CHAPTER 1 INTRODUCTION

GENERAL


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     Ships and deployed operations remain in effect and are not superseded by this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.