Search Book
Contents
About This FAM
| Responsible Agency: | Government Accounting - FMBS |
| Issued: | Jul 2008 |
| Last Updated: | Jul 2008 |
1. Definitions
| Term | Definition | Reference |
| Account | An invoice, statement, claim, contract, journal voucher or other voucher or document claiming a singular payment or a recurring payment from the Government. | FAM 1803 |
| Account Verification | The act of determining and certifying that the applicable conditions for releasing payment in respect of an expenditure account have been met. |
FAM 1803 |
| Accountable Advance | An accountable advance made under Section 54 of the Financial Administration Act. | FAM 2001 |
| Accountable Advance | A disbursement (transfer) of funds that are advanced on the condition that the recipient will expend the funds for approved purposes only, account to the Government for expended funds, and return to the Government by a specified date any portion of the funds that is not expended or accounted for. | FAM 2102 |
| Accountable Form | Any readily negotiable financial form (e.g. payroll cheques, travel or accommodation warrant) or non-financial form with pecuniary or other value after being completed and authorized (e.g. licenses, certificates, general receipt or invoice). Such a form needs to be carefully monitored and controlled due to inherent risk of loss of public money or property which may be caused [may be a result of] by an offence under Part X of the Financial Administration Act (e.g. fraud, bribery, theft, collusion, etc.) It is sequentially and uniquely pre-numbered and either pre-printed or electronically produced. |
FAM 2001 FAM 2905 |
| Accountable Form Custodian | A Government employee responsible to order, store, distribute, record and report accountable forms. | FAM 2905 |
| Accounting Officer | A public officer or service contractor designated as an accounting officer by a Minister or the Minister's delegate with the approval of the Comptroller General or the Financial Management Board, in accordance with Section 40(1) of the Financial Administration Act. | FAM 1802 |
| Accounting Period | The period of time for which financial statements are prepared regularly (e.g. month, quarter, year). | FAM 2201 |
| Accounting Policies | Specific policies for recording accounting information and determining appropriate accounting treatments for transactions. | FAM 1501 |
| Accounting Policies | The specific accounting principles followed by an organization and the procedures for applying those principles. | FAM 2201 |
| Accounting Records | The formal books of account and supporting documentary evidence. | FAM 2201 |
| Accounting Systems | Any system, both manual and computerized, that account, control, or support any or all of the following: revenues, including tax revenue, receipts for goods and services, transfer payments from other jurisdictions, grants received by the Government or gifts; expenditures, including payments for goods and services, grant payments, tax expenditures and tax credits, or transfer payments to other parties; assets, including fixed assets, inventories of goods for consumption or sale, investments, land, accounts receivable, assets held in trust by the Government for other parties; and· liabilities, including accounts payable, amounts borrowed, and pension fund liabilities or liabilities relating to assets held in trust by the Government. |
FAM 1601 FAM 1831 FAM 2102 FAM 2303 |
| Accrual Accounting | The accounting entries are made and the appropriation is charged when goods or services are received. The entries record the receipt of the asset or service and record the liability of the Government to pay for these goods and services. | FAM 1601 |
| Accumulated Amortization | The total to date of the periodic amortization charges relating to Tangible Capital Assets since the assets were placed in use. | FAM 2201 |
| Acquisition Date |
The earliest of:
|
FAM 2201 |
| Activity | A subdivision of an item. | FAM 1401 |
| Advisory Board | The responsibility of an Advisory Board is to provide advice to Government of the Northwest Territories departments. Advice may have political, economic, environmental or social impacts on Northwest Territories organizations and residents; however, the responsible department ultimately does the decision-making. Note: All boards are assumed to be advisory only, unless specifically classified by the Executive Council as a regulatory/complex or a complex commercial board. | FAM 1818 |
| Allowance | A stipulated amount paid to an employee or agent under an arrangement in respect of expenses regardless of the expenses actually incurred. | FAM 2001 |
| Allowance of Doubtful Accounts | The best estimate of the amount of a debt, for which there is not reasonable assurance of collection considering all relevant factors. The allowance provides for a valuation of receivables at their net realizable value. It does not represent a write-off of the accounts receivable. | FAM 2702 |
| Amortization | The writing off, in a rational and systematic manner over an appropriate number of accounting periods, of a balance in an account. | FAM 2201 |
| Appropriation | A budget approved by the Legislative Assembly through enactment that permits obligations to be incurred and expenditures to be made. Appropriations are usually made for fixed amounts and are typically for a period of one year. Every expenditure requires the authority of an enactment. | FAM 1401 |
| Appropriation | The authority contained in an Act to incur an expenditure. | FAM 2201 |
| Asset | A resource that is controlled by the Government as a result of past events and from which future economic benefits are expected. | FAM 1501 |
| Asset | “Assets are economic resources controlled by an entity [the Government] as a result of past transactions or events and from which future economic benefits may be obtained. They embody a future benefit that involves the capacity to contribute directly or indirectly to future cash flows or in the case of non-profit organizations to provide services.” (CICA Handbook, Section 1000.32) Note: An asset may be cash, physical property, intellectual property, or the right to use property. A transfer of the right to use property is a transfer of an asset. | FAM 1905 |
| Assignee | A person being assigned the right to receive the payment of a debt owed to another person. | FAM 3105 |
| Assignment | A transfer, from one person to another, of the right to receive the payment of a debt. | FAM 3105 |
| Assignor | A person assigning to another person the right to receive the payment of a debt. | FAM 3105 |
| Benefit | A given or granted item or service of value to the recipient. | FAM 2004 |
| Bequest | A gift to the Government or its agencies by last will or testament of personal property. | FAM 2301 |
| Betterment |
An expenditure directly related to an existing Tangible Capital Asset that meets the Tangible Capital Asset threshold and enhances the service potential of that existing Tangible Capital Asset by:
|
FAM 2201 |
| Blanket Commitment | A general commitment that separates funds from the free balance of a budget and reserves the funds for one or more anticipated future expenditures for a particular purpose. | FAM 1701 |
| Board | The Financial Management Board established by Section 3(1) of the Financial Administration Act. | FAM 1042 |
| Business Incentive Policy (BIP) | The Business Incentive Policy of the Government of the Northwest Territories, as amended from time to time, that provides incentives to northern businesses and includes any directives issued pursuant to that policy. | FAM 1808 |
| Business Plan | An annual departmental financial and management plan that includes long-term goals, strategies, objectives, anticipated outcomes and resource requirements. (This definition applies to this directive only and does not direct the content of business plans). | FAM 1401 |
| Business Purposes | A direct or indirect positive impact on a departmental or governmental policy objective by permitting the non-government passenger to travel on the charter flight (for example; a speaker at a Government sponsored event is permitted to travel on the charter). | FAM 3307 |
| Business Transaction | Any event, condition, action or commitment, the result of which is the acquisition, disposition or use of assets or resources; the increase or reduction in a liability; the receipt or payment of funds; or the provision of services for which a client is charged. Business transactions occur commonly in, but are not limited to, such diverse areas as finance, administration, personnel, contracts, and program management. Business transactions may also include formal approvals or authorizations. | FAM 1604 |
| Capable of Delegation | A power or duty, the state of being able to be delegated legally. Section 13 of the Financial Administration Act permits the Financial Management Board to “delegate to a public officer any power or duty of the Board, under this Act, that is prescribed as being capable of delegation.” Under the Interpretation Act, which applies to all Acts, “prescribed” means prescribed by regulation, so a regulation must be created in order for the Financial Management Board to delegate any of its own powers or duties legally. Ministers and the Comptroller General may delegate any of their powers and duties to a public officer. However, that officer may not in turn sub delegate to another person a power or duty of a Minister or the Comptroller General unless authorized to do so by the terms of the original delegation. | FAM 1801 |
| Capital Lease | A debt incurred to acquire a Tangible Capital Asset with a useful life extending beyond an accounting period, and held under lease by government for use, on a continuing basis, in the production or supply of goods and services. Under the terms and conditions of the lease, substantially all the benefits and risks incident to ownership are, in substance, transferred to the government without necessarily transferring legal ownership. | FAM 1401 |
| Capital Lease | A lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of property to the lessee. | FAM 2201 |
| Central Accounting Forms |
Forms used to authorize, process and record financial transactions common throughout the Government. Examples are: a) Accommodation Warrants; b) Cheques; c) Credit Notes; d) General Receipts; e) Interim Receipts; g) Manual Invoices; and h) Travel Warrants. |
FAM 2906 |
| Central Accounting Systems | Government-wide accounting systems that are established and maintained by the Comptroller General. | FAM 1604 |
| Charge Account | The arrangement between a supplier and a customer that allows the customer to obtain goods or services on stipulated credit terms. | FAM 1808 |
| Chargeback | A method of allocating the cost of a service to the user of the service. | FAM 1705 |
| Client | The party for whose primary benefit a Government expenditure is made. The client must be either the public or the Government itself. The Government is the client when the expenditure only benefits the internal operation of the Government and cannot be attributed to specific public benefits. | FAM 1704 |
| Commercial Accommodation | A licensed hotel, motel or housekeeping accommodation at established rates. | FAM 2001 |
| Commitment Accounting | The accounting entries are made and the appropriation is charged when a contract is entered into or when an order is placed for goods or services. The entries record the amount to be reserved out of the unencumbered balance remaining in an appropriation in order to honour the commitment. | FAM 1701 |
| Commitment Authority | An accounting officer's delegated authority to commit appropriated funds or revolving funds to an expenditure. | FAM 1701 |
| Commitment Certification | Signed certification by an accounting officer that the conditions setout in Section 44(1)(b) of the Financial Administration Act have been met, in order that an expenditure may be incurred legally. These conditions include the existence of sufficient uncommitted funds for the expenditure. The accounting officer's signature must follow initiation certification by an expenditure officer. By signing, the accounting officer exercises payment authority, commitment authority or both. | FAM 1802 |
| Common Service Group | A specialized or centralized agency within the Government providing a service to other units within the Government. | FAM 1705 |
| Competitive Contracts | Public tenders, as well as Requests for Proposals, which are presented before the public to bid on. | FAM 3401 |
| Complex Commercial Board | Make decisions and/or judgments which require specific qualifications or technical expertise; decisions are made with limited precedent; and; decisions have a direct economic impact on Northwest Territories residents (including the setting of fees, rates, etc.) and consequences or results of decisions and/or judgments may have political, environmental or social impacts on Northwest Territories organizations and residents. | FAM 1818 |
| Comptroller General | The Comptroller General appointed under Section 12(1) of the Financial Administration Act. | FAM 1042 |
| Computer Access | The ability to use the computer to report stored information, or to process new information. This includes the ability to use the computer directly through a terminal or to request computer processing through the Computer Services and Technical Support Section. | FAM 1602 |
| Computer Service |
Computer Services generally include: a) operation of computers and computing equipment; b) identification of computing equipment and system software appropriate to requirements; c) acquisition and installation of computing equipment and system software; d) maintenance of computing equipment and system software; e) distribution of reports and other media; f) management of media libraries including magnetic tape, disks and diskettes; g) management of the physical environment necessary for effective and reliable operation of computers and computing equipment; h) providing advice on the effective and efficient use of computers, computing equipment and systems software; i) analysis of information processing requirements, procedures and facilities; j) designing, programming and testing of computer-based information processing systems; k) implementing computer-based information processing systems; and l) developing such standards as may be of advantage in providing the above. |
FAM 1603 |
| Computer System | A set of computers, computing equipment, programs and procedures designed to accomplish a specific major goal. For example, Payroll processing is accomplished by the Payroll Computer System. | FAM 1602 |
| Computer/ Computing Equipment | Any equipment, with an aggregate value exceeding $500, which is capable of accepting information, processing the supplied information according to internally-stored instructions and presenting the information resulting from this processing. The stored instructions must be capable of being altered using means integral to the computer. Facilities for the selection, loading and execution of individual sets of instructions must also be available. Computer/Computing equipment includes all other associated electronic equipment that must be electrically connected to a computer in order to perform its designed functions. | FAM 1603 |
| Conditional Assignment | An assignment to be acted on only under a specified condition, e.g. default by the assignor. | FAM 3105 |
| Confirmation of Contract Performance | A signed certification by an expenditure officer that the applicable conditions set out in Section 49(2)(a) of the Financial Administration Act have been met, in order that a disbursement may be made legally. By signing this confirmation, the expenditure officer exercises expenditure authority. For example, as a contribution agreement is a contract, an expenditure officer must certify the fulfillment of the disbursement recipient's contractual obligations to the Government as a condition of every contribution payment disbursed under the agreement. | FAM 1802 |
| Contribution | A conditional transfer of approved funds to a third party to fulfill a statutory obligation or other Government objective which will conclude within one year or extend beyond one year. | FAM 1901 |
| Consolidate | To apply the consolidation accounting process set out in the Public Sector Accounting Board Handbook for disclosure of the financial and operating history of the consolidated reporting entity of the Government. | FAM 1501 |
| Consolidated Reporting Entity of the Government | The combined set of Government owned or controlled departments, public agencies, funds, and enterprises that are accountable to a Minister of the Government or to the Legislative Assembly for the administration of their financial affairs and resources. The Comptroller General may exclude from the set any department, public agency, fund, or enterprise if its inclusion would result in misleading or inconsistent reporting. | FAM 1501 |
| Construction | Work to build, supply, repair, renovate, restore, maintain or demolish a structure and the hiring of equipment necessary for that work. |
FAM 2201 FAM 3301 |
| Contract Authority | A person who has been designated as an expenditure authority under Section 40 of the Financial Administration Act and the Government Contract Regulations, such as a Minister, Deputy Minister or public officer delegated the powers and duties of a contract authority. No person other than a contract authority or the Executive Council may enter into a contract on behalf of the Government. A contract authority must also be an expenditure officer. |
FAM 1802 FAM 3301 FAM 3304 FAM 3306 |
| Control Fund | A free balance checking to prevent over expenditure. | FAM 1705 |
| Control Object | A specified category within an expenditure vote or revenue budget. For example, “Compensation and Benefits” within the Operations Expenditure vote. | FAM 1401 |
| Controllable Asset |
An identifiable item that: a) has a normal life expectancy of one year or longer, b) is not consumable except through normal wear and tear; c) does not lose its identity or become an integral part of an item except where the item increases the number, value, original specifications or life expectancy of an existing item owned or operated by the Government; d) is for use in operations and not for resale; e) possesses physical substance unlike intangible assets such as patents and goodwill; f) is procured, issued and replaced on a basis of departmental acquisition programs (for example, computer equipment, furniture, vehicles and outboard motors); g) has an acquisition cost of:
h) does not exceed the threshold value of $50,000 (which would cause it to be classified as a tangible capital asset) and, i) future economic benefits associated with the asset are likely to be received. |
FAM 2301 |
| Corporate Purchase Credit Card | A credit card issued under an approved agreement between the Government and a selected credit card company, specifically for purchasing items to be used directly by the Government, e.g., goods, transportation services, computer services, and communication services. |
FAM 2001 FAM 1808 |
| Cost | The amount of consideration given up to acquire, construct, develop or better a Tangible Capital Asset, and includes all costs directly attributed to acquisition, construction, development, or betterment of the Tangible Capital Asset, including installing it at the location and in the condition necessary for its intended use. The cost of a contributed tangible asset is considered to be equal to its fair market value at the date of contribution. | FAM 2202 |
| Cost Shared Arrangement | A funding agreement between the Government and a third party where funding is normally provided by a third party in support of an approved program, project or service that is within the Government's mandate and supported by approved appropriations. These agreements are usually are not fully funded by the third party. Funding levels vary depending on the agreement reached, but it is generally expected that the Government's investment is significant in relation to the funding provided by the third party. On rare occasions, the Government of the Northwest Territories may choose to contribute (cost share) a program, project or service that is outside its mandate but this should only occur where the broad public benefit is very significant, the program, project or service would not occur without Government of the Northwest Territories contributions, and no ongoing commitments fall to the Government of the Northwest Territories. | FAM 1410 |
| Debt | An owed obligation; owed money; some other valuable thing or things to the Government and is recorded in its accounts. |
FAM 2702 FAM 3105 |
| Debt Interest | Actual or accrued interest on short and long-term debt, or interest on short and long-term debt that is expected to be incurred by the Government for Government debt during the fiscal year(s) for which approval for borrowing is sought. | FAM 1405 |
| Debt per Capita | Government debt divided by capita; a measure of the debt burden on a per person basis; a decreasing ratio reflects a decreasing debt burden, hence a positive indicator. | FAM 1405 |
| Debt Servicing Costs ("Interest Bite") | Non-consolidated debt interest plus incidental costs associated with the administration of non-consolidated debt less the investment income from sinking funds on non-consolidated debt; in the case of the Northwest Territories, debt interest plus incidental costs associated with the administration of debt less the investment income from sinking funds where, for the purposes of Financial Administration Manual Policy 1405 – Performance Measurement Criteria, debt servicing costs excludes the amount paid on any guaranteed debt of Public Agencies as specified in Schedule A of the Financial Administration Act, or Territorial corporations specified in Schedules B or C of the Financial Administration Act. | FAM 1405 |
| Debt Servicing Costs as a % of Expenditures | The measure of Government expenditures on debt servicing costs divided by total Government expenditures; a measure of the extent to which public funds could otherwise be spent on programs and services; an indicator of whether the Government is living within its means. | FAM 1405 |
| Debt Servicing Costs as a % of Revenue | The measure of Government expenditures on debt servicing costs divided by Government revenues; an indicator of the extent to which revenues are being applied to debt charges rather than to programs and services, or resources that could otherwise be devoted to reducing taxes: the “crowding out” effect or “interest bite”; an indicator of whether the Government is living within its means. | FAM 1405 |
| Debt Servicing Payments | Basic debt or principal repayments, in addition to debt servicing costs, by the Government on non-consolidated Government debt; in the case of the Northwest Territories, basic debt or principal repayments, in addition to debt servicing costs, on Government debt where, for the purposes of Financial Administration Manual Policy 1405 - Performance Measurement Criteria, debt servicing payments excludes the amount of any guaranteed debt of Public Agencies as specified in Schedule A of the Financial Administration Act, or Territorial corporations specified in Schedules B or C of the Financial Administration Act. | FAM 1405 |
| Debt to Revenue | Government debt divided by Government revenue; an indicator of the number of years to repay the debt; decreasing ratios are a positive indicator that the rate of increase in revenue exceeds the rate of increase in debt. | FAM 1405 |
| Deferred Capital Contribution | When the fair value has been capitalized for acquisitions transferred with title to the Government - an offset is recorded as a “deferred capital contribution”. Deferred revenue is also the result of assets that have been cost-shared by other governments and the title remains with the Government of the Northwest Territories. The portion of the asset cost contributed by a third party is included in “deferred capital contributions”. | FAM 2201 |
| Definition | Definitions set out the meaning of a word or phrase used in a particular policy, directive, or Financial Administration Manual procedure. Definitions are only required to define any term or phase, which may be subject to interpretation or for which a certain definition is integral to the meaning and intention of the policy, directive, or Financial Administration Manual procedure. | FAM 1040 |
| Delegate (noun) | A person or position to whom a delegator may pass powers and duties. | FAM 1801 |
| Delegate (verb) | To pass particular powers and duties to another public officer or class of public officers. | FAM 1801 |
| Delegation | The act of authorizing a public officer to exercise a specific and limited power or duty on behalf of the delegator, in accordance with the Financial Administration Act. | FAM 1801 |
| Delegator | A group or individual, e.g. the Financial Management Board, a Minister, the Comptroller General, a Deputy Minister, a Director of Finance, or a Chief Executive Officer of a public agency, who has authority to delegate powers and duties. | FAM 1801 |
| Delinquent Account Receivable | A receivable which remains uncollected for ninety-one (91) or more calendar days past the invoice date and for which three (3) collection attempts have been made subsequent to the invoice. | FAM 3102 |
| Departmental/ Agency Representative | A Public Officer from each Department/Agency who has been designated to collect and provide procurement information, data and change order(s) to the BIP Monitoring Office located in the Department of Industry, Tourism and Investment. | FAM 3401 |
| Department-Specific Accountable Forms | Licenses, permits and registration and filing forms unique to programs and services offered by a department. | FAM 2907 |
| Directives | A written statement of specific action to be followed in carrying out the policy of the Government, issued under the authority/provisions of the Financial Administration Act. A directive under the authority of the Financial Administration Act communicates in a prescribed way the Financial Management Board and/or the Comptroller General's required set of actions or particular conditions that must be met. A directive could also be a procedure, but is distinguished from it simply as a result of being published in a higher-level authoritative instrument (usually the Financial Administration Manual). Directives may go into detail by way of related Financial Administration Manual procedures. Other directives that may be issued by the Financial Management Board, Minister of Finance, or Comptroller General from time to time are distinguished from Financial Administration Manual directives by the fact that they deal with a specific event, episode, experience, occurrence, or incidence. | FAM 1041 |
| Direct Deposit | A service, which the Government provides to individuals or organizations to have payments (vendor payments, loans, grants, contributions, travel advances, etc.), electronically deposited to a specified bank account. |
FAM 1807 FAM 1813 |
| Disbursement | A payment or transfer of money from the Consolidated Revenue Fund (CRF) or a special purpose fund. (The Government currently includes special purpose funds within the CRF.) A disbursement is not necessarily made in respect of an expenditure. Some are recorded as reductions in revenue, do not require an enactment, and do not reduce the free balance of an appropriation. | FAM 1802 |
| Disbursement made in respect to an expenditure | Payment or transfer of money from the Consolidated Revenue Fund or a special purpose fund bank account that requires an appropriation. | FAM 2909 |
| Disbursement not made in respect to an expenditure | Payment or transfer of money from the Consolidated Revenue Fund or a special purpose fund bank account that does not require an appropriation. | FAM 1818 |
| Disposal | The processes involved in the removal of personal property from use and from the property accounting system after assignment for utilization, donation, sale, abandonment, or destruction. | FAM 2201 |
| Draw-down | A reduction in stock, which is offset by revenue. | FAM 1701 |
| Duty Travel | Travel to carry out activities on behalf of the Government, not including travel for medical treatment of the traveler. | FAM 2001 |
| Duty Traveler | Any person (not necessarily a Government employee) on authorized duty travel. | FAM 2001 |
| Economy Air Travel | Moderately priced air travel at excursion, discount and regular fares - not higher priced travel such as first class or business class. | FAM 2001 |
| Elder | For the purposes of Financial Administration Manual Policy 1819, any person recognized by an aboriginal community as having knowledge and understanding of the traditional culture of the community, including physical manifestations of the culture of the people and their spiritual and social traditions. Knowledge and wisdom, coupled with the recognition and respect of the people of the community, are the essential defining characteristics of an elder. Some elders may have additional attributes, such as those of a traditional healer. Elders may be identified as such by aboriginal communities only. | FAM 1819 |
| Electronic Fund Transfer | A service, which the Government provides to individuals or organizations to have funds, transferred electronically to a specified bank account. |
FAM 1807 FAM 1813 FAM 2911 |
| Electronic Record | A financial record in electronic form, e.g. in media such as computer memory, computer disc, magnetic tape, visual recording, etc. | FAM 1802 |
| Electronically Produced Accountable Forms |
Accountable forms as described in Financial Administration Manual Policy 2909 and issued through computers or computer systems. Computers may produce such forms by: a) electronically adding variable data to pre-printed, pre-numbered blank stock forms; or, b) generating pre-numbered forms and variable data together on blank paper (i.e. the numerical sequence of the forms and the form itself is generated by the computer system). |
FAM 2909 |
| Employee | An employee of a Government department or other organization defined in the Financial Administration Act as a public agency. | FAM 2914 |
| Employer | For the purposes of Financial Administration Manual Policy 3306, the employer is the Government of the Northwest Territories and the public agencies listed in Schedules A, B, and C of the Financial Administration Act, excluding the Northwest Territories Power Corporation and the Workers' Compensation Board. | FAM 3306 |
| Employer Contract | A contract that exists where there is an employer/employee relationship between the employer and the worker performing the contract work. Refer to Appendices 'A' and 'B' of Financial Administration Manual Policy 3306 for assistance in determining whether the relationship is an employer/employee relationship (employment contract) or an independent relationship (service contract). | FAM 3306 |
| Employment Contract | An employer/employee relationship. Financial Administration Manual Policy 3306 provides direction on distinguishing between employment and other contracts. | FAM 3301 |
| Equity | Residual interest in the assets of the Government after deduction of liabilities. | FAM 1501 |
| Estimated Cost | A costing method in which the recorded costs of production are initially based on estimated costs and adjusted later for any differences between estimated and actual as a betterment. | FAM 2201 |
| Estimated Cost System | A costing method in which the recorded costs of production are initially based on estimated costs and adjusted later for any differences between estimated and actual. (CICA Handbook, Section 58) | FAM 2201 |
| Estimates | The annual estimates of expenditures and public revenues of the Government. (Financial Administration Act, Section 1). |
FAM 1201 FAM 1401 FAM 1402 FAM 1403 FAM 1404 FAM 1406 FAM 1407 FAM 1409 |
| Exception Report | A computer generated report that identifies errors, deviations or transactions requiring investigation. Such reports may be produced on request or in response to pre-determined conditions to highlight exceptions from the usual or anticipated situation. | FAM 2909 |
| Excluded Board | For the purposes of honoraria rates, a board whose enabling legislation specifically addresses the board's establishment and remuneration. | FAM 1818 |
| Excluded Individual | An individual appointment provided for in a separate enactment (i.e. other than the Financial Administration Act), which specifically addresses the individual's appointment and remuneration. | FAM 1819 |
| Expenditure | A cost to the Government incurred to provide for a known or estimated liability or loss. Expenditures include contracts to purchase goods and services; operations, maintenance and capital purchases; salaries and wages; grants, contributions, grants-in-kind and payments to public agencies. Every expenditure must be made pursuant to an appropriation under the authority of an enactment and must be charged against a vote, item and activity. | FAM 1802 |
| Expenditure | “A cost of the Government, incurred to provide for a known or estimated liability or loss.” (Financial Administration Act) Note: The CICA Handbook, Paragraph 1000.38, uses a similar definition for the term “expenses”. It says “Expenses are decreases in economic resources either by way of out flows or reductions of assets or incurrences of liabilities resulting from an entity’s ordinary revenue generating or service delivery activities.” By these definitions, the terms “expenditure” and “expense” appear to be somewhat interchangeable but, in the Government, “expense” refers to that part of an expenditure that is accrued to a particular fiscal year. An expenditure spanning more than one fiscal year is divided into separate “expenses” for each year. | FAM 1905 |
| Expenditure Authority | The authority of an expenditure officer to sign initiation certification and confirmation of contract performance and price as set out in Sections 44 and 49 of the Financial Administration Act. Note: The term “spending authority” appears in signature blocks on some internal control forms that relate to expenditures and disbursements. “Spending authority” is usually exercised by someone with expenditure authority, but not always. Because “spending authority” may include financial authorities other than initiation certification and confirmation of contract performance and price, a signing officer might have “spending authority” without having expenditure authority. For example, the officer may have authority to approve General Ledger Account entries and adjustments such as reallocating costs for past disbursements, but no authority to initiate expenditures or approve disbursements. | FAM 1802 |
| Expenditure Officer | A Minister, a public officer or a service contractor designated as an expenditure officer by a Minister or the Minister's delegate in accordance with Section 40(1) of the Financial Administration Act. | FAM 1802 |
| Expense | A cost properly identifiable with the operations of a period or with revenues earned during that period or that is not identifiable with the operations or revenues of a future period or periods. | FAM 2201 |
| Fair Market Value | The value that would be agreed upon in an open and unrestricted market by informed parties dealing at arm's length over an existing asset or an asset to be delivered or created at a particular location. | FAM 1905 |
| Fair Value | The amount of consideration that would be agreed upon in an arm's length transaction between knowledgeable, willing parties who are under no compulsion to act. | FAM 2201 |
| FAM Procedure | A uniformly followed, orderly, logical, or systematic way set down in recorded instructions (usually in steps) containing a series of activities, tasks, steps, decisions, calculations and other processes, that when undertaken in the sequence laid down produces a described result, product or outcome. It elaborates on and details out related directives. | FAM 1040 |
| Financial Signing Authorities Spreadsheet | The instrument used to record the designation of positions to be held by accounting officers and expenditure officers. For a sample and instructions, refer to the Financial Information Systems Procedures Manual. | FAM 1802 |
| Float | Cash used in making change where the Government receives cash revenue, e.g. for licenses and fees. | FAM 1706 |
| Forgivable Loan | A loan granted by the government or an organization, which the lender is committed to forgive if certain conditions are met by the borrower. | FAM 3101 |
| Forgiveness | The deletion of all or part of a debt that is rightfully due to the Government. Forgiveness cancels the debt and the Government's right to collect. Forgiveness shall not apply to a debt resulting from a tax or penalty. For a tax or penalty, remission is required. | FAM 2702 |
| Formal Invitation to Tender | A written invitation to tender in which the format and the nature of the tender are stipulated. | FAM 3302 |
| Free Balances | An unencumbered balance available in an appropriation, which normally consists of the budget amount minus commitments and expenditures. |
FAM 1102 FAM 1408 FAM 1901 FAM 1905 |
| Full Consolidation Method | An accounting method in which the asset, liability, revenue, and expenditure accounts of separate component entities of a consolidated reporting entity of the Government are combined. Inter-entity transactions and balances are eliminated and the effects of differing accounting policies among the component entities are adjusted according to a single policy for the consolidated entity. | FAM 1501 |
| Fund Control | A free balance checking to prevent over expenditure. | FAM 1705 |
| Gross Domestic Product (GDP) | The current dollar Gross Domestic Product of the province; in the case of the Northwest Territories, a Gross Domestic Product 3-year moving average shall be used. | FAM 1405 |
| GDP 3-year Moving Average | The average of the current dollar Gross Domestic Product for the three most recent calendar years; where the 3-year moving average will smooth the fluctuations in the volatile Gross Domestic Product of the Northwest Territories. | FAM 1405 |
| General Ledger Accounts | Specific (perpetual or nominal) asset and liability/equity accounts within the Government‟s balance sheet. | FAM 1802 |
| General Obligation Debenture | A debt instrument issued by a municipal corporation and secured by municipal general revenues. The ratepayers must approve the issue of a general obligation debenture. | FAM 2108 |
| Gift | A given or granted item or benefit provided to a person. | FAM 2004 |
| Gift-in-Kind | Such things as capital property, depreciable property and personal use property including listed personal property. However, a gift-in-kind does not include a gift of services. | FAM 2004 |
| Goods | Materials, goods or equipment, whether in existence or not at the time of the contract. |
FAM 3301 FAM 3304 |
| Government Debt | Non-consolidated Government debt. In the case of the Northwest Territories, Government debt, excluding the amount of any guaranteed debt of Public Agencies as specified in Schedule A of the Financial Administration Act, or Territorial corporations specified in Schedules B or C of the Financial Administration Act. | FAM 1405 |
| Government Entity | The combined set of Government owned or controlled departments, public agencies, funds, and enterprises that are accountable to a Minister of the Government or to the Legislative Assembly for the administration of their financial affairs or resources. The Comptroller General may exclude from the set any department, public agency, fund, or enterprise if its inclusion would result in misleading or inconsistent reporting. | FAM 2201 |
| Government Expenditures | Non-consolidated expenditures of the Government. | FAM 1405 |
| Government Net Debt | Net financial resources, or the excess of liabilities over financial assets; a first indicator of the financial position or sustainability of the Government and its ability to finance activities and meet obligations. | FAM 1405 |
| Government Revenue | Non-consolidated revenue of the Government. | FAM 1405 |
| Government Travel Credit Card | A credit card from the Government's approved travel credit card company, issued to a frequent duty traveler for exclusive personal use in purchasing duty travel transportation, accommodation and officially approved hospitality. | FAM 2001 |
| Government Travel Charge Number | A charge account number issued to a department or public agency by the Government's approved travel credit card company for general use in purchasing transportation, accommodation and officially approved hospitality for infrequent duty travelers. |
FAM 1808 FAM 2001 |
| Grant | An essentially unconditional transfer of appropriated funds to another party for a specified purpose. | FAM 1819 |
| Grant-in-Kind | An expenditure in the form of a transfer to another party of a Government asset other than cash in exchange for nominal or no consideration, or for consideration with less than fair market value. The other party is not accountable to the Government for its use of the asset. | FAM 1905 |
| Guidelines | A detailed plan or explanation that guides in setting standards or determining a course of action. Guidelines are an official recommendation indicating how to do something or the action to take in a particular circumstance. Guidelines must normally be followed unless there are valid reasons to do otherwise. | FAM 1041 |
| Heritage Assets | Assets to be preserved for future generations for cultural, aesthetic, environmental or historical reasons, ranging from historic buildings and treasures through works of art. Heritage assets are not recognized as Tangible Capital Assets in the Government‟s financial statements because a reasonable estimate of future benefits associated with such property cannot be made. | FAM 2201 |
| Heritage Assets (Multi-use) | Assets that provide reminders of a heritage while being used in day-to-day Government operations unrelated to the assets themselves. Any betterments or costs to reconstruct such assets that are directly related to operations are tangible capital assets to be amortized over the remaining operational life of the overall asset. | FAM 2201 |
| Holdback | A portion of the progress billings called for under the terms of contract is not payable to the contractor until the contract has been completed and all subcontractors have been paid by contractor. (CICA Handbook, Section 170) |
FAM 1101 FAM 1501 FAM 1803 FAM 1805 |
| Home | A duty traveler's principal residence, whether temporary, seasonal or permanent. | FAM 2001 |
| Honorarium | Monetary payment given to a person for services for which fees are not traditionally required. All honoraria payments are considered taxable income under the Income Tax Act of Canada. | FAM 1818 |
| Hospitality | Food, entertainment and other benefits provided to the recipient at no cost or less than full cost, including, but not limited to, such items as tickets to sports and performance events. Hospitality does not include purchases under the entertainment allowances of senior public officers or the Chief Executive Officer of the NWT Business Development and Investment Corporation, meals and refreshments (non-alcoholic beverages, snacks, etc.) provided to staff within regular employment, duty travel meals, officially approved gifts and celebrations in recognition of staff service. |
FAM 1808 FAM 2001 FAM 2004 |
| Immediate Vicinity | In small communities, the community itself; or in larger communities, areas where parking circumstances are similar. | FAM 2914 |
| Improved Property | Any land which has buildings or works or which has had work done to it by the Department of Public Works and Services. | FAM 3559 |
| Inactive Project | A project that has remained dormant during the current fiscal year and has no budget allocated in the capital budget plan. | FAM 2201 |
| Incidental | Reimbursable minor purchases on duty travel, e.g. gratuities, local phone calls, etc. |
FAM 1808 FAM 2001 |
| Indemnity | An undertaking given by the Government or an agent of the Government to hold harmless any person for loss to which that person is subject, and does not include a guarantee. (Financial Administration Act, Section 1) | FAM 3301 |
| Individual Appointment | One person who has been appointed or authorized by Ministerial, Executive or Legislative authority to provide a public service solely as an individual for a limited period and for which wages or a salary is not typically paid. | FAM 1819 |
| Infrastructure Carry-over | The portion of an infrastructure appropriation (Operations Expense or Capital Investment) approved in a fiscal year, which owing to construction or other delays, could not be expended within a fiscal year. | FAM 1408 |
| Infrastructure Projects | Those projects for which funding is appropriated as a capital investment expenditure or as an infrastructure contribution within the operations expenditure appropriations. | FAM 1407 |
| Initiation Certification | A signed certification by an expenditure officer, certifying that the conditions set out in Section 44(1)(a) of the Financial Administration Act have been met. This certification and the commitment certification of an accounting officer are both required in order for a Government expenditure to be incurred legally. By signing for initiation, the expenditure officer exercises expenditure authority. | FAM 1802 |
| Intangible Assets | Special rights, privileges, or competitive advantages that provide future benefits to the Government. Such assets lack physical substance and include items such as certain deferred charges, patents, copyrights, trademarks, and mineral rights. (CICA Handbook, Section 115) |
FAM 2201 FAM 2305 FAM 2301 |
| Interface Systems | A convention used to allow communication between two software systems. Often there is some intermediate component between the two systems that connects their interfaces together. It also includes a protocol of what or how unrelated objects use to communicate with each other. These are definitions of methods and values, which the objects agree upon in order to cooperate. | FAM 1604 |
| Internal Control Systems | Policies and procedures established and maintained by management to assist in achieving its objective of ensuring, as far as practical, the orderly and efficient conduct of the entity's business. |
FAM 1102 FAM 2301 FAM 3101 |
| Inventories |
Inventories consisting of such items as bulk fuel products, liquor, finished arts and crafts products, and other materials and supplies. Inventories of materials include: a) consumable operating supplies; b) goods in process of production; c) goods held for sale or re-issue; and d) goods on consignment. |
FAM 2303 |
| Inventory Control Log |
A perpetual paper or electronic record to: a) monitor and account for the order, purchase, receipt, storage, issue, and use of accountable forms; b) verify in numerical sequence the running balance of unused forms on hand; and, c) show who has the forms and where they are kept. |
FAM 2905 |
| Invitation to Tender | A solicitation of a tender in respect of a proposed contract by public advertisement or private invitation. |
FAM 3302 FAM 3102 |
| Item | A subdivision of a vote representing a department or organizational entity established by Cabinet to deliver programs and services in accordance with its establishment policy. | FAM 1401 |
| Joint-Project Agreements | Arrangements whereby the parties involved agree to participate jointly in the actual carrying out of a project. This would involve the sharing of resources, the purchase of goods or services, the hiring of personnel, and so on. | FAM 2101 |
| Joint Venture | A business undertaking entered into by two or more parties, where control and contribution of resources are shared on an agreed basis and that terminates upon completion of the objectives of the undertaking. (CICA Handbook, Section 120) | FAM 2101 |
| Journal Voucher | A document supporting an entry in a general journal. (CICA Handbook, Section 121) |
FAM 1601 FAM 2101 |
| Land Development Debenture | A debt instrument issued specifically for land development purposes. It may be a revenue debenture or combination revenue and general obligation debenture, depending on whether the debt is to be repaid strictly from project revenues or from project revenues combined with general tax revenues. If any part of the debt is to be repaid by general tax revenues, the ratepayers must approve the issue of the debenture. | FAM 2108 |
| Lease Term |
The fixed non-cancelable period of the lease, plus: a) all periods covered by bargain renewal options; b) all periods for which failure to renew would impose on the lessee a penalty sufficiently large that, at the inception of the lease, renewal appears reasonably assured; c) all periods covered by ordinary renewal options during which the lessee has undertaken to guarantee the lessor's debt related to the leased property; d) all periods covered by ordinary renewal options preceding the date on which a bargain purchase option is exercisable; and e) all periods representing renewals or extensions of the lease at the lessor's option; provided that the lease term does not extend beyond the date a bargain purchase option becomes exercisable. The lease term is considered to be non-cancelable if cancellation is possible only:
|
FAM 2201 |
| Leased Asset | An asset that has been leased by the Government for use, on a continuing basis, in the production or supply of goods and services. The lease may be an operating or capital lease, the determination of which is independent of the determination of an improvement to it resulting in a Tangible Capital Asset. | FAM 2201 |
| Leasehold Improvement | Additions, improvements or alterations made to leased property by the lessee that cannot be removed upon termination of the lease because they are attached to, or form part of, the leased premises. | FAM 2201 |
| Legal Services Contract | A contract for the performance of legal services (Government Contract Regulations). | FAM 3301 |
| Lessee | A party that holds a lease or using under lease an asset owned by another party. | FAM 2201 |
| Lessor | The owner of an asset who permits another party to use the asset under a lease. | FAM 2201 |
| Liability | An obligation of the Government arising from past events, the settlement of which is expected to result in an outflow of economic resources. | FAM 1501 |
| Licenses and Permits | Forms which grant rights or privileges to members of the public in the delivery of Government services and programs, usually in exchange for collected fees. | FAM 2907 |
| Line Authority | The authority to specify particular powers and duties to be exercised and performed by a subordinate officer and to hold that officer accountable for the exercise and performance of those powers and duties. | FAM 1801 |
| Liquidity | A quality possessed by a security which enables it to be sold quickly and without substantial price concession. | FAM 2323 |
| Loans | Any money owed to the Government that is evidenced by a promissory note. | FAM 2107 |
| Local Contract Authority | The power or duty to enter into a contract for the local procurement of goods and services, to a maximum value of $5,000. | FAM 3304 |
| Market Rate | The highest prevailing local private sector rental rate for parking space with the same amenities, e.g. electrical service, heat, cover, lighting, security, etc. | FAM 2914 |
| Meeting | An assembly of board members called for a specific intent. This includes teleconferences, videoconferences or other electronic means of communicating for the purpose of meeting. | FAM 1818 |
| Minister of Finance | The Minister responsible for the administration of the Financial Administration Act. | FAM 1042 |
| Modified Equity Method | The equity method of accounting, modified only to the extent that the accounting principles used by a consolidated business enterprise are not adjusted to conform with those of the Government. Refer to the Public Sector Accounting Board Handbook. | FAM 1501 |
| Money | Currency, cheques, bank drafts, money orders, and other negotiable instruments. | FAM 2904 |
| Multi-Year Contract | Any contract that requires construction or the supply of goods or services and the related expenditure in more than one fiscal year. | FAM 3301 |
| Negotiable Instrument | A bill of exchange, cheque, draft, money order, postal note, postal remittance, traveler's cheque and any other similar instruments. (Financial Administration Act, Section 1) |
FAM 2904 FAM 2905 |
| Net Book Value | The cost of a Tangible Capital Asset, less both accumulated amortization and the amount of any write-down. | FAM 2201 |
| Net Debt per Capita | Non-consolidated Government net debt divided by capita. | FAM 1405 |
| Non-Competitive Contracts | Only those contracts available by invitation or arranged with specific contractors. (e.g. negotiated, sole-source or Standing Offer Agreement) | FAM 3401 |
| Non-Financial Accountable Forms | Non-financial forms that have value because they grant rights or privileges or acknowledge credentials and therefore must be controlled and safeguarded like financial accountable forms. | FAM 2908 |
| Non-Government Party |
Means, for the purposes of Financial Administration Manual Policy 3307, passengers and/or individuals shipping goods (except Members of the Legislative Assembly, Northwest Territories Court Judges, or Government of the Northwest Territories contractors traveling on Government business) who are non-Government of the Northwest Territories employees, and:
|
FAM 3307 |
| Northern Business | A business eligible for registration under the Government's Business Incentive Policy. | FAM 1804 |
| Official Vehicle | A vehicle used by a Government department or public agency in the delivery of Government programs or services, including:· a vehicle owned by the Government;· a private vehicle belonging to an on-call employee who is required to arrive quickly at the workplace, e.g. emergency medical or maintenance staff; and,· a vehicle owned by or supplied to an employee who is required to use that vehicle in the performance of duty as an employee | FAM 2914 |
| One-Time Contribution | A conditional transfer of appropriated funds to a third party to fulfill a statutory obligation or other Government objective which will be concluded within one year. | FAM 1819 |
| Ongoing Contribution | A conditional transfer of appropriated funds to a third party to fulfill a statutory obligation or other Government objective which will extend beyond one year. | FAM 1819 |
| Operations and Maintenance |
Expenditures that are: a) expenditures other than capital and grants; and b) expenditures incurred in carrying out current operations of an enterprise. |
FAM 2201 FAM 1701 FAM 2101 |
| Overdue Receivable | A receivable which remains uncollected up to ninety (90) calendar days past the invoice date and for which two collection attempts have been made subsequent to the invoice. | FAM 3102 |
| Parking Space |
A space for vehicle parking that: a) is controlled by a department or public agency of the Government· meets local standards for size and location of vehicle parking;· b) is clearly identified and maintained as vehicle parking space, e.g., through signs, marked or implied boundaries, snow removal, surface maintenance, etc.; c) might or might not be served by amenities such as electrical service, heat, cover, lighting, security, etc; and, d) is identifiable as parking space within an inventory of leased or owned real property and is available to the responsible department or public agency for parking use |
FAM 2914 |
| Payment Authority | The authority of an accounting officer to sign commitment certification and payment certification as set out in Sections 44 and 49 of the Financial Administration Act. | FAM 1802 |
| Payment Certification | Certification by an accounting officer that the conditions set out in Section 49(2)(b) of the Financial Administration Act have been met, in order that a disbursement may be made legally. By signing payment certification, the accounting officer exercises payment authority, commitment authority, or both. | FAM 1802 |
| Payment Requisition | The act of ordering payment of an account by disbursement through paper cheque or electronic transfer. | FAM 1803 |
| Penalty | A penalty, forfeiture or fine payable as the result of the contravention of an enactment concerning the collection of public revenue. | FAM 2702 |
| Person | Any entity including an individual, corporation, joint venture or society, defined in law as a person. | FAM 3105 |
| Petty Cash Custodian | An approved public officer appointed to solely operate, safeguard and make disbursements from a petty cash fund. | FAM 1706 |
| Petty Cash Fund | A specified amount of cash on hand to be used for essential and immediate purchases and floats only. Funds placed in a petty cash fund must be accounted for as an advance. | FAM 1706 |
| Policy | Those policies established pursuant to Section 4.1(a) of the Financial Administration Act as approved by the Financial Management Board and Chairperson and contained in the Financial Administration Manual. The Financial Management Board shall act on all matters related to the financial management and financial administration of the Government in respect of accounting and budgeting policies. The Chairman of the Financial Management Board shall have charge of and be responsible for developing financial and contract policies, systems and procedures required in support of government operations (Financial Management Board Secretariat Establishment Policy 4(2)(a)). | FAM 1041 |
| Population (for “per capita” calculation) | The July 1 population estimate by Statistics Canada. | FAM 1405 |
| Preparation Time | The time required to prepare for or work on board business, not including attending formal meetings. Preparation time includes, major research, writing of a report, additional consultations, incidental meetings or travel time related to the business of the board. | FAM 1818 |
| Private Accommodation | Non-commercial accommodation, including campgrounds. | FAM 2001 |
| Private Sector | The aggregate of all businesses registered in the Northwest Territories and eligible under the Business Incentive Policy other than those owned or controlled by governments. | FAM 3559 |
| Privatization | A process where it is arranged that Government programs, services or enterprises are delivered by the private sector. | FAM 3559 |
| Procedure | A uniformly followed orderly, logical, or systematic way set down in recorded instructions (usually in steps) containing a series of activities, tasks, steps, decisions, calculations and other processes, that when undertaken in the sequence laid down produces a described result, product or outcome. It elaborates on related directives. | FAM 1041 |
| Procurement | Supply source research and the formation and administration of contracts with external sources for the supply of goods and services. | FAM 3301 |
| Program Managers | Managers responsible for delivery of a program or service eligible for privatization. | FAM 3559 |
| Promotional Item | An item used to further advertise, support, stimulate or encourage the program delivery of an identified Government of the Northwest Territories department. | FAM 2107 |
| Proposal | An offer to provide goods, services or construction that is submitted to a contract authority in response to a Request for Proposals. | FAM 1808 |
| Public | Individuals, groups and organizations other than the Government. | FAM 1704 |
| Public Interest | Means, for the purposes of Financial Administration Manual Policy 3307, a direct or indirect benefit accrues to the Government by permitting a non-government passenger to travel on the charter flight (For example; for reasons of protocol a spouse or “significant” other of a Government employee or Minister must accompany that person to an official business event, conference, etc.) | FAM 3307 |
| Public Money | Money that belongs to the Government, including public revenue received or receivable, money borrowed by the Government, money received or collected on behalf of the Government; or special purpose funds. | FAM 2904 |
| Public Notice | Notification of all tenders and Requests for Proposals issued by the government to the public for bidding. A public notice differs from an invitational tender, which is available only to selected individuals or businesses to contract. | FAM 3401 |
| Real Estate | Land and improvements, including buildings, standing timber, orchard trees, etc. | FAM 2201 |
| Real Property | Land and improvements, including buildings, standing timber, orchard trees, etc. | FAM 2201 |
| Receipt | Signed acknowledgement for something received. A receipt should be a certified true copy of a document describing a purchase and showing proof of the payment amount and date. Purchases must be itemized where practical. | FAM 2001 |
| Receivable | Incurred until the due date for receipt of payment, which is 30 calendar days past the invoice date; or, a cash debt owed to a Government department or public agency by the recipient of an accountable cash advance for which the required accounting has not been received as of the due date. (Unaccounted-for cash has not been returned as required, and the unaccounted-for amount has been reversed out of recorded expense and rerecorded as an account receivable.) | FAM 3102 |
| Regulatory or Complex Board | Decision-making and/or judgments which require specific qualifications or technical expertise; decisions are made with limited precedent; and consequences or results of decisions and/or judgments may have political, economic, environmental or social impacts on Northwest Territories organizations and residents. Note: These boards often have operational management responsibilities or are regulatory in nature. | FAM 1818 |
| Related Party | Parties related when one party has the ability to exercise, directly or indirectly, control or significant influence over the operating and financial decisions of the other, or if one party has an interest in both parties, which guarantees control and the possibility of exercising significant influence. | FAM 2201 |
| Relative | A father, mother, brother, sister, spouse, common-law spouse, child, stepchild, foster child, father-in-law, mother-in-law, grandmother or grandfather. |
FAM 1802 FAM 2001 |
| Remission | An agreement by the Government not to enforce the collection or payment of a tax or penalty. | FAM 2702 |
| Repairs and Maintenance | Costs which are necessary to realize the originally projected benefits of an asset. Repairs and maintenance are expenses for normal maintenance and upkeep of capital assets that are necessary to keep the assets in their usual condition. These expenses are recurring in nature and do not directly lengthen the useful life of the asset. They would include such things as repairs to restore assets damaged by fire, flood or similar events, to the condition just prior to the event. Costs are charged to operations in the year they are incurred. The cost incurred in the maintenance of the service potential of a tangible capital asset is a repair. | FAM 2201 |
| Repayable and Self-sustaining Loans | Loans issued by the Government which are repayable under defined repayment terms. | FAM 1401 |
| Replacement Cost | The cost of replacing an asset with another that will render similar services. | FAM 2201 |
| Request for Proposal | The solicitation of a proposal by public advertisement or private invitation. |
FAM 3302 FAM 3561 |
| Reserved Employee Parking | A parking space reserved for the exclusive use of an employee who brings a vehicle to work, where notice is posted that the space is reserved and that unauthorized vehicles will be towed away at the owners' expense. | FAM 2914 |
| Residual Value | The value of an asset at the end of its period of use by a particular individual or organization. | FAM 2201 |
| Responsible Agency | The organizational unit of a department that has been assigned the obligation by the Comptroller General to lead the development of new or revised financial administrative policies and directives within a department's area of expertise under the overall guidance, coordination and administration of the Government Accounting Division. | FAM 1041 |
| Responsible Department | The department whose program or service is under consideration for privatization. | FAM 3559 |
| Restructured Loan | The replacement loan that results from an exchange transaction in which the original loan receivable is “settled” and replaced by a new loan agreement. | FAM 1501 |
| Retainer | For the purposes of Financial Administration Manual Policy 1818, the fee paid to retain the services of a board member on an as required basis for the term of the appointment as approved by the Minister or Financial Management Board, Executive or Legislative authority. | FAM 1818 |
| Revenue | Public money collected or received in payment for: services delivered under Government programs; Government licenses and the issuance of such licenses; sale commissions and other contract consideration to be paid to revenue agents, except for commissions that may be retained by a revenue agent under contract terms made in accordance with this directive; and, sales taxes collected in relation to services, licenses, and commissions. | FAM 3561 |
| Revenue Agent | A person contracted or appointed to act as a revenue officer on behalf of the Government for purposes other than tax collection. | FAM 3561 |
| Revenue Debenture | A debt instrument to be repaid exclusively from revenue generated from a specific project. The Minister of Municipal and Community Affairs, with Executive Council approval, may exempt a revenue debenture from ratepayer approval. | FAM 2108 |
| Revenue Officer | A person defined as a revenue officer in Section 1 of the Financial Administration Act. Primarily, a revenue officer is a person collecting, receiving, holding, managing, or accounting for public money, but banks and investment and trust companies and their employees are not revenue officers. |
FAM 1802 FAM 2904 FAM 3561 |
| Revolving Fund | A fund (composed of money, accounts receivable, inventories, liabilities, or some combination thereof) that is provided with continuous and non-lapsing authority to retain revenues and to make disbursements from the Consolidated Revenue Fund for specific purposes and within specific limits. | FAM 2809 |
| Schedule of Tangible Capital Assets | A schedule contained within the Government of the Northwest Territories Public Accounts with the following information provided for each classification of asset: a) opening balances; b) additions; c) disposals; d) the amount of any write-downs during the period; e) the annual amortization charges; f) accumulated amortization; g) net book value; and h) comparatives with the prior period. | FAM 2201 |
| Security Classification | The specification of the level of protection to be afforded to particular data against fraudulent or improper access | FAM 1602 |
| Self Liquidating Investments | Investments which generate an immediate and direct benefit or revenue stream to the Government such as bridge tolls, lease revenues, etc. | FAM 1401 |
| Senior Public Officer | A public officer holding the office of Minister, Deputy Minister, Secretary to Cabinet, Clerk of the Legislative Assembly or President of the Housing Corporation. | FAM 2004 |
| Service Benefit | What the client receives as a result of an expenditure. Service benefit does not include side benefits that may arise from the expenditure. When the Government hires a contractor to provide goods or services that benefit the public, the contractor may be part of the public and may receive a financial benefit, but the contractor is not the client and his or her financial benefit is not a service benefit. | FAM 1704 |
| Service Capacity | The output or service potential of a Tangible Capital Asset and is normally determined by reference to attributes such as physical output capacity, quality of output, associated operating costs, and useful life. | FAM 2201 |
| Service Contract | A contract that exists where the contractor performs the contract independent of the contract authority and not as an employee. |
FAM 3301 FAM 3306 |
| Services | Services other than the provision of goods and construction. Examples are: legal, architectural, engineering, and other consulting services; insurance, security, and investigation services;· repair, custodial and other trade type work; and,· ordinary rental or lease of equipment. Services does not include lease-to-purchase agreements. Such agreements are contracts for the purchase of goods and are subject to special regulation and control. |
FAM 3301 FAM 3304 |
| Set-Off | The deduction and retention of Consolidated Revenue funds the Government owes to a person, to offset money that person owes to the Government. (The funds would otherwise be paid to that person, a third party or an assignee.) | FAM 3105 |
| Settlement Code (expenditure) | A numeric code in the Government's Financial Information System that shows the geographic location of the service benefit resulting from an expenditure and identifies the client receiving the service benefit. | FAM 1704 |
| Settlement Code (revenue) | A numeric code in the Government's Financial Information System that shows, by geographic location, where the Government receives revenue within the Northwest Territories. | FAM 2422 |
| Signing Authority | The right to sign specific documents. Signing authority may be delegated to specific persons or positions for specific purposes to carry out the financial management of their responsibilities (accountabilities). Financial signing authority is comprised of spending authority, payment authority, commitment authority and budget adjustment authority. |
FAM 1102 FAM 1901 FAM 1905 FAM 3001 FAM 1705 FAM 1701 FAM 1801 FAM 1802 FAM 1803 FAM 1804 FAM 1806 FAM 3301 FAM 3304 FAM 3306 FAM 2004 FAM 2005 FAM 1808 FAM 2102 FAM 2001 FAM 3401 FAM 3559 |
| Single Authority Disbursement | A disbursement made under the authority and requirements of legislation other than the Financial Administration Act and made without the requisition and certification of an expenditure officer otherwise required by the Financial Administration Act, e.g. the requirement for social workers to issue emergency cheques. | FAM 1802 |
| Special Purpose Fund | Money that is paid to the Government or a public officer under or pursuant to a law, trust, undertaking or contract to be disbursed for a purpose specified in or pursuant to the law, trust, undertaking or contract, but does not include money that belongs to a public agency unless it is paid to the Government under or pursuant to a law, trust, undertaking or contract and the Government considers it to be a special purpose fund. (Financial Administration Act, Section 1). | FAM 2101 |
| Special Services | Services which the Government provides to individuals or organizations in response to requests or in response to the needs or actions of those individuals or organizations. Special services include but are not limited to legal aid, hostel lodging, land leases, safety inspections that provide personal benefits, document searches, and paid parking. Special services may or may not involve the collection of a fee. For purposes of this definition, special services do not include services provided to the public as a whole, e.g. highway construction, ferry operations, public health and safety inspections and enforcement, etc. | FAM 2913 |
| Special Warrant | A method of obtaining an approved appropriation when the Legislative Assembly is not or will not be in Session for some time in order to approve a Supplementary Appropriation Act and the department has adequately substantiated the urgency of the request to the Financial Management Board as per the criteria included in Financial Administration Manual Policy 1409. | FAM 1405 |
| Specimen Signature Record |
The instrument used to assign financial signing authority to a person and record: a) the name of the person designated to receive the signing authority; b) the staff position or personal services contract held by the person; c) if the person is designated as an accounting officer, the Comptroller General's (or delegate's) signed approval; d) a specimen of the person's signature; e) all aspects of the person's signing authority, including initiation certification, confirmation of contract performance and price, commitment certification, payment certification, whether the person is a contract authority, and others if applicable. f) monetary limits, restrictions, conditions and exceptions to each aspect of the person's signing authority; g) acting appointments that include signing authority (the Specimen Signature Record is not required if an acting appointment excludes financial signing authority); h) standing acting appointments; and, i) the position supervisor's approval on acting appointments and standing acting appointments. Refer to the Financial Information Systems Procedures Manual for a sample and instructions. |
FAM 1802 |
| Spending Authority | The authority assigned by the Minister under Sections 44 and 49 of the Financial Administration Act to incur expenditures, including advance and progress payments, and to confirm satisfactory contract performance and price as a prerequisite to the requisitioning of payment. Spending authority consists of four elements: expenditure initiation, commitment control, contracting and confirmation of contract performance and price. |
FAM 1401 FAM 1403 FAM 1813 FAM 1802 |
| Sponsoring Department | A department responsible for or initiating a grant-in-kind. | FAM 1905 |
| Standing Acting Appointment | The designation of a person or position to exercise expenditure authority and/or payment authority as required for a frequently absent expenditure officer or accounting officer or for a person designated as both an expenditure officer or accounting officer. | FAM 1802 |
| Standing Advance | An accountable advance made in a fixed amount to a person required to incur expenditures on a continuing basis and reimbursed to that fixed amount each time an accounting for expenditures is made. | FAM 2001 |
| Standing Advances | Any money paid out of the Consolidated Revenue Fund that is repayable to the Northwest Territories, but is not chargeable to an appropriation and is not evidenced by a promissory note; for example, petty cash advances. | FAM 2107 |
| Standing Offer Agreement | An agreement obligating a supplier to provide to the Government, on demand, specified goods or services under specified conditions during a set period at a predetermined price or discount structure. | FAM 3305 |
| Standing Travel Advance | An accountable advance for expected duty travel expenses that the Government will not be able to incur on credit or pay for by cheque. More cash is needed than the traveler would normally be expected to spend out-of-pocket for reimbursement later. The traveler may be called upon at any time to depart immediately, before an ordinary duty travel advance could be obtained through normal processing. | FAM 2102 |
| Statutory Authority | A person or court to which authority to demand payment is given by an enactment. | FAM 3105 |
| Straight-line Method | The method in which the periodic charge or credit is computed by dividing the total amount to be amortized by the number of accounting periods over the useful life of the tangible capital assets. | FAM 2201 |
| Substantial Completion | The stage at which a Tangible Capital Asset is sufficiently constructed or developed that it may be put into productive use although it is not 100% complete. Determining when a Tangible Capital Asset or a portion is ready for productive use depends on production capacity, occupancy level, or the passage of time. | FAM 2201 |
| Sundry Revenue | Revenues collected on a one-time basis only, or revenues not identified in the Main Estimates. | FAM 2209 |
| Supplementary Appropriation | Adjustments to votes or transfers between votes or items, subsequent to the approval of the Main Estimates, approved by the Legislative Assembly through the authority of a Supplementary Appropriation Act. | FAM 1407 |
| Supply Issue Voucher | A source document used to record charges out of issue from revolving stock. | FAM 1201 |
| Surplus Funds | The net positive daily bank balance in the accounts of the Government. | FAM 2323 |
| Surplus Item | An item that is surplus to operational requirements and should be authorized for disposal and removed from the Tangible Capital Assets record. | FAM 2201 |
| System Software | A set of computer programs and the associated documentation through which a variety of general purpose functions are provided for computing facilities. | FAM 1603 |
| Tangible Asset | Any asset having physical existence; any asset other than an intangible. | FAM 2201 |
| Tangible Capital Asset (TCA) |
A non-financial asset having physical substance that is acquired, constructed or developed and:
|
FAM 2201 |
| Tax | A tax, interest, fee, impost or toll payable under any enactment. | FAM 2702 |
| Temporary Advance | An accountable advance that substitutes for credit or other payment arrangements that would ordinarily be used under similar circumstances, e.g., advancing cash to a construction contractor for materials received on site instead of only paying for work that has already been erected, inspected, accepted, and invoiced. | FAM 2102 |
| Temporary Advance | An accountable advance that substitutes for reimbursement for expenses or for payment for goods, services or construction already received and invoiced, i.e., payment arrangements that would ordinarily be used under similar circumstances. Examples are duty travel advances (other than standing travel advances) and contract advances. An example of a contract advance is a cash advance to a construction contractor for materials received on site, which departs from the usual practice of paying only for work that has already been erected, inspected, and accepted. | FAM 2105 |
| Temporary Advance | Any money paid out of the Consolidated Revenue Fund that is repayable to the Northwest Territories, and is chargeable to an activity, but is not evidenced by a promissory note; for example, travel advances. | FAM 2107 |
| Tender | An offer submitted in response to an invitation from a contracting authority to carry out work or to supply goods or services for a certain price under defined terms and conditions. | FAM 1808 |
| Third Party Demand | A written legal demand by a statutory authority, e.g. a court garnishment order, requiring the Government to pay a third party instead of paying the person to whom the Government owes a debt. | FAM 3105 |
| Third Party Funding |
Money transferred to the Government by another party for a specific purpose, under an agreement in which the Government fulfills that purpose on behalf of the third party. This does not include cost-shared arrangements. Third party funding agreements are not cost-shared arrangements where funding through an agreement between the Government and a third party is provided in support of an approved program, project or service that is within the Government's mandate and supported by approved appropriations. Third party funding does not include funds ordinarily transferred within the formula financing agreement with Canada. The following criteria should normally be applied to classify projects considered as third party funded which differ from projects that are funded through the Government Operations and Maintenance budget:
|
FAM 2102 |
| Transaction Control Report | A detailed daily computer print-out of processed and recorded transactions. Details are reconciled with input documents and reviewed daily for errors and problems. | FAM 2909 |
| Transfer Agreement | An agreement, written as specified in the Financial Administration Manual, under which the Government transfers appropriated funds or non-cash assets to a public agency, community government, non-government organization or other eligible party. |
FAM 1901 FAM 1902 FAM 1903 FAM 1904 FAM 1905 FAM 1804 FAM 2102 FAM 2105 |
| Transportation Services | The transportation of any person by a chartered airplane, vessel or vehicle and the transportation of property owned by the Government by any method. | FAM 1808 |
| Travel Advance | An advance to cover expenses for an authorized trip on official business. | FAM 2001 |
| Travel Bonus Points | Travel points and loyalty award points under various programs run by Aeroplan, airlines, credit card companies, hotels, car rental companies, or other business organizations. Subject to the Directives and Guidelines of Financial Administration Manual Policy 2004, Ministers, Deputy Ministers, their delegates and duly appointed service contractors may extend hospitality, gifts and other benefits in order to facilitate Government business and represent the Government with appropriate courtesy. Public officers may accept hospitality, gifts and other benefits only as provided for in Financial Administration Manual Policy 2004. | FAM 2004 |
| Trust Account | An account in which the Government holds, in trust for another party, funds that are not public money. | FAM 1802 |
| Unrelated Party | Where parties do not have the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions. | FAM 2201 |
| Useful Life (economic life) | The period over which a Tangible Capital Asset is expected to be used. The life of a Tangible Capital Asset may extend beyond its useful life to the Government. The life of a Tangible Capital Asset, other than land, is finite, and is normally the shortest of the physical, technological, commercial, and legal life. It may also be referred to as “economic life”(CICA Handbook, Section 83). | FAM 2201 |
| Verification | The process of establishing the validity or accuracy of entries, records or statements. | FAM 2201 |
| Vote | A specific segregation of spending authority into a broad category according to intended use such as Operations Expenditures or Capital Investment Expenditures. | FAM 1401 |
| Work-in-Progress | Construction or development in progress and postponed projects (postponed projects are written of if dormant for more than one year and there is no plan in the capital budget for their continuation). An estimate of the final cost may be required to allow the asset to be moved into service. | FAM 2201 |
| Write-Down | To adjust downward the recorded amount of an asset or liability for reasons other than the occurrence of a transaction. | FAM 2201 |
| Write-Off | To eliminate the recorded amount of an asset or liability for reasons other than the occurrence of a transaction. | FAM 2201 |
| Write-Off | The removal of a receivable from the accounts of the Government of the Northwest Territories. Unlike forgiveness or remission, a write-off does not cancel the debt or the Government's right to collect. | FAM 2702 |