Financial Administration Manual

815 - Accountable Advances

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Effective: April 1, 2016
Section: Funding Arrangements
Administrator: Office of the Comptroller General
Applicability: GNWT Departments and Public Agencies

 

POLICY

An approved accountable advance may be issued when sufficient evidence of stewardship over the use of the funds and an established business need have been demonstrated.

PURPOSE

There is a recognized business need to provide accountable advances for internal use (e.g. petty cash fund) and in some instances to external partners, clients and vendors. The purpose of this policy is to ensure that funds are not advanced in excess of the business need and that internal controls are in place prior to the disbursement of funds for an accountable advance.

 SCOPE

This policy applies to all advances of funds where:

  • Services under a contribution agreement will be provided on behalf of a GNWT Department  or Public  Agency;
  • An advance is required for petty cash;
  • An advance is required for authorized duty travel; or
  • An advance to a vendor supports program objectives.

RESPONSIBILITIES

Deputy Head of a Public Agency

May issue accountable advances; ensure that an accountable advance is not released until the business requirement for an accountable advance is documented, and that internal controls are in place.

Comptroller General

May issue accountable advances for the GNWT; may establish and maintain systems and procedures for internal controls respecting the receipt and disbursement of public money that belongs to the GNWT or Public Agencies; may approve Interpretation Bulletins associated with this policy. 

Financial Management Board

May issue a directive respecting the financial management or financial administration of a Public Agency.

AUTHORITIES and REFERENCES

  • Financial Administration Act (FAA)
    • s. 7 – Duties: Board
    • s. 10 – Board directives
    • s. 98 – Accountable Advances from Consolidated Revenue Fund
    • s. 99 – Accountable Advances from Public Agency

INTERPRETATION BULLETINS