Government of the Northwest Territories

Manuel sur l’administration financière

IB 215.01 - Reporting of Losses

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Effective" April 1, 2016

Applicable FAM Policies: 215 - Loss of Assets

Applicability: GNWT Departments and Public Agencies

INTERPRETATION

A loss of asset includes:

  • loss of public money;
  • loss of financial assets;
  • loss of or damage to property except damage attributable to wear and tear;
  • disbursements made without proper authority;
  • unauthorized use of privileged information; or
  • unauthorized use of assets.

A loss of asset excludes write-off of a debt or obligation (loan or accounts receivable). 

The loss may be caused by an offence such as fraud, theft, bribery, misconduct, willful neglect of duty, negligence, accidents or Acts of God involving any activity, whether authorized or not, and regardless of the amount involved.

Reporting and Reimbursement

Immediately notify a supervisor when there is reason to believe that a loss or offence has occurred. 

The Department Deputy Minister shall immediately submit to the Office of the Comptroller General, and Risk Management and Insurance, Department of Finance, written notification of all losses detailing amounts, how the loss was detected, the cause and description of the loss or offence, the dates of detection and occurrence of the loss or offence, and corrective action undertaken.

Recovery Action

Departments and Public Agencies must not settle claims for damage to assets (nor settle claims made by third parties for damage they are alleged to have caused). Only Risk Management and Insurance, Finance, is responsible for dealing with all insurable recoveries of money owing from a third party for deposit into General Revenues. Accordingly, with the exception of a court order of restitution or in cases of fraud, any insurance recovery for damage to an asset must not be recorded as recovery of an expense and returned to the department's budget.

In cases of fraud or court orders of restitution, the loss as determined by the court decision shall be immediately recorded by the department sustaining the loss as a receivable in the GNWT accounts.

Use of the Loss of Assets Reporting Form is recommended.