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Various Accounting Issues

Archived information

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DATE:  April 2, 2002

TO: Senior Full-time Financial Officers

SUBJECT:  Various Accounting Issues

This information bulletin is to address various issues that have arisen during the 2001/2002 fiscal year. Please ensure the appropriate people in your department are notified.

Departmental Financial Statements

The departmental financial statements required by Treasury Board Accounting Standard 1.2 should be submitted hardcopy or electronically (rich text format) to Ken Wheat (wheat.Kenneth@tbs-sct.gc.ca) by July 15, 2002.

Other than those entities required to publish financial statements in the Public Accounts, departments and agencies are not to publish their financial statements without the prior written consent of the Senior Director, Government Accounting Policy Division, Treasury Board Secretariat.

Deleted Financial Reporting Accounts

The following are transitional accounts that will not be available for use in 2002/2003. Balances remaining in these account(s) should be transferred to other accounts for the P12 regular Central Financial Management and Reporting System trial balance submission.

Additional guidance is being issued by the Receiver General in an upcoming Receiver General Information Bulletin that will be available at: http://publiservice.pwgsc.gc.ca/cars-sccr/text/index_e.html

11122 Moneys received after the year end
11222 Accounts receivable recorded by Receiver General
11228 Allowance for doubtful accounts recorded by the Receiver General
11243 Other Receivables from Other Government Departments at year-end
21114 Accounts Payable - recorded at Year end only
21116 Accounts Payable - Payables on Due Date (PODD)
21133 Other Payables to Other Government Departments at year-end
42416 Proceeds from disposal of assets from non-FIS converted departments
49ddd I.S. - F.I.S. Transition Cross Years account (See following section for treatment.)
51323 Capital expenditures for non-FIS compliant departments

49ddd -- FIS Transition Cross Years accounts

These accounts were required for the transition period to identify settlements that had to be fully re-processed in the year a debtor became FIS compliant. Appendix A of Chapter 10R1 of the Receiver General Manual details on the use of these transition accounts. The Manual is available at: http://publiservice.pwgsc.gc.ca/rg/pdf/chap10r5-e.pdf

The account balance must be closed to the departmental Equity account (32ddd) at year-end.

For the purposes of Departmental Financial Statements, the balance of 49ddd is to be included in the balance of all Receiver General Cash Reconciliation Control Accounts.

FRA 49ddd will not affect or be reported in the Public Accounts of Canada.

Deleted Revenue Authority Codes

Revenue Authority Codes E211, E212, E221 and E222 are being deleted for the 2002/2003 fiscal year. Departments and agencies should use D211, D212, D221 and D222 instead.

Prepayments: Advances of Contribution payments

Treasury Board Accounting Standard 3.3 – Prepayments and the FIS Accounting Manual will be amended to clarify when advance payments made under the terms of a contribution agreement should be set up as prepayments.

The reporting back by a recipient on the use of funds is an administrative requirement and should not be used as a determining factor in the recognition of the payment as an expense. Only the portion of a contribution given to a recipient that is intended to cover expenses that will be incurred in a subsequent fiscal year should be recorded as a prepayment.

As outlined in the Policy on Transfer Payments, an accounts receivable must be recorded and covered for monies remaining from an advance payment at the end of a contribution agreement; the amount of any disallowed disbursements; demands for an accounting or repayment issued pursuant to sections 76(1)(b) and (c) of the Financial Administration Act; interest or overdue repayments in accordance with the terms of the agreement.

If you have any questions on any of the above subjects, please call Ken Wheat at 957-9676.

William G. Bradshaw
Acting Senior Director
Government Accounting Policy Division
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