A-FN-105

• Foreword (Revised 6 Oct. 08)
• Chapter 1 - Introduction (Revised 29 Nov. 10)
• Chapter 2 - Financial Concepts (Revised 30 Jan. 09)
• Chapter 3 - Organization and Responsibilities (Revised 27 Apr. 11)
• Chapter 4 - Non-Public Property Audit (Revised 15 Dec. 10)
• 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 Nov. 14 11)
• 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 - Credit Cards (Revised 4 Feb. 11)
• Chapter 13 - Chart of Accounts (Revised 20 Feb. 12)
• Chapter 14 - Financial Statements (Revised 20 Feb. 12)
• Chapter 15 - Financial Statement Checklist (Revised 20 Mar. 03)
• Chapter 18 - Cash and Other Receipts (Revised 20 Oct. 11)
• 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 30 - Write-off, Reporting, and Loss/Damage of NPP (Revised 27 Apr. 11)
• Chapter 31 Accountable Advances (Revised 14 Nov. 11)
• 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 24 Feb. 12)
• Chapter 42 - Retail Stores (Revised 24 Feb. 12)
• 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 28 Feb. 12)
• Chapter 48 - Warehouses (Revised 23 Jan. 04)
• Chapter 49 - Special Services (Revised 29 Feb. 12)
• Chapter 51 - Purchases - CANEX Retail Outlets and Central Billing
• Chapter 52 - Credit Sales (Revised 20 Jun. 11)
• Chapter 53 - Layaways and Special Orders (Revised 17 Apr. 12)
• Chapter 54 - Lottery Tickets (Revised 9 Nov. 11)
• Chapter 56 - Miscellaneous
• List of Abbreviations
• List of Forms
• Index

Chapter 3

    

ORGANIZATION AND RESPONSIBILITIES

FINANCIAL AND ACCOUNTING RESPONSIBILITIES

GENERAL
 
1. The overall financial responsibility for Non-Public Property (NPP) operations is vested in the Chief of the Defence Staff (CDS) through Sections 2 and 38 to 41 of the National Defence Act (NDA).

OPERATING AUTHORITY

2. Overall operating authority for the administration and management of NPP is delegated by the CDS to the Director General Personnel and Family Support Services (DGPFSS) as the Managing Director of NPP, including the authority to:

a. create and implement an NPP accountability framework that both safeguards and ensures the effective and efficient use of NPP;

b. create and implement strategic and business plans ensuring NPP resources support the operational readiness and effectiveness of CF members and fulfill the objectives of the CDS Guidance, Canadian Forces Morale and Welfare Programs;

c. approve NPP capital and operations and maintenance (O&M) projects; and

d. maintain and amend the CDS Delegation of Authorities for Financial Administration of Non-Public Property.

PUBLIC SUPPORT TO MORALE AND WELFARE (MW)

3. The Chief of Military Personnel (CMP) is designated by the CDS as responsible to:

a. determine the level of Public support for NPP programs and services supported jointly from NPP and Public resources; and

b. ensure that Public funding requirements in support of MW activities are addressed through the departmental business planning process.

4. The delegation of financial and operating authorities for NPP flow from the CDS through the Managing Director of NPP to officers in command of Bases, Wings, and Units.

RESPONSIBILITY AT HEADQUARTERS

5. Chaired by the DGPFSS, the NPP Board (NPPB) exists to assist the DGPFSS in exercising NPP responsibilities as delegated by the CDS, and shall provide stakeholder input and advice to the DGPFSS regarding:

a. NPP strategic plans, policies, and directions;

b. NPP investments; and

c. Acceptance of the audited financial statements.

6. The Chief Review Services (CRS) is responsible to the CDS for the audit and evaluation of NPP programs, activities and financial statements.  An NPP Audit Committee has also been established by the CDS to provide independent, objective assessment and assurance on the adequacy on risk management, control and accountability as they relate to NPP.  The Chair of the Audit Committee is appointed by CDS and reports directly to CDS.  Periodically, the Chair of the NPP Audit Committee is to report the results of the Committee’s activities to the CDS.  CRS and DGPFSS are ex-officio members of the NPP Audit Committee.

7. The President of Service Income Security Insurance Plan Financial Services (SISIP FS) a division of the DGPFSS is responsible to provide current and former CF members and their families, financial products and services including life and disability insurance, financial planning, counselling and education, and the Canadian Forces Personnel Assistance Fund (CFPAF).  These financial products and services are provided by the Insurance Services Division, the Financial Planning Division, and the Canadian Forces Group Retirement Savings Plan (CF-Group-RSP).  The President SISIP FS reports through the DGPFSS to NPPB.  The CDS or Managing Director NPP may direct the use of SISIP surpluses to support NPP programs, capital and operations and maintenance (O&M) projects.

8. The President of CANEX is responsible for directing CANEX strategy, policies and operations.  The Canadian Forces Exchange System (CANEX) a division of the DGPFSS is organized as a field unit of the CF, embodied in the Regular Force and assigned to CMP under Canadian Forces Organization Order (CFOO) 1.9.  The President CANEX, who exercises functional control, reports through the DGPFSS to NPPB.

9. The Chief of Personnel and Support Programs (CPSP) is responsible for both Public Morale and Welfare (MW) Programs and NPP MW Programs that support the operational readiness and effectiveness of Canadian Forces members.  Public MW includes Messes and Service Clubs, Military Fitness and Sports, Military Family Services, Health Promotion, and support for Deployed Operations.  NPP MW programs include community Recreation programs and Specialty Interest Activities.

10. The Chief Financial Officer (CFO) is responsible for:

a. the management and administration of CFCF and all NPP accounting records;

b. the operation of the NPP consolidated banking program;

c. the operation of the loan programs of the CFCF;

d. the development, in conjunction with CANEX  SISIP FS and PSP, of financial policies and procedures relating to NPP operations;

e. the compliance assurance review function, the purpose of which is to advise senior management within DGPFSS and Base/Wing Commanders on inconsistencies of current practices and established NPP policies, or where practices fail to provide the necessary controls for the safeguarding of assets.

RESPONSIBILITY OF NATIONAL ACCOUNTING OFFICES

11. There are four national accounting offices as follows: accounts receivable, accounts payable, fixed assets and treasury, and financial reporting.  The national offices provide all financial support for all NPP activities.

a. The National Accounts Payable Office (NAPO) is located at the DGPFSS Headquarters in Ottawa and is primarily responsible for managing supplier accounts, printing cheques and transmitting payments by electronic funds transfer;

b. The National Accounts Receivable Office (NARO) is located at CFB Borden and is primarily responsible for collecting Non-Public Funds, receivables, reconciling local bank accounts and credit/debit card terminals, and processing payments received;

c. The National Fixed Assets and Treasury Office (NFATO) is located at BFC Valcartier and is primarily responsible for coordinating the accounting records  of NPP throughout the fixed asset life cycle (i.e. From cradle to grave) and for most of the Canadian Forces Central Fund (CFCF) bank functions; and

d. The National Financial Reporting Office (NFRO) is located at CFB Halifax and is primarily responsible for the production of monthly financial statements.  It is also responsible for, among other things, the creation and maintenance of general ledger (GL) accounts within ABACIS, generating the monthly PowerPlay report, producing ad hoc management reports, and uploading budgets.

RESPONSIBILITY OF THE REGIONAL ACCOUNTING MANAGER (RAM)

12. The RAM shall review the financial statements prepared in accordance with Chapter 14 (Financial Statements), and advise the BComd on the financial position of NPP operations within the region. This shall include recommendations pertaining to write-offs.  The RAM, shall be responsible for:

a. administrating of NPP accounting activities in compliance with financial policies and regulations;

b. advising the CO’s on the cash position of individual NPP operations in relation to Unit NPP activities;

c. briefing and presenting financial results at Base Fund meetings, at least once a year and at any other occasions required by Base authorities; and

d. provide NPP subject matter expertise on any NPP issues and investigations.

RESPONSIBILITY AT THE UNIT

13. The CO is the directing authority, and is responsible for the overall financial position of all Unit NPP activities, excluding CANEX and SISIP FS.  The CO shall exercise financial authority as per the CDS Delegation of Authorities for Financial Administration of NPP.

14. The Base NPP Accounting Manager (NPPAM), who is directly responsible to the RAM, shall be responsible for the accurate and prompt recording of all NPP financial transactions.  The NPPAM shall provide accounting control over all assets, liabilities and in particular shall be responsible for:

a. the receipt, safeguarding, and disbursement of non-public funds;

b. the production of timely financial reports as required;

c. monitoring all approved capital expenditures;

d. providing to the Entity Manager, analyses on the financial position of NPP activities;

e. maintaining adequate stocks of the accountable forms listed in Chapter 6 (Control of Accountable Documents); and

f. briefing and presenting financial results at all Base/Wing/Station Fund meetings, and other Unit NPP activity meetings on demand.

15. The Entity Manager, with the assistance of the NPPAM, shall provide the CO with analysis and advice on all NPP financial matters.

FINANCIAL ADMINISTRATION

CDS DELEGATION

16. The “CDS Delegation of Authorities for Financial Administration of NPP”, is an essential component of the NPP accountability framework, setting out therein the CDS delegation policy and standards for the Financial Administration of NPP, including “write-off” authorities.

NON-PUBLIC AUDIT AND COMPLIANCE/ASSURANCE

17. The policy and procedures for internal and external inspections/audits are contained in Chapter 4 (Non-Public Audit and Compliance/Assurance).

18. DGPFSS provides compliance and assurance services from CFO to provide assistance or review of NPP operations.  CO’s may request special investigative teams through DGPFSS to conduct ad hoc review of NPP operations.