Financial Administration Manual

620 - Collection of Receivables

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

POLICY               

GNWT Departments and Public Agencies are responsible to collect all accounts receivable promptly, efficiently, and in a thoroughly accountable manner, unless otherwise directed by the Comptroller General or their delegate.

PURPOSE

Timely collection of amounts receivable reduces bad debt losses, and increases financial resources by increasing interest revenue or decreasing the extent of borrowing required.

 SCOPE

This policy applies to the collection of all amounts receivable that is owing to the GNWT or a Public Agency.                                                                                                      

RESPONSIBILITIES

Deputy Head

Ensure that the collection of all receivables outstanding are actively pursued; Ensure that accounts receivable by a GNWT Department that are greater than 90 days overdue are forwarded to the Office of the Comptroller General for continued collection action.

Comptroller General

May grant that collection efforts be reduced or suspended, only if collection is likely to cause or compound personal financial hardship, or if the cost of collection exceeds the debt; may approve Interpretation Bulletins associated with this policy.

Minister of Finance

May cause a compliance notice to be served by the GNWT or a public agency; may prepare, and must certify, a statement of account further to the compliance notice.

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. 10 – Board directives
    • s. 13 – Minister of Finance
    • s. 47 – Ownership of Records
    • s. 54 – Interest on Debts
    • s. 57 – Deduction or set-off by Comptroller General
    • s. 58 – Deduction or set-off by public agency
    • s. 59 – Compromise agreement
    • s. 140 – Restriction on disclosure of information
    • s. 134 - 137 – Recovery of Money and Property
  • CPA Canada Public Sector Accounting Handbook
    • PS1201.049-.056 – Financial Assets
    • PS3050 – Loans Receivable

INTERPRETATION BULLETINS