Date:  February 22, 2008
To:  SFFO’s
From:  Bill Matthews,  Senior Director, Government Accounting Policy and Reporting Division, Financial Management & Accounting Policy Directorate, Office of the Comptroller General

The purpose of this notice is to inform you that the accounting treatment for amounts recovered by Justice Canada in 2006-2007 for the provision of legal services will be the same as that followed in 2005-2006. In Period 12 Extended 1, client departments are to set up PAYEs with Justice Canada for any amounts outstanding at 2006-2007 year-end.  These amounts will be provided by Justice Canada. In Period 12 Extended 1, Justice Canada will forward to client departments the amounts to be reversed against the client department’s appropriation. The amount to be reversed should be equal to or less than the total amount Justice Canada has recovered during the year. Client departments will then record appropriate reversing and correcting entries to be included in the Period 12 Extended 2 CFMRS Trial Balance. 

Charges made by Justice Canada for a revolving fund must be reversed against the client department’s appropriation.  

Journal entries using the government-wide chart of accounts are included in Appendix A.  These entries are illustrative; client departments should tailor the entries to reflect their particular circumstances.  For accurate reporting of expenses and expenditures in the Public Accounts, client departments must ensure that:

The Operating Budget Carry Forward calculation will be adjusted to account for these transactions.  Further information will be included in the Operating Budget Carry Forward call letter.

It should be noted that the procedures in this call letter will no longer be in effect starting in fiscal year 2007-2008 as the Department of Justice and the newly created Office of the Director of Public Prosecutions have received  new Vote-Netted Revenue authorities. 

Specific questions on 2006-2007 amounts should be directed to Julien Cadieux (613-952-3499,  Julien.Cadieux@justice.gc.ca). Please direct questions on accounting to Sylvie Godin (613-946-7368, Godin.Sylvie@tbs-sct.gc.ca).

Thank you for your cooperation in this matter.

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