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DATE: March 24, 2000
TO: Senior Financial Officers (SFOs) and Senior Full-Time Financial Officers (SFFOs)
SUBJECT: Policy on Interdepartmental Settlements
The implementation of the Financial Information Strategy (FIS) on April 1, 1999
introduced a re-engineering of the interdepartmental settlement process. Once departments
interface with the new Receiver General suite of FIS central systems, for the majority of
settlements between departments, it will usually be the creditor that initiates the
transaction via the Standard Payment System (SPS) (a FIS central system) rather than the
debtor department. This new process should result in significantly greater efficiencies in
the processing of interdepartmental settlements. However, temporary complexities will be
experienced during the period when there are some departments using the re-engineered
approach and others the legacy (pre-FIS) central systems.
In order to gain these efficiencies and minimise the effects of the complexities,
departments require disciplined and timely bilateral administrative processes as part of
any business arrangement between them and such processes need to be well understood and
documented. Timeliness is not a new requirement, but an increased emphasis is being placed
on it to ensure that interdepartmental settlements are handled promptly and accurately.
This policy will focus on the requirements of the transition period. Once all
departments are connecting with the new Receiver General suite of FIS central systems,
this policy will be revised.
Should you require additional information on this subject, please do not hesitate to
contact Greville Price, Financial Management and Accounting Policy (FMAP), at
613-952-3404.
Richard J. Neville
Deputy Comptroller General
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