Effective: January 27, 2018
Section: Banking & Treasury
Administrator: Office of the Comptroller General
Applicability: GNWT Departments and Public Agencies 

POLICY

1. Financial transactions shall only be executed utilizing government approved instruments and through duly approved banks and security dealers.
2. Banking, borrowing and investment activities shall be done in a manner that is consistent with the Fiscal Responsibility Policy, preserves capital and maintains liquidity.

PURPOSE

There can be significant risk exposure in dealing with all financial instruments. This policy sets the requirement to ensure internal controls are established and maintained to mitigate risk and protect the government through proper management and stewardship when borrowing, investing and utilizing other negotiable instruments.

SCOPE

This policy applies to all government and public agency banking, borrowing and investing activities.

RESPONSIBILITIES

Deputy Head of Finance and Public Agencies

Establish approved issuers, traders, maximum trade limits and maximum terms for debt, securities and investments of financial instruments.

Comptroller General

May approve Interpretation Bulletins associated with this policy.

Financial Management Board

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

AUTHORITIES and REFERENCES

• Financial Administration Act (FAA)
  • s.  5 – Principles: responsible fiscal management
  • s. 13 – Minister of Finance
  • s. 51 – Investment of public money by Minister
  • s. 52  - – Investment of public money by Public Agency
• Investment Regulations
• Financial Agreements and Transactions (Petroleum Product Derivatives) Regulations;
• Internal Control Issues in Derivatives Usage, 1996 COSO; and
• Revolving Fund Act
  • s. 2  - Revolving Funds
  • s. 4 – Petroleum Products Revolving Fund
  • s. 6, s. 7 – Petroleum Products Stabilization Fund
• CPA Canada Handbook – Public Sector Accounting
• Internal Control Issues in Derivatives Usage, 1996 COSO

INTERPRETATION BULLETINS