Home > Corporate > Finance and Informatics > Chapter 1 - Introduction
Chapter 1 Introduction
CHAPTER 1
INTRODUCTION
GENERAL
1. This publication deals with all aspects of Non Public Property (NPP) accounting for the Canadian Forces. Publications, directives, and instructions relating to Ships and Deployed Operations remain in effect and are not superseded by this publication; however, they shall be consistent with this publication and must receive approval from the Director General Personnel and Family Support Services (DGPFSS), Chief Financial Officer (CFO). All Bases/Wings/Units, with the exception of Ships and some Deployed Operations, are equipped with the accounting system referred to as Automated Base Accounting Control and Information System (ABACIS). Basic NPP policies and principles expressed in this publication apply equally to ABACIS Bases/Wings/Units; however, some of the procedures, which are oriented towards a manual system of accounting, do not.
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 Canadian Forces (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 the frequency of reporting and other controls presented in this publication represent the basic 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. "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;
b. Base - In this publication the term "Base" means a Canadian Forces Base, Wing, Ship, Unit or other element of the CF unless otherwise stated;
c. Base Fund - The Base Fund consists of all NPP, exclusive of unit fund operations independent of Base Fund, CANEX, messes, and Museums which have been entrusted to the Commanding Officer pursuant to Sections 38 to 41 of the National Defence Act;
d. The Canadian Forces Central Fund (CFCF) consists of all NPF entrusted to DGPFSS pursuant to Sections 38 to 41 of the National Defence Act and stated in A-PS-110-001/AG-002. The CFCF means the aggregate of all Non-Public moneys that are on deposit at the credit of NPP organizations and from which all NPP disbursements are made. NPP includes both real property (interest in land) and personal property (interest in any property other than land). The money component of NPP, referred to as Non-Public funds (NPF) includes funds from:
(1) revenues from NPP programs, services and activities, including resale activities;
(2) sale of NPP;
(3) fees, charges or bar activities of NPP organizations;
(4) rental of NPP-financed community recreation program facilities or equipment;
(5) donations or contributions to NPP organizations;
(6) investment of NPF through the CFCF; and
(7) the Public as reimbursement for Public MW Programs delivered using NPP resources.
e. The Canadian Forces Personnel Assistance Fund (CFPAF) provides financial assistance to serving and former members of the CF and their families through four programs: the Minor Disbursement Program, Self -Improvement Loan Program, Financial Distress Program and the Educational Assistance Program.
f. CANEX - The Canadian Forces Exchange System (CANEX) is a division of DGPFSS and operates a diverse resale organization to provide a wide range of goods and services to the military community at competitive prices to meet consumer needs and generate profits in support of MW programs. In Canada, business consists of retail, grocery, petroleum, special service and food service outlets operating at units. CANEX operates similar facilities in Germany for NATO;
g. "Entity" means any constituted activity that presents a complete set of financial statements. It includes messes, CANEX, CF Museums, Base/Unit Fund and their subsidiaries;
h. "Mess" means, the organization whose membership is related to an identifiable rank, formed for the purpose of building esprit de corps and comradeship; or the facility or facilities, which provide space in which to carry out the functions of the organization and may include a wardroom or dining room, bar or anteroom, lounge, games room, patio 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;
i. Morale and Welfare (MW) Programs as described in A-PS-110-001/AG-002 are those administered by DGPFSS, with Public and NPP resources, in support of the chain of command, to enhance the well-being of CF members and their families, thus contributing to the operational readiness and effectiveness of the CF;
j. Non-Public Funds (NPF) - NPF is the abbreviation for Non-Public Funds and should be used in that sense only. It is not accurate to imply that NPF is an entity or organization with capacity to perform functions or undertake responsibility as such entity or organization does not exist. The abbreviation may be used in conjunction with facilities or functions to indicate the primary source of resources for an activity but does not necessarily establish the responsibility for its existence.
k. Non-Public Property (NPP) - NPP is as defined in The National Defence Act (NDA) and means:
(1) All money and property, other than issues of material, received for or administered by or through messes, institutes or canteens of the Canadian Forces;
(2) All money and property contributed to or by officers, non-commissioned members, units or other elements of the Canadian Forces for the collective benefit and welfare of those officers, non-commissioned members, units or other elements;
(3) By-products and refuse and the proceeds of the sale thereof to the extent prescribed under subsection 39(2) of the National Defence Act; and
(4) All money and property derived from, purchased out of the proceeds of the sale of, or received in exchange for, money and property described in subparagraphs (1) to (3).
l. “NPPAM” refers to the senior NPP accounting person at each Base;
m. “NPP Entity Fund” is a separate economic unit, segregated for the purposes of conducting specific activities or attaining objectives in accordance with special regulations, or limitations as outlined in the Entity Fund constitution. NPP Entity Funds are established to maintain legitimate non-Base Fund NPP funds within the NPP accountability framework;
n. Non-Public (NP) Resources means:
(1) Funds –
(a) generated by the resale activities;
(b) raised or contributed by DND personnel;
(c) received from admission charges to recreational facilities or events;
(d) received from the rental of NPP-financed recreation facilities or
equipment;
(e) received from the sale of NPP;
(f) donated or contributed to NPP organizations; and
(g) generated from fees, charges or bar profits of messes.
(2) NP buildings, equipment and materials, and
(3) NP personnel –
(a) paid from NPF, and
(b) voluntary human resources in leadership and self-help capacities.
o. "Outlet" is a component of an entity;
p. “Regional Accounting Manager” (RAM) refers to the Regional Accounting Manager;
q. “Service Clubs” – Service Clubs may be authorized as an alternative to Mess bars. They provide a place for CF member to socialize where consumption of alcohol is not the primary activity. Activities provided in Service Clubs are based on the interests of CF members and may include a lounge area, food outlet, either in the facility or reasonably accessible, dance area, games, and TV areas;
r. “Service Income Security Insurance Plan Financial Services” (SISIP FS) provides financial products and services to current and former CF members and their families, including life and disability insurance, financial planning, counseling and education, and the CFPAF; and
s. “Trust” means an account set up in trust that is a non-NPP activity and thus not under the control of the BComd and upon closure of the activity the trust funds do not accrue to Base Fund or any other NPP organization. If considered to be in the best interest of the CF, the BComd may direct that trusts be established for non-NPP activities such as the Military Police Fund for Blind Children, United Way, etc.
8. 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 & O within the Interpretation Act or the National Defence Act shall be construed according to that definition.
9. 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.
10. 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.
c. "practicable" shall be construed as "physically possible";
d. "practical" shall be construed as reasonable in the circumstances; and
e. “public” with an upper case “P” refers to the Crown in right of Canada.
11. A list of abbreviations can be found at the end of this publication. In addition, a more detailed list of abbreviations can be found in the A-PS-110-001/AG-002 Morale and Welfare Programs in the Canadian Forces.