Financial Management

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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

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

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

Revenue budget  

Analysis of historical and current revenue information

Revenue assumptions

Updated revenue information

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

Operating budget:
Operating assumptions
Non-salary operating budget
Salary budget; including capitalized salary

Operating budget pressures and surpluses

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

Transfer payment budget:
Transfer payment assumptions
Transfer payment budget pressures and surpluses

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

Capital asset lifecycle plan and budget:
Asset assessment results
Analysis of capital asset lifecycle requirements
Validated capital asset lifecycle requirements

 

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

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

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

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

Update Internal Investment Plan and Budget

Updated internal investment plan and budget

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)

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

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

 

 

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

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

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

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

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

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

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

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

Review and action budget reallocations

Complete budget reallocation request

Review and approve budget reallocation request

Action budget reallocation in financial system

Approved budget re-allocation request

Approved revised budget

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

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

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)

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

Communication to appropriate parties

Completed action

 

Plan Periodic Review

Conduct Risk Assessment

Develop Approach and Review Procedures

Prepare or Update Planning Document

Review and Approve Planning Document

Approved planning document

Departmental periodic review risk assessment

Stakeholder comments and feedback on chart of accounts

 

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

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

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

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

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

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

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.)

 

Verify Unencumbered Balance

Determine Unencumbered Balance

Provide Authorization

Commitment authorization

Manage Commitments

Record/ Update Commitment

Close Out Commitment

Commitment record

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

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