Financial Administration Manual

IB 650.01 Revenue Agency Contracts

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Effective: January 29, 2018
Applicable FAM Policies: 650 - Revenue Agency Contracts
Applicability: GNWT Departments

 

INTERPRETATION

Establishing Revenue Agents

The Government may restrict the sale of a service, product, or class of services or products to a third party revenue agent(s) within a specified geographical area.

Every contract with a revenue agent within a specified geographical area must include the standard terms and conditions set out in Appendix A below. Also, the contract must be reviewed and approved in advance by the Director of Finance (or equivalent) of the responsible department.

Every contract with a revenue agent must be approved in advance by the Comptroller General and the Legal Division of the Department of Justice.  

Where the number of revenue agents is not restricted, revenue agents may be appointed by the department head upon request. Prospective appointees must meet eligibility criteria established by the responsible Government department.

Responsibilities of Revenue Agents

Every revenue agent shall:

  1. collect, receive and deposit revenue as required as directed by the Comptroller General;
  2. keep, safeguard and remit records respecting revenue in the form and manner that the Comptroller General directs; and,
  3. subject to the provisions of applicable legislation charge fees for services in accordance with an approved fee schedule and be responsible to interpret, apply, and remit the approved fee for each product or service. The revenue agent shall remit and be liable for the full and approved amount of every fee, regardless of the cause of any shortfall in the amount collected, received or remitted.
  4. Any costs of revenue collection, (e.g., debit and credit card fees and service charges for nonnegotiable cheques, and any loss of revenue due to fraud, theft, negligence or casualty) must be incurred by the revenue agent and may not be deducted from revenue remitted to the Government.
  5. Accountable forms must substantiate every sale transaction and every claim for sale commissions or other contract consideration paid to a revenue agent. Such forms shall correlate with and substantiate the amount of all fees remitted to the Government.

A contract with a revenue agent must set out the required frequency for remitting and reporting revenue, e.g., daily, weekly, monthly or annually. The contract must also specify the method for remitting, e.g., direct bank deposit, electronic fund transfer, remittance by-hand to a Government office, or mail.

A revenue agent may have alternate remittance and reporting and risk mitigation controls set out in the terms and conditions of the contract as approved by the Director of Finance and Administration (DFA).  

The revenue agent shall provide security equivalent to the estimated average remittance for two weeks of the active sale season, through bonding, cash deposit, or letter of irrevocable guarantee from a bank, unless prior approval is obtained from the Comptroller General, or delegate.

5. GUIDELINES

5.1 Unless specified in the terms of the contract approved by DFA (or equivalent), a revenue agency contract should require the revenue agent to remit        accumulated periodic revenues as set out in the table below.

 

Estimated Annual/Seasonal Receipts Remittance and Reporting Frequency Options for Method of Remittance (in order of preference)

$2,000 or less

$2,001 to $10,000

$10,000 - $100,000

Quarterly

Monthly

Weekly

$100,000 or more Daily

 

Appendix A

The following terms, conditions, and information must be included in every Government contract with a single, exclusive revenue agent in a specified geographical area.

  1. the requirement for compliance with the Financial Administration Act, the Provisions of this directive, and other the financial administration policies of the Government.
  2. the names or positions of the contact persons representing the Government and the contractor.
  3. the precise time and duration of the contract.
  4. provisions for contract extension, termination, and notice.
  5. where applicable, the accommodation requirements for the performance of the contract, e.g.:
    • a. facility and parking plan;
    • b. visibility, access, and signs;
    • c. special equipment;
    • d. site security, etc.
  6. the applicable administrative requirements of the work and the circumstances of the contract, including but not necessarily limited to:
    • a. the contractor’s hours of operation;
    • b. computer hardware and software specifications;
    • c. the contractor’s retention and submission of records as required by Sections 46 and 47 of the Financial Administration Act;
    • d. Government access to the contractor’s records for audit purposes;
    • e. frequency and content of revenue remittance and contract reporting;
    • f. audit requirements;
    • g. security of information and computer systems; and,
    • h. frequency of submission, security, and return of accountable forms.
  7. the condition that the contractor is obligated to safeguard all money collected or received on behalf of the Government and is liable for loss of revenue due to theft, fraud, negligence or casualty such as storm, fire or accident.
  8. notice of sections 137, 141 and 143 of the Financial Administration Act, under which the Government may recover lost public money from the person responsible for the loss and which provides for punishments of fines and imprisonment for offences under the Act.
  9. payment terms in accordance with the Government’s Financial Administration Manual.
  10. the contract price, sale commission schedule, etc.
  11. the method of resolution of any conflict between the parties to the contract.