Directive on Delegation of Spending and Financial Authorities
Provides Chief Financial Officers their responsibilities for delegating, maintaining and management and oversight of spending and financial authorities.
Date modified: 2021-01-18
Supporting tools
Guide:
Mandatory procedures:
More information
Policy:
Terminology:
Topic:
Hierarchy
Archives
This directive replaces:
- Account Verification, Directive on [2017-04-01]
- Delegation of Financial Authorities for Disbursements, Directive on [2017-04-01]
- Expenditure Initiation and Commitment Control, Directive on [2017-04-01]
Appendix A: Mandatory Procedures for Individuals With Delegated Spending and Financial Authorities
A.1 Effective date
- A.1.1These procedures take effect on .
- A.1.2These procedures replace parts of the following Treasury Board directives:
- Directive on Delegation of Financial Authorities for Disbursements ()
- Directive on Expenditure Initiation and Commitment Control ()
- Directive on Account Verification ()
A.2 Procedures
- A.2.1These procedures provide details on the requirements set out in subsection 4.1 of the Directive on Delegation of Spending and Financial Authorities.
- A.2.2Mandatory procedures are as follows:
- A.2.2.1Individuals with delegated spending and financial authorities are responsible for the following:
- A.2.2.1.1Ensuring they are aware of their responsibilities;
- A.2.2.1.2Acquiring and maintaining their knowledge; and
- A.2.2.1.3Exercising their delegated authorities in accordance with this directive and the departmental delegation chart;
Commitment authority (FAA, section 32)
- A.2.2.1.4Reviewing each planned expenditure to confirm that there is sufficient unencumbered balance to cover all applicable costs and that related policy restrictions are considered;
- A.2.2.1.5Authorizing the planned expenditure before entering into a contract, human resources action or other arrangement, and making a commitment against the budget;
- A.2.2.1.6Recording commitments at the expected itemized value or seeking advice from the CFO if it is impractical to record commitments individually;
Certification Authority (FAA, section 34)
- A.2.2.1.7Verifying and documenting that the work has been performed, the goods supplied, or the services rendered as per the contract or agreement terms;
- A.2.2.1.8Certifying in a timely manner prior to making a payment, including interdepartmental settlements, that the contract or agreement terms and conditions have been met, including price, quantity and quality;
- A.2.2.1.9Ensuring that the payee is entitled to or eligible for the payment;
Payment Authority (FAA, section 33)
- A.2.2.1.10Providing quality assurance and verifying payments, including interdepartmental settlements, so that:
- A.2.2.1.10.1Sufficient auditable evidence exists that demonstrates that the account verification practices set out in section 34 of the FAA have taken place and that certification has been performed;
- A.2.2.1.10.2A payment is not made if it:
- A.2.2.1.10.2.1Represents an unlawful charge against the appropriation; or
- A.2.2.1.10.2.2Will result in the appropriation being exceeded when existing commitments are also factored in;
- A.2.2.1.10.3All high-risk transactions are reviewed to ensure that the requirements of the FAA’s certification authority (section 34) have been met;
- A.2.2.1.10.4A sample of medium- and low-risk transactions are reviewed to ensure that the requirements of the FAA’s certification authority (section 34) have been met; and
- A.2.2.1.10.5The transaction is returned to the FAA’s certification authority (section 34) for corrective action when required.
- A.2.2.1Individuals with delegated spending and financial authorities are responsible for the following: