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About This FAM

Responsible Agency: Office of the Comptroller General
Issued: Nov 1984
Last Updated: Nov 1984

1. Definitions

Loans and advances are a special category of accounts receivable and require (with some variations) records and procedures similar to those used for the normal accounts receivable of a Department.

"Loans" Loans include any money owed to the Government that is evidenced by a promissory note. Under the Northwest Territories Act, all loans made by the Territories must be approved by ordinance. This is usually accomplished by a special vote, a Loan vote, including loans in the appropriations.
"Advances" (See Accountable Advances Regulations, 9908)
"Standing Advances" include any money paid out of the Consolidated Revenue Fund that is repayable to the Territories, but is not chargeable to an appropriation and is not evidenced by a promissory note; for example, petty cash advances.
"Temporary Advances"

include any money paid out of the Consolidated Revenue Fund that is repayable to the Territories, and is chargeable to an Activity, but is not evidenced by a promissory note; for example, travel advances.

According to the Financial Administration Act, the Commissioner may make regulations authorizing accountable advances of funds.