Effective: April 1, 2016

Applicable FAM Policies: 310 - Supplementary Appropriations

Applicability: GNWT Departments

A Supplementary Appropriation Act is required to effect a change in a GNWT Department’s total appropriation for each funding category (referred to as “vote”); however, the Financial Administration Act (FAA) provides for increases to a Department’s total appropriation via Special Warrants.

INTERPRETATION

The FAA allows the Commissioner of the Northwest Territories (the Commissioner) to issue a special warrant, authorizing an expenditure, when the Legislative Assembly is not in session and is not scheduled to resume sitting within two weeks from the date of issue of a special warrant.  Special warrants are deemed to be appropriations per section 78(5) of the FAA.

The criteria to qualify for a special warrant are: 

1. the requirement for the expenditure was unforeseen and the expenditure is urgently and immediately required;
2. the expenditure is in the public interest;
3. there is no appropriation or an insufficient appropriation to incur the expenditure;
4. there are no other means available to address the circumstances giving rise to the need for the expenditure; and
5. a delay of the expenditure would likely result in significant monetary loss for Government or the public, significant loss of or damage to public or private property, or significant personal loss.

In an emergency situation, section 78(3) of the FAA allows the Commissioner to issue a special warrant within the two week period before the Legislative Assembly is schedule to resume, provided that the Financial Management Board (FMB) reports the following to the Commissioner for each request:

1. the requirement for the expenditure was unforeseen and the expenditure is urgently and immediately required to address a public emergency or natural disaster;
2. the expenditure is in the public interest;
3. there is no appropriation or an insufficient appropriation to incur the expenditure; and
4. a delay of the expenditure would likely result in loss of life or significant damage to property.

Clarification and interpretation of the criteria 

Unforeseen means that an event has occurred which requires immediate action to enable the continued delivery of essential GNWT programs.

Urgently and immediately required means that the expenditure is required to respond to a public emergency where the health and safety of NWT residents, wildlife, assets or environment is at risk, or there is no reasonable means to mitigate or avoid a response to the urgent situation.

An example of an expenditure that is in the public interest includes where due to legal action, a judgment has been made against the GNWT to which an immediate response is required.

No appropriation or an insufficient appropriation and no other means available must be demonstrated in the context of the appropriations available to the entire department, not just the activity or division to which the expenditure applies. Departments are expected to adjust operations and reallocate existing funds within its total appropriation to address the estimated shortfall prior to submitting a request to the FMB for a special warrant.

Delay of the expenditure would likely result in significant monetary loss would include expenditures to meet statutory or contractual obligations where a delay in making the expenditure would result in significant punitive action (e.g. penalties or lawsuit) against the GNWT.

Under the Emergency Management Act, emergency means a present or imminent event that is affecting or could affect the health, safety or welfare of people or is damaging or could damage property.