Effective Date: April 1, 2016

Applicable FAM Policies: 130 - Approval Authorities

Applicability: GNWT and Public Agencies

INTERPRETATION

Policy 130 sets out the exercise of approval authority for government expenditures, including - Contract Authority, commitments, other general ledger account entries, trust account transactions, special purpose and revolving fund transactions, as well as payments including single authority disbursements.

Generally accepted internal control practices, in accordance with Generally Accepted Accounting Principles (GAAP), require that an Accounting Officer must have an internal reporting relationship that provides appropriate organizational segregation of responsibilities and authorities from the main business units where Expenditure Officers report.

The following describe the responsibilities of Expenditure, Accounting, Revenue and, Contracting Authorities.

Expenditure Officer:

Expenditure Officers are responsible for expenditure control matters including:

1. Ensuring that the amount for disbursement from an applicable budget complies with statutory, policy, and contractual terms and conditions; or, if there is no contract, it is appropriate in the circumstances. Government authorization must be documented in a manner approved by the Comptroller General (or delegate);
2. Reviewing and verifying the supporting documentation and recommending the expenditure transaction;
3. Ensuring compliance with all applicable legislation, policies, and directives; and,
4. Resolving any material discrepancies e.g., in goods or services received or amount invoiced, and recommending the expenditure transaction.

An Expenditure Officer's approval includes the following certifications:

1.    pre-encumbrance;

2.    commitment; and,

3.    charge.

An Expenditure Officer must also certify any adjustment made to an account that relates to an expenditure or an adjustment that impacts the balance sheet.

Accounting Officer:

Accounting Officers must verify the authority of the Expenditure Officer prior to certifying a disbursement.

Accounting Officers are responsible for expenditure and disbursement control including:

1. Performing adequate sampling tests to assess the quality of the review at the primary level of responsibility;
2. Reviewing and verifying the voucher documentation before any payment is made;
3. Ensuring compliance with all applicable legislation, policies, and directives;
4. Authorization is provided electronically in the System for Accountability and Management (SAM) or in writing.

An Accounting Officer’s approval includes the following certifications:

1.  pre-encumbrance;

2.  commitment; and,

3.  charge.

An Accounting Officer must also certify any adjustment made to an account that relates to a disbursement, or an adjustment that impacts the balance sheet.

Revenue Officer:

Only a Revenue Officer may take into possession public monies e.g. visa payments, cheques, debits, etc. on behalf of the Government or public agency.

A Revenue Officer must provide proper certification before public money is taken into possession and under control. The certification includes:

1. account verification;
2. issuance of a receipt; and,
3. proper recording of the revenue.

A Revenue Officer must certify any allocation that is made to a revenue account and certify any adjustment made that relates to a revenue account.

Contract Authority Officer:

Only Contracting Authorities may enter into contracts on behalf of the Government. No contracting authority shall proceed with a contract without documented approval by the Expenditure Officer for that budget. The Expenditure Officer may have Contract Authority.

Conflict of Interest

No person shall exercise any authority in relation to a transaction, claim for payment or claim for reimbursement from which that person, or that person's relative, can benefit. Similarly, due to possible or perceived conflicts of interest, no person shall exercise such authority where anyone who resides in the same household can benefit.