|
DATE:
March 5, 1998
TO:
Senior Financial Officers, and
Full Time Senior Financial Officers
SUBJECT:
Receipt and Deposit of Public Money
Regulations, 1997, Payments and Settlements Requisitioning Regulations, 1997,
Electronic Payments Regulations, and Repayment of Receipts Regulations, 1997.
The Treasury Board recently approved the replacement of four
financial control regulations under the Financial Administration Act.
The recently approved regulations are the second set of
regulations revised under a project launched to review all financial regulations under the
Financial Administration Act. They are effective immediately.
The Receipt and Deposit of Public Money Regulations, 1997,
were revised to facilitate implementation of the new legal provisions in section 17(5)(b)
of the Financial Administration Act. These regulations specify the administrative
responsibilities of those collecting public money with respect to registers to be kept and
the frequency of deposits. The regulations also allow financial institutions to charge
back to the Receiver General for dishonoured payment instructions, i.e. bounced payments.
Finally, they also provide greater flexibility to the Receiver General to extend the
period required for deposits.
The Payments and Settlements Requisitioning Regulations,
1997, were revised to achieve administrative efficiencies by introducing the use of
digital signatures to authorize payment requisitions. Their thrust continues to be the
proper control over the payment requisitioning process.
The Electronic Payments Regulations replace the Direct
Deposit Regulations. These new regulations reflect the rapid growth in the number of
methods of electronic payment. They also include provisions that facilitate replacement
payments.
The Repayment of Receipts Regulations, 1997, were
revised to ensure a fair and uniform procedure is followed when public and non-public
money are to be returned. Furthermore, changes were made to the regulations to improve
their clarity and to facilitate their implementation by departments.
The related policies will be amended
as soon as possible.
Should you have any questions concerning these regulations,
please contact me or have a member of your staff contact Gilles Vézina at (613) 957-9660
or Morris Samel at (613) 957-9674.
J. Colin Potts
Deputy Comptroller General
IMPORTANT NOTE TO USERS
THIS PRESENTATION HAS BEEN PREPARED FOR CONVENIENCE OF REFERENCE ONLY AND HAS NO
OFFICIAL SANCTION. FOR ALL PURPOSES OF INTERPRETING AND APPLYING THE LAW, USERS SHOULD
CONSULT THE REGULATIONS, AS REGISTERED BY THE CLERK OF THE PRIVY COUNCIL AND PUBLISHED IN
PART II OF THE CANADA GAZETTE AND AVAILABLE IN MOST PUBLIC LIBRARIES.
----------------------------------------------------------------
RECEIPT AND DEPOSIT OF PUBLIC MONEY REGULATIONS, 1997
interpretation
1. The definitions in this section apply in these Regulations.
"Act" means the Financial Administration Act. (Loi)
"financial institution" means an institution, corporation or other entity,
incorporated, continued or formed by or under an Act of Parliament or the legislature of a
province or under the laws of a foreign state or a political subdivision of that state,
that holds deposits and honours cheques and other instructions for payment on behalf of
its clients and includes a bank, a trust company and a cooperative credit society. (institution
financière)
record of receipts and deposits
2. Every person who collects or receives public money shall
(a) record the following information in a register kept for that purpose:
(i) the date of every receipt and deposit,
(ii) the amounts received, deposited or withheld, and
(iii) all other information required for identification or audit purposes; and
(b) on request, or if directed to do so by the appropriate Minister, issue a
receipt or acknowledgment for any public money collected or received.
crediting the receiver general
3. All public money collected or received must be deposited to the
credit of the Receiver General with the Bank of Canada or one of its agencies or a branch
of a financial institution
(a) forthwith, if the money is received electronically;
(b) once a day, if the money is received by other than electronic means, or, if
it is not cost effective to do so,
(i) once a week, or
(ii) in exceptional circumstances and if authorized by the Receiver General, once a
month.
chargeback and withholding of public money
4. (1) Any person referred to in paragraph 17(5)(b) of the
Act may, if an instruction for payment has been dishonoured after having been credited to
the Receiver General, charge the amount of the instruction for payment back to the
Receiver General
(a) by debiting the account into which the instruction for payment was
originally credited to the Receiver General with that amount; and
(b) providing the Receiver General with confirmation of the amount that is
charged back.
(2) The Receiver General shall inform the appropriate minister of any amounts charged
back under subsection (1).
5. Every person who collects or receives public money is authorized to withhold
their fees or commissions from payments of that money to the credit of the Receiver
General if the fees or commissions are determined in accordance with
(a) an enactment, as defined in the Interpretation Act; or
(b) a contractual arrangement entered into by Her Majesty and that person and
are in the form of
(i) a lump sum,
(ii) a percentage of each amount collected or received, or
(iii) a flat-rate amount for each amount collected or received.
repeal
6. The Receipt and Deposit of Public Money Regulations are
repealed.
coming into force
7. These Regulations come into force on February 23, 1998.
IMPORTANT NOTE TO USERS
THIS PRESENTATION HAS BEEN PREPARED FOR CONVENIENCE OF REFERENCE ONLY AND HAS NO
OFFICIAL SANCTION. FOR ALL PURPOSES OF INTERPRETING AND APPLYING THE LAW, USERS SHOULD
CONSULT THE REGULATIONS, AS REGISTERED BY THE CLERK OF THE PRIVY COUNCIL AND PUBLISHED IN
PART II OF THE CANADA GAZETTE AND AVAILABLE IN MOST PUBLIC LIBRARIES.
----------------------------------------------------------------
PAYMENTS AND SETTLEMENTS REQUISITIONING REGULATIONS, 1997
interpretation
1. The definitions in this section apply in these Regulations.
"Act" means the Financial Administration Act. (Loi)
"digital signature" means the result of the transformation of a message by
means of a cryptosystem using keys such that a person having the initial message can
determine
(a) whether the transformation was created using the key that corresponds to the
signer's key, and
(b) whether the message has been altered since the transformation was made. (signature
numérique)
"settlement" does not include adjusting or correcting entries within a
particular appropriation. (règlement)
application
2. These Regulations apply to every requisition addressed to the
Receiver General requesting a payment to be made out of the Consolidated Revenue Fund or
requesting an interdepartmental or intradepartmental settlement.
requirements
3. (1) Every requisition must be made
(a) in a pre-printed form designed specifically for the purpose of
requisitioning payments or settlements;
(b) in a printed or written form resulting from an operating procedure of the
Receiver General or the department or other organization submitting the requisition; or
(c) in the form of an electronic instruction that is either issued by on-line
transfer or on a magnetic tape, disk, diskette or any other electronic physical storage
device.
(2) Every requisition must
(a) meet the design format and operational standards for requisitions set out in
Design of Forms for Input to the Central Accounting System (CAS), Receiver General
Directive 1986-12;
(b) if made in the form of an electronic instruction issued by on-line transfer,
be authorized by a digital signature; and
(c) contain the information set out in the schedule.
certification
4. The certification of a requisition must
(a) comply with the requirements of the Treasury Board's Policy on Account
Verification for the control of financial transactions;
(b) be in such a form that it cannot easily be imitated or duplicated by a
person other than the person authorized to certify the requisition; and
(c) be such that
(i) it clearly identifies the person certifying the requisition,
(ii) it involves the use of information that is personally generated at the time of
certification by the person authorized to certify it and does not originate from a stored
location as part of an automated process, and
(iii) it can be authenticated by the Receiver General before the payment or settlement
is made and can be audited after the payment or settlement is made.
integrity
5. (1) The appropriate Minister shall protect the integrity of every
requisition made by the Minister until the requisition is received by the Receiver
General.
(2) The Receiver General shall protect the integrity of every requisition from the time
it is received by the Receiver General until it is verified in accordance with section 6.
verification
6. (1) The Receiver General shall not make a payment or settlement
in respect of a requisition unless the Receiver General has
(a) verified that the requisition is authentic and has been certified by a
person duly authorized under subsection 33(1) of the Act; and
(b) if the requisition has been made in the form of an electronic instruction
issued by on-line transfer, acknowledged receipt of the requisition.
(2) The appropriate Minister shall, for the purpose of subsection (1), provide the
Receiver General with the information required to identify the person who has certified
the requisition.
repeal
7. The Payment Requisitioning Regulations are repealed.
coming into force
8. These Regulations come into force on February 23, 1998.
SCHEDULE
(Paragraph 3(2)(d))
INFORMATION REQUIREMENTS
1. The name or other identification of the department or other
organization submitting the requisition and, where applicable, the particular
organizational unit.
2. The date of the requisition and the date payment is required to be made.
3. The name of the payee.
4. The amount of the payment or settlement or, with the concurrence of the Receiver
General, the information that forms the basis for calculating the amount.
5. The currency in which the payment or settlement is to be made, if other than
Canadian.
6. The address to which the payment or advice of settlement is to be sent or, in the
case of electronic instructions, the payee's financial institution number, branch number
and account number.
7. In the case of recurring payments or settlements
(a) the effective date for the commencement of payment or settlement;
(b) the frequency of payment or settlement; and
(c) if applicable, the number of payments or settlements to be made or the date
on which the last payment or settlement is to be made.
8. Certification in accordance with section 4 of these Regulations.
9. If applicable, the requisition or voucher serial number.
IMPORTANT NOTE TO USERS
THIS PRESENTATION HAS BEEN PREPARED FOR CONVENIENCE OF REFERENCE ONLY AND HAS NO
OFFICIAL SANCTION. FOR ALL PURPOSES OF INTERPRETING AND APPLYING THE LAW, USERS SHOULD
CONSULT THE REGULATIONS, AS REGISTERED BY THE CLERK OF THE PRIVY COUNCIL AND PUBLISHED IN
PART II OF THE CANADA GAZETTE AND AVAILABLE IN MOST PUBLIC LIBRARIES.
----------------------------------------------------------------
ELECTRONIC PAYMENTS REGULATIONS
interpretation
1. The definitions in this section apply in these Regulations.
"Act" means the Financial Administration Act. (Loi)
"chargeback" means to adjust the amount payable to or claimed by a financial
institution as a result of the refusal by the Receiver General to redeem an electronic
instruction for payment. (débit compensatoire)
"digital signature" means the result of the transformation of a message by
means of a cryptosystem using keys such that a person who has the initial message can
determine
(a) whether the transformation was created using the key that corresponds to the
signer's key; and
(b) whether the message has been altered since the transformation was made. (signature
numérique)
"electronic instruction for payment" means an instruction for payment
referred to in subsection 35(2) of the Act, issued electronically on media or by on-line
transfer, to a financial institution to credit the account of a particular payee with a
specific payment. (ordre de paiement électronique)
"financial institution" means an institution, corporation or other entity,
incorporated, continued or formed by or under an Act of Parliament or the legislature of a
province or under the laws of a foreign state or a political subdivision of a foreign
state, that holds deposits and honours cheques and other payment instructions on behalf of
its clients and includes a bank, a trust company and a cooperative credit society. (institution
financière)
"media" means magnetic tapes, disks, diskettes or any other electronic
physical storage device. (support)
"payee" means a person to whom a payment is to be made by means of an
electronic instruction for payment. (bénéficiaire)
"payment date" means the date on which payment is to be made to the payee. (date
de paiement)
"revoke" means to issue an instruction to a financial institution
countermanding a particular electronic instruction for payment. (annuler)
application
2. These Regulations apply to every payment made out of the
Consolidated Revenue Fund by means of an electronic instruction for payment.
issuing electronic instructions for payment
3. Every electronic instruction for payment must
(a) be issued by or under the direction and control of the Receiver General;
(b) include
(i) the amount of the payment,
(ii) the payment reference number,
(iii) the name of the payee,
(iv) the payee's financial institution number, branch number and account number, and
(iv) the payment date; and
(c) when issued by on-line transfer, be authorized by a digital signature.
4. The Receiver General shall take all necessary measures to ensure
(a) the security of the system used for the transmission of electronic
instructions for payment to financial institutions;
(b) the confidentiality, authenticity and integrity of the data while it is
under the control of the Receiver General or being transmitted to a financial institution;
and
(c) the security, integrity and safekeeping of the media used to issue an
electronic instruction for payment while the media are under the control of the Receiver
General or in transit to a financial institution for processing.
authentication
5. (1) All media used to issue an electronic instruction for payment
must
(a) contain internal labels that identify the media by setting out
(i) the originating data centre,
(ii) the processing data centre,
(iii) the file creation date and file number,
(iv) the date and time of release of the media, and
(v) the system, file identification number, volume serial number and sequence of the
originator's file.
(b) when delivered to a financial institution for processing, be accompanied by
a transmittal document, signed by the Deputy Receiver General or by a person authorized by
the Deputy Receiver General in writing, that contains the information described in
subparagraphs (a)(i) to (v).
(2) The Deputy Receiver General shall provide to a financial institution the names and
specimen signatures of all persons authorized to sign a transmittal document addressed to
that financial institution.
(3) Every electronic instruction for payment issued by on-line transfer shall be
acknowledged by the financial institution that receives it and every electronic
authorization shall be verified by the financial institution to ensure the integrity of
the instruction.
acceptance
6. A financial institution that accepts an electronic instruction
for payment shall make the funds available for withdrawal or other use by the payee
(a) not later than the opening of business on the payment date, if the
electronic instruction for payment is received by the financial institution before the
payment date; or
(b) on receipt of the electronic instruction for payment, if it is received on
or after the payment date.
replacement payments
7. Where it has been confirmed with the applicable financial
institution that a payment to be made by means of an electronic instruction for payment
has not been credited by the payment date to the account designated by the payee, in
accordance with the procedures set out in the agreement with the financial institution for
such designation, a replacement payment may be issued to the payee in the same amount as
the original payment if
(a) the electronic instruction for payment is revoked; and
(b) the amount already paid to the financial institution, if any, is recovered
through chargeback or by other means.
repeal
8. The Direct Deposit Regulations are repealed.
coming into force
9. These Regulations come into force on February 23, 1998.
IMPORTANT NOTE TO USERS
THIS PRESENTATION HAS BEEN PREPARED FOR CONVENIENCE OF REFERENCE ONLY AND HAS NO
OFFICIAL SANCTION. FOR ALL PURPOSES OF INTERPRETING AND APPLYING THE LAW, USERS SHOULD
CONSULT THE REGULATIONS, AS REGISTERED BY THE CLERK OF THE PRIVY COUNCIL AND PUBLISHED IN
PART II OF THE CANADA GAZETTE AND AVAILABLE IN MOST PUBLIC LIBRARIES.
----------------------------------------------------------------
REPAYMENT OF RECEIPTS REGULATIONS, 1997
excess amount
1. (1) Where money has been received by a public officer as a
deposit to ensure the doing of any act or thing and paid into the Consolidated Revenue
Fund, the money must, where the act or thing has been done or where the deposit is
otherwise no longer required, be repaid to the person who paid it.
(2) Where money that is received by a public officer as a deposit to ensure the doing
of any act or thing and paid into the Consolidated Revenue Fund exceeds the amount
prescribed for that purpose or, where no such amount has been prescribed, the amount
required for that purpose, the excess amount must be repaid to the person who paid it.
purpose not fulfilled
2. Where money has been paid to a public officer for any purpose
that has not been fulfilled and the money has been paid into the Consolidated Revenue
Fund, the money paid, less the sum referred to in subsection 20(2) of the Act, must be
repaid to the person who paid it, unless that person cannot be identified or located.
non public money
3. Where money paid to the credit of the Receiver General is not
public money, the money must be repaid to the person who paid it, unless that person
cannot be identified or located.
repeal
4. The Repayment of Receipts Regulations are repealed.
coming into force
5. These Regulations come into force on February 23, 1998.
|
