Effective: January 29, 2018
Applicable FAM Policies: 610 - Establishment of Fees
Applicability: GNWT Departments

INTERPRETATION

Departments and public agencies occasionally organize and sponsor special events or functions, including conferences, on their own or in collaboration with other Government of the Northwest Territories (GNWT) departments and agencies, municipal governments, private sector, non-profit and/or for profit organizations, and/or individuals. Additionally, departments may receive contributions from their collaborative partners and/or monies collected from registration fees charged to the participants of such events.

Special events may also be sponsored by the GNWT, but organized entirely by an external party. For those special event arrangements organized through external unrelated organizations and/or individuals and for monies received from the other collaborative partners and/or any registration or other fees these would be classified as Special Purpose Funds.

Departments and agencies should consult Canada Revenue Agency if they plan to use service contractors to manage and collect fees for applicability of GST.

Under the power of a minister's authority to contract, attendees’ registrations for GNWT special events sponsored and organized by departments and/or agencies become "contracts" between the department and the attendee, permitting the department to charge a fee for attending the special event.

Donations/contributions received from other GNWT departments/agencies for a special event must be debited to the “other operations and maintenance expenses” account and recorded by the sponsor department/agency as Projects on Behalf of 3rd Parties revenue (Fund 3) to offset event costs.

Although the fees charged typically cannot exceed the cost to the department providing the special event, if there is “excess” revenue from registration fees, it must be recorded as General Revenue. An exception is any excess revenue from an annual conference sponsored by a national organization is to be transferred to the national organization or the following year’s host.

Collaborative Arrangements with External Parties

All financial transactions by departments and public agencies in collaboratively sponsored special events must be documented by formal agreements or contracts that set out the respective terms and conditions for the collaboration.

Collaborative agreements, with core planning partners must provide the following minimum requirements:

• The respective roles and contributions of each party
• Who the lead party is and what their responsibilities are
• Whose financial administration authorities will apply, and if a GNWT department or agency is deemed the lead party then the FAA must apply
• How any special event fees will be collected and applied to the expenses of the special event
• The insurance requirements including indemnities, limiting liabilities
• The accounting method for special event revenues and expenses
• The payment for special event related expenses
• The disposition of any surplus funds or assets remaining from the special event
• Responsibilities for any special event deficits or surpluses.

Ensure any service contractors who organize and/or collect fees for the special event are contracted in compliance with the relevant directives found in IB 650.01 for revenue collection.