Effective: January 27, 2018
Section: Funding Arrangements
Administrator: Office of the Comptroller General
Applicability: GNWT Departments and Public Agencies

POLICY

An approved loan or debenture may be issued when sufficient evidence of an established business need, stewardship over the use of the funds, the purpose is consistent with the funder’s mandate and required approvals have been demonstrated.

PURPOSE

To ensure that loans and debentures are only issued when the required controls and accountability requirements have been satisfied.

SCOPE

This policy applies to all funds provided as a loan or debenture to another legal entity.

RESPONSIBILITIES

Deputy Head

May issue loans; ensure that any loan or debenture is not released until the business requirements are documented, and internal controls are in place.

Comptroller General

May approve Interpretation Bulletins associated with this policy.

Financial Management Board

May authorize the issuance of a debenture and may issue a directive respecting the financial management or financial administration of a Department or Public Agency.

AUTHORITIES and REFERENCES

• Financial Administration Act (FAA)
  • s. 10 – Board directives
  • s. 42 - Agreements and Accountability
  • s. 53 - Loans
  • s. 73 - Appropriation transfers
  • s. 74 - Report on transfer of funds
  • s. 94 - Disbursement of public money
  • s. 95 - Contracts
  • s. 96 - Effects of contravention
  • s. 97 - Condition in contracts
• CPA Canada Public Sector Accounting Handbook

INTERPRETATION BULLETINS