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1. Introduction

This document summarizes the financial management and administration authorities of various entities within the Government, in order to identify and describe the sources of authority for financial direction given in this manual and elsewhere. Specific and detailed powers and duties of the following entities are set out in the Financial Administration Act (FAA), other legislation, and various Government publications, including policies in this manual.

2. Legislative Assembly and its Standing Committees

The Legislative Assembly and its standing committees establish overall Government priorities and they review and approve annual operation and maintenance and capital budget estimates. The standing committees review and recommend on:

  1. expenditure appropriations proposed in the budget estimates;
  2. capital project plans, in consultation with affected communities and individual Members of the Assembly representing those communities;
  3. the terms and conditions of borrowing, lending and investing funds;
  4. revenue sources available to the Government; the financial implications of existing and proposed Government programs;
  5. the Government accounts submitted to the Legislative Assembly annually by the Commissioner and the Minister of Finance,
  6. the Auditor General of Canada's reports to the Legislative Assembly, and
  7. financial and public accounts matters that are referred to standing committees by the Legislative Assembly or that, in the opinion of a standing committee, require investigation.

3. Executive Council

The Executive Council establishes program priorities and provides overall direction for the management of programs.

4. Financial Management Board (FMB)

The Financial Management Board (FMB) is a committee of the Executive Council, established under Section 3 of the FAA. It has primary responsibility for the financial management and administration of the Government, subject to Executive Council direction. The Board is composed of the Minister of Finance and other members of the Executive Council who are designated by the Executive Council.

4.1 Powers and Duties of the FMB

Under the Financial Administration Act, the FMB is required to act on all matters related to the financial management and financial administration of the Government in respect of:

  1. accounting and budgeting policies; the Public Accounts and the Estimates;
  2. controlling and recording financial commitments, assets, liabilities, expenditures and revenues; evaluating the efficiency, economy and effectiveness of programs;
  3. reviewing annual and long-term expenditure and revenue plans;
  4. and any other matter referred to it by the Executive Council.

The FMB may issue specific directives or direction to a public officer respecting any of the above matters. The FMB's powers and duties are more fully described in the Act and in Policy, including powers and duties which may be delegated to public officers, as described in 4.2 below and in accordance with Section 107 of the FAA.

4.2 Delegation Of FMB Powers And Duties To Public Officers

The FMB may delegate to a public officer only those powers and duties that have been prescribed as being capable of delegation. Prescription usually occurs within the Delegation of Authority Regulations. The Commissioner of the Northwest Territories makes regulations respecting matters related to the Financial Administration Act on the recommendation of the FMB.

5. Minister of Finance

Under the Financial Administration Act, the Minister of Finance shall:

  1. be responsible for matters relating to the fiscal policy of the Government;
  2. manage the Consolidated Revenue Fund;
  3. and, direct all other matters relating to the financial affairs of the Government that are not assigned to the Board or any other person.

and the Minister of Finance may:

  1. examine any record of the Government that the Minister of Finance considers necessary to exercise the powers or perform the duties of the Minister of Finance;
  2. require any public officer to provide such information and explanations as are necessary for the Minister of Finance to the powers or perform the duties of the Minister of Finance;
  3. at the direction of the Board, require any public officer to provide such information or explanations as are necessary to enable the Minister of Finance to determine whether public money was disbursed or expended for the purpose for which it was appropriated;
  4. and, delegate any of his or her powers and duties to a public officer.

The Minister of Finance also has authority in other areas, including preparing annual budget estimates, requesting interim appropriations from the Legislative Assembly, making loans, establishing Boards of Survey, and signing guarantees and indemnities. Section 3(2) of the FAA authorizes the Minister of Finance to act as Chair of the FMB. (The FMBS is described later in this directive.)

6. Secretary of the FMB/Comptroller General

Under the Financial Administration Act, the Minister of Finance, upon the recommendation of the Financial Management Board (FMB), is required to appoint a member of the public service to be the Secretary of the FMB. The Minister is also required to appoint a member of the public service to be the Comptroller General. Under the Establishment Policy of the Financial Management Board Secretariat (FMBS), the Secretary of the FMB:

  1. is responsible for the functions of FMBS;
  2. is accountable to the Chair of the FMB for the proper conduct of FMBS business;
  3. is responsible to perform duties assigned by the FMB;
  4. is responsible to perform the duties of the Comptroller General; and,
  5. is accountable to the Chair of the FMB for the legislated Comptroller General functions.

In accordance with Section 12 of the FAA and Government policy, one individual is appointed jointly by the FMB and the Minister of Finance to be both Secretary of the FMB and Comptroller General. The Comptroller General is responsible to:

  1. ensure that the Public Accounts are prepared for each fiscal year;
  2. establish the form and content of financial records and accounting systems for the Government; establish and maintain systems and procedures to ensure that
    1. all public money is collected and accounted for,
    2. all public property is properly controlled,
    3. all disbursements are properly authorized, and
    4. any other financial matter under the responsibility of the Comptroller General is carried out in accordance with his or her requirements; and,
  3. perform other duties assigned by the Minister of Finance or the FMB.

Other specific Comptroller General responsibilities under the Financial Administration Act include, but are not limited to:

  1. accruing liabilities and provisions for losses;
  2. designating accounting officers
  3. prohibiting disbursements;
  4. charging expenditures to an interim appropriation where charging the expenditures to an appropriation would cause the appropriation to be exceeded;
  5. establishing and controlling the use of petty cash funds and imprest bank accounts; and,
  6. making accountable advances.

7. Financial Management Board Secretariat(FMBS)

The Chairman of the Financial Management Board (FMB) with the assistance of the Financial Management Board Secretariat (FMBS) is responsible to manage and control the Government’s financial and information resources and to provide analysis and advice to the FMB, in order to ensure effective, efficient, and economical resource management. More specific responsibilities of each FMBS Division are summarized as follows.

Government Accounting Division

  1. Develop financial policies, systems and procedures to support Government operations.
  2. Provide centralized revenue, general accounting, credit review, and collection services to Government departments.
  3. Prepare the Public Accounts and provide accurate and timely financial reports and information on the Government's financial position and operational results.
  4. Provide systems to safeguard the Government’s physical and financial resources.
  5. Monitor and enforce the Government's financial legislation and policies where required.
  6. Provide centralized revenue, general accounting and financial reporting support services to boards and agencies as agreed.
  7. Provide to the FMB financial information and advice to support sound decisions over allocating, managing, and controlling the Government’s resources.

Budgeting and Evaluation Division

  1. Provide to Government departments and agencies information and advice on the management and control of Government resources.
  2. Support the FMB in developing estimates, as required under the Financial Administration Act, and design and coordinate all related processes and documents.
  3. Support the FMB in the conduct of meetings, screen submissions, develop agendas, and monitor the implementation of FMB decisions.
  4. Provide internal program evaluation services.
  5. Provide program and organization design services.

Internal Audit Bureau Division

  1. Provide internal audit services.

Office of the Chief Information Officer (CIO)

  1. Provide a Government-Wide informatics strategy and electronic data processing policy.

8. Department of Finance

The Department of Finance has specific responsibility for:

  1. risk management and insurance;
  2. banking;
  3. borrowing and lending;
  4. overseeing the Government's entire investment program in light of cash flow and surplus requirements and the need to balance yield and risk in its investment portfolio;
  5. assisting in developing the revenue framework for the Government through analysis of current and projected taxes and other revenue sources;
  6. administrating tax programs such as tobacco and fuel taxes;
  7. monitoring personal and corporate income tax for the Northwest Territories; and
  8. developing new revenue sources and managing existing ones as directed by the Legislative Assembly, current legislation, and the Executive Council.

9. Ministers

The Financial Management Board (FMB) is assigned certain primary financial management responsibilities under the Financial Administration Act. However, under subsection 11(l) of the Act, each Minister is also responsible to ensure that the financial affairs of his or her ministry are properly administrated in accordance with the Act and the regulations.

10. Department Heads (Also known as Deputy Ministers) and; Executive Finance Officers (also known as Directors of Finance or equivalent)

Department Heads and Executive Finance Officers are responsible for the overall financial management of their departmental programs.