CHAPTER 7

 

SECURITY OF NON‑PUBLIC FUNDS

 

INTRODUCTION

 

1.             Except as indicated in this chapter, orders in relation to the security of public funds, in particular QR&O 202.03, CFAO 202-2, and National Defense Security Policy (NDSP) chapter 8, apply equally to non-public funds.

 

PHYSICAL SECURITY

 

2.             NPF cash, negotiable instruments and cash vouchers shall be secured in accordance with CFAO 202-2, paragraph 14, and NDSP chapter 8, article 8.48.

 

3.         Public and non-public funds shall not normally be kept in the same safe. If both funds must be retained in the same safe, the funds should be kept segregated and ECS authorization be obtained.

 

DEPOSITING OF CASH RECEIPTS

 

4.         CANEX, messes and other entities whose daily sales exceed $1,000 must deposit all cash receipts, including any overage, daily in accordance with Non Public Funds Accounting Supervisor (NPFAS) direction.  If sales do not exceed $1,000, but the facility is equipped with an intrusion alarm, deposits must be made no less than three times a week.  In addition, receipts for days not immediately followed by a banking day may:

 

 

a.             be kept at the outlet if appropriate secure facilities are available;

 

b.            be deposited with the military police; or

 

c.             be deposited in a suitable night depository.

 

5.         Persons appointed to collect funds not classified as sales, (ie. mess subscriptions, membership dues) shall make deposits weekly, or more frequently, when the amount collected warrants. On the last accounting day of the month, all cash holdings shall be deposited with the NPFAS.  All cash deposited must be supported by the duplicate copies of form CF 602 issued.

 

6.         Other trading entities whose daily sales are less than $1,000 may, if secure storage is available, deposit receipts weekly. In all cases, cash receipts must be deposited for the last day of an accounting period by the next banking day following the closing date.

 

7.         If a facility is not equipped with an intrusion alarm, and the NPFAS acts as a central cashier, he shall deposit funds daily on each banking day. Where the distance to the nearest banking facility makes daily depositing impracticable and if appropriate secure facilities exist, the Regional Accounting Manager (RAM) may authorize weekly deposits. Delay of deposits in excess of one week must be authorized by the CFO.

 

MILITARY POLICE SERVICES

 

8.         Where the Military Police Services, as authorized by A-PS-110-001/AG-002, Chapter 3, cannot be provided for deposits to the bank, the RAM shall advise the applicable B Comd accordingly, giving full particulars of the possible implications should these services not be made available. If the situation cannot be corrected, the B Comd shall advise the ECS of the problem by message. The RAM will also notify CFO of the situation.

 

9.        Notwithstanding the requirement for daily deposits when sales are in excess of $1,000.00, when Military Police Services are not available and when personal safety is jeopardized with late night deposits, outlets may secure funds within the outlet as long as appropriate secure facilities are utilized.

 

MILITARY POLICE REPORTS

 

10.        All incidents involving non-public funds, regardless of amount, should be reported to the RAM of the Canadian Forces Personnel Support Agency (CFPSA).  This may be done directly or through Base/Wing NPFAS.  This action is in support of identifying internal control shortcomings and for initiating corrective action.

 

11.        It will be incumbent upon RAMs to liaise with the local Military Police to explain where you fit in the chain of command and how your needs can best be handled – how reports should be distributed – directly to RAM or filtered up through Base Accounting Supervisors.  RAMs are to report all non-public funds Military Police investigations to Comptroller CFPSA.

 

SAFE COMBINATIONS AND LOCKING DEVICES

 

12.        Regulations applicable to safe combinations and locking devices where non-public funds, including petty cash and change funds, are secured shall be the same as outlined in CFAO 202-2 and NDSP Chapter 8. In addition to these policies, the combination (and/or duplicate of the key) under which the funds are secured shall be placed in a sealed envelope and deposited with the following:

 

a.             CANEX Outlets ‑ with the NPFAS;

 

b.      other NPF entities/activities ‑ with the NPFAS; and

 

c.      NPFAS ‑ with the RAM

 

13.        The sealed envelopes shall be annotated on the front with the following information:

 

Unit : ______________________ Fund Holder: ________________ Location of Fund: ____________ Date Combination Changed: ___________________   In Case of Emergency, this envelope may be surrendered to: ___________________________ And opened by: ___________________________

  

        

 

PETTY CASH AND CHANGE FUNDS

 

14.        Petty cash funds and change funds are issued only on the authority of the minutes of mess and Base Fund committees or on the written authority of the B Comd, B Admin O, PSP Mgr or CANEX National Managers, as appropriate.

 

15.        Petty cash and Change Funds are operated under the following regulations:

 

a.             ANNEX A – PETTY CASH FUND – REGULATIONS GOVERNING USE

 

b.    ANNEX B – CHANGE FUND – REGULATIONS GOVERNING USE

 

16.        When issuing a petty cash or change fund, the NPFAS shall:

 

a.             be provided with a duly authorized "Request for Cheque" found at Annex C;

 

b.            issue a cheque in favour of the authorized holder of the fund;

 

c.             record the advance through the Cash Disbursements Journal (ABACIS DISGEN) and in the appropriate account in the General Ledger;

 

d.            make provision for an annotation on the individual's pay record or, for insertion in civilian and NPF personnel files. This procedure must indicate the amount of the fund and the date issued in order to ensure the return of the funds during Base clearance procedures; and

 

e.             provide the holder with a copy of Annex A (Petty Cash), Annex B (Change Fund), and brief the holder regarding the use of the fund.

 

17.        A written acknowledgement shall be obtained from each authorized holder to whom a petty cash or change fund is issued, using the form at Annex D. This acknowledgement, supported by the "Request for Cheque”, Annex C, shall be held on file by the NPFAS and secured as a cash voucher. A new acknowledgement shall be obtained on each change of responsibility for the funds. The entity shall not use Form CF 602 as a receipt for petty cash or change fund issues.

 

18.        When a petty cash or change fund is no longer required, the funds shall be returned to the NPFAS who shall:

 

a.             return the acknowledgement referred to in paragraph 17 to the authorized holder;

 

b.            acknowledge receipt for the funds on a form CF 602;

 

c.             file the original "Request for Cheque" in a completed transactions file; and

 

d.            delete the annotation on the individual's pay record or in their personnel file.

 

19.        A petty cash or change funds shall not be permanently transferred from one holder to another without proper authority in accordance with paragraph 14.

 

20.        When a fund is temporarily transferred to another holder (eg. During leave or temporary duty), the permanent holder will remain responsible for the fund unless a written acknowledgement (see paragraph 14) is obtained from the temporary holder.

 

21.        The continuing requirement for a petty cash or change fund shall be reassessed annually by the NPFAS. The reassessment shall be recorded on Annex E and when completed, shall be retained on file by the NPFAS. In addition, the reimbursement register, provided at Appendix 1 of Annex E, must also be maintained for each Petty Cash. 

 

22.        Petty cash and change funds shall be verified by the NPFAS, or a person appointed by the RAM, at least once a year using the form at Annex F. The NFPAS shall maintain a register to record verifications and the verifying authority shall enter full particulars of all funds verified. 

 

23.        At each stocktaking, Petty cash and change funds will be counted by stocktaking personnel. Note that the amounts of these funds are not included in the inventory level determined by the stocktaking.

 

24.        At his discretion, the RAM or NPFAS may order a surprise verification of a petty cash and/or a change fund at any time. Annex F is provided to accommodate a surprise verification.