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INTRODUCTION1. This chapter contains policies and procedures which do not fit into any of the other chapters. It is divided as follows: a. Gift Certificates; b. Home Heating Oil, CANEX Dividend Cheque Book; c. Coupons, Donations, Samples and Free Goods; d. Lease Contracts; e. Extended Warranty Program; f. STN Privilege Card; g. CANTEL; h. Post Office; j. Dry Cleaning and Photofinishing; and k. Bus Passes. CANEX GIFT CERTIFICATES 2. The CANEX Gift Certificate program was created to enable authorized patrons to purchase certificates as gifts to other authorized patrons. 3. The essence of the program is that the certificates have a value immediately on issue and are redeemable at any CANEX outlet. The certificates will bear face value amounts of five, ten and twenty dollars and may be purchased in lots of $100. 4. Orders for CANEX Gift Certificates will be by message to NDHQ/DNPFS detailing the denominations of certificates to be purchased. DNPFS will use the message as authority to debit the requesting unit's central bank account and will issue the certificates via registered mail to the NPFAO. 5. The NPFAO shall act as cashier for all gift certificates. On receipt of the certificates from DNPFS, the NPFAO shall record the following: DR Accounts Receivable - Gift Certificates CR CANEX Share of Base CBA 6. The account "Accounts Receivable - Gift Certificates" shall be included on the Balance Sheet as a part of the line "Accounts Receivable". Certificates shall be issued and controlled in the same manner as Petty Cash imprests. On issue, the NPFAO shall ensure that he obtains a receipt for the amount of the imprest and immediately: DR Imprest - Gift Certificates CR Accounts Receivable - Gift Certificates 7. The number of gift certificate imprests must be kept to a minimum. Normally, there will be only one gift certificate imprest per base. As the certificates represent cash, control and reconciliation of the imprests shall be identical to regular petty cash imprests and change floats. 8. The size of gift certificate imprests should be maintained at an amount equal to three months expected sales of the certificates, with allowances made for increased demand at certain times of the year or for special events (i.e. Christmas).
9. Customer Purchase. Authorized patrons may purchase the
certificates on credit.
10. Customer Redemption. As the certificates are intended to be used
for the purchase of merchandise, the certificates may not be redeemed
for cash without the approval of the CANEX manager. However, the
difference between the price of merchandise purchased and the face value
of the certificate shall be refunded to the patron in cash.
11. Return of Certificates to DNPFS. When a certificate is presented
by a patron at any CANEX it will be honoured. The certificates will be
handled as cash, cancelled with a "CANCELLED" stamp, and submitted to
the NPFAO along with the DSR. The NPFAO shall raise a DND 728 notated
"For Consolidated Bank Credit" and send the cancelled gift certificates
to DNPFS after making the following bookkeeping entry:
DR Accounts Receivable - CANEX HQ (account 1199;0002)
CR Sales
12. On receipt of the certificate, DNPFS will raise a consolidated
banking transfer voucher (TV), credit the unit's account and send a copy
of the TV to the unit. On receipt of the TV, the NPFAO shall:
DR CANEX Share of the Base CBA
CR Accounts Receivable - CANEX HQ (account 1199;0002)
HOME HEATING OIL - CANEX DIVIDEND "CHEQUE BOOK"
13. CANEX patrons who avail themselves of the Home Heating Oil (HHO)
program annually receive a HHO dividend certificate redeemable only for
merchandise or service at any CANEX outlet in Canada. In most cases
distribution of dividends and the redemption process pose no problems to
patrons and are fair and equitable. However, where participating CF
personnel are posted during the active posting season (APS), the normal
procedures are both costly and ineffective. To correct this situation
and to ensure that patrons receive the dividends earned, the CANEX
Dividend "cheque book" has been introduced.
14. (Not Allocated)
15. Security and Control. CANEX Dividend "cheques" are serially
numbered and, when properly completed, are negotiable instruments.
Therefore, the "cheques" shall be controlled and secured in accordance
with Chapter 6. NPFAOs can request CANEX Dividend "cheque-books" from
NDHQ/DNPFS as required and subsequently issue these to CANEX managers as
required.
16. Limitations. Use of the CANEX Dividend "cheque-book" is restricted
as follows:
a. The dividend is to be used for oil deliveries made only
during the period 1 June to 31 August as evidenced by the
customer's copy of the delivery slip; and
b. The dividend shall be signed by the CANEX manager or a
specifically designated representative.
17. After 31 August, but not later than 30 September of each year, all
unissued dividends shall be returned to the NPFAO.
18. Signing Authorities. As indicated, the CANEX manager or a
specifically designated representative is responsible for signing the
CANEX dividend. Prior to the beginning of June of each year, the NPFAO
shall provide NDHQ/DNPFS with a specimen signature of authorized
signors. The specimen signature shall be provided in the form of a
letter, which shall include the name, rank, and position of the signor.
The specimen signatures provided must be original signatures and not
photocopies.
19. Issuing a CANEX Dividend. Issuing a CANEX dividend to a customer
is simply a matter of filling in the blanks (see example, Annex A).
However, particular attention is required in the following areas:
a. Expiry date: The year to be inserted by the issuing agent
shall be the current year;
b. Litres: The customer requesting the dividend must present the
delivery slip so that the issuing agent may establish the
date of delivery and the litres delivered. The delivery slip
is to be retained by the issuing agent;
c. Cents per litre (CPL): The amount will be specified yearly by
CANEX HQ;
d. Signature of the CANEX manager: The name of the signor shall
be printed under the signature;
e. The back cover of each "cheque-book" includes a flap which
must be placed under the dividend being written to avoid
contaminating the counterfoils of the dividends that follow;
and
f. When a dividend is written, enough pressure must be used to
produce a legible counterfoil.
20. Disposition of the Dividend Counterfoils. Each CANEX dividend has
a counterfoil to which the customer's delivery slip is attached. Once
each month, the CANEX manager shall remove the counterfoils of all
issued dividends and send them to the NPFAO along with the delivery
slips. The NPFAO shall:
a. Record the dividends issued in the accountable document usage
register;
b. Verify that the delivery slip is attached to each
counterfoil; and
c. Submit all counterfoils complete with the delivery slips to
NDHQ/DNPFS monthly.
21. Redemption of Dividends. Properly completed CANEX dividends are
redeemable only for merchandise or services at any CANEX outlet. This
statement is printed on the face of each dividend.
22. The dividend must be endorsed by the customer, whereupon the clerk
will accept the dividend as legal tender. However, such dividends are to
be submitted with the DSR to the NPFAO and are not to be deposited with
a bank. In addition, the sum of the dividends will be reflected on the
DSR as a non-cash item.
23. Upon receipt of accepted CANEX dividends, the NPFAO will:
a. Verify that the dividends have been endorsed;
b. Verify that the sum of the dividends equals the figure
recorded on the DSR;
c. Accumulate and secure the accepted dividends;
d. Record the accepted dividends as an Accounts Receivable -
CANEX HQ (account 1199;0001); and
e. Stamp all accepted dividend cheques "cancelled".
24. Reimbursement. Once each month, or more frequently if appropriate,
the NPFAO shall submit the accepted dividends to NDHQ/DNPFS under cover
of a DND 728 and request reimbursement.
25. On receipt of the dividends, DNPFS will raise a transfer voucher
(TV), credit the unit's account, and send a copy of the TV to the unit.
26. On receipt of the TV, the unit NPFAO shall:
DR CANEX Share of the CBA
CR Accounts Receivable - CANEX HQ (account 1199;0001)
27. Redemption for Cash. This form of CANEX dividend is not redeemable
for cash. For that reason, wherever the word "cheque" is used in this
instruction, it has been placed in quotation marks.
28. It is recognized, however, that when customers are buying
merchandise or services, it is unreasonable to assume that their
purchases will equal the total value of the dividend. Therefore, the
cash guideline is 10 percent of the value of the dividend; that is, when
a dividend is presented in payment for merchandise or services, the
cashier in making change may return cash to the customer amounting to
approximately 10 percent of the value of the dividend.
COUPONS, DONATIONS, SAMPLES AND FREE GOODS
29. Coupons. CANEX will honour and accept for redemption coupons of
national manufacturers of foodstuffs, toiletries, and other products
sold through CANEX outlets which are redeemable by the manufacturer for
cost as an incentive to promote their products. In addition, CANEX will
display and honour manufacturers coupons or CANEX HQ coupons in CANEX
flyers.
30. Coupons will be redeemed by the outlet cashiers and included as a
non-cash transaction (paid outs) on the DSR which is submitted to the
NPFAO daily. CANEX managers shall ensure that coupons that must be
forwarded to CANEX HQ for redemption, are batched separately from all
other coupons and clearly marked with the words "send to CANEX HQ for
reimbursement".
31. NPFAO upon receipt of DSR shall:
a. Verify that the amount of coupons shown as paid out on the
DSR agrees with the total of coupons attached. The amount of
coupons will be charged to Accounts Receivable - Coupons or
Accounts Receivable - CANEX HQ, as applicable, through the
posting of the DSR in the Cash Receipts Journal (CRJ); and
b. File coupons in a secure place awaiting submission to
supplier.
32. Periodically (as quantity of coupons determines) the coupons
should be sorted and forwarded to either the individual suppliers,
central coupon clearing houses, or CANEX HQ. The additional charge for
coupon handling as indicated on the coupon shall be included on the
invoice forwarded with the coupons.
33. Reimbursements received from suppliers or CANEX HQ for redeemed
coupons shall be credited to the appropriate coupon receivable account
except for any portion of the payment which covers the coupon handling
charge which is credited to Miscellaneous Revenue.
34. A reconciliation of the Accounts Receivable - Coupons shall be
prepared by the NPFAO on a monthly basis.
35. Donations, samples, and free goods. Donations, samples, and free
goods shall be covered by a purchase order. The receiving outlet shall
complete the purchase order to show full details of the goods received
and shall insert the notation donation, sample or free goods after the
suppliers' name. Normal receipt action shall be taken. Suppliers shall
be requested to cover such items with a "no charge" invoice whenever
possible.
LEASE CONTRACTS
36. Due to the high interest rate and the ownership-type obligations
implied in lease contracts, all leases must be approved by CANEX HQ.
EXTENDED WARRANTY PROGRAM
37. The Extended Warranty Program represents an agreement between
CANEX and CAMCO and offers customers the opportunity to purchase
manufacturers service plan (MSP) warranties. Sales of the warranties are
to be recorded in Department 24.
38. The outlet cashier will complete an MSP contract with each sale.
The yellow copy of the contracts will be attached to the DSR. The NPFAO
will verify that the total sales for Department 24 reported on the DSR
is equal to the totals indicated on the attached contracts.
39. CANEX will not be invoiced for these warranties. Instead, prior to
each month-end, the CANEX manager is to complete an MSP remittance form,
attach pink copies of all contracts and approve for payment. The
remittance form will be treated like an invoice and will be entered on
the invoice register. Payment is to be made to Walker Group Inc. prior
to the 25th of the following month, using the pre-addressed envelope
forwarded with the remittance form to the NPFAO for processing.
NOTE
Inventory is not to be maintained in the books of account for
extended warrranties.
SMART TALK NETWORK PRIVILEGE CARD
40. CANEX has entered into an agreement with Smart Talk Network (STN)
to be distributors of its Privilege Long Distance Calling Telephone
Card. Sales are to be recorded in Department 23.
41. CANEX managers will order batches of cards on a privilege order
form and keep an internally produced log to maintain inventory. The
cards that are ordered and shipped through the mail are not activated
and therefore have no value. They are not to be entered on the RAR at
this point.
42. CANEX managers will initiate activation of batches of cards (25
cards at a time) as required for sales. A CANEX purchase order is to be
filled out at the time of activation and a privilege card activation
form is to be completed by the CANEX manager and faxed to STN.
Confirmation of activation is received from STN and the cards may then
be sold the following business day.
43. Activated cards are to be treated like cash for security purposes
by the CANEX manager.
44. STN is a central billing supplier and therefore, central billing
procedures apply (see Chapter 51). That is, invoices will be sent from
STN to CANEX HQ where the information will be verified. The invoices
will be paid by CANEX HQ and forwarded to the CANEX manager at the base.
The invoice will be processed as an invoice payable to CANEX HQ (Account
2099;0001) .
45. The invoice will be recorded on the SUIREG and RAR upon receipt,
or at the very least, at month end. If the invoices are not received byl
month end, the merchandise received but not invoiced procedures (see
Chapter 21) shall be applied. That is, a copy of the activation form
with the PO will be processed through the SUIREG and the NPFAO will
maintain these documents in the pending file until receipt of the
invoice.
CANTEL
46. CANEX is selling the service of cellular telephones at various
locations, to customers who will enter into a lease contract with
CANTEL. Customers may sign for the Amigo Safety Service, the Amigo
Personal Service or the Amigo Business Service.
47. Sales revenue are two fold as follows:
a. Upon completion of the CANTEL lease contract, the first
monthly payment is made to and retained by CANEX (the
goldenrod copy of the contract should be attached to the
DSR); and
b. The CANEX outlet will forward the remaining 2 copies of the
contract (white and pink) to CANEX HQ who will remit the
contract to CANTEL. CANTEL will pay CANEX HQ a commission on
the sale of the service. CANEX HQ will raise a TV to transfer
the commissions back to the originating CANEX location.
Both the first payment made and the commission received from CANEX HQ
will be recorded as sales in sub-department 23-2 (Cellular Phones).
48. Cellular telephones will be sold on consignment and therefore,
inventory for this sub-department will not be maintained on the books of
account (ie. no RAR, and not counted for stocktaking purposes). CANEX
does not own these telephones and once a customer purchases the service,
the customer assumes full liability for the telephone and any problems
are handled directly between the customer and CANTEL.
49. Since CANEX is not purchasing the telephones, there is no cost of
goods sold for sub-department 23-2. Any cellular telephones on hand at
the outlet are to be secured at all times. Shrinkage is not authorized.
POST OFFICE
50. The types of postal operations that may be offered at a base vary
from a simple stamp shop to a Retail Postal Outlet (RPO) that offers a
full range of services. Canada Post has its own operating manuals which
are provided to the outlets providing postal services. These operating
manuals detail all of the requirements and procedures for the operation.
In addition, the local Canada Post representative is available for
training and assistance as required.
51. Sales of postal merchandise (from inventory) are to be recorded in
department 87, regardless of the type of outlet from which the sales are
made. Postal merchandise includes stamps, envelopes and other items such
as priority post envelopes and special occasion envelopes.
52. Commissions earned from C.O.D.s, handling of parcels, customs
transactions and money orders are to be accounted for as Commission
Revenue (account 6001).
53. Revenue earned from the rental of post office boxes as well as any
revenue paid by Canada Post to CANEX for providing postal services is to
be accounted for as Miscellaneous Revenue.
54. The Canada Post Financial Summary form and supporting
documentation are to be completed by the CANEX RPO and forwarded to the
NPFAO on a weekly basis. This Financial Summary provides details of all
postal transactions that have occurred, and forms the basis of payment
to Canada Post, which also occurs on a weekly basis. This form is
forwarded with payment to The Retail Service Centre in Ottawa, where it
is immediately verified by Canada Post. All discrepancies or problems
are addressed at that time, by Canada Post with the individual base. The
telephone help number for questions on the Financial Summary form or
other Canada Post requirements is 1-800-267-1592.
BUS PASSES
55. The sales of bus passes are to be recorded in department 20-3
(Tickets).
DRY CLEANING AND PHOTOFINISHING
56. The sales made from dry cleaning services are to be recorded in
department 18. Invoices paid to the dry cleaning company are to be
recorded as purchases in department 18. Similarly, sales made from
photofinishing services are to be recorded in department 16 and invoices
paid to the photo development company are to be recorded as purchases in
department 16.
57. Clothing, film or other materials received for dry cleaning or
photofinishing are not to be maintained on inventory. An RAR is
therefore not required for these operations. The CANEX manager may wish
to maintain an inventory record at the outlet for control purposes.
However, these records will not be processed into the books of account.