A-FN-105

• Foreword (Revised 6 Oct. 08)
• Chapter 1 - Introduction
• Chapter 2 - Financial Concepts (Revised 30 Jan. 09)
• Chapter 3 - Organization and Responsibilities
• Chapter 4 - Non-Public Property Audit (Revised 23 Jul. 03)
• Chapter 5 - Principles of Internal Control (Revised 29 Sept. 03)
• Chapter 6 - Control of Accountable Documents (Revised 23 Jan. 03)
• Chapter 7 - Security of Non-Public Funds (Revised 17 Aug. 07)
• Chapter 8 - Sales Taxes (Revised 23 Jan. 03)
• Chapter 9 - Consolidated Banking System (Revised 23 Jan. 04)
• Chapter 10 - Canadian Forces Central Fund Contributions - Loans and Grants (Revised 11 Aug 08)
• Chapter 11 - Non-Public Funds Consolidated Insurance Program (Revised 23 Jan. 03)
• Chapter 12 - Non-Public Funds Credit Cards (Revised 17 Aug. 07)
• Chapter 13 - Chart of Accounts
• Chapter 14 - Financial Statements
• Chapter 15 - Financial Statement Checklist (Revised 20 Mar. 03)
• Chapter 18 - Cash and Other Receipts (Revised 12 Feb. 03)
• Chapter 19 - Accounts Payable and Disbursements (Revised 29 Jan. 03)
• Chapter 20 - Payroll (Revised 14 Feb. 03)
• Chapter 21 - Purchases (Revised 18 Oct. 06)
• Chapter 22 - Transfers (Revised 18 Oct. 06)
• Chapter 23 - Retail Price Changes (Revised 30 Sept. 03)
• Chapter 24 - Requests for Credit, Returns and Repairs (Revised 18 Mar. 03)
• Chapter 25 - Inventory Valuation
• Chapter 26 - Stocktaking
• Chapter 27 - Inventory Shrinkage, Spoilage/Breakage and Shortage/Overage
• Chapter 28 - Fixed Assets (Revised 2 May 07)
• Chapter 29 - Accounting for NPP Sponsorship and Donations (Revised 12 June 09)
• Chapter 32 - Public Grants
• Chapter 36 - Bar Operations
• Chapter 37 - Mess Charges (Revised 15 June 03)
• Chapter 38 - Function Recapitulation Voucher (Revised 14 Jan 04)
• Chapter 41 - CANEX Outlets (Revised 15 Oct. 03)
• Chapter 42 - Retail Stores (Revised 01 Oct. 03)
• Chapter 43 - Grocery Stores (Revised 06 Oct. 03)
• Chapter 44 - Combination Stores
• Chapter 45 - Gas Bars
• Chapter 46 - Food Services (Revised 29 Oct. 03)
• Chapter 47 - Vending Operations (Revised 26 Nov. 03)
• Chapter 48 - Warehouses (Revised 23 Jan. 04)
• Chapter 49 - Special Services (Revised 07 Oct. 03)
• Chapter 51 - Purchases - CANEX Retail Outlets and Central Billing
• Chapter 52 - Credit Sales
• Chapter 53 - Layaways and Special Orders
• Chapter 54 - Lottery Tickets
• Chapter 56 - Miscellaneous
• List of Abbreviations
• List of Forms
• Index

Chapter 1

1. This publication deals with all aspects of non-public fund (NPF) accounting for the Canadian Forces (Regular). Publications, directives, and instructions relating to Ships and deployed operations remain in effect and are not superseded by this publication; however, they shall be consistent with this publication and must receive approval from the Director Non-Public Funds Services (DNPFS). Most bases are now equipped with the Automated Base Accounting Control and Information System (ABACIS). Basic NPF policies and principles expressed in this publication apply equally to ABACIS bases. However, some of the procedures which are oriented towards a manual system of accounting do not. The publications listed below prescribe automated procedures for ABACIS bases and, in cases of conflict with this publication, they take precedence: ABACIS Operating Procedures Manual; ABACIS Applications Manual; ABACIS Security Manual.

2. This publication is to be used in conjunction with the publications, orders and directives listed at Annex A.

APPLICATION

3. This publication applies at all levels and in all environments of the CF unless otherwise stated.

4. Consistent application of the principles outlined will result in the most effective use of available resources and ensure the maximum contribution to the overall effectiveness of the CF.

5. The policies and procedures contained herein are designed to serve all levels of management and are to be consistently implemented throughout the CF.

6. The standards prescribed for frequencies of reporting and other controls presented in this publication represent the minimum acceptable level of internal control. Commanders may introduce additional controls where deemed necessary but may not authorize the relaxation of the measures outlined herein.

TERMINOLOGY

7. For the purposes of this publication:

  a. the Canadian Forces Central Fund (CFCF) consists of all non-public funds entrusted to the Director General Personnel Services (DGPS) pursuant to Sections 38 to 41 of the National Defence Act;

  b. the Canadian Forces Personnel Assistance Fund (CFPAF) consists of all non-public funds entrusted to the CFPAF Board of Directors pursuant to Sections 38 to 41 of the National Defence Act;

  c. the Base/Station Fund consists of all non-public funds, exclusive of messes and CANEX, which have been entrusted to the Commanding Officer pursuant to Sections 38 to 41 of the National Defence Act;

  d. CANEX consists of the personnel, assets, facilities, methods and procedures of the non-public fund resale operations of the CF, (excluding resale activities of messes and Base/Station Fund);

  e. the Base/Station CANEX consists of any or all of the outlets of Retail Stores, Grocery Stores, Combination Stores, Gas Bars, Food Services, Vending, Warehouses, and Special Services on the base/station other than those operated in conjunction with messes, Base Funds or Base Fund subsidiaries;

  f. "Mess" means, as appropriate, an Officers' Mess, an Officer Cadets' Mess, a Warrant Officers' and Sergeants' Mess, a Junior Ranks Mess, or any combination thereof, and includes a dining room, bar or ante room, lounge, games room patios, pool areas, and other common rooms/areas which, when provided, are operated and administered to provide services to the members of the mess. Messes have been entrusted to the Commanding Officer pursuant to Sections 38 to 41 of the National Defence Act;

  g. "Entity" means any constituted activity which presents a complete set of financial statements. It includes messes, CANEX, Base/Station Fund and Base Fund subsidiaries;

  h. "Outlet" is a component of an entity; and

  j. "Accounting" is the process of analyzing and systematically recording, in terms of money, transactions, and events which are, in part at least, of a financial nature, and of summarizing, reporting, and interpreting the results thereof.

8. In this publication, the term "base" means a Canadian Forces Base, Wing, Station, or Unit unless otherwise stated.

9. Words and phrases shall be construed according to the common approved meaning given in the Concise Oxford Dictionary if in English, or in Le Petit Robert, Harraps and/or Dictionnaire de la comptabilité if in French, except that: a. technical words and phrases, and words that have acquired a special meaning within the CF shall be construed according to their special meaning; and b. words and phrases that are defined within QR and O within the Interpretation Act or the National Defence Act shall be construed according to that definition.

10. Unless the contrary intention appears, words in the singular include the plural, and words in the plural include the singular, and unless the context requires otherwise words importing male persons includes female persons and words importing female persons include male persons.

11. In this publication: a. "may" shall be construed as being permissive and "shall" as being imperative; and b. "should" shall be construed as being information only.

12. In this publication: a. "practicable" shall be construed as "physically possible"; and b. "practical" shall be construed as reasonable in the circumstances.