery to the Crown
Outstanding billing and invoice reports
Searches for duplicate customers
Memo or email to inform requestor including reason for refusal
|
Carry Out Request to Create, Update or Deactivate Customer Record
Implement and Verify Creation,
Update or Deactivation of Customer Record in the Customer Master Data File
Inform Appropriate Parties That Action to Customer Record has Been Completed, as Required
|
Approved request to update or deactivate customer records resulting from the department’s periodic review
Related supporting documentation (as evidence that the request was implemented)
Memo or email (e.g. to inform requestor that customer record has been created)
|
Plan Periodic Review
Conduct Risk Assessment
Create or Update Periodic Review Approach and Review Procedures
Develop or Update Periodic Review Planning Document
Review and Approve Periodic Review Planning Document
|
Information required to assess risk areas and issues regarding customer master data file, including:
Customer record stakeholder comments and feedback
Approved periodic review planning document and review procedures
Departmental periodic review risk assessment
Related supporting documentation
|
Implement Periodic Review
Gather Information Required to Perform Periodic Review
Perform Periodic Review
Document and Analyze Periodic Review Results
Review and Approve Update/Deactivation of Customer Record
Revise Customer Master Data File Departmental Policies and Procedures, as Required
|
Periodic review documentation and other related information which may include:
Extracts and reports from the customer master data file database and other documentation from customer record stakeholders
Approved periodic review planning document including risk assessment, approach and review procedures
Approved request to action update or deactivate of customer records and supporting documentation
Related supporting documentation
Departmental customer master data file policies and procedures (updated)
Documented results and analysis of periodic review
|
Accounting for Assets and Liabilities
18. Other Capital Assets
Many activities identified in the Guideline on Common Financial Management Business Process for Manage Other Capital Assets are described and the IRBV identified in the Materiel Management GVT. The activities included here are those solely related to the financial management process. Please also see the Materiel Management GVT.
|
Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Create or Update Asset Record |
Please see Materiel Management GVT. |
Calculate Monthly Amortization
Calculate Amortization
Verify Reasonableness of Amortization
Make Correction
Record Journal Entry
|
Amortization amount (update to asset record)
Journal entry
|
Conduct Periodic Analysis of Assets Under Construction (AUC)
Record Journal Entry
|
Journal entry
|
Conduct Periodic Physical Asset Count |
Please see Materiel Management GVT. |
Conduct Periodic Asset Assessment
Record Journal Entry
|
Journal entry
|
Process Asset Disposal
Record Journal Entry
|
Journal entry
|
19. Real Property
Many activities identified in the Guideline on Common Financial Management Business Process for Manage Real Property are described and the IRBV identified in the Real Property GVT. The activities included here are those solely related to the financial management process. Please also see the Real Property GVT.
|
Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Create or Update Real Property Record
|
Please see Real Property GVT. |
Calculate Monthly Amortization
Calculate Amortization
Verify Reasonableness of Amortization
Make Corrections
Record Journal Entry
|
Journal entry:
Accumulated amortization
All costs (including additions, in-service costs)
Amortization amount for the period
|
Conduct periodic Analysis of Real Property under Construction
Record Journal Entry
|
Journal entry:
Financial coding
|
Conduct Periodic Physical Real Property Asset Count |
Please see Real Property GVT |
Conduct Periodic Real Property Assessment
Record Journal Entry
|
Journal entry:
Financial coding
|
Process Real Property Disposal
Record Journal Entry
Initiate Expenditure Management Process
|
Journal entry
Attestation that the money was deposited
Treasury Board approved capital asset plan
|
20. Inventory
Many activities identified in the Guideline on Common Financial Management Business Process for Manage Inventory are described and the IRBV identified in the Materiel Management GVT. The activities included here are those solely related to the financial management process. Please also see the Materiel Management GVT.
|
Common Business Processes |
Recommendations: Information Resources of Business Value (IRBV) |
Record Non-production Inventory
Record Journal Entry (for perpetual process)
|
Journal entry
|
Record Inventory for Production
Calculate the Amount of Labour Hours, Overhead, and Service Costs
Record Journal Entry (for perpetual process)
|
Purchase data (e.g., invoice, supplier, purchase order, contract, warranty information etc.) related to service costs directly related to the production of inventory
Timesheet records coded to specific production
Journal Entry
Calculation of labour, overhead, and service costs
|
Record Inventory consumption
Record Journal Entry (for perpetual process)
|
Consumption information
Inventory Information
Journal entry
|
Record Inventory Write-off
Record Write-off in Inventory Record
|
Journal entry
|
Record Sale or Interdepartmental Transfer of Inventory
Record Journal Entry
|
Journal entry
|
Conduct Inventory Counts and Record Adjustments
Record Journal Entry
|
Journal entry
|
Record Transfer of Inventory Location
(if adjustment to the accounting record are required as a result of inventory transfer)
Record Journal Entry
|
Journal entry
|
Financial Management Generic Valuation Tool--Appendix A
This table shows the alignment of the service groupings in the Treasury Board Secretariat’s (TBS) Guide on Internal Services Expenditures: Recording, Reporting and Attributing (2015) with the domains identified by the Office of the Comptroller General's Financial Management Business Process Analysis Initiative (FMBPI) and the business processes used in the FMBPI and this GVT.
| TBS Internal Service Grouping |
FMBP initiative Domain |
FMBP Initiative Business Process |
Financial Planning and Budgeting |
Planning, Budgeting and Forecasting Domain |
Manage Planning and Budgeting
Manage Forecasting and Budget Review |
Corporate Accounting |
N/A |
Please see the Management and Oversight GVT for IRBV relating to “reporting of financial information in corporate reports, including the Public Accounts.”Note10
|
Payments
Expenditure Control |
Expenditures and Accounts Payable Domain |
Manage Departmental Chart of Accounts
Manage Delegation of Financial and Spending Authorities
Manage Procure to Payment
Manage Travel
Manage Other Payments
Manage Administration of Acquisition and Fleet Cards
Manage Vendor Master File
Manage Post-Payment Verification
Manage Financial Close |
Human Resources (HR) and Finance Interactions Domain |
Manage Pay Administration (HR/Finance interactions) |
(Program-related) |
Transfer Payments Domain |
Manage Grants and Contributions |
Collections and Receivables |
Revenue and Accounts Receivable Domain |
Manage Revenue, Receivables and Receipts
Manage Interdepartmental Settlements
Manage Collection of Overdue Receivables
Manage Customer Master Data File |
Accounting for Assets and Liabilities |
Materiel/Finance Interactions Domain |
Manage Other Capital Assets
Manage Real Property
Manage Inventory |