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Financial Administration Manual

Part: Appendices Number: A Section: Executive Government Date: 2014-10-17 Page: 1 of 1

Ministry of Finance, Provincial Comptroller’s Office

Executive Government

Ministries1 Other Organizations Agri-Food Council Agricultural Implements Board Public Service Commission Public Service Superannuation Board Public Guardian and Trustee of Saskatchewan Teachers’ Superannuation Commission Trustees for the Community Initiatives Fund

1 Executive Council includes Intergovernmental Affairs and Finance includes the Public Employees Benefits Agency

(PEBA).


Part: Appendices Number: B Section: Public Agencies Date: 2016-10-07 Page: 1 of 2


Public Agencies1 Non-Corporate Agri-Food Council Agricultural Implements Board Trustees for the Community Initiatives Fund Corporate Agricultural Credit Corporation of Saskatchewan* Carlton Trail College Creative Saskatchewan Cumberland College e-Health Saskatchewan* Enterprise Saskatchewan* Financial and Consumer Affairs Authority of Saskatchewan* Global Transportation Hub Authority* Government House Foundation Great Plains College Innovation Saskatchewan* Law Reform Commission of Saskatchewan Liquor and Gaming Authority* Municipal Financing Corporation of Saskatchewan* North West College Northlands College Parkland College Physician Recruitment Agency of Saskatchewan* Prairie Agricultural Machinery Institute Provincial Archives of Saskatchewan Public Guardian and Trustee of Saskatchewan Saskatchewan Apprenticeship and Trade Certification Commission Saskatchewan Arts Board Saskatchewan Centre of the Arts Saskatchewan Crop Insurance Corporation* Saskatchewan Grain Car Corporation* Saskatchewan Health Research Foundation Saskatchewan Heritage Foundation Saskatchewan Housing Corporation* Saskatchewan Polytechnic Saskatchewan Research Council* 1 This list excludes the Crown Investments Corporation of Saskatchewan and its subsidiaries. The list does not contain

Regional Health Authorities (RHA), as subsection 16(2) of The Regional Health Services Act states that The Financial Administration Act, 1993 does not apply to a RHA.


Part: Appendices Number: B Section: Public Agencies Date: 2016-10-07 Page: 2 of 2


Saskatchewan Western Development Museum SaskBuilds Corporation* Southeast College Tourism Saskatchewan* Water Security Agency*

*Treasury Board Crown or classified as a Treasury Board Crown for the applicability of policies


Part: Appendices Number: C Section: Public Money Date: 2016-10-07 Page: 1 of 3


Public Money General Revenue Fund (Appropriation) Executive Branch See the Estimates Schedule of Expenses for a list of votes for ministries and agencies.1 Legislative Branch Advocate for Children and Youth Chief Electoral Officer Conflict of Interest Commissioner and Registrar of Lobbyists Information and Privacy Commissioner Legislative Assembly2 Ombudsman Provincial Auditor Public Interest Disclosure Commissioner GRF Sinking Funds Other Funds Revolving Funds Agricultural Supplies Revolving Fund (inactive) Commercial Revolving Fund Correctional Facilities Industries Revolving Fund Livestock Services Revolving Fund Pastures Revolving Fund Public Employees Benefits Agency Revolving Fund Queen’s Printer Revolving Fund

1 Advanced Education includes appropriation for the Saskatchewan Student Aid Fund. Agriculture includes appropriation for the Farm Land Security Board. Economy includes appropriation for the Surface Rights Arbitration Board. Education includes appropriation for the Teachers’ Superannuation Commission. Government Relations includes appropriation for the Saskatchewan Municipal Board. Justice includes the appropriation for the Automobile Injury Appeal Commission, the Film and Video Classification

Board, the Highway Traffic Board, the Human Rights Commission, the Law Reform Commission, the Legal Aid Commission, the Public and Private Rights Board, the Public Complaints Commission, the Office of the Residential Tenancies/Provincial Mediation Board, the Public Guardian and Trustee of Saskatchewan, the Public Disclosure Committee and the Saskatchewan Police Commission.

Labour Relations and Workplace Safety includes appropriation for the Labour Relations Board. 2 Includes the Speaker, the Clerk, the Clerks-at-the-Table, the Sergeant-at-Arms, the Law Clerk and Parliamentary

Counsel and the Legislative Librarian and employees that may be required by the Clerk, the Law Clerk and Parliamentary Counsel and the Legislative Librarian.




Special Purpose Funds (*administered outside of ministries) Agricultural Implements Compensation Fund* Community Initiatives Fund* Criminal Property Forfeiture Fund Crop Reinsurance Fund of Saskatchewan* Education Scholarship Fund Extended Health Care Plan for Certain Other Employees Extended Health Care Plan for Certain Other Retired Employees Fish and Wildlife Development Fund Forest Management Funds*3 Horned Cattle Fund Impacted Sites Fund Institutional Control Monitoring Maintenance Fund Institutional Control Unforeseen Events Fund Northern Municipal Trust Account Oil and Gas Orphan Fund Public Employees Dental Fund Public Employees Disability Income Fund Public Employees Group Life Insurance Fund Saskatchewan Agricultural Stabilization Fund* Saskatchewan Auto Fund* Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation* Saskatchewan Snowmobile Fund* Saskatchewan Student Aid Fund Sask911 Account* School Division Tax Loss Compensation Fund Training Completions Fund Transportation Partnerships Fund Victims’ Fund Trust and Pension Funds Anti-Tuberculosis League Employees Superannuation Fund Bazaar Accounts (Paul Dojack Youth Centre Shop Fund, Valley View Centre Bazaar Account,

Yarrow Opportunity Fund) Canteen Accounts (Valley View Centre Canteen Account) Collective Trust Accounts (Battlefords Community Correctional Centre, Besnard Lake Correctional

Camp, Buffalo Narrows, Pine Grove Correctional Centre, Prince Albert Correctional Centre, Prince Albert Community Training Residence, Regina Correctional Centre, Regina Community Training Residence, Saskatoon Correctional Centre and Saskatoon Community Training Residence, Whitespruce Provincial Training Centre, Women’s Community Training Residence)

Court of Appeal Evidence Account 3 Crown Agricultural Land Forest Fund, Edgewood Forest Renewal Trust Fund, Island Forests Management Fund, L & M Forest Renewal Trust Fund, Meadow Lake OSB Forest Management Fund Trust, Mee-Toos Forest Management Fund Trust, Mistik Forest Management Fund, North West Communities Wood Products Forest Management Fund Trust, Park Land Forest Management Fund, Sakaw Forest Renewable Trust Fund, Weyerhaeuser Forest Renewal Trust Fund, Zelensky Bros. Forest Management Fund Trust




Court of Queen’s Bench Sheriff Trust Account Drumming Hill Youth Centre Working Fund Account Extended Health Care Plan Extended Health Care Plan for Retired Employees Family Law Division Trust Account Grants and Donations Trust Accounts (Valley View Centre) Inmates Trust Accounts (Battlefords Community Correctional Centre, Besnard Lake Correctional

Camp, Buffalo Narrows, Pine Grove Correctional Centre, Prince Albert Community Training Residence, Prince Albert Correctional Centre, Regina Correctional Centre, Regina Community Training Residence, Saskatoon Correctional Centre, Saskatoon Community Training Residence, White Birch, Whitespruce Provincial Training Centre, Women’s Community Training Residence)

Judges of the Provincial Court Superannuation Plan Justice Parking Club Maintenance Enforcement Program Account Office of the Residential Tenancies – Director’s Trust Account Province of Saskatchewan Court Accounts Provincial Mediation Board Trust Account Public Employees Deferred Salary Leave Fund Public Guardian and Trustee of Saskatchewan Resident Camp Accounts (Prince Albert Youth Residence) Resident Trust Accounts (Drumming Hill Youth Centre, Kilburn Hall, North Battleford Youth

Centre, Paul Dojack Youth Centre, Prince Albert Youth Residence, Valley View Centre) Saskatchewan Entrepreneur Trust Fund Saskatchewan Transportation Company Employees Superannuation Fund Social Services Central Trust Account Surface Rights Arbitration Board Trust Account Teachers’ Group Life Insurance Plan Teachers’ Superannuation Plan Teachers’ Voluntary Contributions Fund Wage Collection Trust Account


Part: Appendices Number: D Section: Forms Date: 2017-06-01 Page: 1 of 1


Forms Affidavit (forged cheques)

Affidavit (missing cheques) – Individuals

Affidavit (missing cheques) – Businesses

Agreement for Omnibus Polling Participation

Agreement of Indemnity

Application to Change Bank Account Signing Authorities

Application to Close a Bank Account

Application to Open a Bank Account

Bank Account Internal Control Questionnaire

Banquet Policy Expense Claim * (Use Standard Payment Form)

Billing Letter No. 1 – Payment Reminder

Billing Letter No. 2 – Legal Action or Use of Collection Agency

Claim for Business Expense Reimbursement * (Use Standard Payment Form)

Collection Fact Sheet

Direct Deposit Payment Request Form *

Intra-City Travel Expense Statement *

Letter of Appreciation for Donations

Notification Letter – Non-payment of GST/HST

Notification Letter of Set-off

Petty Cash Reimbursement *

Promissory Note

Quarterly Legislative Secretary Business Expense Form *

Quarterly Ministerial Business Expense Form *

Request for Payment * (Use Standard Payment Form)

Senior Officials Business Expense Reimbursement *

Standard Payment Form *

Statement of Interview Expenses *

Supplier Maintenance Form *

Travel Expense Statement *

* MIDAS FORM – ELECTRONIC VERSION ONLY

http://publications.gov.sk.ca/documents/15/99976-Banquetpol.pdf

http://www.publications.gov.sk.ca/redirect.cfm?p=86369&i=99969

http://publications.gov.sk.ca/documents/15/99957-claimbusexp2.pdf



http://publications.gov.sk.ca/documents/15/99961-intracitytravel.pdf

http://publications.gov.sk.ca/documents/15/99962-pettycash.pdf

http://publications.gov.sk.ca/documents/15/99965-quarterlylegsec.pdf

http://publications.gov.sk.ca/documents/15/99964-Quarterlymin.pdf

http://publications.gov.sk.ca/documents/15/99967-requestpmt2.pdf


http://publications.gov.sk.ca/documents/15/99968-seniorofficials.pdf


http://publications.gov.sk.ca/documents/15/99970-Stateint.pdf

http://publications.gov.sk.ca/documents/15/99971-suppliermaintenance.pdf


CANADA In the matter of official General Revenue Fund PROVINCE OF SASKATCHEWAN Cheque #_____________ for $____________ dated TO WIT: _________ , 20__ in favour of _________________. (payee)

I, ________________________, _____________

(payee) (occupation)

of ____________, SK do solemnly declare: (city/town)

1. That I the said, ___________________, of the above (payee)

address did not receive, cash or cause to be cashed the said cheque.

2. That I am the person to whom the amount of

$ ______________ is due.

3. That I make this declaration in support of an application to the Minister of Finance for the issue of a replacement cheque.

And I make this solemn declaration conscientiously believing it to be true and knowing it to be of the same force and effect as if made under Oath and by virtue of the “Canada Evidence Act”. Declared before me at _________________________________ (location) In the Province of Saskatchewan, this _________ day of ________________ A.D. 20__. ____________________________ _____________________________________ A Commissioner for Oaths/Notary Public in and for Saskatchewan. My Appointment Expires _______________________.

CANADA In the matter of official General Revenue Fund PROVINCE OF SASKATCHEWAN Cheque #_____________ for $____________ dated TO WIT: _________ , 20__ in favour of _________________. (cheque recipient)

I, _________________________, ______________

(position)

on behalf of _____________________of (cheque recipient)

____________, SK do solemnly declare: (city/town)

That I the said ___________________ on behalf of (position)

___________________ of the above address has (cheque recipient)

reported the said cheque ”destroyed”/ “lost”/ “stolen”/ “not received”.

That __________________ is due the amount of (cheque recipient)

$__________. That I make this declaration in support of an application to the Minister of Finance for the issue of a replacement cheque.

And I make this solemn declaration conscientiously believing it to be true and knowing it to be of the same force and effect as if made under Oath and by virtue of the “Canada Evidence Act”. Declared before me at _________________________________ (location) In the Province of Saskatchewan, this _________ day of ________________ A.D. 20__. ____________________________ _____________________________________ A Commissioner for Oaths/Notary Public in and for Saskatchewan. My Appointment Expires _______________________.

Agreement for Omnibus Polling Participation

Executive Council manages the contract for the omnibus poll on the Government’s behalf. This includes processing payments for the services received on a prorated basis among the participating ministries. The Ministry of XXX agreed to put five (5) questions on the December 200X poll at a cost of approximately $XXX per question. Final cost to the Ministry of XXX is $XXXX. The Ministry of XXXX has examined the poll results and certified that the services were received and that payment is in accordance with the contract. Agreed to on behalf of: ______________________________________ Executive Council Date ______________________________________ Ministry of XXXX Date

AGREEMENT OF INDEMNITY

To: Her Majesty the Queen in the right of the Province of Saskatchewan, as represented by the Minister of Finance, hereinafter referred to as “The Minister of Finance”. With respect to cheque number ____________________ dated ____________________ (yyyy/mm/dd) for the amount of $ _______________________________________________________ in favour of _____________________________________________________________ I/WE __________________________________________________________________ of _____________________________________________________________________

(a) did not receive the original cheque, or

(b) received the original cheque but it was subsequently______________________ (lost, destroyed or stolen) and I/we have not received payment of such amount by any other means. I/WE wish the Minister of Finance to cause to be issued to me/us a new cheque to replace the original cheque stated to have never been received, or to have been lost, destroyed or stolen, in consideration for which I/we hereby agree, for myself/ourselves and my/our heirs, executors, administrators, successors and assigns, as follows: (a) not to cash, endorse or transfer the original cheque should it ever come into my/our

possession, but to return it immediately to the Minister of Finance, and (b) that I/we shall save harmless and keep indemnified the Minister of Finance against

all actions, claims, losses, costs, charges, damages, interest and expenses which the Minister of Finance may sustain or incur as a result of the issue of the new cheque or any claim being made on or under the original cheque, up to the amount of the original cheque.

IN WITNESS WHEREOF the undersigned has executed this Agreement at ______________________ this _________ day of ________________ , __________. (dd) (mm) (yyyy) Signed in the Presence of: _______________________________ ) __________________________________ Signature of Witness )

_______________________________ ) Address ) _________________________________________

_____________________________________ ) Occupation

Application to Change Bank Account Signing Authorities

Ministry/Agency Making Application:

Name of Financial Institution:

Account Name and Number:

Branch Address:

Changes in Signing Authority

(a) Additions

1. Name: Position:

2. Name: Position:

3. Name: Position:

Reasons for adding:

Name 1 Name 2 Name 3

Is each individual independent of: Yes No Yes No Yes No

(i) Cash receipt, cash handling & deposit functions?

(ii) Cheque preparation function?

(iii) Cheque mailing function?

(iv) Bank reconciliation preparation function?

If the answer to any of the above questions is “no” please indicate what compensating controls are implemented.

(b) Deletions

1. Name: Reason:

2. Name: Reason:

3. Name: Reason:

Submitted By: __________________________________________ ________________________________________ Signature of the Official of the Date Ministry/Agency making application

Approved By: __________________________________________ ________________________________________ Provincial Comptroller or Delegate Date

Revised December 2002

Debbie Whelan

Revised December 2002

Provincial Comptroller’s Office Ministry of Finance

2350 Albert Street Regina, Saskatchewan S4P 4A6

Application to Close a Bank Account

Ministry/Agency Making Application:

Name of Financial Institution:

Account Name and Number:

Branch Address:

Account Information

1. Reason for closing account?

2. Have all funds been withdrawn from this account? Yes No

3. What was the disposition of funds from this account?

4. Have arrangements been made with the bank to redirect uncashed cheques? Yes No

What are they?

I request the Provincial Comptroller to close the above mentioned bank account.

__________________________________________________________ Date Signature of the Senior Financial Executive of the Ministry/Agency

Provincial Comptroller’s Office:

Reviewed – Financial Management Branch

Approved – Financial Management Branch

__________________________________________________________ Date Provincial Comptroller or Delegate

Provincial Comptroller’s Office Ministry of Finance

2350 Albert Street Regina SK S4P 4A6

Application to Open a Bank Account

No If no, where is the account transferred from?

Type of Account (e.g., Transfer, Imprest, Trust/Special Purpose, General Operating):

Purpose:

CHEQUE SIGNERS - List Name and Position of Signers. Two signatures are required on all cheques.

AUTHORIZED BANKING CONTACTS (RBC Accounts Only) - List Name, Email and Phone Number of Authorized Banking Contacts. Only Signers and Authorized Banking Contacts can contact RBC (e.g., to notify the bank to return items such as fraudulent cheques).

CERTIFICATION

The procedures for the operation and control of bank accounts issued by the Provincial Comptroller’s Office in Section 3610 of the Financial Administration Manual will be followed. Requested deviations from these procedures with appropriate explanations accompany this application.

Individual responsible for operation and control of account:

Name: Position:

Signature: Phone Number: Email:

I confirm that the above Account will not be used by or on behalf of a third party, other than by an employee making deposits to the Account on behalf of the Ministry/Agency. Endorsed by the Corporate Services Head:

Date Position Signature

PROVINCIAL COMPTROLLER’S OFFICE:

Are there procedures for controlling funds to be processed through the approved account? Yes

Are there any conditions of approval? Yes

Reviewed - Analyst, Financial Management Branch

Date

No

Recommended - Director, Financial Management Branch

Branch Approved - Provincial Comptroller or Delegate

Revised October 2016

Ministry/Agency:

Name of Proposed Account:

Financial Institution:

Include Name, Branch and Address

Why is this institution preferred?

New Account? Yes

VIEW ACCESS - (Non-RBC Accounts) - List individuals authorized to view balances and transaction information on the new account through online access (i.e., electronic account statements and cheque images). This should include the individual(s) responsible for preparing the bank reconciliation and one or two others appointed as backups.

[Type text]

USING THIS FORM: • This form is used to obtain the approval of the Provincial Comptroller or delegate prior to opening a

bank account. For further information on related Treasury Board policy and Provincial Comptroller’sdirectives refer to Section 3605 Approval of Bank Accounts.

• The form signed by the Corporate Services Head is submitted to the Provincial Comptroller’s Office.A digital signature will not be accepted.

• CHEQUE SIGNERS: Original signatures for signers are to be included with the Application to Open aBank Account; these are provided to the financial institution at the time of approval. Cheque signersare to be independent of the following: cash receipt, cash handling and deposit functions; chequepreparation function; cheque mailing function; and bank reconciliation function.

• AUTHORIZED BANKING CONTACTS (RBC ACCOUNTS): Names and contact information of AuthorizedBanking Contacts should be provided for Royal Bank of Canada (RBC) accounts. According to RBCrequirements, only signers and Authorized Banking Contacts on file at RBC can contact the RBCCommercial Client Service Team for assistance. Typically, the Client Service Team would becontacted for transaction inquiries, requests for correction when errors have been identified, and tonotify the bank to return items through the clearing, such as a fraudulent cheque identified in dailycheque matching. The list may include those persons conducting bank reconciliations and back-ups.

• VIEW ACCESS (NON-RBC ACCOUNTS): Names and positions of individuals authorized to viewelectronic account statements and cheque images through online access should be provided forNon-RBC accounts. These should include the individual(s) responsible for preparing the bankreconciliation and one or two others appointed as backups. For RBC accounts, TreasuryManagement Branch, Ministry of Finance, will contact you to set up viewers.

• A completed Bank Account Internal Control Questionnaire must accompany the Application toOpen a Bank Account.

SUBMIT COMPLETED APPLICATION TO OPEN A BANK ACCOUNT TO:

Assistant Provincial Comptroller Provincial Comptroller’s Office Ministry of Finance 2350 Albert Street, 8th Floor REGINA SK S4P 4A6

http://www.finance.gov.sk.ca/fam/pdf/3605.pdf

Bank Account Internal Control Questionnaire (To be used in support of an application to open a bank account)

Name of Proposed Account:

Ministry:

Deposits

1. What are the sources of the deposits and the nature of the receipts (e.g., sales of goods or services, transfersfrom other jurisdictions, fees)?

2. Choose a statement below that best describes the expected value of receipts for this bank account andprovide an explanation to support your response.

All receipts will be of a low dollar value. Receipts may occasionally include a few high dollar value items. Receipts will regularly include a few high value items. Receipts will regularly include a large number of high value items.

3. In what form are monies received (e.g., cash, cheques, credit card, debit card, direct deposits from thirdparties, pre-authorized debits/pre-authorized payments, or a combination)?

4. What is the expected dollar value of manual deposits (e.g., cheques, cash)?

5. How frequently will manual deposits (e.g., cheques, cash) be made to the bank (daily, weekly, monthly)?

6. What controls are in place to ensure monies received by direct deposit from third parties or pre-authorizeddebits/pre-authorized payments are transmitted to the appropriate bank account (e.g., control over bankaccount setup and changes)?

Bank Account Control Questionnaire Page 2

7. How does the system ensure that the source of all moneys deposited can be determined (i.e., email frompayors agreed to deposit for electronic receipts, detailed on deposit slip or balances to cash mail recordwhich provides details, etc.)?

8. Outline the procedures to ensure all monies received by the ministry/agency are deposited in the bank account

Payments

9. What are the expected types of payments that will be made from the bank account (e.g., purchase of goodsor services, transfer payments)?

10. If monies from this bank account will be transferred to another bank account, name the institution(s) towhich funds will be transferred.

How are transfers to be made (e.g., cheque, automatically by the bank, other)?

11. Choose a statement below that best describes the expected dollar value of payments from this bankaccount and provide an explanation to support your response.

All transactions will be of a low dollar value. Transactions may occasionally include a few high dollar value items. Transactions will regularly include a few high value items. Transactions will regularly include a large number of high value items.

and recorded in the accounting records on a timely basis (e.g., segregation between receipt, deposit, andrecording functions; independent match of deposit to cash mail record and accounting records).


12. Choose a statement below that best describes the expected volume and nature of payments from this bankaccount.

Transactions will be processed daily and are very repetitive in nature. Transactions will be processed at short regular intervals (e.g., weekly) and are fairly repetitive in nature. Transactions will be processed sporadically or at long intervals (e.g., monthly or annually) or vary greatly in nature. Transactions will be processed sporadically or at long intervals (e.g., monthly or annually) and vary greatly in nature

explain in detail why arrangements cannot be made for two officials to sign the cheques or whatcompensating controls exist.

Yes No

17. Is a detailed record of cheques maintained (i.e., cheque register, cheque stub, cheque copy, other)containing at least the cheque date, cheque number, payee and amount?

Yes No

18. Will payments be made by electronic funds transfer (e.g., direct deposit)? If yes, please provide explanation.Yes No

19. For electronic funds transfers, what controls will be in place to ensure third parties’ bank information iscomplete, valid, and accurate (e.g., forms to set up clients and change bank account information,confirmation letters to third parties, segregation between input and approver, review of reports of bankaccount information changes)?

14. Are all signers independent of bank reconciliation and custodial duties, such as cash receipt, cash handling anddeposit, cheque preparation and cheque mailing? If no, what are the compensating controls?

Yes No

15. Are electronic signatures or signature plates used? If yes, what are the controls?

16. Will all cheques have a preprinted consecutive form number affixed by the printer?

Yes No

Yes No

13. If cheques are written on this account, are they to be signed by two officials of the organization? If no,


20. Will employees who set up third party bank account information be able to initiate or authorize payments,handle cash, record transactions in the financial records or prepare the bank reconciliation? If yes, whatare the compensating controls?

Will an employee independent of the depositing and payment functions reconcile the bank account? If no, describe the compensating controls.

Yes

Who is responsible for preparation of this reconciliation?

_____________________________________________ Executive Director/Director of Corporate Services

Revised February 2016

Date: ___________________________________

Reconciliation

21. Will a daily review of bank transactions (e.g., cheques, other debits, transfers, deposits), including a daily matching of cheques (number and dollar amount) processed by the bank to ministry accounting records ofcheques issued be performed? If not, why not?

Yes No

22. Will a bank reconciliation be prepared at least monthly?

23. Are persons performing reconciliations aware of the deadlines for returning cheques (e.g., counterfeit,stop payment, stale dated) through the clearing?

Yes No

24. Will the ministry's senior official or delegate review and approve the reconciliations?

Who will be doing this review?

How often will the review be done?

What evidence will be available to ensure that this review has been done (e.g., initialing of certain documents, etc.)?

If no, explain any compensating controls.Yes No

Yes No

Yes No

No

BILLING LETTER NO. 1

Payment Reminder

(date) Phone: (number) (name and address of debtor) Dear (name of debtor):

Our records indicate that your account of (date) incurred for (describe nature of account) in the amount of (indicate amount) is now (indicate number) days overdue.

If you have already submitted payment, please (disregard this notice OR contact ______ at ___________).

In the event that you have not paid this account, we would appreciate receiving your remittance or being advised of your repayment plans as soon as possible.

Your cheque or money order should be made payable to (name of payee) and mailed to the following address (mailing address).

Sincerely,

BILLING LETTER NO. 2

(Advice of possible legal action or use of a collection

agency. Not to be forwarded until the account is at least

60 days old)

(date) Phone: (number)

(name and address of debtor)

Dear (name of debtor):

Please refer to our letter of (date of sample letter no.1) respecting your outstanding account with this Ministry in the amount of (indicate amount). Your cheque or money order should be made payable to (name of payee) and mailed to (mailing address) immediately.

In the event that payment is not received by (date), your account will be transferred to our collection agent or solicitor without further notice to you.

Sincerely,

COLLECTION FACT SHEET NAME OF DEBTOR: (include business or trade names if any) ADDRESS OF DEBTOR: (include business address if any) PLACE OF EMPLOYMENT: (name and address) OCCUPATION OF DEBTOR: DEBT: a) Original amount of debt b) Date debt was incurred c) Amount paid to date d) Interest (if applicable) i) Authority to charge interest (e.g., Treasury Board Minute, Act or Regulation) ii) Principal balance owing (exclusive of interest) iii) Rate of interest iv) Amount of interest owing v) Date on which interest charges commenced. e) Total amount owing DATE PAYMENT WAS TO COMMENCE: MINIMUM AMOUNT PREPARED TO ACCEPT IN SETTLEMENT: (recommended not less than principal plus portion of costs and interests) IF PREPARED TO ACCEPT PAYMENT BY INSTALLMENTS, INDICATE MINIMUM SCHEDULE OF PAYMENTS REQUIRED: DATE AND MANNER OF MOST RECENT ACKNOWLEDGMENT OF DEBT: (by payment or writing) NATURE OF DEBT (indicate contracts, property, dates, etc. relevant to transaction) DISPUTES OR DEFENCES TO DEBT RAISED BY DEBTOR OR THAT THE MINISTRY IS AWARE OF: INFORMATION THAT MAY ASSIST IN COLLECTION AFTER JUDGMENT (Name and address of debtor's bank, nature and location of assets etc. Indicate also if debtor has little or no assets.) ADDITIONAL COMMENTS: CONTACT PERSON: Phone:

LETTER OF APPRECIATION FOR DONATIONS Sample Acknowledgement Letter (date) Phone: (number) (name and address of donor) Dear (name of donor):

On behalf of the Province, I would like to thank you for your generous donation of ______________________. Every contribution we receive helps keep Saskatchewan’s financial position secure.

The Government is working hard to provide the best possible services to Saskatchewan people at the lowest possible cost. Your support of these efforts is greatly appreciated.

Sincerely,

NOTIFICATION LETTER – NON-PAYMENT OF GST/HST (date) Phone: (number) (name and address of supplier)

Dear (name of supplier):

Re: Goods and Services Tax (GST) and Harmonized Sales Tax (HST)

As (a ministry of the Provincial Government / an agent of the Provincial Crown), the (ministry/agency) is granted immunity from federal taxation and is not required to pay the GST/HST on any purchases. Our registration number is 107864258.

Accordingly, we are not remitting the GST/HST on the current payment and request that you do not include the GST/HST on any future invoices to this (ministry/agency). Your cooperation in complying with this request will ensure that we are able to correctly process your invoices.

Any questions concerning this request may be directed to (ministry/agency

representative) at (ministry/agency representative phone number). Sincerely,

NOTIFICATION LETTER OF SET-OFF (date) Phone: (number) (name and address of debtor) Dear (name of debtor):

You currently have a liability in the amount of (amount of liability) owing to (name of ministry) for (nature of liability). Section 42 of The Financial Administration Act, 1993 authorizes the set-off of any funds you have receivable from the Government or its agencies against any amounts owed to the Government or its agencies. Section 42 provides in part:

“42(1) Notwithstanding any other Act or law, the Crown and every public agency have the right to retain as a set-off, out of moneys due or payable to a person by the Crown or public agency:

(a) any amount the person owes to the Crown or a public agency; (b) any overpayment that has been made by the Crown or a public

agency;”

Pursuant to the above right of set-off, we have retained the amount of (amount to be set-off) from funds owing to you for (nature of the payable), and applied it against your above liability to (name of ministry).

Please call me if you have any questions or concerns.

Sincerely,

Place P R O M I S S O R Y N O T E Date __________________________ For value received, I promise to pay to the Minister of Finance of the Province of Saskatchewan,

on demand, the sum of …………………………………………….…... /100 Dollars ($ ).

Signature

Full Name

Agency

The consideration for the above note is for relocation expenses of the above-named person, who

assumed duties in a position with an agency of the Government of Saskatchewan, effective

____________________________ (date).

Relocation allowance is payable in addition to salary and allowances otherwise authorized as the

above-named fulfils a commitment to provide TWO (2) years' services with an agency of the

Government of Saskatchewan and shall be deemed to be earned in monthly increments as such service

is provided.

I CERTIFY that the Permanent Head of ______________________ has authorized an allowance of

……………………………………………………………............. /100 for the above-named employee.

Signature Position Position of New Employee _____________________________ Approved Monthly Salary / month____________ Salary Range ________________________________________


Part: Appendices Number: E Section: Glossary of Terms Date: 2017-09-11 Page: 1 of 19


Glossary of Terms

Accumulated - the amount by which revenue has exceeded expense (expense has Surplus (Deficit) exceeded revenue) from the beginning of incorporation (i.e., 1905, for

Saskatchewan) to the end of the fiscal year. It is the sum of all the annual deficits and surpluses and any adjustments charged directly to the accumulated surplus (deficit). It is calculated as the difference between total assets and liabilities.

Act - a bill that has been considered by the Legislative Assembly, passed,

and assented to (may be called a law or statute). The Interpretation Act, 1995 states that an Act comes into force on the day of assent (i.e., when the Lieutenant Governor indicates approval) unless the Act provides otherwise (i.e., the Act comes into force on a specified date or on proclamation). If an Act is to come into force on proclamation, an Order in Council is passed fixing the date on which the Act comes into force.

Administrator - is appointed by the federal government to act when the Lieutenant of Saskatchewan Governor is unavailable. Advance - is a payment that is to be accounted for by the recipient at some later

date (e.g., payment for business and travel expenses to be incurred). Advisory Committees - include committees that are established by a minister pursuant to

The Executive Government Administration Act for the purpose of providing advice to the minister (approval of the Lieutenant Governor in Council is required).

Advocate for Children - is an officer of the Legislative Assembly with the authority to and Youth promote the interests of and act as a voice for children when there

are concerns about provincial government services. Anyone, including children and youth, can contact the Office.

Air Billing Account - is an account that the Government has secured with the purchase

card bank that is used to charge air travel. It works like a credit card. Air billing accounts allow air travel charges to be tracked by employee and destination. Air billing accounts are issued to organizational units.

Appointed Auditor - in The Provincial Auditor Act, “appointed auditor” means “an

auditor appointed pursuant to an Act or other authority by the Lieutenant Governor in Council or another body to examine the




accounts of a Crown agency or Crown-controlled corporation or accounts otherwise related to public money.”

Appropriation - funding from the GRF that the Legislature authorized for a

particular purpose, which is identified in Appropriation Acts and estimates.

Appropriation Act - is the legal authorization to spend moneys from the GRF for the

purposes and time period identified in the Appropriation Act and estimates.

Appropriation Bill - is a supply bill that when passed by the Legislative Assembly

becomes an Appropriation Act. Automatic Interim - is funding provided on April 1 of a fiscal year, pursuant to The Funding Financial Administration Act, 1993, to allow the Government to

operate existing programs after the old fiscal year has expired on March 31 until the normal Completion Day of the legislative session. Automatic interim funding is two-twelfths of the previous year’s estimates.

Assent - if an Act states that it comes into force on assent, it comes into force

immediately when the Lieutenant Governor indicates his or her approval of the bill.

Bill - a separate piece of proposed legislation that is considered by the

Legislative Assembly. Board of Internal - is a statutory board that oversees the organization and Economy administration of the Legislative Assembly and reviews and

approves the budgets and forecasts for the Assembly. Board of Revenue - is continued pursuant to The Revenue and Financial Services Act. Commissioners It may take any proceedings to recover public moneys due the

Crown, issue orders for the collection of public money, and authorize the cancellation or adjustment of any debt due to the Crown or the refunding of any public moneys paid to the Crown.

Budget - the Budget Address and budget papers that are tabled by the

Minister of Finance, along with the Main Estimates. The Budget is usually presented before the start of the fiscal year.

Budget Address - is tabled by the Minister of Finance, along with the Main Estimates.

The Budget Address outlines the Government’s priorities.




Cabinet - the decision-making body of the Government, which comprises the Premier and all Cabinet ministers (also called Executive Council).

Cabinet Minister - See Minister. Capital Assets - are non-financial assets having physical substance that:

• are held for use by the Government in the production or supply of goods and services, for rental to others, for administrative purposes or for the development, construction, maintenance or repair of other tangible capital assets;

• have useful lives extending beyond a year and are intended to be used on a continuing basis; and

• are not intended for sale in the ordinary course of operations. Cash Register Float - is a specified amount of cash entrusted to an individual for use in

cash registers in order to provide change to customers. Caucus - a group of all Members of a given party. CIC Crown Corporation - in The Crown Corporations Act, 1993, “CIC Crown corporation”

means “a corporation created pursuant to Part III and includes a corporation created pursuant to Part IV that is designated as a CIC Crown corporation pursuant to subsection 14(7) and a corporation designated pursuant to subsection 49(2) as a CIC Crown corporation, but does not include a corporation that is designated pursuant to subsection 11(8) as a Treasury Board Crown corporation.”

Classified Division - as provided for in subsection 15(3) of The Public Service Act, 1998

(PSA), the classified division is composed of all positions in the public service, other than those in the unclassified division and those positions designated pursuant to the PSA (i.e., the Lieutenant Governor in Council can designate positions in the unclassified division that are to be moved to the classified division).

Clerk of the - is responsible for ensuring that lieutenant governors, premiers, Executive Council ministers and members of certain boards are properly sworn in; also

the Clerk of the Executive Council is responsible for the management, co-ordination, implementation and evaluation of processes relating to Cabinet decision-making and the implementation of decisions.




Clerk of the - the chief permanent officer of the Legislative Assembly, who Legislative Assembly reports directly to the Speaker and is responsible for maintaining

records, providing advice to all Members of the Legislative Assembly, supervising the general administrative services for the Assembly and directing protocol arrangements.

Collective Agreement - as defined in clause 2(d) of The Public Service Act, 1998, means “a

collective agreement as defined in Part VI of The Saskatchewan Employment Act.” Employees in the public service are represented by the Saskatchewan Government and General Employees’ Union and the Canadian Union of Public Employees, Local 600-3.

Committee of Finance - is a committee of the Whole Assembly that considers estimates and

appropriation bills. Committee of the Whole - is a committee of all the Members of the Legislative Assembly. Assembly Conditional Grant - is where the recipient of a grant is required to meet certain

conditions or use the money received for a specified purpose. If the recipients do not meet some or all of the conditions they may be required to return some or all of the money.

Conditional Receipts - is the name given to the main suspense account used by the General

Revenue Fund (GRF). Conflict of Interest - an officer of the Legislative Assembly that is provided for by The Commissioner Members’ Conflict of Interest Act with a variety of duties pursuant

to that Act (e.g., advising Members of the Legislative Assembly regarding their obligations under the Act).

Consolidated Offset - is a banking arrangement whereby the Government’s financial Balance Concentration institution groups moneys of other entities with GRF money. The (COBC) arrangement facilitates more efficient cash management for the GRF

and provides short-term investing opportunities for participating entities.

The COBC arrangement facilitates effective cash management by

allowing the GRF to use these moneys to reduce the need to issue promissory notes to finance temporary cash shortages. It also reduces situations where the Government is simultaneously investing on behalf of entities and borrowing externally in the money markets.




Contract - is an agreement between two or more parties. A contract is considered binding when an offer to provide goods or services, at a price, is accepted.

Corporate Travel Card - is a credit card provided for ministers and employees to use on

government business. Crown - an institution that represents the democratic power of the people,

which is greater than the powers of governments and political parties. The Crown is personified by Her Majesty Queen Elizabeth II in right of Saskatchewan and in her absence, the Lieutenant Governor of Saskatchewan. The Crown gives political parties powers temporarily and in trust to use on behalf of the people.

- in The Financial Administration Act, 1993, The Crown

Corporations Act, 1993, and The Crown Employment Contracts Act, “Crown” means “the Crown in right of Saskatchewan.”

- in The Revenue and Financial Services Act and The Provincial

Auditor Act “Crown” means “Her Majesty the Queen in right of Saskatchewan.”

Crown Agency - in The Provincial Auditor Act, “Crown agency” means an

association, board, commission, corporation, council, foundation, institution, organization or other body, whether incorporated or unincorporated, of which all the members: (i) are appointed by an Act or by the Lieutenant Governor in Council; or (ii) are, in the discharge of their duties, public officers or servants of the Crown; and includes a corporation that has at least 90 percent of its issued and outstanding shares vested in the Crown.

Crown Corporation - in The Financial Administration Act, 1993, “Crown corporation”

means “a corporation that is an agent of the Crown.”

- in The Crown Corporations Act, 1993, “Crown corporation” means “CIC, a CIC Crown corporation or a Treasury Board Crown corporation.”

- in The Crown Employment Contracts Act, “Crown corporation”

means “a corporation that is: (i) established by or pursuant to, or is subject to the provisions of, The Crown Corporation Act, 1978; or (ii) incorporated or continued pursuant to an Act and has all its members or directors appointed or elected by the Lieutenant Governor in Council or a member of the Executive Council.”




Crown Employee - in The Crown Employment Contracts Act, a “Crown employee” means “a person who is employed under a Crown employment contract.”

Crown Employment - in The Crown Employment Contracts Act, a “Crown employment Contract contract” means “a contract, with all amendments to the contract,

that is entered into by a Crown employer in which a person enters into an employee-employer relationship with the Crown employer and includes a contract described in this clause that is entered into under the authority of the Lieutenant Governor in Council.”

Pursuant to The Crown Employment Contracts Act, the Act does not

apply to persons covered by collective bargaining agreements, employees who have a right to the appeal procedures outlined in The Public Service Act, 1998 or employees appointed pursuant to an Order in Council if: (i) there are no provisions dealing with payments or benefits on termination attached to or referenced, other than those prescribed in the regulations to The Public Service Act, 1998; and (ii) there is no contract, apart from the Order in Council that deals with payments upon termination.

Crown Investments - is the holding company for all subsidiary Crown corporations and Corporation of also the agency for making and administering, on behalf of the Saskatchewan (CIC) Government of Saskatchewan, investments authorized under The

Crown Corporations Act, 1993 or any previous Crown Corporations Act.

Deficit - the amount by which expenses exceed revenues for a fiscal year. Delegated Purchase - is the authority provided by the Director of Purchasing, Ministry of Authority Central Services to purchase without the participation of the

Purchasing Branch. It is granted to the permanent head of a ministry. Refer to the Guide to Procurement.

Demands for Payment - are legal documents issued under the authority of an Act. They

request that amounts normally payable by the Government to a specific party be paid to the issuer of the demand. Garnishments are a form of demand for payment.

Deputy Minister - as provided for in The Executive Government Administration Act, to the Premier the deputy minister of the Office of the Executive Council is to be

called the Deputy Minister to the Premier.

http://gsportal/Support/GSPolicy/Approved%20Policies/Guide%20to%20Procurement.pdf




Designated Subsidiary - in The Crown Corporations Act, 1993, “designated subsidiary Crown Corporation Crown corporation” means “any corporation that is wholly owned

by the Crown, that is created or continued pursuant to an Act and that is designated in the regulations as a designated subsidiary Crown corporation.”

Designated Treasury - in The Crown Corporations Act, 1993, “designated Treasury Board Board Crown Crown corporation” means “any corporation that is wholly owned Corporation by the Crown, that is created or continued pursuant to an Act and

that is designated in the regulations as a designated Treasury Board Crown corporation.

Dissolution - the formal conclusion of the Legislature, which is the series of

sessions between elections. Entitlements - are transfers that a government must make if the recipient meets

specified eligibility criteria. These payments are non-discretionary as legislation and/or regulations prescribe “who” is eligible to receive the transfer and “how much” is transferred (CPA Canada Public Sector Accounting Handbook, PS 3410).

Estimates - is the document tabled before the Legislative Assembly by the

Minister of Finance on Budget Day, which reflects the Government’s detailed financial plan for the year and forms the basis for the requested appropriations (also called Main Estimates).

Executive Council - the Executive Council appointed pursuant to The Executive

Government Administration Act (also called Cabinet). Executive Government - in The Executive Government Administration Act, “executive

government” means “the executive government of Saskatchewan.” Pursuant to The Executive Government Administration Act, the Lieutenant Governor in Council may, by regulation, on the recommendation of the President of the Executive Council, determine the organization of the executive government.

Financial Statements - comprises the financial statements of organizations with tabling Compendium requirements, other than the main financial statements and the

financial statements of the Crown Investments Corporation of Saskatchewan (CIC), its subsidiaries, and any funds that are the administered by CIC or its subsidiaries.

Frozen Funds - Treasury Board may “freeze” or prohibit the use of part or all of an

appropriation (e.g., where an expenditure is approved in principle, but




where certain conditions must be met or certain details provided). Further Estimates - are additional spending estimates that are tabled while the Budget

estimates are being reviewed by the Legislative Assembly. Garnishments - are a form of a demand for payment. However, they are issued by a

court, normally upon a judgment obtained by a plaintiff against a debtor.

General Revenue Fund - the fund into which all public moneys are paid, other than public (GRF) moneys over which the Legislative Assembly has no power of

appropriation and public moneys otherwise specially disposed of by the Legislative Assembly. The GRF is available for appropriation for the public services of Saskatchewan.

Government of - in The Interpretation Act, 1995, “Government of Saskatchewan” Saskatchewan means “the Crown in right of Saskatchewan.” Government Transfer - see Transfer. Grants - are transfers where the government has discretion in deciding

whether or not to make the transfer, any conditions to be complied with, how much will be transferred and to whom (CPA Canada Public Sector Accounting Handbook, PS 3410).

Imprest Bank Account - is a bank account that is periodically funded from the General

Revenue Fund (GRF) bank account as payments are made. Information and Privacy - is an officer of the Legislative Assembly that is appointed pursuant Commissioner to The Freedom of Information and Protection of Privacy Act

(FIPPA). The Commissioner overseas the FIPPA, The Local Authority Freedom of Information and Protection of Privacy Act and The Health Information Protection Act.

In-scope - is used to refer to employees who are within the scope of a

collective bargaining agreement. Interim Supply Bill - is a supply bill that is put forward before the main Appropriation

Act is enacted. An interim supply bill would not generally be required as automatic interim funding allows ministries to operate existing programs until the normal Completion Day of the legislative session. However, there are situations when an interim supply bill would still be required. For example, an interim supply bill would be required if funding was needed for new programs, if




the Completion Day extended significantly past the normal Completion Day (i.e., the Thursday before Victoria Day), or if more than two-twelfths automatic interim funding was needed, for a program.

Inventories - represent items that are purchased or produced and are not

immediately consumed. They are recorded as an asset until they are issued for consumption or sale, at which time they are expensed. There are two main types of inventories: Inventories Held for Consumption or Use and Inventories Held for Resale.

Inventories Held for - are non-financial assets that will be used or consumed in the normal Consumption or Use course of operations. Because the primary purpose of a

government’s operations is to provide services, the future economic benefit of inventories held for consumption or use is embodied in their capacity to render service that furthers the government’s objectives. They are not intended for sale in the ordinary course of operations.

Inventories Held for - are financial assets that will be sold or used to produce a product Resale that will be sold in the ordinary course of operations.

Legislative Assembly - the elected representatives of the people (i.e., Members of the

Legislative Assembly (MLAs)) that convene in the Legislative Chamber.

Legislative Assembly - the Legislative Assembly Service, which includes the Service Speaker, the Clerk, the Clerks-at-the-Table, the Sergeant-at-Arms,

the Law Clerk and Parliamentary Counsel, the Legislative Librarian and employees that may be required by the Clerk, the Law Clerk and Parliamentary Counsel and the Legislative Librarian, is continued pursuant to The Legislative Assembly Act, 2007.

Legislative Employees - employees of the Legislative Assembly, not members of the public

service. Legislative Secretary - pursuant to The Executive Government Administration Act, the

Lieutenant Governor in Council may appoint one or more Members of the Legislative Assembly to be legislative secretaries to ministers. A legislative secretary assists the minister in any manner that the minister may direct.

Legislature - the series of sessions between elections, which is dissolved by the

Lieutenant Governor on the recommendation of the Premier.




- in The Interpretation Act, 1995, “legislature” means “the Lieutenant Governor acting by and with the advice and consent of the Legislative Assembly of Saskatchewan.”

Lieutenant Governor - in The Interpretation Act, 1995, “Lieutenant Governor” means “the

Lieutenant Governor of Saskatchewan and includes the Administrator of Saskatchewan.”

Lieutenant Governor - in The Interpretation Act, 1995, “Lieutenant Governor in Council” in Council means “the Lieutenant Governor acting by and with the advice of,

or by and with the advice and consent of, or conjunction with, the Executive Council.”

Members of the - elected representatives of the people to the Legislative Assembly. Legislative Assembly Mid-year Financial - a report released in November that provides updated financial and Report economic information on the Province of Saskatchewan. Minister - in The Executive Government Administration Act, “minister” means

“a member of the Executive Council and includes the President of the Executive Council.”

- in The Ministerial Assistant Employment Regulations, 1993,

“minister” means “a member of the Executive Council.” Ministerial Assistant - as defined in The Ministerial Assistant Employment Regulations,

1993, a “ministerial assistant” means a person appointed by a minister as a ministerial assistant.

Minister’s Order - is an instrument issued by a minister to implement a decision that

the minister has the authority to make pursuant to an Act or regulations.

Ministry - is an organizational unit of executive government created for the

purpose of managing related programs. - in The Executive Government Administration Act, “ministry” means

“a ministry, department, secretariat, office or other similar agency of the executive government.”

Ministry of - is established by The Ministry of Central Services Regulations. Central Services The Ministry of Central Services provides central support services

to the Government, including accommodations and the provision of




a central fleet of vehicles. Purchasing Branch coordinates the purchase and disposal of goods for the Government. The Information Technology Division is part of Central Services.

Normal Completion Day - for the legislative session is the Thursday before Victoria Day. Ombudsman - is an officer of the Legislative Assembly established by

The Ombudsman Act, 2012 with the authority to investigate complaints received from members of the public who believe they were unfairly dealt with by the government administration, including ministries, boards, agencies or commissions that are responsible to the Crown and any public servant in Saskatchewan.

Order in Council - is a legislative instrument issued by the Lieutenant Governor in

Council. Order in Council - is a person appointed by the Lieutenant Governor in Council. Appointee - pursuant to The Public Service Act, 1998, the Lieutenant Governor

in Council is to make appointments to all positions in the unclassified division.

Out-of-scope - is used to refer to employees in the classified division who are not

within the scope of a collective bargaining agreement. Permanent Head - in The Public Service Act, 1998, “permanent head” means “a deputy

minister or other official in charge of a ministry who is directly responsible to a member of the Executive Council.”

- in The Crown Employment Contracts Act, “permanent head” means:

“(i) a permanent head as defined in The Public Service Act, 1998; or (ii) in the case of a Crown employer that is a Crown corporation or body corporate, the chief executive officer of the Crown employer.”

Personal Service - is a contract that creates an employer/employee relationship. Contract Petty Cash Fund - is a specified amount of cash entrusted to an individual and used for

minor disbursements (e.g., parking, supplies). Policy Field Committees - are standing committees of the Legislative Assembly that are

mandated to oversee a portfolio of government ministries, agencies and Crown corporations; they examine legislative proposals, budgetary estimates, annual reports, regulations, bylaws of




professional associations and conduct inquires. The policy field committees are the Standing Committee on Human Services, the Standing Committee on the Economy, the Standing Committee on Crown and Central Agencies and the Standing Committee on Intergovernmental Affairs and Justice.

Premier - the head of a provincial government, who has the support of the

majority of the Legislative Assembly. Also see President of the Executive Council.

Prepaid Expense - is a payment, other than for inventory or capital assets, before the

criteria for expense recognition have been met (i.e., before receipt of goods or services). The payment is expected to yield economic benefits over one or more future periods.

President of the - pursuant to The Executive Government Administration Act, the Executive Council Lieutenant Governor appoints the President of the Executive

Council. In Saskatchewan, by tradition, the Premier is appointed the President of the Executive Council.

Private Aircraft - are those owned or leased by a government employee. Proclamation - if an Act states that it comes into force on proclamation, an Order in

Council must be passed by the Lieutenant Governor in Council fixing the date on which the Act will come into force; a proclamation is then prepared for the signature of the Lieutenant Governor proclaiming the Act in force on the date fixed by the Order in Council.

Prorogation - the formal conclusion of a session by the Lieutenant Governor. Protocol Office - is responsible for planning and organizing official visits to

Saskatchewan, ceremonial occasions, and the Government Gift Policy. Provincial Archives - is continued pursuant to The Archives and Public Records of Saskatchewan Management Act (APRMA). The Provincial Archives of

Saskatchewan maintains an office for the safe-keeping, classification, indexing and public use of all public records (e.g., government records, court records) and private records of historical significance, in accordance with the APRMA.

Provincial Auditor - an officer of the Legislative Assembly who audits the financial

statements and accounts of the Government of Saskatchewan, accounts related to public money, and any accounts not related to




public money that the Provincial Auditor is required by an Act to examine.

Provincial Comptroller - an officer in the Ministry of Finance, who is appointed by the

Lieutenant Governor in Council and who prepares the Government’s financial statements and Public Accounts, controls disbursements from the General Revenue Fund and supervises the receipt, recording and proper disposition of public money.

Public Accounts - the report of government spending that is tabled after the end of the

fiscal year. Pursuant to The Financial Administration Act, 1993 (FAA), the Public Accounts must contain the summary financial statements of the Government of Saskatchewan, a summary of the financial position of trust funds managed by a member of the Executive Council, and any other information that is required by the FAA, any other Act or by Treasury Board.

Public Agency - in The Financial Administration Act, 1993, “public agency” means “a

board, commission, Crown corporation or other agent of the Crown.” In the Manual, that is how the term “public agency” is used.

- in The Purchasing Act, 2004 (PA) “public agency” means any

ministry, agency, board or commission of the Government of Saskatchewan, and includes any Crown corporation or other agent of the Crown designated by the Minister as a public agency for the purposes of the PA.

- in The Revenue and Financial Services Act, “public agency” means

“a ministry of the Government of Saskatchewan and includes any board, commission, Crown corporation or other agent of the Government of Saskatchewan that Treasury Board may designate.”

- in The Public Works and Services Act (PWSA), “public agency”

means: (i) a ministry, agency, board or commission of the Government of Saskatchewan; (ii) the Legislative Assembly Office, the Office of the Law Clerk and Parliamentary Counsel, the Legislative Library and the office of any officer of the Legislature; (iii) a Crown corporation or other agent of the Government of Saskatchewan; or (iv) any other entity designated by the Minister as a public agency for the purposes of the PWSA.

Public Employees - is a central body within the Ministry of Finance that administers Benefits Agency (PEBA) pension and benefits programs for employees of executive

government, Crown corporations and government funded bodies.




Public Money - in The Financial Administration Act, 1993, “public money” means money: (i) belonging to the Government of Saskatchewan, or (ii) held by the Government of Saskatchewan or an employee or officer of the Government of Saskatchewan for the benefit of or in trust for any government or person. In the Manual, that is how the term “public money” is used.

- in The Revenue and Financial Services Act, “public money” means

“public money as defined in The Financial Administration Act, 1993.”

- in The Provincial Auditor Act, “public money” means “all revenues

and public moneys from whatever source arising, whether the revenues and moneys:

(i) belong to the Government of Saskatchewan; or (ii) are collected or held by officers of the departments of the

Government of Saskatchewan or Crown agencies for, on account of or in trust for the Government of Canada or the government of any other province or for any other party or person;

and includes public property.” Public Service - includes employees of government ministries but does not include

employees of Crown corporations. - in The Public Service Act, 1998, “public service” means “service

with the executive government of Saskatchewan.”

Public Service - is continued pursuant to The Public Service Act, 1998. The PSC is Commission (PSC) the central human resource agency for the public service and

provides leadership and service in human resource management. Public Work - in The Public Works and Services Act, “public work” means: “(i)

any land, building or complex of buildings, or any part of them, acquired, developed, constructed or provided by the Government of Saskatchewan for use in whole or in part by a public agency; and (ii) any land, building or complex of buildings, or any part of them, designated by the Lieutenant Governor in Council as a public work.”

Refund to Vote - a refund to vote is the recording of certain receipts as a reduction of

expenses in order to reflect the true costs of the vote. As this treatment deviates from the strict application of the gross budgeting principle, the approval of Provincial Comptroller or delegate is




required in accordance with the policy. Regulations - are rules that explain how provisions of Acts are to be applied;

regulations may be made by the Lieutenant Governor in Council, ministers or agencies as specified in the Act that authorizes the regulations to be made.

Remission - is the waiving of a liability to pay or refunding of a tax, royalty,

rental, fee, forfeiture, fine, pecuniary penalty or other amount imposed or authorized to be imposed pursuant to an Act.

Retainer - is an amount paid to retain the services of a professional. Revenue - the gross proceeds for a fiscal year from taxes, licenses, fees,

transfer payments and other sources other than borrowing. Saskatchewan Gazette - is published weekly by the Queen’s Printer for Saskatchewan. Part I

contains official government notices, Orders in Council, and those private notices required to be published by statute. Part II and III contain official versions of regulations as enacted.

Secondment - is defined as “the detachment of a person from their regular

organization for temporary assignment elsewhere.” (Source: Word® 1.6, © 1997 Princeton University)

Segregation of Duties - is the division of duties and responsibilities among different

employees to reduce the risk of error, waste or fraud. No one individual should be allowed to control all key aspects of a transaction or event and therefore be in a position to perpetrate and conceal errors or irregularities in the normal course of their duties. Principle incompatible duties to be segregated include: authorization of transactions (e.g., approval), recording of transactions (e.g., data entry) and custody of related assets (e.g., cash, inventory). For example, if an employee receives cash and also records the receipt of payment in the accounting records, the employee could misappropriate cash and cover the shortage by adjusting the accounting records.

Session - the total series of sitting days in a year, which is by prorogued by

the Lieutenant Governor at its conclusion. Shared Cost - transfers under shared cost arrangements are reimbursements of Arrangements eligible expenditures pursuant to an agreement between the

transferring government and the recipient (CPA Canada Public




Sector Accounting Handbook, PS 3410). Speaker - in The Legislative Assembly Act, 2007 (LAA), the “Speaker” is the

Member of the Assembly elected as Speaker pursuant to the LAA. The Speaker is the official spokesman for the Legislative Assembly, who chairs the debate, enforces proper order and decorum, and is responsible for legislative employees.

Special Committees - are committees established by the Legislature to report on a specific

subject. Special Warrants - are issued pursuant to The Financial Administration Act, 1993 by

the Lieutenant Governor in Council when the Legislature is not in session and a matter arises for which there is no appropriation or insufficient appropriation. Amounts approved by special warrant are deemed to be an appropriation for the fiscal year in which they are issued and are included in the next Appropriation Act that is not an Act for interim supply. Any funding provided by special warrant would appear in the next supplementary estimates document. Special warrants increase the Province’s overall budget and are disclosed in the Public Accounts.

Speech from the Throne - is the speech delivered by the Lieutenant Governor at the start of

each session of the legislature which outlines the Government’s priorities.

Standing Committees - are set up at the beginning of the first session of each legislature for

the duration of the legislature. There are three types of standing committees: house, scrutiny and policy field committees.

Standing Committee - is a policy field committee of the Legislative Assembly that is on Crown and established to consider matters relating to the Crown Investments Central Agencies Corporation of Saskatchewan and its subsidiaries, supply and

services, central government agencies, liquor, gaming and all the other revenue related agencies and entities. Reports of the Provincial Auditor, as they relate to the Crown Investments Corporation of Saskatchewan and its subsidiaries, are referred here.

Standing Committee - is a house committee of the Legislative Assembly that oversees on House Services all the standing and special committees with respect to membership

and allocation of government ministries, agencies and Crown corporations to the various policy field committees. It can examine any matter relating to the rules, procedures, practices and powers of the Legislative Assembly, its operation and organization, and the




facilities and services provided to the Legislative Assembly, its committees and members. It considers the estimates of the legislative branch; it also considers annual reports, except for those of the Provincial Auditor.

Standing Committee - is the scrutiny committee of the Legislative Assembly that reviews on Public Accounts the Public Accounts and the Provincial Auditor’s reports. Standing Offer - is an arrangement between the Government and a supplier, established through a competitive process. The Government uses

standing offers when it anticipates a need for products or services on an ongoing basis but is uncertain as to exactly how much will be purchased and when. Under a standing offer, suppliers provide, on request, specific goods or services at set prices or under agreed conditions.

Statute - an Act or law. Statutory Appropriation - the authorization for spending funds without requiring an annual

appropriation. The authorization is provided through Acts other than The Appropriation Act.

Statutory Instrument - is a provincial Act, regulation, Order in Council, rule of court, form,

tariff of costs and fees, proclamation, letter patent, bylaw or resolution enacted under a power conferred by a provincial Act.

Subsidiary Crown - in The Crown Corporations Act, 1993, “subsidiary Crown Corporation corporation” means a CIC Crown corporation or a designated

subsidiary Crown corporation. Summary Financial - report the financial activities of organizations which are controlled Statements (SFS) by the Government. The SFS are part of the Public Accounts. Summary Financial - in accordance with the CPA Canada Public Sector Accounting Statements Handbook, the Summary Financial Statements report the financial Reporting Entity activities of organizations which are controlled by the Government. Supplementary - are additional spending estimates that are tabled after the passage of Estimates the Appropriation Acts that supplied funding as specified in the

Budget estimates. Supplementary estimates would typically be tabled in the fall and in the spring prior to the tabling of the Main Estimates. Any funding provided by Special Warrant would appear in the next supplementary estimates.




Surplus - the amount by which revenue exceeds expenses for a fiscal year. Tabling - the act of a Member of the Legislative Assembly of sending a

document to the Table of the House, which makes the document available to members and the public. Tabling provisions are under The Executive Government Administration Act.

Transfer - are transfers of money from a government to an individual, an

organization or another government for which the government making the transfer does not:

• receive any goods or services directly in return; • expect to be repaid in the future; or • expect a financial return (CPA Canada Public Sector Accounting

Handbook, Section PS 3410). Treasury Board - is a committee of Cabinet that is responsible for providing advice to

Cabinet on financial aspects of policy options. It consists of the Minister of Finance and other persons appointed by the Lieutenant Governor in Council; while most of the members of Treasury Board are Cabinet ministers, some Members of the Legislative Assembly who are not Cabinet ministers have been appointed.

Treasury Board Crown - in The Crown Corporations Act, 1993, “Treasury Board Crown Corporation Corporation” means “a corporation created pursuant to Part IV or a

designated Treasury Board Crown corporation and includes a corporation created pursuant to Part III that is designated as a Treasury Board Crown corporation pursuant to subsection 11(8) and a corporation designated pursuant to subsection 49(2) as a Treasury Board Crown corporation or deemed to be a Treasury Board Crown corporation pursuant to subsection 49(3), but does not include a corporation that is designated pursuant to subsection 14(7) as a CIC Crown corporation.”

Treasury Board Order - is a form of Treasury Board approval that is generally used for

administrative matters related to making expenditures. Treasury Board Orders cannot be used when the authorizing legislation requires the approval of the Lieutenant Governor in Council. Treasury Board Orders are used when an expenditure requires prior Treasury Board approval, when an expenditure deviates from existing Treasury Board policy, or when no specific authority exists to make the payment. Treasury Board Orders are also used to authorize the transfer of moneys between funds.




Unclassified Division - as provided for in subsection 15(2) of The Public Service Act, 1998, the unclassified division is composed of permanent heads, members of boards or commissions, the Clerk of the Executive Council, and those positions designated by the Lieutenant Governor in Council as positions to be placed in the unclassified division.

Pursuant to The Public Service Act, 1998, the Lieutenant Governor

in Council may move to the unclassified division, any position or class of a professional, technical or administrative character. The Lieutenant Governor in Council may, upon the recommendation of the commission, move any ministry or any branch, division, section or other organizational unit of any ministry that is in the classified division to the unclassified division. Also, the Lieutenant Governor in Council may designate positions in the unclassified division that are to be moved to and become part of the classified division.

Virement - is used to transfer unspent and uncommitted amounts from one

subvote to another subvote within the same ministerial appropriation (vote). Virements have no effect on the spending limit of the appropriation; however, they allow the movement of moneys among programs to meet changing conditions and priorities. The net effect of all virements is disclosed in the Public Accounts.

Vote - is a block of funding provided for by statute or voted on by the

Legislative Assembly in an Appropriation Act that is used to pay for the expenses relating to an activity or purpose (e.g., ministry) as outlined in estimates for a fiscal year.

- in The Financial Administration Act, 1993, a “vote” means “each

item identified as a vote in the estimates on which schedules to an Appropriation Act are based or in relation to which a special warrant is issued pursuant to section 14.”


Part: Appendices Number: F Section: Summary of Delegations Date: 2017-06-01 Page: 1 of 5


Summary of Delegations

Definition A delegation is a formal assignment of responsibility. Recording of Financial signing authority must be formally assigned and recorded Delegations where provisions exist. Ministries are responsible for ensuring an

appropriate segregation of duties when assigning or revising delegations. For example, an employee who has been delegated responsibility for purchasing supplies should not also be delegated responsibility for certification of the related GRF payments.

Ministries are to maintain a signed file record of current delegations. Employees are to be made aware of their delegated responsibilities. Individuals delegated certain responsibility cannot further delegate their responsibility.

Legislation

Nature of Delegation (for what)

Assignment (to whom)

Section Reference

Certification for payment from GRF (The Financial Administration Act, 1993, section 30)

Permanent head or delegate 3100 3101

Requisition for Payment from GRF approval (The Financial Administration Act, 1993, section 31)

Permanent head or delegate 3100 3101

Purchase supplies directly from suppliers: • Based on standing offer established by the

Director of Purchasing; • Through any process provided for by the

Director of Purchasing (see Guide to Procurement)

(The Purchasing Regulations, sections 4 and 5 under The Purchasing Act, 2004)

Permanent head or delegate 4505

Treasury Board Policy and Provincial Comptroller Directives



FAM Reference

Advances - approval - travel and relocation - business - other situations

- Permanent head or delegate - Ministry of Executive Council - Provincial Comptroller or delegate

- delegated to Assistant Provincial Comptroller, Provincial Comptroller’s Office (PCO), Finance

3132

Air billing accounts - review and approval of the reconciliation of the Minister’s Office accounts

Executive Director/Director of Administration or delegate

3130






FAM Reference

Aircraft– use of charter aircraft when a more economical mode of travel exists


Aircraft - use of executive aircraft by ministry officials - rent from private sector

Minister Permanent head

4535

Aircraft – use of private aircraft Permanent head 4440 Bank accounts - Open and close bank accounts - Change signers on specific bank accounts

Provincial Comptroller or delegate - Delegated to Assistant Provincial Comptroller,

PCO, Finance - Delegated to Executive Directors/Directors of

Administration (for bank accounts not delegated, approval of Assistant Provincial Comptroller, PCO, Finance, is required)

3605 3610

Bank reconciliation - review and approval Ministry’s senior official or delegate 3610 Banquets that exceed guidelines: - Deputy Ministers’ conferences, other conferences

and miscellaneous banquets - Ministers’ conferences

Minister Deputy Minister to the Premier

4425

Board member’s expenses - approval Chairperson, vice chairperson or designated ministry official

5010

Business expenses - Deputy Ministers, Associate Deputy Ministers,

their equivalents and senior officials designated by the Deputy Minister to the Premier - single expenses in excess of $300 (for above)

- Ministry officials conducting business with persons representing private sector or other governments

- Ministry officials attending a banquet - corporate table purchase

- Meal costs for employees at headquarters where meetings extend over the meal hour

- Meals brought into meetings over the meal hour attended mostly by employees on travel status

- Meals at ministry-conferences for employees at reasonable and justifiable rates using PSC rates as a guideline

- Refreshments at ministry-hosted conferences for employees; for interministerial and intraministerial training; and for ministry meetings

Approval of a more senior official, as follows: - Deputy ministers and associate deputy

ministers by Deputy Minister to the Premier or delegate (delegated to Executive Director of Corporate Services, Executive Council)

- Deputy Minister to the Premier by Premier or delegate; and

- Assistant deputy ministers and equivalent and senior officials by a more senior official.

Minister Permanent head or delegate Permanent head or delegate Minister Permanent head or delegate Permanent head or delegate Permanent head or delegate Permanent head or delegate

4420

Capital assets – approval for write-down Permanent head or delegate 2150 Christmas cards - deciding eligibility for equivalent to deputy ministers

Deputy Minister to Premier or delegate 4550






FAM Reference

Collection agency - approval to engage services or change collection agencies

Provincial Comptroller 3715

Compensation for loss of personal property (under certain conditions outlined in policy) - approval

Permanent head (in conjunction with legal representative)

4110

Compensation for Loss Statement- signature on Statement


Contracts not under The Purchasing Act, 2004 Minister, Deputy Minister or delegate 4510 Convention, conference and training (work-related) – approval of attendance and registration fees


Discretionary Expenses up to $200 Permanent head or delegate 4420 Donation - approval of the appropriateness to accept a non-

monetary donation - approval to provide an income tax receipt for a non-monetary donation valued at over $100,000

Permanent head Deputy Minister of Finance

3525

Employee Recognition - purchase of non-monetary awards, not exceeding $100 per fiscal year per employee

Deputy minister or or delegate is required. The permanent head may delegate approval of awards to associate and assistant deputy ministers and executive directors.

4325

Excess meal charges – out-of-scope and CUPE, Local 600

Permanent head 4405

Financial statements – approval Provincial Comptroller or delegate Board of Directors, CIC (for CIC and its subsidiaries)

2305

Financial systems - approve all new and significant changes to existing systems

Provincial Comptroller

4015

Flowers or other appropriate gift upon the death of an employee


Gifts and Flower Arrangements (Premier’s Office) Deputy Minister to the Premier or delegate 4553 Holding money in the GRF - Participation in COBC arrangement - An Other MIDAS Entity in the Government’s

central financial system


PCO, Finance - Delegated to Assistant Provincial Comptroller, PCO, Finance

3305 3310

Imprest bank account - approval for moneys to establish and for increases to the level


PCO, Finance

3105

Insurance - authorization of purchases Director, Risk Management Services, Ministry of Central Services

4125

Interview expenses – approval for - prospective employee - spouse of prospective employee

Permanent head or delegate Permanent head

4410

Inventories held for resale - approval of write-downs Permanent head or delegate 2160 MIDAS Supplier Table - add a supplier record Permanent Head or delegate App H






FAM Reference

Minister’s and legislative secretaries - ministers’ single business expense in excess of

$300 or where total claim in a quarter exceeds $300 - legislative secretary’s single business expense in

excess of $150 or where total claim in a quarter exceeds $150

- approval

- Premier or delegate - Executive Director of Corporate Services, Executive Council

4430

NSF collection fee - approval to waive Permanent head or delegate 3515 Out-of-province travel Permanent head or delegate 4405 Overpayments over $10 – acceptance of minor overpayments

Provincial Comptroller or delegate 3510

Parking – fines Permanent head 4445 Parking - rental of stalls or purchase of parking permits

Permanent head 4405

Petty cash funds and cash register floats – approval to establish and increase the level

Provincial Comptroller or delegate - Delegated to Executive Director/Director of Administration

3110

Petty cash - Reimbursing petty cash funds and cash register floats for losses that do not exceed $200

Permanent head 3112

Petty cash - Review and approval of the year-end reconciliation

Executive Director/Director of Administration or delegate

3110

Purchase cards - approval of monthly limits over $100,000

Assistant Provincial Comptroller, PCO, Finance 3154

Purchase cards – approval of transactions over $10,000

Provincial Comptroller or delegate

3154

Refunds to vote - approval - Overpayments, duplicate payments, payments made in error, cancelled cheques and returned goods - Secondments - Other situations

Provincial Comptroller or delegate - Ministries may process - Delegated to Executive Director/Director of Administration

- Delegated to Assistant Provincial Comptroller, PCO, Finance

3005

Retirement expenses - prior approval for the entire cost of retirement functions when total costs, excluding the retirement gift, are greater than $500 per retiree.

Permanent head 4320

Revenue Refunds Permanent head or delegate 3015 Salary payment for new employees not set up on central financial system


Special Handling Code 1 for cheques - approval Executive Director/Director of Administration or Manager of Operations

3610 App H

Telephone Billing Summary – Ministers’ Offices Chief of Staff or designate 3158 Transportation – approval for hired or rental transportation


Transportation – approval for special rates for modes of transportation that are owned by employees and authorized for government business use (does not apply to rates for use of employee-owned automobiles, aircraft and ATVs)

Permanent head 4405

Travel card applications - approval Executive Director/Director of Administration 3134






FAM Reference

Travel Expense Statements – approval of - Permanent head’s - Others

- Minister may delegate to Executive Director/Director of Administration

- more senior person

3136

Trust and special purpose fund investment or investment renewals

- Permanent head or delegate of the responsible ministry - director or equivalent for Institutional Collective Benefit Accounts

3410

Vehicle Policy for Senior Officials – prior approval for individuals receiving a monthly allowance that are unable to use a CVA vehicle or a rental vehicle through the Daily Rental Program (DRP) for out-of-town business travel to receive personal reimbursement for mileage expenses - Group 1 - Groups 2 and 3

- Deputy Minister to the Premier or delegate - Deputy Minister

4305

Write-off or cancellation of accounts receivable - write off receivables less than $500 -authorize ministry requests to the Board of Revenue Commissioners for write-offs $500 and up and all cancellations

Permanent head 3725


Part: Appendices Number: G Section: General Laws Date: 2017-09-11 Page: 1 of 5


General Laws

Introduction Ministries and other government organizations are subject to applicable general laws as specified in the particular law. General laws provide broad powers and duties to government officials and groups, which impact ministries and other government organizations. Some general laws in Saskatchewan are listed below. DISCLAIMER: The following summaries provided as general information. They do not contain a comprehensive discussion of the provisions of these Acts. In addition, the contents are not to be accepted or construed as a substitute for the provisions of legislation. Appropriation Act(s) The Appropriation Act is the legal authorization to spend moneys from the General Revenue Fund for the purposes and time period identified in The Appropriation Act and the Estimates. There is usually more than one Appropriation Act for a fiscal year. The Archives and Public Records Management Act The Archives and Public Records Management Act (APRMA) establishes the Provincial Archives of Saskatchewan and provides for the appointment of the Provincial Archivist. The APRMA sets out their powers and duties and the requirements for the proper disposal of public records. The Builders’ Lien Act The Builders’ Lien Act (BLA) provides for members of the construction industry to claim and register a builder’s lien to secure payment for work or services performed or materials provided. The BLA requires owners to establish a “hold-back trust account” which is to hold 10 percent of the value of the work done, services rendered or materials supplied. The hold-back is required for all contracts. The Crown Corporations Act, 1993 The Crown Corporations Act, 1993 (CCA) sets out the objects, purposes and powers of the Crown Investments Corporation (CIC), which is the holding company for subsidiary Crown corporations and which makes and administers investments authorized by the CCA. It also sets out powers of CIC Crown corporations and the Treasury Board Crown corporations that fall under the CCA. The Crown Employment Contracts Act The Crown Employment Contracts Act (CECA) governs Crown employment contracts as defined in the CECA (i.e., employment contracts for certain employees of a Crown employer). For example, it




does not apply to employees covered by a collective bargaining agreement. Crown employment contracts are to be filed with the Clerk of the Executive Council and are deemed to be public documents available for public disclosure in accordance with the CECA. The Enforcement of Money Judgments Act The Enforcement of Money Judgments Act (EMJA) provides for a comprehensive money judgment enforcement process. Under the EMJA, registration of a notice of judgment in the Personal Property Registry is required. Under the EMJA, the Government may be served with notices of seizure of employee remuneration and Crown accounts (e.g., amounts owing to a supplier). The Executive Government Administration Act The Executive Government Administration Act (EAA) centralizes administrative powers within one Act, including: • appointing Cabinet; • determining the organizational structure of government and assigning to ministers and

transferring from one minister to another, the administration of specific Acts or portions of Acts; • establishing Cabinet committees and appointing legislative secretaries; • hiring advisors and appointing advisory committees (advisory committees require an Order in

Council); • specifying requirements for an Order in Council for payments over $50,000 in a fiscal year; • establishing the Office of the Executive Council, including the Deputy Minister to the Premier,

the Cabinet Secretary and the Clerk of the Executive Council; • requirements for tabling of documents before the Legislative Assembly. The Financial Administration Act, 1993 The Financial Administration Act, 1993 (FAA) encompasses the financial administration of the Government of Saskatchewan, including powers and duties of Treasury Board, the Minister of Finance, and the Provincial Comptroller. It continues the General Revenue Fund (GRF) and includes provisions regarding GRF revenues, expenses, assets and liabilities. It requires summary financial statements to be prepared and specifies the Public Accounts requirements. The Freedom of Information and Protection of Privacy Act The Freedom of Information and Protection of Privacy Act (FIPPA) provides for the appointment of the Information and Privacy Commissioner and sets out the commissioner’s powers and duties. The FIPPA sets out procedures with respect to requests for access to records in the possession or under the control of government institutions (i.e., government ministries and entities that are prescribed in regulations to the FIPPA) and with respect to the collection, use and disclosure of personal information by those government institutions. The FIPPA also sets out procedures for review and appeal.




The Interpretation Act, 1995 The Interpretation Act, 1995 (IA) establishes general rules that govern the interpretation of all statutory instruments (e.g., Acts, regulations, Orders in Council). The IA outlines corporate rights and powers that are applicable to corporations that are established by Acts, other than those established pursuant to The Business Corporations Act, The Non-profit Corporations Act, The Co-operatives Act, 1989, The Credit Union Act, 1985, or The Crown Corporations Act, 1993 and duty of care for officers and directors. The IA also provides definitions of terms that are commonly used in statutory instruments. The Legislative Assembly Act, 2007 The Legislative Assembly Act, 2007 (LAA) provides for the operation of the Legislative Assembly and the remuneration of the Members of the Legislative Assembly (MLAs). The LAA provides for the Legislative Assembly Service, which includes the Speaker, the Clerk of the Legislative Assembly, the Clerks-at-the-Table, the Sergeant-at-Arms, the Law Clerk and Parliamentary Counsel and the Legislative Librarian and employees that may be required by the Clerk, the Law Clerk and Parliamentary Council and the Legislative Librarian. It also establishes and sets out the powers and duties of the Board of Internal Economy. The Local Authority Freedom of Information and Protection of Privacy Act The Local Authority Freedom of Information and Protection of Privacy Act (LAFIPPA) sets out procedures with respect to requests for access to records in the possession or under the control of local authorities (i.e., authorities that are outlined in the LAFIPPA or prescribed in regulations to the LAFIPPA) and to the collection and disclosure of personal information by those authorities. The LAFIPPA also sets out procedures for review and appeal. The Ombudsman Act, 2012 and The Advocate for Children and Youth Act The Ombudsman Act, 2012 provides for the appointment of the Ombudsman as an officer of the Legislative Assembly and sets out the Ombudsman’s powers and duties. The Ombudsman has the authority to investigate complaints received from members of the public who believe they were unfairly dealt with by the government administration, including ministries, boards, agencies or commissions that are responsible to the Crown and any public servant in Saskatchewan. The Advocate for Children and Youth Act provides for the appointment of the Advocate for Children and Youth, who is also an officer of the Legislative Assembly, and sets out the Advocate’s powers and duties. The Advocate has the authority to promote the interests of, and act as a voice for children and youth when there are concerns about provincial government services. The Proceedings Against the Crown Act The Proceedings Against the Crown Act (PACA) covers legal proceedings against the Crown

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/C50-101.pdf




(i.e., Her Majesty the Queen in right of Saskatchewan). Nothing in the PACA subjects the Crown to proceedings under the PACA in respect of a cause of action that is enforceable against a Crown corporation or other Crown agency. The Provincial Auditor Act The Provincial Auditor Act provides for the appointment of the Provincial Auditor and sets out powers and duties of the Provincial Auditor. Responsibilities of appointed auditors are also set out. The Provincial Sales Tax Act The Provincial Sales Tax Act (PSTA) provides for the Provincial Sales Tax that applies to the purchase, importation, or rental of certain goods and services. The PSTA also requires businesses that sell taxable foods or services in the Province to obtain a Provincial Sales Tax vendor’s licence. The Public Service Act, 1998 The Public Service Act, 1998 (PSA) continues the Public Service Commission and sets out its powers and duties. The PSA provides for two divisions of the public service, the classified and unclassified divisions. The Public Works and Services Act The Public Works and Services Act (PWSA) provides the Minister responsible for the PWSA with a number of powers, including the power to acquire property for the use or purposes of the Government of Saskatchewan, public agencies or public institutions and to dispose of that property. The PWSA also provides the Minister with the powers to develop, construct, alter, maintain, manage and operate property for and provide services, accommodation and facilitities to the Government of Saskatchewan, public agencies, public institutions or participating jurisdictions. The Purchasing Act, 2004 The Purchasing Act, 2004 (PA) provides the authority for the appointment of the Director of Purchasing and sets out the responsibilities and duties of the position. It governs the acquisition and disposition of supplies by a public agency pursuant to the PA. It also provides for the acquisition and disposal of supplies for public institutions and participating jurisdictions on request. The Regulations Act, 1995 The Regulations Act, 1995 (RA) appoints a Registrar of Regulations and describes procedures with respect to implementation and publication of regulations (e.g., filing, coming into force, amendment and repeal and the publication in The Saskatchewan Gazette). This does not include a regulation made by a corporation unless all the members of the corporation or all the members of the board of directors are appointed pursuant to an Act or by the Lieutenant Governor in Council.




The Revenue and Financial Services Act The Revenue and Financial Services Act (RFSA) continues the Board of Revenue Commissioners and sets out its powers and duties. It also provides for revenue officers and includes provisions relating to revenue collection under various revenue Acts (e.g., The Provincial Sales Tax Act). The Saskatchewan Human Rights Code The Saskatchewan Human Rights Code (SHRC) and the federal Charter of Rights and Freedoms (which is part of the Constitution) are general laws with respect to protecting the privileges of being a citizen. The SHRC sets out the procedure for filing a complaint of discrimination with the Saskatchewan Human Rights Commission. The Workers’ Compensation Act, 2013 The Workers’ Compensation Act, 2013 (WCA) applies to all employers and workers in Saskatchewan, except those in farming and ranching and those specifically excluded by regulation. It applies to the Government of Saskatchewan and those employed by the Government. The WCA provides for the Injury Fund to which is credited all moneys collected from employers under the WCA. The Workers’ Compensation Board, which is established pursuant to the WCA, may expend money from the Fund for the administration of the WCA and for compensation of workers and dependents, assistance to dependent spouses of deceased workers and other costs as outlined in the WCA.

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/P34-1.pdf


Part: Appendices Number: H Section: Central System Processing Date: 2015-10-26 Page: 1 of 25


Central System Processing

The central financial system used to process General Revenue Fund (GRF) financial transactions is called the Multi-Informational Database Applications (MIDAS). This appendix addresses some basic MIDAS processes that flow directly from policies in this manual. For additional MIDAS details, the MIDAS training manuals and the MIDAS On-Line Help can be referenced.

Section 1 – MIDAS 1.00 MIDAS has the following modules: Introduction

• General Ledger (GL) – For processing journal entries including bank deposits, miscellaneous cheque writer payments and other transactions where no supplier information is required (e.g., accruals for payments under $1,000). The GL is also updated from other modules. It tracks budget and encumbrance detail and is used to review budget, actual and encumbrances balances and funds available.

• Accounts Payable (AP) – For processing invoices for

payment purposes, recording supplier credits and all other transactions where supplier information is required, including most accrual entries.

• Purchasing – For recording purchase requisitions,

purchase orders, and the receipt of goods and services. • Human Resource/Payroll (HR/Payroll) – For recording

human resource and payroll transactions, including adjustments and accruals.

• Accounts Receivable (AR) – For recording receivables by

those ministries that use the AR Module. • Public Sector Budgeting – For the preparation of ministry

base revenue estimates, the preparation of expenditure, revenue and FTE (full-time equivalent) budget detail based on approved government Estimates, and expense and revenue forecasting.

• Fixed Assets (FA) – For recording the addition, transfer,

adjustment and retirement of fixed assets. It is used to




calculate amortization and create journal entries by the ministries that use the FA module.

Section 2 – Deposits 2.00 The process for entering deposits to GRF bank account is as follows:

• Moneys received by the ministry are recorded in the cash

mail record. • Receipts are prepared, if required, and are distributed. • Deposit slips are prepared, ensuring the deposit equals the

total of the cash mail record and receipts. • Moneys are deposited. • Individual receipts are coded with chart of accounts

coding. • Each deposit to the GRF bank account must be entered as

a separate GL journal in MIDAS. The bank deposit number on the deposit slip must be entered in the description field of the journal entry line containing the natural account 100000).

• Ministries are to ensure deposits agree to the journal entry. • The Document Control Log is completed. • GL bank deposit journal entries are entered and posted.

Posting is done either manually or through nightly auto post.

• The Journals General (180) Report is available to ministries. This report lists daily revenue transactions.

• Ministries ensure the data and amount shown on their cash mail record and bank deposits agree with the date and amount shown on the Journals General Report.

Section 3 – Payments 3.00 MIDAS makes payments by cheque or direct deposit to “suppliers” or through clearing accounts for interministry

payments during regular scheduled MIDAS payment runs. Public Accounts Payees 3.01 The Public Accounts payee field on MIDAS may be used to

record the original payee where a third party is to receive the payment rather than the original payee. A Public Accounts payee is the original recipient (e.g., employee, board member, supplier) even though the payment is being made to a third party. For example, in a wage garnishee situation, the employee is the Public Accounts payee. When a Public Accounts payee is used, the Public Accounts capture the payment as having been made to the original payee.




Set-offs 3.02 Public Accounts payees may also be used when a ministry is processing a payment to a supplier that is being set-off against an accounts receivable of another ministry. The invoice transaction should show the creditor ministry (i.e., ministry with the amount owing from the original supplier) as the payee and the original supplier as the Public Accounts payee.

Supplier Maintenance 3.03 A supplier record on the MIDAS Supplier Table is required to

make payments and to generate purchase orders. The approval of the permanent head or delegate is required on the Supplier Maintenance Form for updates to the MIDAS Supplier Table. (For ministry systems that interface with MIDAS, a Supplier Maintenance Form is not required; a properly authorized list of suppliers with valid direct deposit information is sufficient.) Ministries are responsible to validate the authenticity of new suppliers (this is done by an employee other than the person requesting the supplier to be set up).

3.04 Financial Systems Branch (FSB), Provincial Comptroller’s

Office, Ministry of Finance maintains the MIDAS Supplier Table. Ministries are to send completed Supplier Maintenance Forms (and program system listings of suppliers, for ministry systems) and authorized signers and changes to FSB.

MIDAS Payment Runs 3.05 For the primary operating unit, FSB processes MIDAS

payment runs every business day, usually by 8:00 a.m.

Direct Deposit 3.06 Payments to regular suppliers (i.e., employees, grant recipients and many suppliers of goods and services) are generally made by direct deposit.

3.07 Suppliers must complete a Direct Deposit Payment Request

Form in order to be set up for direct deposit. Both the supplier name and the related supplier site(s) must be specified to ensure the direct deposit of all payments. The form is sent to FSB for input to MIDAS.

3.08 To ensure a payment is included in the 8:00 a.m. payment run

the day before the scheduled payment date, ministries must enter and validate invoices two days before the scheduled payment date. The scheduled payment date is the date the payment is to be deposited into a supplier’s bank account. For example, if the scheduled payment date is Friday, then the invoice needs to be validated prior to the Thursday morning




payment run (i.e., generally, by 5:00 p.m. on Wednesday). 3.09 Changes to a supplier’s bank account are made through a

Direct Deposit Payment Request Form.

Special Handling 3.10 When a ministry requests Special Handling Code 1, the for Cheques cheque is returned to the ministry for distribution, rather than

being directly mailed to the recipient. Use of Special Handling Code 1 for cheques should be minimized and only requested in exceptional circumstances.

3.11 The approval of the ministry Executive Director/Director of

Administration or Manager of Financial Operations must be indicated on the request, as well as the reason for the request and an explanation why normal cheque processing (i.e., mailed immediately to payee after signing) is not feasible. Segregation of duties must be maintained (see Section 3610 Controls over Bank Accounts, paragraphs .11 to .13). Cheques held for distribution must be safeguarded and protected against loss.

3.12 Ministries are to maintain a central log that includes, in

addition to the approval and explanation for the use of Special Handling Code 1, cheque details, including the payee, date, amount, cheque number and the signature of the individual that takes possession of the cheque. Ministries are to perform a monthly comparison of the control log to MIDAS reports to ensure that all cheques returned to the ministry as indicated on MIDAS have been recorded in the control log and approved. Any discrepancies must be followed up promptly. The Executive Director/Director of Administration must sign and date the control log as evidence of the follow–up and review.

Merchant Fees 3.13 Organizations providing credit/debit card services (merchants)

to ministries collect merchant fees monthly by charging (debiting) a ministries credit/debit card clearing bank account. Debit/credit card clearing bank accounts are to be reimbursed for the amount charged (debited) by the merchant to ensure merchant fees are accounted for correctly. The process for properly recording merchant fees is as follows:

• Establish the ministries debit/credit card clearing bank

account as a supplier by completing a Direct Deposit Payment Request Form (e.g., Royal Bank – name of bank




account). • Reimburse the monthly amount charged (debited) to the

debit/credit card clearing bank account, by the merchant, through direct deposit. Complete a Request for Payment Form with the debit/credit card clearing account as the name of the supplier (e.g., Royal Bank – name of bank account).

• Ensure all merchant fees are to be coded to the Bank Service Charges natural account (558320) and that the description field contains the month that the merchant charges pertain to.

Section 4 – Payment 4.00 MIDAS has a default feature for releasing payments. Scheduling Default Payment Terms 4.01 Payment is automatically scheduled according to the default

supplier term dates at invoice entry. 4.02 In order to ensure supplier payments are made according to the

Government’s 30-day policy, the default payment terms date is 30 days for direct deposit payments (i.e., direct deposits are released on day 30) and for cheques, 26 days (cheques are printed and mailed on day 26).

4.03 Default payment terms date is zero days for revenue refunds

and where suppliers are employees, members of boards or commissions or are paid under personal service contracts, including remuneration, business expenses, travel costs and advances.

4.04 MIDAS can facilitate a default lag, by supplier, other than the

defaults listed above; however, other default payment terms must be approved by the Financial Management Branch (FMB), Provincial Comptroller’s Office, Ministry of Finance and set up by FSB.

Scheduling Payments 4.05 MIDAS provides an exception process for scheduling

payments. This feature must be used with care, as releasing payments earlier than policy leads to inconsistent treatment of suppliers and ineffective cash management.

4.06 MIDAS can also facilitate making a payment on a specific date

(e.g., January 1). Ministries control the use of this feature. Ministries are able to override the default terms of the supplier when working on the scheduled payment screen of the invoice




entry form. Overriding the default terms is to be minimized and ministries are responsible to ensure appropriate use. It is intended for specific circumstances (i.e., where payment is required on a specific date based on policy, a contract, an agreement or legislation). Examples include:

• grants, transfers or similar payments (refer to Section

3142 Timing of Grant Payments); • payments for allowances and care of individuals; • supplier contracts with unique payment terms; and • subscriptions, course registration fees, licences or other

items which must be prepaid.

Section 5 – Capturing 5.00 Ministries are responsible for capturing three system dates: System Dates the invoice date, the goods and services received date (GSD)

and the invoice received date (IRD). The following are examples where the application of the GSD

and the IRD requires some interpretation:

b) Goods and Services Received Date

Recurring supplier payments For a series of invoice payments scheduled and processed at the beginning of the year, enter the projected GSDs (e.g., the end of every month). Note: When using the recurring invoice process on MIDAS, at the beginning of a fiscal year, during Interim Supply, ministries should ensure they only validate invoices month by month rather than validating the series of invoices, until their full appropriation is available. Prepaids For subscriptions, course requirement fees, etc., enter the IRD as the GSD.

Shipments/services are provided over a period of time • A SaskTel bill – use the billing period date. • Services provided over a calendar month – use the last

day of the month. • Goods are received throughout the month and an

invoice is received at the end of the month – use the date of the receipt of the last shipment.




• A partial shipment of goods arrives – use the date of receipt of the last shipment.

• A ministry is required by contract to pay a portion of the contract at various points of completion (e.g., 75% and 100%) – use the date of completion of work at the milestones.

c) Invoice Received Date

No formal invoice exists The IRD is the date the source document that initiates payment is first prepared or received in the ministry (e.g., a Work Completed Report prepared in the ministry). Invoice in dispute The IRD is the date the dispute is resolved. A dispute is defined as a significant disagreement between the ministry and the supplier (e.g., where the billed amounts are incorrect, or where goods are missing from the shipment). This does not include being charged the Goods and Services Tax (GST). Ministries should indicate that an invoice is in dispute on the invoice. Recurring supplier payments Where a series of payments are scheduled and processed at the beginning of the year, use the date the invoice is first received in the ministry. In most situations the same IRD will be used for each payment in the series. Note: When using the recurring invoice process on MIDAS, at the beginning of a fiscal year, during Interim Supply, ministries should ensure they only validate invoices month by month rather than validating the series of invoices, until their full appropriation is available.

d) Special Cases

Grants/transfers The system requires three dates to be entered. Ministries may use discretion in entering the GSD and the IRD as grants/transfers are not eligible for interest (unless they are payments to suppliers for goods/services received by individuals).




Travel Expenses The system requires three dates to be entered. Ministries may use discretion in entering the GSD and the IRD as travel expenses are not eligible for interest. Payment due date is greater than 30 days Ministries are to use actual dates, but should schedule the payment as required. Ministries should be aware that if payment occurs 45 days after the later of the GSD and the IRD, late payment interest may be calculated; however, the related interest should not be validated for payment (see Section 6 – Automatic Interest).

Section 6 – Automatic 6.00 A program is run centrally in FSB to calculate interest monthly Interest for payment in MIDAS. Interest is automatically calculated for

supplier invoices where payment has been delayed by more than 15 days after the 30-day payment policy in accordance with the policy in Section 3152 Interest on Late Supplier Payments.

6.01 The program calculates interest on late supplier invoices where

payees have a classification of “Supplier” in MIDAS. Supplier invoices are defined generally as purchases within the “5XXXXX” account distribution range, excluding natural accounts 51XXXX (Personal Services), 57XXXX (Transfers, Other Expenses), 58XXXX (Other Expenses, Finance- Servicing the Debt, Internal Recoveries, Salary Accountable Advance, Amortization Expense), 59XXXX (Budget) and 522900 Provincial Sales Tax, 523000 Other Taxes and Licenses, 525300 Communication Expenses – Elected Representatives, 529600 Non-Taxable Association and Professional Membership Dues, 542600 Relocation – New Employees and 542700 Relocation – In-Service Employees. The program also calculates interest on late supplier invoices coded to natural accounts 199XXX Tangible Capital Assets – Current-year Additions.

6.02 When interest is due, an interest invoice batch is generated in

MIDAS for validation by ministries. Interest invoices are aggregated by supplier, by ministry. Ministries should use the “GOS Late Payment Interest Report” to verify the accuracy of the invoice.




6.03 Automatic interest is charged to natural account 558260 Interest – Late Supplier Payments. Interest calculated manually should be charged to natural account 558270 Other Interest.

Section 7 – Returned 7.00 The Government’s principal financial institution charges Cheques the GRF for returned cheques through the Provincial

Comptroller’s Returned Item Account. FSB returns the returned cheque to the ministry that originally received it.

7.01 Ministries are to collect outstanding accounts resulting from

returned cheques. Ministries are required to enter a journal entry to the GL Module or, if the ministry uses the AR Module, an AR invoice. See below:

Journal Entry – GL Module DR 4XXXXX Revenue or 107XXX Accounts Receivable

(using the coding used on the original entry on bank deposit i.e., ministry-specific entity, program and organization)

CR 100050 Returned Item Clearing Account (Ministry-specific entity.0.0.100050.0.0.0)

AR Invoice – AR Module Enter an AR invoice coded to the natural account 100050 Returned Item Clearing Account. The transaction type is “NSF” and the line description is “Returned Item Charge”. The following accounting entry is made: DR 107100 Accounts Receivable – From Accounts Receivable

(ministry-specific entity, program and organization) CR 100050 Returned Item Clearing Account (Ministry-specific

entity.0.0.100050.0.0.0) Both GL and AR Modules Ministries must send a copy of the journal entry or invoice to FSB. FSB will process the transfer from the deposit account to the Returned Items Account (debit slip for GRF bank 125 and credit slip for Returned Items bank account) and enter the following journal entry:

DR 100050 Returned Item Clearing Account (Ministry-specific

entity.0.0.100050.0.0.0) CR 100000 General Revenue Fund Bank Account

(200.0.0.100000.0.0.0)




Section 8 – 8.00 When a cheque from the GRF written in the current fiscal year Replacement Cheques is returned due to incorrect information, the cheque must be

returned to FSB with instructions to:

• cancel the payment and invoice (ministry must re-enter the invoice with the correct information); or

• cancel the payment and put the invoice on hold (the ministry modifies the invoice with the correct information); or

• cancel the payment and rerun the payment. 8.01 If the returned cheque requires only an address change, a

Supplier Maintenance Form is attached to the request to update the Supplier Table. This change is reflected in the Supplier Name Table, as well. A cheque void transaction is processed to cancel the original cheque and a replacement cheque is issued in the next MIDAS payment cycle by FSB.

8.02 For the replacement of a cheque written off in a prior year due

to a change in information, FSB will send a memo to the Financial Services Branch, Corporate Services Division, Ministry of Finance. Corporate Services will prepare an invoice for the replacement.

Section 9 – Taxes 9.00 To record PST applicable to goods or services obtained from a Provincial Sales Tax (PST) supplier who does not collect the tax (usually a supplier located

outside Saskatchewan), an invoice adjustment, debit memo, or an invoice payable to the Minister of Finance, is used in the AP Module. Select the “standard” invoice distribution type and credit the PST liability account – 240020 PST Acccount (Ministry-specific Entity.0.0.240020. 0.0.0).

9.01 PST collected on the sale of taxable goods and services by

ministries should be coded to the PST liability account (Ministry-specific Entity.0.0.240020.0.0.0).

9.02 Refunds of PST should be treated as current revenue refunds

charged to the PST liability account (Ministry-specific Entity.0.0.240020.0.0.0).

9.03 Finance clears the PST account on a monthly basis.




Goods and 9.04 Ministries should code GST collected to the GST liability Services Tax (GST) account – 240010 GST Account, using Ministry-specific

Entity.0.0.240010.0.0.0. 9.05 Refunds of GST should be treated as current revenue refunds

charged to the GST liability account (Ministry-specific Entity.0.0.240010.0.0.0).

GST/HST Paid in Error 9.06 Ministries should charge all GST/HST paid in error through the

AP Module to natural account 240011 GST/HST Receivable (Ministry-specific Entity.0.0.240011.0) and using the “standard” invoice distribution type. Ministries must retain appropriate documentation, including invoice number, to ensure that an audit trail exists to support all charges to the GST/HST Receivable Account.

9.07 Refunds received from suppliers for GST/HST paid in error on

an invoice should be coded 240011 GST/HST Receivable. 9.08 On a monthly basis, FSB remits the net amount (the amount in

240010 GST Account less the amount in 240011 GST/HST Receivable) to the Canada Revenue Agency.

Section 10 – Refunds 10.00 Proper coding and processing of refund to vote transactions to Vote are necessary to ensure accurate disclosure of payments made

from the GRF in Volume 2 of the Public Accounts. 10.01 If the total amount paid to a supplier (Public Accounts payee)

meets the thresholds outlined in Section 2010 Reporting Payee Details in the Public Accounts, it will be included in the detail listing of payments provided in Volume 2 of the Public Accounts.

10.02 Refunds to vote for payroll are recorded in the HR/Payroll

Module. There are two ways that refunds to vote (excluding payroll) can be recorded on MIDAS. One way is through a debit memo in the Accounts Payable (AP) Module and the other is through a journal entry in the General Ledger (GL) Module. The difference is that transactions processed through the GL do not have supplier detail associated with the transactions. As a result, refunds to vote are generally processed through AP.




Blanket Refund to Vote 10.03 When it is impractical to credit the reimbursement against the original expense (supplier) (e.g., the reimbursement may apply to a number of invoices from a number of suppliers), one or more blanket reimbursement natural accounts are used, depending on the nature of the original expense(s). Blanket reimbursements are generally processed through the GL Module but in some cases a debit memo in AP may be used (e.g., office costs for ministerial assistants).

The following are blanket reimbursement natural accounts: 519882 Reimbursement – Personal Services 521884 Reimbursement – Contract Services 532885 Reimbursement – Communications 541881 Reimbursement – Travel 542886 Reimbursement – Supplies and Services 569887 Reimbursement – Expensed Equipment and Other

Assets 571883 Transfers – Reimbursement 572889 Reimbursement – Other Expenses

Recording 10.04 Reimbursements of cash to be refunded to vote are Reimbursements recorded in the GL using the “Bank Deposits” category journal of Cash – Step 1 entry as follows, depending on whether the refund will be

recorded in the AP Module, the HR/Payroll Module or as a blanket refund to vote through the GL Module:

For reimbursements of cash that are to be recorded as a blanket

reimbursement in the GL as part of the GL bank deposit entry, see below (no further entries are required):

DR 100000 General Revenue Fund Bank Account

(200.0.0.100000.0.0.0.) CR the appropriate blanket reimbursement natural account(s), using ministry-specific coding for entity, program, organization, etc.

For reimbursements of cash to be recorded as a refund to vote

in AP to a specific supplier or in HR/Payroll to a specific employee, see below for the first entry (see Step 2 for the next entry):

DR 100000 General Revenue Fund Bank Account

(200.0.0.100000.0.0.0.) CR 253021 Refund to Vote – Clearing Account (Ministry-




specific Entity.0.0.253021.0.0.0 – note that program and organization may be zero but they are not required to be zero).

OR DR 100000 General Revenue Fund Bank Account

(200.0.0.100000.0.0.0.) CR 253022 Payroll Refund to Vote – Clearing Account

(Ministry-specific Entity.0.0.253022.0.0.0). Recording the Refund 10.05 For reimbursements through AP and HR/Payroll, see below: to Vote – Step 2

For reimbursements of cash to be recorded as a refund to vote in AP to a specific supplier : This is for refunds to be applied to the original expense. A $0.00 (zero dollar) debit memo is entered through the AP Module. DR 253021 Refund to Vote – Clearing Account (Ministry-

specific Entity.0.0.253021.0.0.0). The exact ministry specific code combination used in the GL Bank Deposit journal to record the cash receipts must be used here.

CR the applicable account code combination of the original expense

The same supplier as the original expense must be used. For reimbursements of cash to be recorded as a refund to vote in HR/Payroll to a specific employee: A refund to vote entry in HR/Payroll results in the following transaction: DR 253022 Payroll Refund to Vote – Clearing Account

(Ministry-specific Entity.0.0.253022.0.0.0) CR the applicable account code combination of the original

expense Interministry 10.06 For interministry transactions, ministries use Transactions interministry clearing accounts in the AP and GL Modules.

Interministry clearing accounts begin at 253051.




To avoid duplicate reporting of suppliers in Volume 2 of the Public Accounts, where the providing ministry uses a blanket reimbursement natural account to record a reimbursement from other ministries, the receiving ministry should enter the payment to the providing ministry as a debit memo in the AP module using the providing ministry as the supplier.

10.07 Secondments within executive government do not generally

require a refund to vote entry since in the HR/Payroll Module, employees on secondment will be put on leave from their home ministry and will be set up in their seconded ministry.

Currently for out-of-scope secondments, an alternative

approach is being used whereby the employee continues to be set up in HR/Payroll under the home ministry but the default assignment costing for the employee is set up under the seconded ministry.

The process for out of scope secondments is under review. Appendix H will be updated as required.

Ministerial Assistants 10.08 Ministerial assistant salary reimbursements received from

Crown corporations or other agencies are to be recorded to a blanket refund to vote expense account (e.g., 519882 Reimbursement – Personal Services). Blanket reimbursements are generally processed through the GL Module but the AP module is available, using the ministerial assistant as the supplier, if the ministry wants to capture this detail on MIDAS. (Appendix H – section 10.03 to 10.05 provides additional information on the Blanket Refund to Vote process).

This results in ministries that share ministerial assistants with

Crown corporations or other agencies reporting the full cost of ministerial assistants’ salaries.

10.09 Salary costs for ministerial assistants shared between ministries

are to be disclosed by the ministry receiving the benefit of the service.

Ministries are to use the HR/Payroll Module which provides

for multiple costing strings to be entered to allocate ministerial assistants’ salaries among ministries.




This results in ministries that share ministerial assistants with other ministries reporting their portion of the ministerial assistants’ salary.

10.10 Any related ministerial assistant’s office costs for which the

ministry is reimbursed should be refunded to a blanket refund to vote expense account (e.g., 542886 Reimbursement – Supplies and Services). Blanket reimbursements are generally processed through the GL Module but the AP module is available, using the ministerial assistant as the supplier, if the ministry wants to capture this detail on MIDAS. (Appendix H – section 10.03 to 10.05 provides additional information on the Blanket Refund to Vote process)

MIDAS Descriptive Field 10.11 The description field on MIDAS should indicate the nature of

the refund to vote transaction. Some examples are the following:

• approved by Finance • insurance proceeds • operating credit • rebate (government or supplier) • recoverable costs • reimbursements – from employees • secondment (if reimbursement is from outside of

executive government) • travel reimbursements

10.12 For more information on secondments, see Section 4205 Secondments and Section 3005 Refunds to Vote.

Section 11 – 11.00 Proper coding and processing of the salary and benefits of an Recording Secondments individual that has been seconded from outside of executive into the Ministry government into the ministry is necessary to ensure accurate

disclosure of salaries and benefits through the GRF in Volume 2 of the Public Accounts.

11.01 If the total salary of this individual, who is recorded as the

Public Accounts payee, meets the threshold outlined in Section 2010 Reporting Payee Details in the Public Accounts, it will be included in the detail listings of personal services payments in Volume 2 of the Public Accounts.




11.02 An amount paid to an organization external to the GRF to reimburse the organization for this individual’s salary should be coded to natural account 514850 – Seconded Services (with no Employee Number) in the AP Module, with the external organization as the payee and the individual as the public accounts payee.

11.03 Each type of benefit for the individual is to be carefully

reviewed to determine the correct coding. In most cases, an amount paid to an organization external to the GRF for the reimbursement of benefits should be coded to natural account 578200 – Other Expenses – Pension and Benefits, with the external organization as the payee and no public accounts payee.

11.04 An amount paid to an organization external to the GRF for

reimbursement of certain car allowances of a seconded employee should be coded to natural account 519300 – Car Allowances, with the external organization as the payee and the seconded individual as the public accounts payee.

11.05 The general rule is that if an amount is coded to a natural

account in the Personal Services (51XXXX) category of expenses, the payee or public accounts payee must be the employee.

11.06 For more information on secondments, see Section 4205

Secondments and Section 3005 Refunds to Vote. Section 12 – 12.00 Proper coding and processing of the transfer of leave Recording Transfers entitlements of an employee that has been transferred to of Leave Entitlements to a special purpose fund or another Crown agency is necessary to Other Crown Agencies ensure accurate disclosure of salaries and benefits through the

GRF in Volume 2 of the Public Accounts. 12.01 Ministries should contact their HR Client Service Team at the

Public Service Commission (PSC) for information on the approval requirements for the transfer of leave entitlements.

12.02 If the total salary of this employee, who is recorded as the

Public Accounts payee, meets the threshold outlined in Section 2010 Reporting Payee Details in the Public Accounts, it will be included in the detail listings of personal services payments in Volume 2 of the Public Accounts.




12.03 An amount paid to another Crown agency external to the GRF to reimburse the organization for this employee’s leave entitlement should be coded to natural account 518650 – Vacation Leave Payouts (with no Employee Number) in the AP Module, with the other Crown agency as the payee and the employee as the public accounts payee.

12.04 When transferring leave entitlements for employees that will be

terminated in the MIDAS HR Payroll system, ministries will need to work with the PSC to ensure that the accrued leave entitlement is not paid out to the employee.

12.05 The general rule is that if an amount is coded to a natural

account in the Personal Services (51XXXX) category of expenses, the payee or public accounts payee must be the employee.

Section 13 – Shared 13.00 Payment details relating to shared services arrangements are to Services be fully disclosed in the Public Accounts, Volume 2. The

Accounts Payable Module is used for processing shared services transactions.

13.01 Following the thresholds for disclosure outlined in Section

2010 Reporting Payee Details in the Public Accounts, the providing ministry discloses the payments that are required to deliver the service; the ministry receiving the service discloses the payment to the providing ministry for the service; and the providing ministry discloses the recovery from the receiving ministry (the recovery will show as a negative expense).

13.02 The providing ministry’s payee disclosure reflects payments

related to providing a service (e.g., salary, contracts, supplies and services).

13.03 The receiving ministry discloses a payment to the providing

ministry using natural accounts that reflect the nature of the payment (i.e., contract services, communications, supplies and services, travel). There is no need to split reimbursements between personal services and supplier payments, as the providing ministry will disclose salary and supplier payment detail.




13.04 The providing ministry discloses recoveries for shared services. Reimbursements are coded to the appropriate internal recovery natural account as a negative expense. Recoveries for shared services will be disclosed in the payee listing in the Public Accounts if the absolute value of the recovery meets the threshold for disclosure. That means that even though the recovery is a negative number, it will be disclosed if the threshold number is exceeded.

13.05 The natural accounts for shared services recoveries are the

following:

586100 Internal Recoveries – Goods and Services 586500 Internal Recoveries – Communications 586600 Internal Recoveries – Travel

13.06 The providing ministry is to use the internal recovery natural

account that reflects the category of the payment used by the receiving ministry to make the payment to the providing ministry. Therefore, there must be prior communication between ministries to ensure the correct internal recovery natural account is used.

13.07 Shared services transactions must be processed through

interministry clearing accounts (except for services provided by the Ministry of Central Services). Note that appropriation control requires expenses to be charged to an appropriation. Therefore, the central financial system requires the receiving ministry to enter the expense before the providing ministry can record the reimbursement. See the following example, where the providing ministry (Ministry A) provides administration services to the receiving ministry (Ministry B):

Receiving Ministry (Ministry B), using Ministry A as the

supplier: DR 529000 General Contractual Services CR 2530XX Interministry Clearing – Ministry A Providing Ministry (Ministry A), using Ministry B as the

supplier: DR 2530XX Interministry Clearing – Ministry A

CR 586100 Internal Recoveries – Goods and Services




13.08 Using the above example, if Ministry B uses a natural account in the contract services or supplies and services categories, then Ministry A should code the reimbursement to 586100 Internal Recoveries – Goods and Services. If Ministry B uses a natural account within the communications category, then Ministry A should code the reimbursement to 586500 Internal Recoveries – Communications. If Ministry B uses a natural account in the travel category, then Ministry A should code the reimbursement to 586600 Internal Recoveries – Travel.

13.09 Payments to the Ministry of Central Services (GS) are to be

processed as regular invoices through the Accounts Payable Module. The supplier number to be used is 105731 Site 001 S4P 2L7. This supplier is set up to allow payments to go through a special clearing account so that no cheque is cut to GS and GS’s receivables are cleared.

13.10 For more information on shared services, refer to Section 3007

Shared Services. Section 14 – Shared 14.00 Where one ministry administers a shared grant, it is Grants and Programs the practice to move the details of the transfer payments to the

ministry(s) incurring the expense, rather than to disclose the total transfer payment under the ministry administering the shared grant. For more information on shared grants or programs, refer to Section 3008 Shared Grants and Programs.

Section 15 – Accounts 15.00 There are two accounts receivable processes on MIDAS. Some Receivable ministries use the Accounts Receivable Module in MIDAS,

while other ministries use the general accounts receivable process. The following are MIDAS balance sheet accounts for accounts receivable:

MIDAS Accounts Receivable Module • 107100 – Accounts Receivable – from A/R • 107110 – A/R Bank Deposit Clearing Account • 107120 – A/R Valuation Allow – from A/R General Accounts Receivable Process • 107000 – Accounts Receivable – General • 107020 – Accounts Receivable – Valuation Allowance




The Accounts Receivable records the gross amount of the accounts receivable. The Valuation Allowance records the uncollectible portion of the accounts receivable.

Valuation Allowance 15.01 At the end of the fiscal year, the ministry assesses the adequacy

of the valuation allowance in relation to its accounts receivable. 15.02 In rare circumstances, it is possible that a valuation allowance

may need to be reduced at year-end. In this situation, a negative expense will occur. However, this saving is not available to offset other charges.

Collection Agency 15.03 Ministries account for all net amounts forwarded by Netting collection agencies through use of a bank deposit journal entry.

15.04 To record net amounts forwarded by collection agencies for

ministries:

• use the bank deposit journal entry to record gross amounts collected by the agencies as an increase to the appropriate revenue codes and enter the corresponding fees as a decrease (debit) to the revenue account 489200 Collection Agency and Legal Fees Withheld; and

• ensure the revenue shown on the Journals General Report agrees to the corresponding bank deposits.

Section 16 – Work in 16.01 Ministries may use work in progress natural Progress Capital Projects accounts to track work in progress capital costs separately from

assets subject to amortization. Work in progress capital costs are debited to an appropriate 199XXX – WIP – Current Year Additions account through the Accounts Payable (AP) Module.

16.02 Where internal payroll costs are to be capitalized as part of a

work in progress capital project, after the payroll costs are recorded through the payroll system, the ministry makes the following entry using a debit memo in the AP Module with “Capitalized Salaries” as the supplier, to capitalize the payroll costs:

DR 199XXX – WIP – Current Year Additions CR 519882 Reimbursement – Personal Services

This process to capitalize the payroll costs using the 519882 Reimbursement – Personal Services account, allows for the




payroll detail to remain in the personal services natural account reporting category. Therefore, regardless of whether the salaries are capitalized or expensed, the salaries are included in the Public Accounts in accordance with Section 2010 Reporting Payee Details in the Public Accounts.

Year-end Entry by FMB 16.03 Ministries use the199XXX – Current Year Addition accounts

to record asset additions because these accounts include spending controls. Each year end, the Financial Management Branch (FMB), Provincial Comptroller’s Office, Ministry of Finance moves the costs from all 199XXX – Current Year Additions asset accounts to the appropriate 19XXX0 asset accounts. Therefore, FMB will prepare an entry at year end as follows:

DR 19XXX0 – WIP (cost account) CR 199XXX – WIP – Current Year Additions Completion of Project 16.04 Upon completion of a work in progress capital project, when

the asset is put into use and ready for amortization, the ministry prepares the following journal entry in the General Ledger Module to move the completed asset costs: DR 19XX00 (cost account) CR 19XXX0 – WIP (cost account)

Shared Services 16.05 There are some shared services arrangements where one Arrangements ministry may undertake work in progress capital projects for

another ministry. Where a shared service arrangement involves a work in progress capital project, the providing ministry must recover their costs and provide the receiving ministry with an invoice that includes a detailed breakdown of the capitalized and expensed costs.

16.06 The providing ministry follows the procedures in 16.03 to

record the work in progress capital costs. The process to record the recovery of these costs outlined below is consistent with the process identified in Section 13 of Appendix H, Shared Services:

The providing ministry is to use the 199X99 Internal Recoveries – Capital natural accounts. These accounts are asset accounts that have spending controls and allows accurate Public Accounts recording in accordance with Section 2010 Reporting Payee Details in the Public Accounts.




The following entries are made using a debit memo in the AP Module, where the providing ministry is Ministry A and the receiving ministry is Ministry B: Receiving Ministry (Ministry B), using Ministry A as the supplier: DR 199XXX WIP – Current Year Additions CR 2530XX Interministry Clearing – Ministry A Providing Ministry (Ministry A), using Ministry B as the supplier: DR 2530XX Interministry Clearing – Ministry A CR 199X99 Internal Recoveries – XXXXX

16.07 At year end, FMB prepares the following entry for the providing ministry in period 13: DR 199X99 Internal Recoveries – XXXXX CR 199XXX WIP – Current Year Additions This prevents the same additions from being moved to cost accounts in different ministries.

16.08 For more information on shared services, refer to Section 3007

Shared Services and Section 14 of this Appendix. 16.09 For more information on work in progress, see Section 2150

Capital Asset Accounting.

Section 17 – 17.01 Ministries may capitalize salaries, travel and inventory costs Capitalized Costs which are directly related to projects.

17.02 To capitalize these costs, ministries must process entries in the Accounts Payable module using a debit memo, as follows: Capitalized Salaries: DR 199XXX Current Year Additions Account CR 519882 Reimbursement – Personal Services (Vendor – Capitalized Salaries 106292) Capitalized Travel: DR 199XXX Current Year Additions Account CR 541881 Reimbursement – Travel (Vendor – Capitalized Travel 179188)




Capitalized Inventory: DR 199XXX Current Year Additions Account CR 542886 Reimbursement – Supplies and Services (Vendor – Capitalized Inventory 106293)

17.03 Amounts of $50,000 or more capitalized by vendor (Capitalized Salaries, Capitalized Travel, Capitalized Inventory) will be disclosed in Volume 2 of the Public Accounts.

Section 18 – Other 18.01 This section outlines accounting entries for Other MIDAS MIDAS Entities (Holding Entities that are set up within the 500 series. Money in the GRF) 18.02 When these Other MIDAS Entities receive cash they record the

deposit using a journal entry in the GL Module in accordance with Section 2 of Appendix H. For example: DR 100000 General Revenue Fund Bank Account (using the

GRF entity 200) CR 4XXXXX Revenue or 107XXX Accounts Receivable

(using the Other MIDAS Entity - 5XX) *DR 253050 Interministry Clearing (using the Other MIDAS

Entity - 5XX) *CR 253050 Interministry Clearing (using the GRF entity 200) *MIDAS generates these lines to balance the journal entry by entity.

18.03 Payments including supplier payments, advances and payroll,

reduce the cash on deposit in the GRF bank account. For example, Other MIDAS Entity supplier payments are made by MIDAS during regular scheduled MIDAS payment runs:

DR 25XXXX Accounts Payable (using the Other MIDAS

Entity - 5XX) CR 100000 General Revenue Fund Bank Account (using the

GRF entity 200) *DR 253050 Interministry Clearing (using the GRF entity 200) *CR 253050 Interministry Clearing (using the Other MIDAS

Entity - 5XX) *MIDAS generates these lines to balance the journal entry by entity.




18.04 Because of the journal entry lines created by MIDAS to balance the entries by entity when a receipt or payment is recorded, the balance in account 253050 Interministry Clearing for entity 5XX equals the current year change in cash for the Other MIDAS Entity. At year end, the balance in account 253050 Interministry Clearing for entity 5XX is cleared to account 100999 Due From GRF. At any point during the year the total balance in account 253050 Interministry Clearing and 100999 Due From GRF represents the cash position for the Other MIDAS Entity.

Section 19 – Salary 19.00 When ministries process salary payments through the Accounts Payments through the Payable Module (i.e., for a new employee not set up in the Accounts Payable Module HR/Payroll Module or where there is an error in the

HR/Payroll generated cheque), the entries are as follows: 19.01 Using a standard invoice or, in some cases, a prepayment

invoice, ministries enter the following: DR 519700 Salary Payments Processed through A/P (Ministry Specific Entity.X.X.519700.X.X.0) CR 200.0.0.100000.0.0.0 Bank 19.02 ESC enters the following to the HR/Payroll Module, through

the element ‘Accountable Adv’ (to record the salary and advance, and pay the difference to the employee):

DR X.X.5XXXXX.X.X.Specific Employee # Salary CR 200.80001.800003.266000.0.0.0 Accountable Advance CR 200.80001.800003.100100.0.0.0 Payroll Bank Account 19.03 Based on reports from PSC with total deduction amounts, the

GL Team enters the following in the GL Module to clear the advance:

DR 200.80001.800003.266000.0.0.0 CR Specific entity.0.0.253021.0.902122.0 Refund to Vote -

Clearing 19.04 Through the A/P Module, the ministry enters a debit memo, if

the payment was originally entered as a standard invoice or, if the payment was originally entered as a prepayment, the ministry enters a standard invoice and applies the prepayment. The following entry clears the entry original entry in A/P:




DR Specific entity.0.0.253021.0.902122.0 Refund to Vote - Clearing

CR Ministry Specific Entity.X.X.519700.X.X.0 Section 20 – Over 20.00 Proper recording of the correction of over accrued TCA Accrual of TCA Additions additions is required to avoid unauthorized increases in

appropriation. 20.01 When an invoice received after year-end is lower than the

amount accrued as a TCA addition in the prior year, the following entries should be used to avoid inappropriately increasing appropriation:

20.02 Through the A/P Module, the invoice is paid partially reducing

the accrual recorded.

DR 25XXXX Accounts Payable CR 100000 General Revenue Fund Bank Account (using the

GRF entity 200) 20.03 Through the A/P Module, a debit memo is recorded to remove

the remaining accrual and record a refund of previous years’ expenditure.

DR 25XXXX Accounts Payable CR 486900 Refunds – Previous Years’ Expenses

20.04 Through the G/L Module, the over accrued TCA cost is

reduced by recording a loss on disposal of capital assets:

DR 588800 Loss on Disposal of Capital Assets CR 19XXX0 (cost account)

Province of Saskatchewan

General Revenue Fund

2017 -18

Year-end Reporting Requirements

and Procedures

Table of Contents

Section A: Overview of Year-end Reporting Requirements ................................................................... 1 A1. General ...................................................................................................................................... 1 A2. Year End Process for Purchase Cards ...................................................................................... 3 A3. Travel Claims – iExpenses and Manual Claims ........................................................................ 4 A4. Shared Services ........................................................................................................................ 4 A5. Shared Grants............................................................................................................................ 5 A6. Ministry Specific Asset and Liability Accounts ........................................................................... 6 A7. Account Detail Maintained Separately from MIDAS .................................................................. 6 A8. Journal Entries ........................................................................................................................... 7 A9. Budgetary Control ...................................................................................................................... 7

Section B: Other Entities ............................................................................................................................ 8 B1. Revolving Funds ........................................................................................................................ 8 B2. Other MIDAS Entities (OMEs) ................................................................................................... 8

Section C: Contacts .................................................................................................................................... 9 Section D: Financial Asset Reporting Requirements .............................................................................. 9

D1. General ...................................................................................................................................... 9 D2. Cash ........................................................................................................................................ 10 D3. Accounts Receivable ............................................................................................................... 10 D4. Refunds of Expenses (Refunds to Vote) ................................................................................. 12 D5. Assets Held for Sale (Financial Asset) .................................................................................... 15 D6. Loans and Advances ............................................................................................................... 16 D7. Accountable and Travel Advances .......................................................................................... 17 D8. Imprest and Petty Cash Accounts and Transfer Accounts ...................................................... 18 D9. Valuation Allowances and Write-offs for Financial Assets ...................................................... 18

Section E: Non-financial Assets Reporting Requirements ................................................................... 21 E1. General .................................................................................................................................... 21 E2. Prepaid Expenses .................................................................................................................... 21 E3. Tangible Capital Assets (TCAs)............................................................................................... 22 E4. Unrecognized Assets ............................................................................................................... 25 E5. Inventories Held for Consumption ........................................................................................... 26

Section F: Liability Reporting Requirements ......................................................................................... 27 F1. General .................................................................................................................................... 27 F2. Accounts Payable .................................................................................................................... 27 F3. Purchasing and Receipt of Goods and Services and TCAs(Purchasing Module) ................... 33 F4. Interministerial Clearing Accounts and Refund to Vote Clearing Accounts ............................. 35 F5. Payroll ...................................................................................................................................... 36 F6. Severance Pay, Apprenticeship Top-up and Maternity and Adoption Leave Top-up.............. 46 F7. Transfers/Grants ...................................................................................................................... 46 F8. Guarantees .............................................................................................................................. 49 F9. Hold Backs Payable ................................................................................................................. 51 F10. Operating and Capital Lease Obligations .............................................................................. 51 F11. Unearned Revenue ................................................................................................................ 54 F12. Contingent Liabilities .............................................................................................................. 55 F13. Conditional Receipts .............................................................................................................. 57 F14. Liability for Contaminated Sites ............................................................................................. 58 F15. Obligations Under Long-Term Financing Arrangements ....................................................... 64

Section G: Revenue and Expense Reporting Requirements ................................................................ 66 G1. Revenue .................................................................................................................................. 66 G2. Bank Interest ........................................................................................................................... 67 G3. Returned Items (NSF Cheques) .............................................................................................. 67 G4. Remissions .............................................................................................................................. 68 G5. Expense ................................................................................................................................... 68 G6. Valuation (Bad Debt) Expense for Financial Assets ............................................................... 68 G7. Salary Payments Paid through the AP Module ....................................................................... 69

Section H: Other Reporting Requirements ............................................................................................. 71 H1. General .................................................................................................................................... 71 H2. Measurement Uncertainty ....................................................................................................... 71 H3. Contractual Obligations ........................................................................................................... 71 H4. Contractual Rights ................................................................................................................... 73 H5. Contingent Assets ................................................................................................................... 75 H6. Related Party Transactions ..................................................................................................... 76

H7. Restructurings.......................................................................................................................... 77 H8. Subsequent Events ................................................................................................................. 78

Section I: Schedule Preparation Procedures ......................................................................................... 79 I1. Introduction ................................................................................................................................ 79 I2. Submitting Schedules ............................................................................................................... 79 I3. Preparation Procedures ............................................................................................................ 80

Appendix A GRF Accounting Policies ................................................................................................... 97 Appendix B Critical Dates ..................................................................................................................... 100 Appendix C Numeric Accounting Listing ............................................................................................ 102 Appendix D Expense Accounts Used in the GL Module .................................................................... 103 Appendix E Government Reporting Entity Listing ............................................................................. 104

Key Word Index Accountable Advances ............................... 17 Accounts Payable ...................................... 27 Accounts Receivable .................................. 10 Accrued Employee Sick Leave .................. 43 Advances.................................................... 16 Adoption Leave Top-up .............................. 46 Apprenticeship Top-up ............................... 46 Assets Held for Sale ................................... 15 B1 Pay Cycle .............................................. 40 B2 Pay Cycle .............................................. 41 Bad Debt Expense ..................................... 68 Bank Interest .............................................. 67 Bi-Weekly (payroll) ..................................... 40 Budgetary Control ...................................... 7 Capital Lease Obligations .......................... 51 Capital Transfers ........................................ 49 Cash ........................................................... 10 Cheque Cancellations ................................ 11 Clearing Accounts ...................................... 35 Concurrent Processing ............................... 1 Conditional Receipts .................................. 57 Contacts ..................................................... 9 Contaminated Sites .................................... 58 Contractual Obligations .............................. 71 Contractual Rights ...................................... 73 Contingent Assets ...................................... 75 Contingent Liabilities .................................. 55 Critical Dates .............................................. 100 Debit Memos .............................................. 29 Deferred Salary Leave ............................... 43 Deposits Held ............................................. 9 Education Leave ........................................ 43 Employee Leave Entitlement ..................... 37 Entitlements (grants/transfers) ................... 48 Expense ..................................................... 68 Expense Accounts used in GL Module ...... 103 Financial Assets ......................................... 9 Government Business Enterprises ............ 105 Government Partnerships .......................... 105 Government Service Organizations ........... 104 Grants ......................................................... 46 GRF Accounting Policies ........................... 97 Grievance Payments .................................. 45 Guarantees................................................. 49 Hold Backs Payable ................................... 51 Imprest Accounts ....................................... 18 Interministerial Accounts ............................ 35 Inventories Held for Consumption .............. 26 Journal Entries ........................................... 7 Lease Obligations ...................................... 51 Litigation ..................................................... 56 Loans .......................................................... 16 Maternity Leave Top-up ............................. 46 Measurement Uncertainty .......................... 62, 71 Ministry Specific Assets ............................. 6 Ministry Specific Liabilities ......................... 6 Monthly Payroll ........................................... 41

Non-financial Assets ................................... 21 NSF Cheques ............................................. 67 Numeric Account Listing ............................. 102 Operating Lease Obligations ...................... 51 Obligations Under Long-Term Financing Arrangements ........................................... 64 Other MIDAS Entities (OMEs) .................... 8 Payroll ......................................................... 36 Pending Litigation ....................................... 56 Petty Cash Accounts .................................. 18 Prepaid Expenses ...................................... 21 Purchase Cards .......................................... 3 Purchasing .................................................. 33 Receipt of Goods and Services .................. 33 Refunds to Vote .......................................... 12 Refunds of Expenditures ............................ 12 Related Party Transactions ........................ 76 Remissions ................................................. 68 Representation Letter ................................. 3 Restricted Revenue ................................... 54 Restructurings ............................................ 77 Returned Items ........................................... 67 Revenue ..................................................... 66 Revolving Funds ......................................... 8 Salary Overpayments ................................. 43 Salary Payments (AP Module) ................... 69 Schedule Preparation…. ............................ 79 Severance Pay ........................................... 42, 46 SGEU Collective Bargaining Agreement .... 45 Shared Cost Agreements ........................... 48 Shared Grants ............................................ 5 Shared Services ......................................... 4 Sick Pay ...................................................... 43 Subsequent Events .................................... 78 Summary Financial Statements ................. 95 Supplementary Payments (payroll) ............ 42 Tangible Capital Assets (TCAs) ................. 22 Additions .................................................. 25 Disposals ................................................. 23 Internal Recoveries .................................. 25 Over Accruals of TCA Acquisitions ......... 24 Transfers.................................................. 23 Work-in-Progress ..................................... 25 Works of Art and Historical Treasures ..... 22 Write-downs ............................................. 23 Temporary Spending Limit ......................... 7 Top-up of Employment Insurance Benefits ..................................................... 42 Transfers..................................................... 46 Transfer Accounts ...................................... 18 Travel Advances ......................................... 17 Travel Claims .............................................. 4 Unearned Revenue .................................... 54 Unrecognized Assets .................................. 25 Valuation Allowances ................................. 18, 68 Virements.................................................... 7 Write-offs .................................................... 18

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 1 Procedures in black font are applicable for all ministries and agencies. Procedures in blue font are only for ministries and agencies receiving accounts payable processing services from Central Accounts Payable. These procedures are identified by CAP. Procedures in green font are only for ministries and agencies processing their accounts payable directly in MIDAS (not receiving accounts payable processing services from Central Accounts Payable). These procedures are identified by non-CAP. The timelines for CAP and non-CAP vary as a result of the shared responsibility between ministries and Central Accounts Payable for the overall accounts payable process. Section A: Overview of Year-end Reporting Requirements A1. General A1a. Reporting Requirements

Ministries are to record all financial and non-financial assets, liabilities, revenues and expenses in accordance with the accrual accounting policies of the Government. When the actual amount for a revenue or expense is not available, a best estimate should be recorded. Where estimates are recorded, the assumptions used and calculation of the estimates should be well documented. Refer to Appendix A for a detailed listing of the General Revenue Fund (GRF) accounting policies. Financial and non-financial assets and liabilities at the fiscal year-end are to be reported to the Financial Management Branch (FMB), Ministry of Finance completely to ensure accuracy of the Summary financial statements.

A1b. Critical Dates

Refer to Appendix B for a detailed listing of critical dates to facilitate planning prior to the year-end.

A1c. Concurrent Processing

During the cut-off period ministries will be processing transactions for two fiscal years. Note: The 2018-19 fiscal year periods (future enterable-limited use only) will open 5 business days early on March 23th to accommodate the Ministry of Central Services’ special payment requirements. Period 1 (APR-18) will be opened on April 1st.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 2

2017-18 Fiscal Year March 31st

Beginning at noon on Thursday, March 29th, Financial Systems Branch (FSB), Ministry of Finance will perform a preliminary March month-end reconciliation/balance, as well as new year set-up and activities, including end date issues related to chart of accounts in MIDAS. Users will have until noon on March 29th to enter transactions to MIDAS. Please do not log on to MIDAS again until 6:00 am on April 1st. Both March (2017-18) and April (2018-19) periods will be open for entry during the cut-off period (March 23rd to April 16th). Attention must be given to the review and entry of transaction dates to ensure entries are accounted for in the correct fiscal period.

March monthly reports will be scheduled/submitted on April 1st and will provide a snap-shot of March transactions at that point in time.

Cut-off Period

Period 12 (MAR-18) in the General Ledger (GL) Module, the Accounts Receivable (AR) Module, the Sourcing Module and the Purchasing Module, except for receiving, will be available until 3:00 PM on April 16th. The 3 PM cutoff is required to allow the B2 payroll run normally scheduled for April 17th to be processed on April 16th. Purchase Order (PO) receiving will be available until April 9th and PO changes will be accepted until April 11th. Refer to Appendix B for detailed cut-off dates related to the Accounts Payable (AP) Module.

All transactions processed during the cut-off period that are related to the old year will be entered to period 12 (MAR-18) in MIDAS. All transactions must be entered with a GL/Accounting date of 31-MAR-18 or earlier. Dates used in the AP Module are important, as they will determine the fiscal year to which the expense or tangible capital asset (TCA) addition is charged. For invoices, the goods and services received date must be 31-MAR-18 or earlier. The GL date defaults from the goods and services date. Ensure that the GL date on the invoice and invoice distributions is MAR-18.

2018-19 Fiscal Year New year transactions will be entered to period 1 (APR-18).

Please monitor all dates very closely between March 23rd and April 16th as both fiscal years/periods MAR-18 (2017-18) and APR-18 (2018-19) are open during this timeframe. Many fields will default to the latest open period, therefore, both defaulted dates and data entry must be carefully reviewed to ensure that


transactions are accounted for in the correct fiscal year.

A1d. Representation Letter

Each year, the Provincial Auditor requests a letter of representation from the Deputy Minister of Finance and the Provincial Comptroller regarding the GRF financial information and financial records. As a basis for this letter, Finance requires a letter of representation from each ministry or office. This letter is required by June 6th.

If your ministry or office has been audited, and your letter of representation is complete by June 6th, send a copy of this letter to the Provincial Comptroller’s Office, Ministry of Finance. If your ministry or office has not been audited, or if your letter of representation has not been signed, prepare a separate letter for Finance purposes. You will receive a sample representation letter by the end of April.

A1e. Provincial Auditor’s Summary of Unadjusted Differences

The Provincial Auditor will provide each ministry or office with a summary of unadjusted differences after the audit is complete. This will include a description of the difference, and its effect on the GRF’s financial information. Ensure that you discuss and understand the nature of differences identified by the Provincial Auditor. Advise Donica Smart (787-6838) or Royce Bereti (787-6814), as soon as possible, of any errors greater than $1 million that are identified by the ministry after year-end cut-off on April 16th or that are identified by the Provincial Auditor during the audit of your ministry or office.

A2. Year-end Process for Purchase Cards The process for paying the purchase card invoice for the March 4th to April 3rd billing cycle will be the same as any other month. When creating the flat file on DetailsOnline (DOL), enter the following billing cycle dates: From Date: March 4th To Date: April 3rd Statement Month: APR DOL will automatically assign a March 31st goods and services received date to the payment file. Note that purchases included in the April 1st to April 3rd billing will be considered old year expenses. It is expected that most of these transactions will be purchases completed by March 31st. Ensure that your monthly payment is in MIDAS and validated by 3:00 PM on April 16th. If this does not occur, the invoice will be charged to the new fiscal year.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 4 A3. Travel Claims – iExpenses and Manual Claims The iExpenses Module interface is expensed based on a common system date. All claims approved and for which Central Accounts Payable audit has been completed by April 10th at 5:00 p.m. will be expensed in the old year, regardless of the date of travel. Claims approved and for which audit is completed after this date will be new year claims, regardless of the date of travel. Please note that the audit process may require consultation with travelers and potentially adjustments to claims. This affects processing timelines.

Refer to Appendix B for cut-off dates related to travel claims. A4. Shared Services Shared services refer to situations where one ministry provides services to another ministry, and the ministry receiving the services reimburses the providing ministry for those services. Shared services should be billed and recovered on a timely basis throughout the year. All shared services must be billed, the expense approved by the receiving ministry, and the reimbursement recorded by the providing ministry by 3:00 PM on April 16th, in order that the providing ministry’s appropriation is not charged with the expense. Special attention is required at year-end to ensure that all transactions are recorded and that no appropriations are exceeded. Refer to Appendix H of the Financial Administration Manual (FAM) for procedures to use when recording shared services. Over expenditures are not permitted. Any approved temporary spending limit is not available to cover over expenditures at year-end. A4a. Shared Services with Central Services (including Information Technology Division)

Central Services plans to have its 2017-18 billings done by April 9th. All ministerial invoices from Central Services entered but not paid at March 31st will be a year-end payable for ministries, offset by an equal receivable for Central Services. Central Services will hold new year billings until April 18th. Refer to Appendix B for a detailed listing of critical dates related to Central Services invoices. CAP: Central Services invoices will be provided to Central Accounts Payable for electronic routing to ministries. Ministries must ensure the goods and services received date is 31-MAR-18 or earlier in Markview. These invoices must be approved in Markview by April 12th at noon. The invoices will be routed electronically by Central Accounts Payable to one of the


following ministry contacts:

1. Contact identified on the invoice received from Central Services; 2. Ministry’s Central Accounts Payable Corporate Services Contact; or 3. Specific contact, provided by the ministry, for each type of Central Services

invoice (i.e. Mail, CVA, Telecom, Protective Services, Projects, Information Technology)

Ministries are to advise Central Accounts Payable of which contact routing option they prefer by March 21st. This information should be submitted to the MIDAS Financials Helpdesk. A template will be provided. Minister’s Office CVA invoices will also be routed through Markview to a ministry contact. There is insufficient time to allow these invoices to follow the normal process of first going to the Minister’s Office, then to Executive Council for approval, prior to scanning and routing to the ministry for electronic coding and approval. Ministries can determine if they want to accrue the invoice amount by debit memo or manage the invoice through the required approval process (Minister’s Office, Executive Council) in accordance with the critical dates in Appendix B. Non-CAP: Central Services invoices are to be entered as old year with a goods and services received date of 31-MAR-18 or earlier and a MAR-18 GL date in the invoice distributions.

A4b. Shared Services with Other Ministries

All other shared service transactions should be processed as quickly as possible at year-end to allow the receiving ministry to record the expense and the providing ministry to record the reimbursement by cut-off on April 16th (3 PM). If a receivable (providing ministry) and a payable (receiving ministry) are set up, ensure that the amounts are the same. Refer to Appendix B for critical dates. Ministries should provide information to the receiving ministry by April 6th, to allow for processing and any adjustments to appropriations (if required). Ministries will not have access to other ministries’ clearing accounts after April 11th to allow time for ministries to clear the accounts.

A5. Shared Grants Shared grants refer to situations where one ministry administers transfers on behalf of other ministries and recovers the other ministries’ share. For shared grants, the receiving ministry must record the expense by 3:00 PM on April 16th and the paying ministry must recover amounts by 3:00 PM on April 16th, or the paying ministries’ appropriation will be charged with the costs.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 6 A6. Ministry Specific Asset and Liability Accounts There are a number of balance sheet accounts that are used by only one ministry or by a limited number of ministries. In some cases, it is the use of the accounts within Entity 200 that is unique. There also are accounts that should have a zero balance at year-end (e.g. clearing accounts). The ministry responsible for the transactions within any account is responsible for the accuracy and completeness of amounts recorded. This includes reviewing and reconciling account balances on a regular basis. If your ministry posts to any accounts that should have a ‘zero’ balance at year-end but do not, the accounts are to be included on Schedule J including an explanation of the balance. For example, if account 100050 – Returned Items Clearing Account has a balance at year-end, report the balance and explanation on Schedule J. Appendix C includes a ‘numeric account listing’ of balance sheet accounts and the schedules that are used to record the balance in each account at year-end. Some ministries use accounts within Entity 200, and are responsible for the amounts posted to those accounts. Examples of those accounts include: Entity Account Description 200 124300 Payroll – Holiday Advance Receivable 200 124400 Advances – SGEU Biweekly Payroll These accounts would be included on Schedule C - Loans, Advances, and Investments.

A7. Account Detail Maintained Separately from MIDAS For certain accounts, details must be maintained separately from MIDAS as there is no supplier detail in the GL Module. These accounts include:

• Prepaid Expenses (account 105000); • Accounts Receivable - General (account 107000); • Conditional Receipts (account 240000); • Change in Severance Liability and Other Employee Benefits (account 255020); • Accounts Payable - Previous Years (account 255099); • Accrued Employee Leave Entitlements (account 255100); • Guaranteed Debt Payable (account 255200); • Contingent Liability (account 255600); • Unearned Revenue (account 257000); • Contaminated Sites Liabilities (account 258960); and • Obligations Under Long-Term Financing Arrangements (account 270000).

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 7 A8. Journal Entries All adjustment journal entries must be entered and posted in the GL Module by 3:00 PM on April 16th. Appendix D lists the expense accounts that can be used for journal entries in the GL Module. All other expenses must be entered in the AP Module using an invoice or a debit memo if no invoice has been received. This allows capturing of supplier information for reporting in Volume 2 of the Public Accounts. A9. Budgetary Control During the last few weeks of the fiscal year, it is particularly important for ministerial accountants and budget officers to monitor closely the unexpended balance of: a) each subprogram, so that any required transfers can be identified; b) each subvote, so that any required virements can be identified; and c) each vote, to avoid overspending and having funds frozen in the ministry's new year

(2016-17) appropriation. The last day for processing adjustments to appropriations (virements, freezing funds in the new fiscal year) is April 16th (3 PM). Virements require Treasury Board Branch approval prior to entering in MIDAS. All adjustments to appropriations must be entered to MIDAS early enough on April 16th to allow validation of old year invoices. A9a. Temporary Spending Limit

Subvotes with an approved temporary spending limit for shared services or commercial type activities (net budgeting) must be monitored closely as the approved temporary spending limit will not be included when determining the over (under) expense for the subvote.

A9b. Inquiry and Reports

Ministries can request information on the status of appropriations using: • an online inquiry (real-time balances) through GL > Inquiry > Funds.

This will give information on available funds by subvote.

The Period defaults to APR-XX of the current year and should be changed as needed. Queries for GRF funds available (appropriation control) are done on a Year-To-Date basis.

When performing a Funds Inquiry, you are building a complete code combination, using ‘%’ (wildcards) as required for a particular segment, separated by periods. A code combination includes Entity, Program, Organization, Account, Location, Project and Future segments. For the query, all segments other than Program and Account are left blank (represented by %


below). The queries must use the current year Spending Control Hierarchy values in the Program segment of the query. (For 2017-18, the Vote/Ministry specific value will begin with an ‘K’ or ‘L’). For appropriation control, the extension ‘A0’ is used in the Program segment. The Account segment value for determining appropriation control is TGRF18, with the ‘18’ depicting the fiscal year 2017-18. The query examples below would be used to perform 2017-18 funds inquiries for the Ministry of Agriculture:

GRF - Vote Query: %.KA000.%.TGRF18.% GRF - Subvote (Total) Query: %.KA%00.%.TGRF18.% GRF - Subvote (Approp) Query: %.KA%A0.%.TGRF18.%Spending Control GRF - Subvote (Statutory) Query: %.KA%B0.%.TGRF18.%

Note: The spending control query is “real-time”. The remaining queries are only as current as the last transfer/post of data from the subledgers to the GL Module.

• two reports in the GL Module (GL > Reports > Standard). These are:

⇒ GOS - GRF Subprogram ⇒ GOS - GRF Subvote

The reports include statutory subprograms within a subvote, where applicable, and are not specifically for appropriation control. The reports are based on transactions posted in the GL Module (not real time).

Section B: Other Entities B1. Revolving Funds Revolving funds are subject to the same cut-off dates as ministries as outlined in Appendix B. Information packages are to be prepared by revolving funds for consolidation in the Summary financial statements. The Summary financial statements team (FMB, Finance) provides communication to revolving funds on the information requirements and deadlines each year. B2. Other MIDAS Entities (OMEs) There are a number of funds and other organizations administered by ministries that use MIDAS and the GRF bank account. Most of these OMEs have an entity number in the 500’s. Other organizations record their transactions directly to a 23XXXX account within

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 9 Entity 200. The amount that OMEs have on deposit within the GRF bank account is a liability of the GRF. Information on deposits held are obtained directly from MIDAS reports, therefore, a schedule for deposits held is not required. Section C: Contacts Any inquiries regarding year-end accounting policies, procedures, and reporting requirements should be directed to the individuals listed below:

MIDAS questions should be directed to your ministry’s MIDAS coordinator. General inquiries: Donica Smart 787-6838 Royce Bereti 787-6814 Summary Financial Statements (Schedules ZA-ZD): Tamara Stocker 787-6704 David Langen 787-6813 Purchase Cards: Kristin Walker 787-6860 Carina Chow 787-9253 Central Accounts Payable: Barb Loveridge 798-8075 Trina Vicq Fallows 787-6703 Section D: Financial Asset Reporting Requirements D1. General Policy: Financial assets are assets that could be used to discharge liabilities or finance future operations, and are not for consumption in the normal course of operations. All financial assets are to be recorded to the extent that they represent cash and claims on other parties as a result of transactions up to and including March 31st. Some financial assets are partially offset by a valuation allowance. The purpose of a valuation allowance is to lower the reported value of assets to their realizable value. An example would be to establish a provision for uncollectible loans receivable. A valuation allowance is not a write-off; it is merely an accounting entry which estimates the portion of an asset which is unlikely to be recoverable. Further information on valuation allowances is provided in section D9.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 10 D2. Cash Policy: All cash receipts, including electronic transfers, received up to March 31st are recorded as an old year cash transaction in period 12 (MAR-18). Likewise all cheques which have been issued up to March 31st are old year cash transactions. All cash received and all disbursement transactions after March 31st, including cancellation of old year cheques, are new year cash transactions. Procedures: D2a. Outside GRF Bank Accounts Monies deposited to other GRF bank accounts (i.e. suspense accounts, revenue

transfer accounts, VISA accounts, etc.) will be counted as old year cash transactions when monies are deposited to these accounts by March 31st. To properly record these amounts and assist with the timely completion of the GRF bank reconciliation, they must be transferred to the GRF bank account and a deposit journal entry with a MAR-18 date processed by April 9th.

D2b. During the cut-off period, separate deposits must be prepared for items recorded as

old year cash and deposits recorded as new year cash. D3. Accounts Receivable Policy: All amounts owing to the GRF as at March 31st for goods and services provided by that date and for transfers receivable, are recorded as accounts receivable. A best estimate amount is recorded if the actual receivable amount is not available. Receivables include miscellaneous trade receivables for goods and services provided by March 31st, recoverable expenses incurred by March 31st pursuant to cost sharing agreements, and any amounts receivable from Crown corporations and agencies. Accounts receivable do not include loans, advances and investments. These items are addressed in sections D6 and D7. Procedures: D3a. All receivables are recorded at the gross amount owing to the Government. An

offsetting valuation allowance is established to reflect an estimate of uncollectible amounts (see example in section D9).

D3b. A receivable is accrued for any amount owing from the federal government (or any

other party) with respect to cost sharing agreements. The amount of the receivable should be based on all recoverable expenses incurred by the ministry to March 31st.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 11 D3c. If the exact amount of a receivable is not known, a reasonable estimate should be

made. When the amount is eventually received, it is possible that it may differ from the estimate. If the cash received exceeds the estimate, the excess is recorded as new year revenue and coded to the appropriate revenue account. If less cash is received, the shortfall is treated as a reduction of the same revenue type in the new year.

D3d. Accounts receivable can be set up two ways in MIDAS:

1. In the AR Module The AR Module will be open until 3:00 PM on April 16th to allow processing of old

year transactions. Amounts receivable at March 31st are recorded as a receivable and cash received by March 31st is recorded as a receipt in period 12 (MAR-18). The procedures available in the MIDAS on-line help for ‘Accounts Receivable Period End Reconciliation and Close’ should be followed. As outlined in the procedures, ensure that the AR Module balances to the GL account.

The accounts receivable bank deposit clearing account (107110) must have a ‘zero’

balance at 3:00 PM on April 16th.

2. In the GL Module by journal entry

To accrue old year revenue, when no cash is received by March 31st, a journal entry with the category ‘accrual’ can be used to record accounts receivable in account 107000 Accounts Receivable - General.

Cash receipts are recorded by ministries in the new year, with a ‘bank deposit’ category journal entry (credit account 107000).

Accounts receivable journal entries must be entered and posted by 3:00 PM on April 16th.

D3e. Cheque Cancellations All cheque cancellations after March 31st are new year transactions. Every effort

should be made to submit cheque cancellations to FSB before March 31st.

Cheque Cancellations submitted to FSB after March 31st will be assessed on an individual basis to determine the handling of the cheque cancellation request. Cheque cancellations for low dollar values will be held until Period 12 is closed.

• Period 12 (MAR-18) is open If after March 31st, but before April 16th (3 PM), you become aware of a cheque issued on March 31st or earlier that must be cancelled, the amount of the cheque is set up as an old year accounts receivable. Provide to FSB Finance, the coding that should be used to establish the accounts receivable at year-end. FSB, Finance will process the cheque cancellation (new year) and a debit memo


(old year). The debit memo will credit the expense and set up the accounts receivable (account 107000) in the old year. FSB, Finance will reverse the accounts receivable in the new fiscal year.. CAP: If the situation requires an invoice to be re-processed, Central Accounts Payable will re-enter the invoice to the old year for Ministries until April 11th, for the Ministry to code and approve by noon on April 12th. Non-CAP: Ministries can re-enter the invoice to the old year until 3:00 PM on April 16th.

• Period 12 (MAR-18) is closed

If after the old year is closed, an old year cheque must be cancelled, the amount of the cheque is revenue in the new year.

FSB, Finance will process the cheque cancellation and a debit memo (new year). The debit memo will credit the revenue account – Cash Refunds of Previous Years’ Expenses (account 486900).

The original expense remains in the old year. If the invoice must still be paid, it requires processing in the new fiscal year, and it is charged to account 486900 – Cash Refunds of Previous Years’ Expenses. Program Remittance Printing Cancellations

• Period 12 (MAR-18) is open

If a cheque dated prior to April 1st is to be cancelled, FSB, Finance will enter a debit memo (old year) that credits the expense distribution originally assigned. • Period 12 (MAR-18) is closed If a cheque dated prior to April 1st is to be cancelled, FSB, Finance will enter a debit memo (new year) that credits the revenue account – Cash Refunds of Previous Years’ Expenses (account 486900). Provide to FSB, Finance, the coding that should be used to record the revenue.

D4. Refunds of Expenditures (Refunds to Vote) Policy: Refunds of expenditures (expenses and asset additions subject to appropriation), except for current year overpayments, duplicate payments, payments made in error, cancelled cheques or returned goods, must be approved by the Provincial Comptroller. Executive Directors/Directors of Administration have been delegated approval of refunds to vote of salary reimbursements for secondments. Refunds not received by March 31st must be set up as accounts receivable in account

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 13 107000, on an actual or a best estimate basis where the exact amount of the refund is not known, and credited to the appropriate expenditure account. Refunds of expenditures should be recorded to the same coding (program, organization, account, etc.) in which the original expenditure was recorded, unless otherwise approved. Refunds of expenditures are not to exceed the amount of the original expenditure recorded. Any excess is to be recorded as revenue. Refunds of expenditures of past fiscal years, which have not been set up as accounts receivable, are to be recorded as revenue in account 486900 or 486905, rather than as a credit to expenditure, to avoid inappropriately increasing appropriation in the current year. Account 486900 - Cash Refunds of Previous Years’ Expenses is to be used only where cash has been received from a third party. Account 486905 – Changes in Previous Years’ Estimates is used to record refunds of previous years’ expenditures resulting from changes in accounting estimates and errors. When a payable/accrual recorded in past fiscal years is higher than the actual or estimated future payments, the reversal of the payable/accrual should be recorded as revenue in account 486905 Change in Previous Years’ Estimates. Procedures: There are two options available to record a current year refund of expenditure in MIDAS: 1. a debit memo can be processed within the AP Module (CAP: deadline for receipt of the

debit memo is April 12th - noon; non-CAP: deadline is April 16th (3 PM)) or 2. a journal entry within the GL Module can be used to record a blanket refund to vote

(reimbursement expense account) when it is impractical to credit the reimbursement against the original expense (supplier). No supplier is associated with a blanket refund to vote. The total amount paid to the supplier without taking the refund into account will be shown in Volume 2 of the Public Accounts.

Refunds receivable are coded to account 107000, Accounts Receivable - General. When the amount is received, it is recorded as a reduction of (credit to) the accounts receivable. D4a. Example: Supplies with a cost of $900 are purchased on March 15th. Assume $250

of the supplies are considered to be of unsatisfactory quality, so they are returned for a full refund. The refund is not received by March 31st.

1. Refund to vote recorded using a debit memo:

The lines on the debit memo would be:

Debit Accounts Receivable (account 107000) (old year) 250 Credit Expense account (original expense account) (old year) 250

The debit memo invoice number should be the same as the supplier’s invoice

number, followed by the letters DM to indicate that it is a debit memo. The description should indicate that it is a year-end accrual.


CAP: Central Accounts Payable will enter a debit memo. Refer to Appendix B for the timelines associated with debit memos.

Non-CAP: Enter the debit memo as normal, but do not check the Pay Alone box.

Save the record with the default pay group. Once the record has been saved, choose the Pay Group - Handling70 and save the record again. The pay alone flag will automatically be checked so the debit memo is not aggregated with other payments. This ensures that the supplier does not receive a reference to this transaction on payment documents.

If the debit memo has been matched to an invoice, it is critical that the Invoice

Overview form be checked to see if the invoice is associated with a purchase order receipt. The receipt will be automatically adjusted and be available to match with other invoices. The funds will also be encumbered.

If this is the case, the ministry buyer must do a return to supplier on the original

receipt. Once the adjusted receipt has been saved, the buyer that created the purchase order must also change the quantity on the purchase order to relieve the encumbrance of funds, making sure that the unreserve date on the PO is on or prior to March 31st.

Purchase order receipts can be adjusted in the old year until April 9th. The buyer

entering the return must be sure that the transaction date on the adjusted receipt is dated on or before 31-MAR-17.

POs can be adjusted in the old year until April 11th. When unreserving the PO

the unreserved date must be changed to on or before 31-MAR-18. Once the changes have been made to the purchase order it will need to be reapproved with a GL date on or before 31-MAR-18.

2. Refund to vote recorded using a journal entry

The lines on the journal entry would be:

Debit Accounts Receivable (account 107000) (old year) 250 Credit Reimbursement Expense account* (old year) 250 * Refer to Appendix D for a listing of reimbursement expense accounts

When the refund is received in the new fiscal year, the bank deposit journal entry credits accounts receivable, for both options:

Debit Cash (new year) 250 Credit Accounts receivable (account 107000) 250

D4b. Example: Salary reimbursement for an external secondment for the period of

January to March is $9,000 plus $450 benefits recovery (total amount billed is $9,450). The refund will not be received by March 31st.


1. Refund to vote recorded using a journal entry and forwarded to HR/Payroll – HR Service Centre for processing:

The lines on the journal entry would be:

Debit Accounts Receivable (account 107000) (old year) 9,450 Credit Refund to Vote – Payroll account 253022 9,000 Credit Revenue (for the benefits portion) (old year) 450

The payroll refund-to-vote (account 253022) information is forwarded to

HR/Payroll – HR Service Centre for processing through the next available payroll run. The payroll entry will refund the salary expense as follows:

Debit Refund to Vote – Payroll account 253022 9,000 Credit Salary Expense (employee original expense account) 9,000 Note: If the HR/Payroll entry will not be processed prior to the year-end payroll

cut-off date, a GL journal entry must be submitted to FSB, Finance to manually clear the Refund-to-vote account to the detailed employee expense in the old year. This entry will be reversed by FSB, Finance in the new year to offset the HR/Payroll entry once processed.

When the refund is received in the new fiscal year, the bank deposit journal entry credits accounts receivable

Debit Cash (new year) 9,450 Credit Accounts receivable (account 107000) 9,450

D5. Assets Held for Sale (Financial Asset) Policy: An asset held for sale is recognized as a financial asset when all of the following criteria are met: • prior to March 31st, the government commits to selling the asset; • the asset is in a condition to be sold; • the asset is publicly seen to be for sale; • there is an active market for the asset; • there is a plan in place for selling the asset; and • it is reasonably anticipated that a sale external to the GRF will be completed within one

year of the financial statement date. Procedures: Assets held for sale are listed on Schedule B. Inventories held for consumption are non-financial assets. Refer to Section E5. Inventories Held for Consumption.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 16 D6. Loans and Advances Policy: Loans and advances are initially recorded at cost. Valuation allowances are used to reflect loans and advances at the lower of cost and net recoverable value. In some situations, part or all of a loan is recorded as an expense. Examples include: • when there are concessionary terms so that the substance of the transaction is that all

or part of the loan is more in the nature of a grant, for example if there is a low interest rate on the loan. The recorded value of the loan is the face value discounted by the amount of the grant portion. The loan discount is amortized to revenue over the term of the loan;

• when a direct relationship can be established between the repayment of a loan and

GRF’s funding to the borrower, the loan is recorded as an expense; and • in some situations, when an amount is advanced with forgivable conditions, it should be

accounted for as a grant.

Procedures: D6a. The recoverable value of all loans and advances should be reviewed at March 31st.

If a permanent impairment in value has occurred, a valuation allowance must be established or increased. A separate balance sheet account is set up for each non-budgetary loan valuation allowance. Contact Donica Smart (787-6838) or Royce Bereti (787-6814) to set up a provision for loss account if necessary. Refer to Section D9. Valuation Allowances for Financial Assets for more information on valuation allowances.

D6b. A loan must be issued (cash actually paid) by March 31st, in order to qualify as an

old year transaction. There is no "extended period 12" for these items. D6c. Cash must be received by March 31st to be recorded as a receipt on a loan in the old

year. D6d. If a loan has been written off, it is removed from the gross loan receivable and

valuation allowance totals if applicable. Adequate documentation of write-offs should be retained including a detailed list of all written off loans and advances by individual, corporation, etc. All write-offs must be approved by the Board of Revenue Commissioners and any other required authorities as outlined in FAM section 3725 Write-off or Cancellation of Accounts Receivable.

D6e. New year (APR-18) holiday advances on regular salary cannot be processed until

new year appropriations are available. List all Loans and Advances on Schedule C.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 17 D7. Accountable and Travel Advances Policy: All advances issued in April and all receipts on advances received after March 31st, must be recorded as new year transactions. Procedures: D7a. Review advances prior to March 31st, to ensure all are still outstanding and required.

All advances to employees no longer required must be cleared through receipt of money from the employee, by a deduction from salary or by a personal cheque, by March 31st.

List accountable and travel advances, totalled by balance sheet account, on

Schedule C, Loans and Advances. Accountable and travel advances include all advances recorded against the

following accounts:

Name of Account Account General Advances - Permanent 123700 Relocation Advances - Permanent 123800 Temporary Advances - Not Travel 123900 Travel Advances - Temporary 124000 Travel Advances - Permanent 124100

D7b. End Dated Chart of Accounts

In MIDAS, advances are entered and tracked by employee as ‘Prepayment’ invoice types in the AP Module. Any advances outstanding at March 31st coded to a chart of accounts that is end dated as at March 31st, must be moved to a new chart of accounts. Use the following chart of accounts for any end dated permanent advances and when initially issuing a permanent or temporary advance, to avoid problems with end dated chart of accounts in the future: Entity.00000.000000.xxxxxx.0000.000000.000000 FSB, Finance will provide instructions to ministries for moving advances at a later date. The deadline to clear outstanding advances that will not have a valid chart of accounts in the new year is 3:00 PM on April 16th.

D7c. New Year Transactions after March 31st

It is also important that there are no prepayment invoices entered but not paid at March 31st. All accountable and travel advance invoices entered after March 31st must be entered to the new fiscal year (APR-18).

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 18 D8. Imprest and Petty Cash Accounts and Transfer Accounts Policy: After March 31st, all increases in imprest and petty cash accounts and all reductions in amounts outstanding (returned to the GRF) must be recorded as new year transactions. Transfer accounts are recorded at their March 31st balance. Procedures: D8a. Disbursements should be accurately recorded on a timely basis throughout the year

and at year-end, to ensure the appropriation is charged on a timely basis. Accounts should be reconciled on a regular basis.

D8b. Entries to record the March 31st balance in transfer accounts in MIDAS are

processed.

D9. Valuation Allowances and Write-offs for Financial Assets Policy: Ministries should determine a valuation allowance for each applicable financial asset at March 31st. The valuation allowance should provide for any permanent impairment in the value of these assets. In addition, allowances should include a provision for all disputed amounts which are not expected to be collected. In some circumstances, the valuation adjustment could result in a recovery. By providing a valuation allowance for a specific asset you are not writing it off, you are simply expressing an appropriate level of doubt as to the likelihood of collection. All write-offs must be approved by the Board of Revenue Commissioners and other required authorities as outlined in FAM section 3725 Write-off or Cancellation of Accounts Receivable. Procedures: D9a. Valuation allowances should incorporate the ministry's best estimate of its

unrealizable assets at March 31st. This estimate should be based on the ministry's past experience. Increases/decreases to valuation allowances affect old year budgetary expenses. 1. Loans and investments valuation allowances should be recorded in expense

account 576200 Provision for Loss on Loans and Investments. The offset for loans is the provision for loss account 12XX20. If necessary, contact Donica Smart (787-6838) or Royce Bereti (787-6814) to set up a provision for loss account.

2. Accountable and travel advances valuation allowances should be recorded in expense account 576200 Provision for Loss on Loans and Investments. The


offset for advances is the provision for loss account 124920 Provision for Loss - Advances.

3. Accounts receivable valuation allowances should be recorded in expense

account 576000 Change in Valuation Allowance with the credit to account 107020 Accounts Receivable - Valuation Allowance or account 107120 Accounts Receivable Valuation Allowance - from Accounts Receivable for accounts receivable recorded in the AR Module.

Example: A ministry has accounts receivable of $1 million at March 31st. It does not know which specific accounts are uncollectible, however past experience has shown that 5 per cent are unlikely to be collected. The appropriate old year journal entries to adjust the valuation allowance to $50,000 (5 per cent of the $1 million accounts receivable balance) are as follows:

Valuation allowance balance from prior year is $15,000: Debit Change In Valuation Allowance (account 576000) 35,000 Credit Accounts Receivable -Valuation Allowance (account 107020) 35,000

Valuation allowance balance from prior year is $65,000: Debit Accounts Receivable -Valuation Allowance (account 107020) 15,000 Credit Change In Valuation Allowance (account 576000) 15,000

At the end of the next fiscal year, the ministry will again assess the adequacy of its allowance in relation to its accounts receivable. A budgetary expense will be incurred for any amount needed to increase the allowance to an appropriate level.

D9b. Write-offs must be approved as outlined in FAM section 3725 Write-off or Cancellation of Accounts Receivable. Ministries should maintain records of written off accounts. When a ministry receives revenue relating to an account that has been written off, the revenue is to be coded to casual revenue (account 485100). 1. Accounts receivable - write-off the account of a specific individual. When the

write-off has been approved by the Board of Revenue Commissioners, the appropriate entry in either the GL Module or the AR module should be recorded.

If the AR Module is not used, the appropriate journal entry in the GL Module is:

Debit Accounts Receivable - Valuation Allowance (account 107020) XXX

Credit Accounts Receivable (account 107000) XXX If the AR Module is used, an AR write-off adjustment coded to the appropriate write-off receivable activity (e.g. W/O XXX) is entered. Once the adjustment is approved, MIDAS will automatically create the following entries:


Debit Accounts Receivable - Valuation Allowance from AR module (account 107120) XXX

Credit Accounts Receivable – from AR module (account 107100) XXX

Note that the above write-offs do not affect an appropriation.

2. Prepayment –write-off a travel advance to an employee. When the write-off has

been approved by the Board of Revenue Commissioners, the following entries are required:

In the GL Module, the journal entry required is:

Debit Provision For Loss on Loans and Investments

(account 576200) XXX Credit Provision for Loss – Advances (account 124920) XXX Once the journal has been posted in GL, a standard invoice is entered for the employee, coded as follows:

Debit Provision for Loss – Advances (account 124920) XXX Apply the Prepayment to the invoice. Upon prepayment application, the system will automatically generate the credit line with the Chart of Account coding from the original prepayment. This will clear the outstanding prepayment.

3. Credit memo - write-off an outstanding credit memo. When the write-off has been approved by the Board of Revenue Commissioners, the following entries are required:

In the GL Module, the journal entry required is:

Debit Change In Valuation Allowance(account 576000) XXX

Credit Refund to Vote – Clearing (account 253021) XXX Once the journal has been posted in GL, a standard invoice is entered for the supplier, coded as follows:

Debit Refund to Vote – Clearing (account 253021) XXX

Ensure that the terms are immediate and that the pay method and pay group are the same as the credit memo. When payments run, the credit memo will aggregate with the invoice resulting in a zero dollar payment. The outstanding credit will be cleared.

Refer to Appendix B for the critical dates relating to the processing of standard invoices.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 21 Section E: Non-financial Assets Reporting Requirements E1. General Policy: Non-financial assets are employed to deliver government services, and may be consumed in the normal course of operations. They are not held for sale, and do not normally provide resources to discharge liabilities. Non-financial assets include prepaid expenses, inventories held for consumption and TCAs, and are included on the Statement of Financial Position. E2. Prepaid Expenses Policy: Prepaid expenses are payments made in the old year (or earlier) for professional dues, memberships and subscriptions, where part of the cost relates to a subsequent fiscal year(s). The part of the cost that relates to a subsequent fiscal year(s) is set up as a prepaid expense and amortized over the periods expected to benefit. Refer to FAM Section 2170 Prepaid Expenses Accounting and Reporting. Procedures: Ministries must code prepaid payments to expenses and then process a journal entry to set up the prepaid portion. Ministries cannot code invoices directly to the prepaid expenses balance sheet account. Amounts will be disclosed by supplier in Volume 2 of the Public Accounts in the year the payment is made. To adjust the balance of prepaid expenses, a journal entry is prepared using expense account 588950 Change in Prepaid Expenses. Amounts coded to account 588950 Change in Prepaid Expenses do not affect appropriation but do result in the expense for the year being adjusted. E2a. Any portion of amounts disbursed in the old fiscal year, for the costs listed above,

which relate to a subsequent fiscal year(s) can be set up as prepaid expenses.

Prepaid expenses are coded to account 105000. Changes in prepaid expenses are coded to expense account 588950. Example: $600 is paid on January 1st, for an employee's professional membership dues for the 2017 calendar year. At March 31st, only ¼ of the membership period has elapsed, so the remaining portion is a prepaid expense.

An invoice would be entered at January 1st:

Debit Non-taxable Association and Professional Membership Dues (account 529600) 600


A journal entry would be recorded to adjust the prepaid account:

Debit Prepaid Expenses (account 105000) 450 Credit Change in Prepaid Expenses (account 588950) 450

E3. Tangible Capital Assets (TCAs) Policy: TCAs are recorded as non-financial assets in the year acquired and are included in the Statement of Financial Position. Additional information on TCAs is also provided in a schedule to the Summary financial statements. TCAs include land and improvements, buildings and improvements, transportation equipment, machinery and equipment, office and information technology, and infrastructure. TCAs are valued at historical cost. All costs directly attributable to the acquisition, construction, development or betterment of the assets are included. Amortization is generally calculated using the straight-line method based on the estimated useful life of an asset. FAM Section 2150 Capital Assets Accounting and Reporting provides information on the Government’s accounting and reporting policies for TCAs. Ministries are to track all individual assets for custodial and safeguarding purposes. This includes individual assets that do not meet the capitalization thresholds. Procedures: TCA transactions recorded in the AP Module will be processed in accordance with the critical dates detailed in Appendix B. TCA transactions recorded by journal entry in the GL Module that effect TCA cost accounts must be recorded in MIDAS by April 9th. This includes disposals, transfers and write-downs, and transfers between asset classes. All other transactions relating to TCAs, including amortization, must be recorded in MIDAS by 3:00 PM on April 16th. E3a. Using FAM 2150 guidelines, the following information for each TCA class is provided

on Schedule M:

• opening cost, acquisitions, external transfers (from or to agencies not part of the GRF), internal transfers (from or to other ministries), write-downs, disposals and closing cost;

• opening accumulated amortization, annual amortization, external transfers,

internal transfers, disposals, and closing accumulated amortization; and • net book values.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 23 Ensure that all amounts on Schedule M agree to MIDAS. E3b. Disposals The disposal of a TCA results in its removal from service as a result of sale,

destruction, loss or abandonment. When a TCA is disposed of, the cost and the accumulated amortization are removed

from the accounting records and any gain or loss is recorded. Information on disposals of TCAs, including proceeds and gain (loss) on disposals, is required to complete the Summary financial statements.

This information is provided on Schedule MA, and must agree to amounts recorded

in MIDAS. E3c. Transfers and Write-downs

Internal transfers occur when the stewardship of an asset moves from one ministry to another. Transfers occur at net book value. The transferring ministry should record any write-down prior to the transfer. External transfers occur when an asset is transferred to or from an entity outside of the GRF (for example, a Crown corporation) with no cash proceeds. Assets that are transferred to an entity outside of the GRF with cash proceeds are reported as a disposal in the Summary financial statements. External transfers to an entity outside of the GRF are recorded as a transfer expense in account 571500 Transfers – Capital at the net book value of the TCA transferred. External transfers to outside entities are subject to appropriation.

Write-downs recognize a decline in an asset’s value resulting from a decrease in the use or service potential of the asset. The cost is adjusted; no change is recorded to the accumulated amortization but future amortization expense is calculated on the reduced cost. A ministry would retain and continue to use the asset.

Write-downs require approval by the ministry’s permanent head or delegate. Write-

downs resulting from the over accrual of TCA acquisitions should be approved by the permanent head or delegate and documentation should be submitted to the Provincial Comptroller’s Office for review.

Additional information on internal transfers, external transfers, write-downs and

transfers between asset classes are provided on Schedule MB. The amounts on Schedule MB must agree to the totals on Schedule M.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 24 E3d. Over Accrual of TCA Acquisitions

When an invoice received after year end is lower than the amount accrued as a TCA acquisition in the prior year, the difference should be recorded as a credit to the TCA cost account, not the current year addition account, to avoid inappropriately increasing appropriation in the new year. Account 253021 Refund to Vote - Clearing Account is used to record the reversal of the over accrual in the Accounts Payable Module and the decrease to the TCA cost account in the General Ledger Module. Consistent with the guidance in subsection E3c Transfers and Write downs, reversals of over accruals of TCAs should be approved by the permanent head or delegate and documentation should be submitted to the Provincial Comptroller’s Office for review once approved. Reversals of over accruals of TCA acquisitions are reported as write downs in the Summary Financial Statements and should be included on Schedule MB as a write down. Example: Ministry X records a $200,000 accrual as at March 31 for the estimated cost of heavy equipment that was received on March 28. An invoice was not received for the equipment and a payment was not made by March 31. An invoice for the equipment totaling $185,000 is received the next fiscal year. Ministry X pays the invoice and records the $15,000 difference as a reduction to the TCA cost account using account 253021 Refund to Vote - Clearing Account. Year 1 Debit memo to accrue TCA costs: Debit Heavy Equipment – Current Year Additions 200,000 (account 199310) Credit Accounts Payable (account 25xxxx) 200,000 Year 2 Payment of the invoice, partially reducing the accrual: Debit Accounts Payable (account 25xxxx) 185,000 Credit GRF Bank Account (account 100000) 185,000 Debit memo to remove the remaining accrual: Debit Accounts Payable (account 25xxxx) 15,000 Credit Refund to Vote – Clearing Account (account 253021) 15,000 Journal entry to reduce the TCA cost account: Debit Refund to Vote – Clearing Account (account 253021) 15,000 Credit Heavy Equipment (account 193100) 15,000

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 25 E3e. Work-in-Progress Work-in-progress is the cost of development or construction for projects that have

not been completed and, therefore, are tracked separately and not amortized. Information on work-in-progress is provided on Schedule MB.

E3f. Addition Accounts Balances in the TCA addition accounts (199XXX) as at March 31st will be transferred

to the matching TCA cost accounts (19XX00) by FMB, Finance by recording a journal entry in period 13 (ADJ-18) following the month end close for March.

Any amounts in the internal recoveries accounts will be offset against the additions,

and only additions not recovered will be transferred to the cost accounts. For TCA addition reports, period 12 (MAR-18) should be used as the balance in the

addition accounts will be zero for period 13 (ADJ-18). Remember to net any internal recoveries from the addition accounts.

After the year-end journal is processed by FMB, Finance, period 13 (ADJ-18) would

be used for the balance in the TCA cost accounts (including TCA additions) as at March 31st.

As the entry prepared by FMB, Finance in period 13 (ADJ-18) will reduce total

expenditure and increase funds available, MAR-18 should be used to run reports that provide expenditure or funds available information for the old fiscal year.

E4. Unrecognized Assets Policy: For fiscal years beginning on or after April 1, 2017, Public Sector Accounting Standards section 3210 requires disclosure of major categories of unrecognized assets. An economic resource may meet the definition of an asset – however; (a) it is not capable of being recognized in financial statements because an appropriate basis of measurement and a reasonable estimate of the amount involved cannot be made (for example, the Legislative Building is a work of art and historical treasure and is not recognized as an asset because a reasonable estimate cannot be made due to the lack of existing methods to reasonably quantify the value of the building); or (b) Sections of the Public Sector Accounting Handbook prohibit its recognition (for example, intangible assets are never recognized whether they can be measured or not). When assets are not recognized because a reasonable estimate of the amount involved cannot be made, the reason(s) for this should be disclosed. For example, works of art and historical treasures, inherited natural resources and inherited Crown lands are not recognized as assets because the costs, benefits and economic value of such items cannot

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 26 be reasonably and verifiably quantified using existing methods. Disclosing the major categories of unrecognized assets provides information to financial statement users about the economic resources available to the government. Examples of major categories of unrecognized assets may include: intangible asset; inherited natural resource; inherited Crown land; and works of art and historical treasures. Procedures: Provide a listing of unrecognized assets in Schedule ME. E5. Inventories Held for Consumption Policy: Inventories held for consumption are non-financial assets that will be used or consumed in the normal course of operations. They are not intended for sale in the ordinary course of business. The categories include equipment maintenance, airplane parts and other supplies, lab supplies and vaccines, pastures’ maintenance supplies, firefighting equipment, park maintenance supplies, aggregate and inventory for distribution – Central Services. Inventory purchases are expensed during the year. Changes in the inventory balance, including inventory returns and write-downs, are recorded through account 588900 Change in Inventory Held for Consumption. Inventories are recorded at cost. The cost of inventories includes the purchase price of the items and other acquisition costs such as shipping and handling charges, insurance costs and duties. FAM Section 2160 Inventory Accounting and Reporting provides additional information on the accounting and reporting policies for inventories. Inventories held for sale are financial assets that will be sold in the ordinary course of operations. Refer to Section D5. Assets Held for Sale [Financial Assets] for inventories held for sale. Procedures: All inventory entries recorded in the AP Module will be processed in accordance with the critical dates detailed in Appendix B. Other transactions, recorded by journal entry in the GL Module, relating to inventory must be recorded in MIDAS by April 9th. Ministries must code inventory purchases to expense and then, at year-end, process a journal entry to adjust the inventory to its year-end balance. Amounts will be disclosed by supplier in Volume 2 of the Public Accounts in the year the payment is made. Amounts coded to account 588900 Change in Inventory Held for Consumption do not affect appropriation but do result in the expense for the year being adjusted.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 27 E5a. Inventory for consumption is recorded in accounts 175000 to 175600. Change in inventory for consumption is coded to expense account 588900.

Example: Inventory at April 1st is $145,000. At year-end, it is determined that actual inventory on hand is $150,000. The following journal entry is recorded:

Debit Inventory (e.g. account 175000 – 175600) 5,000 Credit Change in Inventory Held for Consumption

(account 588900) 5,000

Section F: Liability Reporting Requirements F1. General Policy: A liability is recorded for all obligations to other parties as a result of events and transactions occurring prior to or on March 31st, where the settlement is expected to result in the future sacrifice of economic benefits. F2. Accounts Payable Policy: Payables at March 31st include amounts for work performed, goods supplied, and services rendered and transfers where the transfer is authorized and eligibility requirements have been met at March 31st and a reasonable estimate of the amount can be made. These amounts are recorded as expenses of the old fiscal year. All amounts payable for TCAs received by March 31st, are included in payables and acquisitions in the old fiscal year. Accounts payable includes unpaid invoices where there is no related purchase order, and unpaid invoices where a purchase order was used and the receipt of goods and services or TCA was entered with a date on or prior to March 31st by April 9th. Accounts payable also includes the cost of goods and services and TCAs received by March 31st but where no invoice is received before or during the cut-off period (April 1st to 16th). Procedures: F2a. Accounts payable must be established for goods and services and TCAs received

by March 31st, which are unpaid at that date. Monitor payables to ensure sufficient funds are available to cover all payables at March 31st. The cut-off for virements is 3:00 PM on April 16th. Accounts payable can be set up in four ways:


1. Invoices – where invoices are received and processed in accordance with the critical dates identified in Appendix B (CAP: invoice is received by Central Accounts Payable by April 9th and approved by the Ministry by April 12th; non-CAP: invoice is received, approved and entered prior to 3:00 PM on April 16th)

An invoice where there is a related purchase order can be entered to the old year and charged to the old year appropriation only if goods and services were received by March 31st and the receipt of goods and services is recorded with a date on or prior to March 31st by April 9th.

Ministries will have until April 9th to enter the actual MAR-18 date of receipt of

goods and services to the Purchasing Module. All old year receipts from remote locations must be entered by this date. These locations must provide the information to the central location for entering to MIDAS where required.

For all invoices, the goods and services received date must be 31-MAR-18 or

earlier. The GL date defaults from the goods and services date. Ensure that the GL date is MAR-18.

For every invoice coded to an expense account, MIDAS updates the following

accounts: Debit Expense (various accounts) XXX Credit Accounts Payable - from Accounts Payable (account 253000) XXX

When the cheque is issued, MIDAS automatically makes the following entry:

Debit Accounts Payable - from Accounts Payable (account 253000) XXX

Credit Cash XXX This is a new year transaction for all cheques issued after March 31st.

Invoices related to receipt of goods and services and TCAs on or before March 31st will be processed in accordance with the critical dates detailed in Appendix B. These invoices are expensed to ordinary expense accounts or recorded to TCA addition accounts and MIDAS automatically sets up the accounts payable in the AP Module - from Accounts Payable (account 253000 and accounts 253010 to 253013 for ministries with special operating units).

There will be some invoices entered to MIDAS prior to March 31st that are not paid by March 31st. These invoices will be included in accounts payable at March 31st, in account 253000 and accounts 253010 to 253013. The total (balance) of accounts 253000 and 253010 to 253013 at March 31st is included on Schedule E.

2. Receipt of Goods and Services and TCAs/No Invoice – where goods and services and TCAs are received in purchasing by April 9th, but an invoice is not


processed in accordance with the critical dates identified in Appendix B (CAP: invoice is not received by Central Accounts Payable by April 9th; non-CAP: invoice is not entered by 3:00 PM on April 16th) As noted in Section F3 - Purchasing and Receipt of Goods and Services and TCAs (Purchasing Module), purchase orders should be reviewed and follow-up done where goods/services/TCAs were received by March 31st but no invoice has been processed in accordance with the critical dates identified in Appendix B.

Goods and services and TCAs may be received by March 31st and entered to MIDAS Purchasing by April 9th (with a date of March 31st or earlier) but no invoice is processed in accordance with the critical dates. FSB, Finance will create accruals for these un-invoiced receipts of goods and services and TCAs. To prevent duplicate accruals, do not complete and process (or submit to Central Accounts Payable) a debit memo for these. Ministries can monitor these using the GOS - Uninvoiced Receipts Report.

The following old year journal entry will be processed by FSB, Finance after close on April 16th:

Debit Expenses or TCA addition (coding from PO) XXX Credit Inventory Accounts Payable Accrual (account 253096) XXX

This journal entry will be reversed by FSB, Finance in the new year, once appropriation is available (after old year has been closed). The journal entry will debit Inventory Accounts Payable Accrual and credit Expenses. Any amounts charged to a program disabled at March 31st will cause the journal entry to fail. FSB, Finance will send a report to ministries showing all lines that failed. Ministries will record the new coding on the report and return the report to FSB, Finance.

When an invoice related to these purchase orders is received and entered and matched to the purchase order receipt, there will be no charge to the new year appropriation because of the credit processed on the reversal journal entry above by FSB, Finance.

3. No Purchase Order/No Invoice (Debit Memos) – where no purchase order is

used and where no invoice is processed in accordance with the critical dates identified in Appendix B (CAP: invoice not received in Central Accounts Payable by April 9th; non-CAP: invoice is not entered by 3:00 PM on April 16th)

Debit memos can be used to record payables/expenses/TCA purchases only when there is no related purchase order.

Ministries are responsible for identifying accruals for goods and services received by March 31st where:


• invoice was not received from the supplier;

• invoice was received from the supplier but not submitted to Central Accounts Payable; and

• invoice was submitted to Central Accounts Payable but not processed

(i.e. missed April 9th cut-off or was not approved within ministry).

Per the critical dates detailed in Appendix B, invoices received by Central Accounts Payable after April 9th will not be scanned.

To assist with identifying accruals, Central Accounts Payable will compile a list, by ministry, of any invoices received from ministries after the April 9th cut-off. This information will be provided on April 10th, 11th, 12th and 13th for the ministry to review/accrue as appropriate.

For all debit memos, the goods and services/TCA received date must be March 31st or earlier. The GL date defaults from the goods and services date. Ensure that the GL date on the invoice and invoice distribution is MAR-18. Payables/expenses/TCA purchases are set up by debit memo where no invoice is received by Central Accounts Payable by April 9th (non-CAP – where no invoice is processed by 3:00 PM on April 16th): Debit Expenses or TCA addition XXX Credit Accounts Payable - General (account 255000) XXX

If necessary, a reasonable estimate of the amount is made. All payables set up in account 255000 must be by debit memo. A special invoice numbering convention should be used for the debit memos to allow for the tracking of these payables:

AP2017-xxx (with xxx being the entity {vote}). The ministry assigns the remainder of the invoice number.

Debit memos are recorded as follows:

Debit Expense XXX Credit Accounts Payable - General (account 255000) XXX

Debit memos which establish accounts payable are coded to the same level of detail as the eventual payment will be. This tracks individual payables, providing proper disclosure in Volume 2 of the Public Accounts.

CAP: Debit memos must be submitted to Central Accounts Payable for entry into MIDAS. It is expected that the majority of these debit memos will be in spreadsheet format for electronic entry into MIDAS. Spreadsheets are due to FSB, Finance (email to FI GRP-AP) by noon on April 12th. Manual debit memos are due to Central Accounts Payable by noon on April 12th.


Non-CAP: Enter the debit memo above as normal, but do not check the Pay Alone box. Save the record with the default pay group. Once the record has been saved, choose the Pay Group - Handling70 and save the record again. The pay alone flag will automatically be checked so the debit memo is not aggregated with other payments. (The cheque is a new year transaction.) Ministries have until 3:00 PM on April 16th to process these debit memos.

After year-end close, FSB, Finance will move the year-end balances in account 255000 to account 255099. For further details, refer to Section F2c. Accounts Payable - Previous Years (account 255099).

When the invoice is received in the new year, it is submitted to Central Accounts Payable for payment (non-CAP – the invoice is entered in the AP Module for payment). Rather than coding to an expense account, the payment is coded to Accounts Payable - Previous years (account 255099) and does not result in a charge to appropriation. No invoices are paid from account 255000.

This will clear the payable set up by the debit memo.

To avoid temporarily increasing appropriation in the current year, payables/accruals should not be reversed in the new fiscal year until the related payments are made. When a 255000/255099 payable recorded in past fiscal years is higher than the actual or estimated future payments, the difference should be recorded as revenue in account 486905 Change in Previous Years’ Estimates, rather than as a credit to expenditure, to avoid inappropriately increasing appropriation. Amounts payable at March 31st recorded in account 255000 and account 255099 are listed on Schedule E.

Use debit memos between entities only if the debit memo will be “paid” by March 31st. The debit memo must be received by Central Accounts Payable by March 23rd (non-CAP – debit memo must be entered by March 23rd).

4. Journal Entries in the GL Module (for individual invoices $1,000 or less) -

optional process where no purchase order is used and the invoice is less than $1,000

Journal entries can be used to record payables/expenses only where there is no related purchase order and when the individual invoices are $1,000 or less. Journal entries must be recorded in MIDAS by 3:00 PM on April 16th.

To assist in reducing the amount of coding required to set up accounts payable by debit memo, ministries may choose to record certain payables at a lower level of detail. For individual invoices of $1,000 or less, ministries can record accounts payable by journal entry in the GL Module, using special expense accounts. This option can be chosen if ministries believe that it will achieve some efficiencies in processing and that it will not compromise the supplier or expense account information that the ministry requires for these transactions.


The following special expense accounts are used when payables are recorded by journal entry in the GL Module to account 255010 Payables $1,000 and Under:

519891 Personal Services Payable - Year End 541892 Travel Expenses Payable - Year End* 571893 Transfers Payable - Year End 521894 Contract Services Payable - Year End 532895 Communications Expenses Payable - Year End 542896 Supplies and Services Expenses Payable - Year End 569897 Expensed Equipment and Other Assets Expenses Payable - Year End 572898 Other Expenses Payable - Year End

*Because of sensitivity with respect to disclosure, Ministers’ travel must be set up using a debit memo, coded to the Minister’s supplier code and the correct travel expense account.

The Accounts Payable account used is 255010 Payables $1,000 and Under.

Example of a journal entry:

Debit Expense (e.g. account 542896) XXX Credit Payables $1,000 and Under (account 255010) XXX This entry could be a total for a number of invoices.

With this option, no supplier detail is reported in Volume 2 of the Public Accounts for the old year. The supplier detail will be reported in Volume 2 in the new fiscal year if total payments to the supplier are over $50,000.

In the new year, ministries process journal entries in the GL Module to adjust the amount of the payables set up in account 255010.

When payables set up in account 255010 are paid, a journal entry to reverse an amount equal to the payment processed is recorded. When the invoices are processed for payment in the new year, ministries must code them to the appropriate expense account. Because of the reversing journal entry, these invoices do not affect the new year appropriation. To avoid temporarily increasing appropriation in the current year, payables/accruals should not be reversed in the new fiscal year until the related payments are made.

Alternatively, as the payables usually have a low dollar value, the expense account(s) and payable account can be adjusted to the accounts payable balance at the following year-end.

The same expense accounts that were used to set up the payables are used when they are reversed.


The entry to reverse the example above would be:

Debit Accounts Payable (account 255010) XXX Credit Expense (e.g. account 542896) XXX

When a payable recorded in the old fiscal year is higher than the actual payment made in the new fiscal year, the difference should be recorded as revenue in account 486905 Change in Previous Years’ Estimates, rather than as a credit to expenditure, to avoid inappropriately increasing appropriation. Amounts payable at March 31st recorded in account 255010 are listed on Schedule E.

F2b. U.S. Dollar Accounts Payable Any accounts payable denominated in U.S. dollars, which are set up by means of a

debit memo or journal entry, should be entered in Canadian dollars using the exchange rate in effect at March 31st.

When paid, U.S. dollar disbursements will differ from the amount accrued due to exchange rate fluctuations. The effect of these fluctuations should be recognized when the accounts payable balance has been completely discharged.

F2c. Accounts Payable - Previous Years (account 255099)

This account contains uncleared payables set-up in previous years. Payables in balance sheet account 255000 at the beginning of each new fiscal year are mapped to account 255099 after the old year is closed. Ministries need to track these payables by supplier on a spreadsheet. The balance in account 255099 must agree to the spreadsheet. If amounts do not agree, each item must be reviewed to determine corrective action to be taken.

Amounts payable at March 31st recorded in account 255099 are listed on Schedule E.

F3. Purchasing and Receipt of Goods and Services and TCAs (Purchasing Module) Policy: Goods and services and TCAs received on or before March 31st are expenses or TCA additions of the old fiscal year and a charge to the old year appropriations. POs, when goods and services or TCAs have not been received on or before March 31st, must be carried forward to the new fiscal year and become an encumbrance on the new year appropriation unless cancelled in the old year.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 34 Procedures: F3a. Ministries will have until April 9th to enter the actual MAR-18 date of receipt of goods

and services and TCA additions. All old year receipts from remote locations must be entered by this date. These locations must provide the information to the central location for entering to MIDAS where required.

F3b. CAP: Ministries should review purchase orders and follow up if goods and services

or TCAs were received on or before March 31st but no invoice has been entered, so that, to the extent possible, invoices are submitted to Central Accounts Payable by April 9th, per the critical timelines in Appendix B. Non-CAP: Ministries should review purchase orders and follow up if goods and services or TCAs were received on or before March 31st but no invoice has been entered, so that, as far as possible, invoices are received and entered into MIDAS prior to 3:00 PM on April 16th.

F3c. Refer to the document entitled ‘Month End Processes for Buyers’ provided by the

MIDAS Purchasing team for instructions on how to run reports and clean up documents.

F3d. Carry Forward of POs to New Year In order to close the MAR-18 Purchasing period, the old fiscal year must be clear of

all outstanding purchasing encumbrances. Therefore, any POs that were not received by March 31st must be unreserved as to move their encumbrance amounts into the new fiscal year. This process will begin on April 1st and must be completed by April 11th.

The ministry will unapprove the PO, change the GL date in the PO distributions to an

APR-18 date and then reapprove the PO. This will pull the encumbrance out of the old fiscal year and place it in the new fiscal year. Care should be taken with partially received POs as to ensure the received amount has been matched to an invoice first before unreserving. In the case of a PO issued by Central Services - Purchasing or Executive Council, please contact the buyer who issued the PO to complete this process.

If the PO is coded to a program disabled at March 31st, that coding must be changed

to an active code before reapproving the PO. Any outstanding encumbrances remaining in the old fiscal year after April 11th, will

be brought to the attention of the ministry and may need correction by the MIDAS Purchasing team.

F3e. If a purchase order will not be continued in the new year, cancel the PO by April 11th

and advise the supplier. In order to cancel the PO in the correct year the Action Date must be changed to a MAR-18 date.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 35 F3f. This year the Ministry of Central Services, Purchasing should receive requisitions by

February 2nd to give suppliers time to make deliveries by March 31st. (Note: this does not ensure that suppliers will make a year-end delivery date.) Executive Council, Communications Services should receive requisitions by February 28th to give suppliers time to make deliveries by March 31st.

F3g. Ministries can run the GOS Open Purchase Order Report by Buyer and the GOS

Encumbrance Detail Report to verify whether they have any open encumbrances. Outstanding Purchase Orders Encumbrances should also be reviewed to verify if the purchase has been paid with a purchasing card rather than a payment through MIDAS. If they have been paid with a purchasing card, the email requesting that those POs be closed must be submitted to the MIDAS Financials Helpdesk by April 11th in order for the POs to be closed by April 16th.

F3h. Contact the MIDAS Financials Helpdesk (798-9999 or [email protected]) for

information on the reports or the documents indicated above. F4. Interministerial Clearing Accounts and Refund to Vote Clearing Accounts Policy: Certain accounts are used as clearing accounts to facilitate the recording of transactions. These accounts must have a ‘zero’ balance at April 16th (3 PM). It is important to monitor and clear these accounts regularly during the year and particularly during the cut-off period. Procedures: F4a. Interministerial Clearing Accounts Each ministry has an account assigned to it, in the 2530xx series that is used for

interministerial transactions. It is imperative that these accounts have a ‘zero’ balance at year-end, as all expenses must be charged to an appropriation and all revenue recognized. Provide information to the receiving ministry by April 6th, to allow for processing and any adjustments to appropriations (if required). Refer to Section A4. Shared Services. If you process a credit against another ministry’s interministerial clearing account during the cut-off period (April 1st - 16th), advise that ministry (and provide any required documentation) immediately. To allow ministries time to clear the credit by 3:00 PM on April 16th, ministries will not have access to other ministries’ clearing accounts after April 11th.

F4b. Refund to Vote-Clearing Account The refund to vote clearing account (account 253021) must also have a ‘zero’

balance at year-end. Amounts can be recorded as a refund to vote only in the year that the related expense is made. After the old fiscal year is closed, any refunds


related to an old year expense must be credited to either account 486900 or 486905 in the new fiscal year. Account 486900 - Cash Refunds of Previous Years’ Expenses is to be used only where cash has been received from a third party. Account 486905 – Changes in Previous Years’ Estimates is used to record refunds of previous years’ expenses resulting from changes in accounting estimates and errors.

F4c. Payroll Refund to Vote-Clearing Account

The payroll refund to vote clearing account (account 253022) must have a ‘zero’ balance at year-end. Credits to this account include Workers’ Compensation Board reimbursements and external secondment receipts. It is important to coordinate the clearing of this account within MIDAS HR/Pay. Note: If the HR/Payroll entry will not be processed prior to the year-end payroll cut-off dates, a GL journal entry must be submitted to FSB, Finance to manually clear the Refund-to-vote account to the detailed employee expense in the old year. This entry will be reversed by FSB, Finance in the new year to offset the HR/Payroll entry once processed.

F4d. Accounts Receivable – Accounts Payable Clearing Accounts The AR to AP clearing accounts (accounts 253023 and 253024) must have a ‘zero’

balance at year-end. These accounts are used for processing refunds/setoffs from the AR module that will be paid via the AP module.

F5. Payroll Policy: A liability should be recorded for the value of all services performed up to March 31st which are unpaid at that date. Cut-off Dates March 28th @ 5:00 P.M. • final quick pay process for the old fiscal year; • all costing changes, including refunds to vote for the old fiscal year must be entered into

MIDAS HR/ Pay; • employees with a new cost centre, the “old” cost centre must remain open until April 16th; • all PTO payouts must be entered in MIDAS HR/Pay; • all timecards up to and including March 31st must be entered into MIDAS HR/Pay and

approved. An estimate for time worked and/or time off on March 18th to 31st will be included on the time cards.

Note: March 28th is the last day old year transactions can be processed from MIDAS HR/Pay.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 37 Prior to the first Payroll Runs of the New Fiscal Year The dates for the first payroll runs are: B2 - April 3rd B1 - April 9th M1 – April 25th For those employees that have a new cost centre in the new fiscal year, new year default costing (on the employee’s assignment in MIDAS HR/Pay) must be entered with an effective date of April 1st. The new costing must be entered in MIDAS HR/Pay prior to the employee’s first payroll run of the new fiscal year. April 16th @ 3:00 P.M. The last day entries can be made to the old fiscal year in the GL Module. Procedures: F5a. Accrued Employee Leave Entitlement

Accrued employee leave entitlement identifies the ministry’s liability for vacation days, SDOs, banked EDOs, banked overtime and special northern leave. Ministries must determine the value of employees' accrued leave entitlement as at March 31st. The payable for accrued employee leave entitlement is coded to liability account 255100 Accrued Employee Leave Entitlement. Any changes to the balance should be recorded by journal entry to expense account 519900 Change in Year-End Accrued Employee Leave Entitlement. Any increase (decrease) in the payroll liability will be a budgetary expense (refund to vote) for the ministry.

Ministries are required to adjust the accrued leave entitlement in the GL Module by 3:00 PM on April 16th. A MIDAS report is available for ministries to run to provide information on accrued leave entitlement and transmittal of costs between votes: PTO Financial Liability Detail Report

This report details accrued employee leave entitlements for a ministry based on the chart of account values associated with an employee’s assignment. It also details transmittal costs for employees moving between votes. Ministries are required to manually transfer these costs between votes using journal entries in the old fiscal year. The PTO Financial Liability Detail Report can be used to determine amounts to be transferred. Suggested parameters:

Control Point: use level of detail used by ministry for liability entries (varies) GL Account From/To: ensure range includes all required values… too restrictive

may miss multiple costing lines within ministry and skew results.


Effective Date: use date of transfer Accrual Type: Earned (to determine earned less taken at point of transfer) Transfers Only: Yes (reduces report output is used only for obtaining transfer

data Show Detail: Yes (to provide employee level detail)

Note that if an employee has moved/transferred multiple times within the year, either within or across ministries, you may require multiple reports (at each transfer date) to calculate the net transfer result.

Transfers of Accrued Employee Leave Entitlements between Votes

Journal entries should be processed throughout the year to transfer accrued employee leave entitlements between votes. The required journal entry is:

Ministry A (transfer from) Debit Accrued Employee Leave Entitlements (account 255100) XXX Credit Interministerial clearing account – Ministry B XXX Ministry B (transfer to) Debit Interministerial clearing account – Ministry B XXX Credit Accrued Employee Leave Entitlements (account 255100) XXX

Transfers of Accrued Employee Leave Entitlements to Crown Agencies

Journal entries should be processed when required to transfer accrued employee leave entitlements from a ministry to a Crown agency that utilizes MIDAS. The required journal entries are:

Ministry (Debit memo in the AP Module) Debit Vacation Leave Payouts (with no employee number) (account 518650) XXX Credit Interministerial clearing account – Ministry XXX This debit memo ensures payee details (transferred employee) are reported in MIDAS.

Ministry (in the GL Module) Debit Accrued Employee Leave Entitlements (account 255100) XXX Credit Change in Year-End Accrued Employee Leave Entitlement (account 519900) XXX


Crown Agencies (in the GL Module) Debit Interministerial clearing account – Ministry XXX Credit Accrued Employee Leave Entitlements (account 255100) XXX

Payable for Accrued Employee Leave Entitlement – Year-end Balance The PTO Financial Liability Detail Report can be used to set up accrued employee leave at March 31st. Suggested parameters: Control Point: use level of detail used by ministry for liability entries (varies) GL Account From/To: ensure range includes all required values… too restrictive

may miss multiple costing lines within ministry and skew results.

Effective Date: use 31-Mar-XX (fiscal year-end) Accrual Type: Earned PFT Forecast (to determine amount that will be

earned to the end of the year less the amount taken to date) Transfers Only: No Show Detail: Optional – depends on the level of detail needed for ministry

analysis/entry Note: Should the report indicate negative balances (indicating that the employee used time more than earned), ensure that the amount is not recorded twice, (both as a negative entry included in this total as well as setting up an accounts receivable as a salary overpayment). Two options are available to calculate accrued employee leave entitlement:

1. Use Reports that include March attendance

Timecards for March 18th to 31st must be entered and processed by March 28th if they are to be included on the March liability reports. The liability reports generated on April 2nd would reflect the final year-to-date values. These reports can be used to calculate accrued employee leave entitlements by journal entry in the GL Module by 3:00 PM on April 16th. If M1 monthly timecards for March are entered by March 28th, the information will be included in the March liability reports generated on April 2nd.

2. Use February Reports and adjust these for March attendance If March monthly attendance cannot be entered by March 28th, it is recommended that the accruals be based on reports run after February attendance is entered, and adjusted as required for expected March vacation usage. (This could be estimated as average daily salary X number of days taken in March by appropriation control point.) A journal entry in the GL Module would record the change in accrued leave


entitlements (assumes an increase in accrued leave entitlements): Debit Change in Year-End Accrued Employee Leave Entitlement (account 519900) XXX Credit Accrued Employee Leave Entitlements (account 255100) XXX

F5b. Bi-weekly Cheques Dated in April

B1 Pay Cycle Paying Permanent, Part-time, Labour Service, and Term Employees At fiscal year-end, the bi-weekly pay cycle ends on March 17th. The entire pay run will be charged to the old fiscal year. This pay period will be processed through MIDAS HR/Pay on March 26th (pay date March 29th). Other transactions with a March 17th pay period end date or earlier that are paid through quick pay transactions by March 28th will be charged to the old fiscal year. MIDAS HR/Pay will set up accounts payable in the old fiscal year for the March 17th pay period end date (or earlier) costs that are disbursed in April. All B1 bi-weekly payrolls after the March 26th run and quick pays processed after March 28th will be charged to the new fiscal year regardless of the date recorded on the payroll transaction (this includes March 18th to 31st) if not entered in to MIDAS HR/Pay by March 28th. Regular hours (March 18th to 31st) earned in the old fiscal year to be paid in the new year must be accrued as an accounts payable. To meet this requirement all regular hours for March for B1 employees must be entered and approved in PSC Client before March 28th. This will require the early submission of March 18th - March 31st timesheets. Deadlines for timecard submission will be communicated to ministries by the HR Service Centre. If actual hours are not known for March 18th to 31st, an estimate of hours will be requested on the timecards. MIDAS HR/Pay will generate a journal entry in the GL Module with the hours (dollars) for March 18th to 31st, listing each individual impacted for each ministry:

Debit Charge to Employee Specific Costing String (account 514000/514100/514200, etc.) XXX Credit Payroll Payable (account 255500) XXX MIDAS HR/Pay will process the journal entry centrally to record the accrual. The journal entry will be automatically reversed in the new year and will offset the payroll paid for these days in the new year (as part of the payroll run process for April). The March 18th to March 31st timesheets with hours for March 18th to 31st must be entered into MIDAS HR/Pay by the deadlines communicated by the HR Service Centre to be accrued as accounts payable and processed through the GL Module by 3:00 PM on April 16th.


B2 Pay Cycle Paying SGEU Permanent Full-time Employees Other transactions with a March 17th pay period end date or earlier that are paid through quick pay transactions by March 28th will be charged to the old fiscal year. MIDAS HR/Pay will set up accounts payable in the old fiscal year for the March 17th pay period end date (or earlier) costs that are disbursed in April. All B2 bi-weekly payrolls after the March 20th run and quick pays processed after March 28th will be charged to the new fiscal year regardless of the date recorded on the payroll transaction (this includes March 18th to 31st) if not entered in to MIDAS HR/Pay by March 28th.

Regular hours (March 18th to 31st) earned in the old fiscal year to be paid in the new year must be accrued as an accounts payable. MIDAS HR/Pay will be used to establish the accrual values based on a calculated estimate that will cost a prorated amount based on the number of calendar days that fall in the new year in that pay period. For 2017-18 year end the biweekly pay period is March 18th to 31st and therefore the accrual for regular salary will be equal to the full salary for that pay period. Deadlines for timecard submission will be communicated to ministries by the HR Service Centre. MIDAS HR/Pay will generate a journal entry in the GL Module with these estimated hours (dollars) listing each individual impacted for each ministry: Debit Charge to Employee Specific Costing String (account 513000) XXX Credit Payroll Payable (account 255500) XXX MIDAS HR/Pay will process the journal entry centrally to record the accrual. The journal will be automatically reversed in the new year and will offset the payroll paid for these days in the new year (as part of the payroll run process in April). The March 18th – March 31st timecard with paid time off and supplementary payments such as overtime and shift differential for March 18th to 31st must be entered and approved in PSC Client by the deadlines communicated by the HR Service Centre to be accrued as accounts payable and processed through the GL Module by 3:00 PM on April 16th. If actual hours are not known for March 17th to 31st an estimate of hours will be requested on the timecards.

F5c. March Monthly Payroll

As monthly salaries are paid on the last working day of the month for which the salaries are payable, there is no accounts payable for March monthly payroll, except for supplementary amounts and any quick pays with April pay dates for items relating to the period ending March 31st. All timecards for the M1 pay period ending March 31st must be entered by the deadlines communicated by the HR Service Centre. All M1 monthly payrolls and quick pays processed after the March 28th will be charged to the new fiscal year regardless of the date recorded on the payroll


transaction.

F5d. Supplementary Payments

Supplementary payments include overtime, shift, TPHD, etc. Exception paid employees (B2 and M1) - supplementary earnings are typically paid in the pay period following the period in which they are earned. Hourly paid employees (B1) – supplementary earnings are typically paid in the same pay period in which they are earned (with the regular salary for that same period). Supplementary pay earned for all employees in the old fiscal year that will be paid (charged to expense) in the new fiscal year must be accrued as an accounts payable. To meet this requirement all supplementary pay earned up to and including March 31st must be entered and approved in PSC Client by the deadlines communicated by the HR Service Centre. No additional approvals will be required for the time (that will be expensed and set up as an accounts payable in the old fiscal year) as the time has already been approved through the attendance process. MIDAS HR/Pay will generate the required journal entry in the GL Module by 3:00 PM on April 16th for the amount of the supplementary pay: Debit Charge to employee specific costing string – Premium Pay/Differential (account 516XXX) XXX Credit Payroll Payables (account 255500) XXX This journal entry will be automatically reversed in the new year and will offset the payroll paid for these supplementary earnings in the new year (as part of the payroll run process for April).

F5e. Severance Pay

For severance pay, an accrual is recorded which represents the ministry's best estimate of amounts to be paid in future years with respect to severance decisions made prior to April 1st. A journal entry would be entered to MIDAS to accrue this amount. Refer to Section F6. Severance Pay, Apprenticeship Top-up and Maternity and Adoption Leave Top-up.

F5f. Top-up of Employment Insurance Benefits

Employees on maternity or adoption leave and apprentices on apprenticeship training are provided with a top-up of their Employment Insurance benefits to 95 per cent of regular salary for the first 17 weeks of their leave. For accounting purposes, the benefits do not constitute salaries as there is no service being performed by the employees in return for payment. The full amount of


the benefit is expensed in the period that an employee commences a maternity or training leave. This is similar to the accounting treatment of other benefits, such as severance payments. If you have expensed the benefits as they were paid, an accrued expense must be recorded for any outstanding payments at year-end. Refer to Section F6. Severance Pay, Apprenticeship Top-up and Maternity and Adoption Leave Top-up.

F5g. Exceptions

Accounts payable should not be set up for sick pay, deferred salary leave, and education leave. Disbursements for sick pay and education leave are budgetary expenses when paid. Deferred salary leave amounts are charged as an expense in the month the salary is earned. The GRF sick leave liability will be monitored by FMB, Finance and will only be adjusted when the change in the liability is significant. Ministries should not record any adjustments to account 255120 Accrued Employee Sick Leave.

F5h. Salary Overpayments

All salary overpayments that have not been recovered by March 31st are accounts receivable. Where ever possible, overpayments should be recovered over the same period that the overpayment occurred. If a salary overpayment originating from the old year (or earlier) is not identified until after cut-off, it will be accounted for as new year revenue. Refer to Section D4. Refunds of Expenses (Refunds to Vote). Overpayments Repaid by Personal Cheque Instalments For salary overpayments being repaid by personal cheque instalments, the receivable should be recorded in the GL Module by MIDAS HR/Pay.

If the overpayment originated in a previous fiscal year, a receivable is set up with the credit recorded to revenue:

Debit Accounts Receivable - General (account 107000) using ministry

costing, special project code, future value XXX Credit Salary Overpayment Refunds - Previous Year Expenses

(account 486910) using ministry costing, project code 902141, future value XXX

If the overpayment originated in the same fiscal year, a receivable is set up with the credit recorded as refund to vote: Debit Accounts Receivable - General (account 107000) using ministry

costing, special project code, future value XXX Credit Salary Overpayment Reimbursements (account 519887) using ministry costing, project code 902141, future value XXX

When the re-payment is processed, the receivable will be reduced by MIDAS HR/Pay as follows:


Debit Cash – Payroll Bank Account (account 100100) XXX Credit Accounts Receivable - General (account 107000) using ministry

costing, project code 902141, future value XXX Overpayments Deducted from Subsequent Salary Payments The ministry should set up an accounts receivable and record credits to the receivable for salary overpayments deducted from subsequent salary payments. No adjustments to the receivable will be made through MIDAS HR/Pay.

Note: Project 902145 (Payroll - Recovery of Salary Overpayments by Ministry) may be used by ministries to monitor/track their salary overpayment related entries (optional).

If the overpayment originated in a previous fiscal year, a receivable is set up with the credit recorded to revenue. The following journal entry would be processed by the ministry:

Debit Accounts Receivable – General (account 107000) XXX (project code 902145), no future value Credit Cash Refunds of Previous Years’ Expenses (account 486900)

(project code 902145), no future value XXX When the recovery is processed in MIDAS HR/Pay it will credit the payroll expense. The ministry must initiate a journal entry (to be recorded by FSB, Finance) to apply the credit to clear off the accounts receivable or if no receivable was set up, move the amount to revenue (486900 Cash Refunds of Previous Years’ Expenses). Debit Employee specific costing string, including employee

future use segment (account 51XXXX) XXX Credit Accounts Receivable – General (account 107000) project code 902145 (if used when established)

OR Cash Refunds of Previous Years’ Expenses (account 486900) project code 902145 (optional) , no future value XXX

If an overpayment originating in the same fiscal year is not recovered by March 31st, a receivable is set up with the credit recorded as a refund to vote.

The ministry must initiate a journal entry (to be recorded by FSB, Finance): Debit Accounts Receivable - General (account 107000) XXX Credit Employee specific costing string, including employee future use segment (account 51XXXX) XXX When the recovery is processed in MIDAS HR/Pay, the payroll expense will be credited. FSB, Finance will reverse the receivable entry in the new year, upon notification by the ministry as the overpayment recovery is processed through MIDAS HR/Pay. If the accounts receivable was not set up, then when the recovery is


made through MIDAS HR/Pay, the credit must be moved to revenue (486900 Cash Refunds of Previous Years’ Expenses). Note: For all ministry initiated entries including accounts (51XXXX) and/or employee Future use segment values, the journal entries must be sent to the MIDAS Financials Helpdesk. The journal entry should be in spreadsheet format (ADI loadable) with the journal description clearly marked as YEAR-END SALARY OVERPAYMENT. FSB, Finance will enter the journal.

F5i. Grievance payments

Depending on the specifics of the grievance payment, these payments may need to be processed in either MIDAS HR Pay and/or the AP Module. Any grievance payments that are taxable and therefore need to be reported on a T4/T4A would be paid through MIDAS HR Pay. Non-taxable payments for settlements of personal injury damages, relinquishment of reinstatement rights or relocation expense reimbursements would not be reported on a T4/T4A, and therefore, would be paid through the AP Module.

Payments that are outstanding at March 31st and are to be processed by Debit Memo through the AP Module are charged to expense account 519750 – Contingent Liability Payouts – salaries and benefits.

For grievance payments, an accrual is recorded which represents the ministry’s best estimate of amounts to be paid in future years with respect to grievance settlement decisions made prior to April 1st. A journal entry would be entered in the GL Module to accrue this amount. Refer to Section F6. Severance Pay, Apprenticeship Top-up and Maternity and Adoption Leave Top-up.

F5j. Payments made through the AP Module Depending on the specifics of the severance, grievance or other salary and benefit payments and based on guidance provided by the Public Service Commission, the payment may need to be processed in the AP Module. Any payments that are non-taxable and therefore would not be reported on a T4/T4A, would be paid through the AP Module and charged to expense account 519750 – Contingent Liability Payouts – salaries and benefits.

F5k. SGEU Collective Bargaining Agreement – Retroactive Pay

The current SGEU Collective Bargaining Agreement ended September 30, 2016. A new agreement is under negotiation but likely will not be settled until after year end. Negotiations are ongoing and we will continue to monitor the situation and will communicate any requirements.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 46 F6. Severance Pay, Apprenticeship Top-up and Maternity and Adoption Leave Top-

up Policy: All unpaid amounts are recorded as accounts payable. Refer to Section F5e. Severance Pay and F5f. Top-up of Employment Insurance Benefits. Procedures: F6a. The cost of severance, apprenticeship top-up and maternity and adoption leave top-

up decisions made during a year but not entered in MIDAS HR/Pay by March 28th are recorded as an expense using expense account 519800 Change in Year End Severance Liability and Other Benefits. The following old year journal entry is prepared in the GL Module:

Debit Change in Year End Severance Liability and

Other Benefits (account 519800) XXX Credit Change in Severance Liability and Other

Employee Benefits (account 255020) XXX F6b. When these amounts are paid in the new year, they are charged as a new year

expense, and the amounts by payee will be properly disclosed in Volume 2 of the Public Accounts. All severance cash payments are charged to one of the following severance expense accounts: 517100; 517300; 517400. Apprenticeship Top-up paid is charged to expense account 518100. Maternity and Adoption Leave Top-up is charged to expense account 518200. When the payment is made in MIDAS HR/Pay, the ministry reverses the accrued expense set up (credit to account 519800; debit to account 255020) so there is no charge against the appropriation in the new year. Where the accrual recorded in the old year is higher than the actual payment made in the new year, the difference should be recorded in account 486905 Change in Previous Years’ Estimates, rather than as a credit to expenditure, to avoid inappropriately increasing appropriation.

F7. Transfers/Grants Transfers are expenses where the GRF does not: • receive any goods or services directly in return as would occur in a purchase/sale or

other exchange transaction; • expect to be repaid in the future, as would be expected in a loan; or • expect a direct financial return, as would be expected in an investment.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 47 Transfers should be recognized as an expense when the transfer is authorized by the Ministry and eligibility criteria, if any, have been met by the recipient. Eligibility criteria are transfer terms that must be met by the recipient to get a transfer. Stipulations are transfer terms that must be met by the recipient after being eligible for a transfer and do not delay the recording of transfers expense. Transfers typically require two actions by the transferring government. First, the enabling authority must be in place by the financial statement date (i.e. the statute or regulation that establishes the transfer is in force). Second, the transferring government must exercise the authority provided it by the enabling authority. Often, the legal authority only enables the government to provide a grant, and at some point in the future, a decision is made or an action is taken that means the government has given up its discretion to make a transfer. Ministries should document the accounting treatment rationale for each of their transfers. This documentation should identify what the evidence is for authorization, what provides evidence of recipients meeting any eligibility criteria and the point at which the transfer expense is incurred/recorded. In documenting when a transfer expense should be recorded, it is important for ministries to clearly state when authorization occurs; that is, when an action taken by a delegated signing authority means that the government’s discretion to provide the transfer is lost. This evidence of exercising authority may take different forms. Certain transfers may be authorized when the payment of the transfer is approved. In those cases, if the individual that authorizes the transfer is the same person that provides the payment approval (i.e., through MIDAS/Markview approval or signing and dating a MIDAS request for payment or grant payment request form), relying on the payment approval date may be appropriate in terms of determining when the transfer is authorized and expensed. However, it is likely that most transfers would have been authorized - and that the government lost its discretion - at a point prior to the payment approval date. In this situation, ministries require evidence of when the transfer was authorized. This evidence would come in the form of a signed agreement, signed transfer approval form or other signed document that identifies the transfer details and the date of approval. It is particularly important at year-end for ministries to be able to point to specific evidence of the date of authorization. During ministry audits, you may be required to provide the documentation of your accounting rationale as well as audit evidence of authorization that occurred on or before March 31st to support recognition of transfers expensed during the year. The main types of transfers are entitlements, shared cost agreements, and other transfers (grants).

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 48 F7a. Entitlements

Policy:

Entitlements differ from other types of transfers in that the payment is nondiscretionary for the ministry because legislation or regulations authorize the payment as soon as the candidate meets the eligibility criteria. Examples of entitlements include school operating grants; individuals may also receive entitlements under social assistance programs. Entitlements are considered to be expenses when the recipient meets the criteria embodied in the legislation or regulations, as long as the authorizing legislation or regulations are in force. Procedures:

Ministries are asked to identify any unpaid entitlements for which recipients have qualified as at March 31st. These amounts are accounts payable, and should be recorded in MIDAS by means of an invoice or a debit memo. Processing deadlines for these invoices/debit memos are identified in Appendix B.

F7b. Shared Cost Agreements

Policy: Shared cost agreements are usually supported by a contract that requires the government to reimburse an individual or organization for eligible expenses. The recipient becomes entitled to the money only after they have incurred eligible expenses. Procedures: An expense and accounts payable are recorded at March 31st, for the unpaid portion of incurred eligible expenses. The amount payable should be estimated if required. Ministries must determine the extent to which the recipient has performed the act(s) necessary to earn the grant. A debit memo will be required to record, as an expense, the project's percentage of completion as at March 31st when no invoice has been received. Processing deadlines for these debit memos are identified in Appendix B. In financing shared cost agreements, payment is made ahead of the recipient incurring eligible costs. When this is the case, the eligible costs are deemed to be stipulations. An expense is recorded for any payments made in advance of the recipient incurring eligible costs, as long as the transfer has been authorized.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 49 F7c. Other Transfers (Grants)

Policy: For grants, the ministry has discretion in deciding whether to make the transfer, what the eligibility criteria are, if any, and how much will be transferred and to whom. Grants are an expense of the old fiscal year if the grant is authorized by the transferring government and eligibility criteria, if any, have been met by the recipient.

If a transfer is paid prior to eligibility criteria being met, the payment is recorded as an expense on the basis that the terms of the transfer have been changed, such that the eligibility criteria are deemed to be stipulations.

Procedures: Ministries are asked to identify all grants payable at March 31st, and ensure they are recorded in MIDAS in accordance with the timelines and processes in Appendix B.

For additional guidance on transfers, refer to the Government Transfers Application Guidance in Appendix M of FAM.

F7d. Capital Transfers

Capital transfers are to be recorded and reported separately from operating transfers in natural account 571500. Capital transfers are shared cost arrangements or grants provided to a third party such as a school board, regional health authority, university or municipality for them to acquire or develop capital assets. All other transfers should be considered as operating transfers.

F8. Guarantees Policy: A loan guarantee is a promise to pay all or part of the principal and/or interest on a debt obligation in the event of default by the borrower. Loan guarantees are contingent liabilities of the GRF, and are disclosed in the notes to the Summary financial statements and recognized as a liability when it is determined that a loss is likely. A provision for losses on loan guarantees (liability) should be established when a loss is likely and can be estimated. Amounts accrued with respect to guarantees are budgetary expenses. The provision for loan guarantee losses should take into account the principal amount outstanding, accrued and unpaid interest if it is guaranteed, and any recoverable amounts. The provision should be determined using the best estimates available in light of past events, current conditions and circumstances known at year-end. The provision should be reviewed on an ongoing basis.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 50 Procedures: F8a. Ministries are asked to determine the amount of their outstanding loan guarantees at

March 31st. The amount to be set up as accounts payable and charged to expense should be all specific guarantees for which a future payment is likely.

When preparing the year-end adjusting journal entry, a special expense account is used: Debit Change in Guaranteed Debt Payable

(account 577100) XXX Credit Guaranteed Debt Payable (account 255200) XXX

F8b. Cash payouts of guarantees are charged to Loan Guarantee Payouts (account 577000); the Public Accounts supplier is the organization on whose behalf the loan was guaranteed. At the same time any related amount previously set up would be reversed by journal entry so that there is no charge to appropriation in the year of pay out. The reversal will be recorded by journal entry as follows:

Debit Guaranteed Debt Payable (account 255200) XXX Credit Change in Guaranteed Debt Payable (account 577100) XXX F8c. If it is determined that a guaranteed debt payable set up in a previous fiscal year is

no longer payable, the adjustment to the payable should be recorded as revenue, rather than as a credit to expenditure, to avoid increasing the appropriation in the current year. The adjustment journal entry would be as follows:

Debit Guaranteed Debt Payable (account 255200) XXX Credit Changes in Previous Years’ Estimates (account 486905) XXX

F8d. Ministries are asked to report the details of all guarantees outstanding at the fiscal year-end regardless of whether the guarantees are expected to be enforced.

The following information should be provided:

• the name of the Act under which the guarantee is extended (e.g. The Agricultural Societies Act);

• a description of the obligation guaranteed (e.g. Loans to Exhibition Associations), and general terms and conditions;

• the currency in which the guarantee is enforceable; • the principal amount of loan outstanding; • the guaranteed amount outstanding at March 31st, (or the most recent fiscal year-

end) supported by correspondence from a financial institution; • the maximum authorized guarantee; • amount of provision for losses set up as a liability in account 255200. This information is provided on Schedule F. Do not include on Schedule F guarantees from organizations within the government reporting entity as listed in Appendix E.


Note that the guaranteed amount outstanding is not necessarily the maximum guarantee permitted under the legislation or regulations, nor is it necessarily the amount of the loan outstanding.

F9. Hold Backs Payable

Policy: An accounts payable is recorded for any hold backs not paid at March 31st. A hold back is a portion of a progress billing called for under the terms of a contract that is not payable to the contractor until the contract has been completed and subcontractors paid by the contractor. Procedures: F9a. Hold backs are charged to liability account 255300 using a debit memo:

Debit Expense XXX Credit Hold Backs Payable (account 255300) XXX

The debit memo is coded to the same level of detail as the eventual payment will be, providing for proper disclosure in Volume 2 of Public Accounts.

When an invoice is entered to the AP Module to pay out the hold back it is coded to Hold Backs Payable (account 255300) rather than to an expense account. This will clear the payable set up by the debit memo.

F9b. Prior year's accruals – the balance in account 255300 should be reviewed prior to March 31st, to ensure that all items accrued in previous years have been correctly cleared. If any amounts previously recorded as hold backs payable were mistakenly charged against appropriation when paid in the current year, a debit memo should be prepared to debit hold backs payable and credit the affected expense. If the hold backs payable balance is determined to be higher than the actual or estimated future payments, the excess should be recorded as revenue in account 486905 Change in Previous Years’ Estimates, rather than as a credit to expenditure, to avoid inappropriately increasing appropriation.

F10. Operating and Capital Lease Obligations Policy: Operating leases are disclosed as contractual obligations in the notes to the Summary financial statements. Capital lease obligations are disclosed on the other liabilities schedule of the Summary financial statements. A leased TCA is held under a capital lease for use in the provision of goods and services. Under the terms and conditions of a capital lease substantially all of the benefits and risks

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 52 incident to ownership are, in substance, transferred to the ministry without necessarily transferring legal ownership. A ministry should account for leased property that meets the definition of a leased TCA as a TCA and a liability. If the TCA held under a capital lease does not meet the threshold for capitalization (per Schedule B of FAM Section 2150 Capital Assets Accounting and Reporting), a ministry should record an expense and a liability for the present value of the minimum lease payments at the inception of the lease. For an operating lease which does not transfer substantially all the risks and benefits of ownership, lease payments should be expensed and no liability recorded. Procedures: F10a. To be classified as a capital lease, usually one or more of the following conditions

are present:

1. a ministry will receive substantially all the economic benefits expected to be derived from the use of the property; usually the term of the lease is at least 75 per cent of the economic life of the asset; or

2. the present value of the minimum lease payments is at least 90 per cent of the fair value of the asset at the inception of the lease; or

3. there is reasonable assurance that the ministry will obtain ownership of the asset at the end of the lease term. This assurance is normally demonstrated by the presence of an option which allows the ministry to acquire the asset for a nominal amount at the end of the lease or ownership is transferred to the ministry by the end of the lease term.

There may be situations where one of these conditions is not present, but a capital lease still exists. Refer to FAM Section 2150.67 or the Public Sector Guideline 2 - Leased TCAs for guidance. The value of the leased TCA and the amount of the lease liability, recorded at the beginning of the lease term, would be the present value of the minimum lease payments, excluding the portion relating to executory costs. Executory costs are costs related to the operation of the leased TCA (e.g. insurance, maintenance).

For capital leases entered into in the old year, the discounted value of the remaining capital lease payments must be calculated to determine the liability at each fiscal year-end for the duration of the lease. The appropriate discount rate to use is the lesser of the Province's incremental borrowing rate at the inception of the lease or the interest rate implicit in the lease, if determinable. Contact Jim Fallows, Executive Director, Treasury Management Branch, Finance at 787-3923 if you require assistance in determining an appropriate discount rate.

F10b. All capital leases must be recorded at their discounted values. Subsequent lease

payments are charged against the liability to the extent that they represent payments of principal. The interest portion of these payments is a budgetary expense and is set up as a payable at March 31, if applicable. Interest expense is calculated on the outstanding liability balance for the number of days since the last payment and at the


same interest rate as used in the original transaction. Obligations under capital leases are coded to Obligation Under Capital Lease (account 255400).

Example: operating equipment costing $10,000 (meets threshold for capitalization) is purchased under a capital lease on February 1st. An initial payment of $2,000 is made on February 1st, and there are four future annual payments of $2,256 principal and interest. The Province’s four year borrowing rate at February 1st is assumed to be 5 per cent. In MIDAS, an invoice entered to the AP Module will record the full cost of the TCA, make the initial payment and set up the liability at the inception of the lease. Using the example as above, the following lines are entered on the invoice: Debit Operating Equipment - current year additions

(account 199300) 10,000 Credit Obligation Under Capital Lease (account 255400) 8,000 MIDAS will create the offset line to accounts payable for the difference of $2,000 and then issue a cheque for the initial payment of $2,000. Invoices entered for subsequent lease payments will be coded to the liability account 255400 for the principal portion of the payment, with the interest portion charged as a budgetary expense as follows:

Payments Remaining

Principal Interest Principal Total Year 0 $0 $2,000 $2,000 $8,000 Year 1 400 1,856 2,256 6,144 Year 2 307 1,949 2,256 4,195 Year 3 210 2,046 2,256 2,149 Year 4 107 2,149 2,256 0

The following lines are entered on the invoice for the first annual payment:

Debit Other Interest (account 558270) 400 Debit Obligation Under Capital Lease (account 255400) 1,856 If the obligations under capital lease balance is determined to be higher than the actual or estimated future payments, the excess should be recorded as revenue in account 486905 Change in Previous Years’ Estimates, rather than as a credit to asset additions, to avoid inappropriately increasing appropriation.

F10c. A leased TCA is amortized over the period of expected use, consistent with the amortization policy for other TCAs in that category.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 54 F10d. All operating leases are included on Schedule P, Contractual Obligations. All capital

lease obligations are included on Schedule GB, Capital Lease Obligations. For capital leases, a separate deduction is shown for interest and executory costs

included in the minimum lease payments; the total should then agree to the unpaid liability in account 255400.

F11. Unearned Revenue Policy: Revenue received or recorded as an accounts receivable during the old fiscal year or a previous fiscal year, where goods and services will not be provided until the new fiscal year or a subsequent fiscal year, is included in unearned revenue at March 31st. Examples include the proceeds from multi-year licenses and other licenses and fees received in advance. Restricted revenue received from external parties, including other governments, is restricted if the external parties specify how these revenues are to be used. The revenue is restricted by agreement with an external party or by legislation of another government. Restrictions may specify expenses or classes of expenses that must be made.

Externally restricted revenue is recorded as revenue in the period it is used for the purpose(s) specified. Until the conditions are met, the revenue is unearned and recorded as a liability (unearned revenue). If the revenue is received in the same period as the related expenses are incurred, the restrictions have been met and the inflows are recorded as revenue. Any restricted revenue received, but where conditions have not been met, must be recorded as unearned revenue at March 31st. Schedule H provides detail on amounts included in unearned revenue. Procedures: F11a. At year-end, unearned revenue is calculated and any changes to the account

balance are recorded by journal entry. Unearned revenue is coded to liability account 257000. The offsetting entry is to the appropriate revenue account.

Example: a ministry issued a five-year license on April 1st, for $1,000. At that time, the following entry is made: Debit Cash 1,000 Credit License Revenue 1,000 At March 31st, a portion of this amount is unearned revenue, since the license covers the next four fiscal years. The unearned portion of the license equals $800 (4/5 x $1,000) and is added to the unearned revenue account.


At March 31st, the total unearned license revenue is computed to be $56,000, and the account balance is currently $47,000. A journal entry would be prepared as follows: Debit License revenue 9,000 Credit Unearned revenue (account 257000) 9,000 If at March 31st the account balance had been $57,000, the following journal entry would be prepared: Debit Unearned revenue (account 257000) 1,000 Credit License revenue 1,000

F11b. At year-end, amounts recorded in account 257020 – Unapplied Receipts should be reviewed to ensure receipts are appropriately matched to receivables and cleared out of the account.

F12. Contingent Liabilities Policy: Contingent liabilities are possible obligations that may result in the future sacrifice of economic benefits. The two basic characteristics of contingent liabilities are: • there is an existing condition or situation at March 31st that indicates there may be a

liability; • there is an expected future event that will resolve the uncertainty related to the

existence of a liability at year-end. (The confirming event proves or disproves the existence of the liability.)

The most common form of contingent liability is legal action but ministries may have other items that meet the definition of a contingent liability. Contingent liabilities related to legal actions should be confirmed with the Ministry of Justice, both for the likelihood and estimated amount. Although loan guarantees are contingent liabilities, these items are reported separately. Refer to Section F8. Guarantees. An expense and a payable for a contingent loss are recognized in the Summary financial statements when it is likely that an amount will need to be paid and the amount can be reasonably estimated. When the contingent loss is likely but cannot be reasonably estimated or when exposure to loss is greater than the amount accrued, or the occurrence of the confirming future event is not determinable, the contingent loss is disclosed in the notes to the Summary financial statements.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 56 Procedures: F12a. Contingent Liability Resulting in an Expense

To properly record or disclose contingent liabilities, any potential for payment due to lawsuits, tax claims, pending litigation and other unrecorded possible liabilities must be analysed for significance. Ministries are asked to set-up a liability and record an expense, by journal entry, for all contingent liabilities in which a loss is both likely and reasonably estimable.

When preparing the journal entry, a special expense account will be used. To determine which expense account the contingent liability should be recorded, consideration should be given to the type of claim and what expense code would be used were the liability incurred through the regular process. For example, severance, grievance or other employment related claims, should be recorded to the Change in Contingent Liabilities – salaries and benefits expense account.

The following Change in Contingent Liability expense accounts are available: • 519895 Change in Contingent Liability – salaries and benefits • 521010 Change in Contingent Liability – goods and services • 578100 Change in Contingent Liabilities – other expense Journal entry to record a new contingent liability or a change in estimate of a prior year amount: Debit Change in Contingent Liability - xxxxxxxx

(account 519895, 521010, or 578100) XXX Credit Contingent Liability (account 255600) XXX In the following fiscal years, cash payouts of these contingent liabilities will be recorded in the AP Module to the actual payee and charged to an appropriate expense account. The payee detail is shown in Volume 2 of the Public Accounts in the year the cash payout is processed. The following two cash payout expense accounts are available for the expense-types that do not have “appropriate” expense accounts: • 519750 Contingent liability payouts – salaries and benefits • 578000 Contingent liability payouts – other expense At the same time as the cash payout, any related amount that was set up in a change in liability expense account is reversed by journal entry, so there is no charge to the appropriation in the year of payout. The journal entry to record the reversal is: Debit Contingent Liability (account 255600) XXX Credit Change in Contingent Liability - xxxxxxxx

(account 519895, 521010, or 578100) XXX

If the contingent liability is determined to be higher than the actual or estimated


future payments, the excess should be recorded as revenue in account 486905 Change in Previous Years’ Estimates, rather than as a credit to expenditure, to avoid inappropriately increasing appropriation.

F12b. Contingent Liability Resulting in a TCA

Asset addition account 199150 Land – Current Year Add - Contingent Liabilities should be used to record a journal entry for contingent liabilities for land claims: Debit Land – Current Year Add - Contingent Liabilities

(account 199150) XXX Credit Contingent Liability (account 255600) XXX Cash payouts in the following fiscal years of these contingent liabilities will be recorded in the AP Module to the actual payee and charged to asset addition account 199100 – Land – Current Year Add. The payee detail is shown in Volume 2 of the Public Accounts in the year the cash payout is processed. At the same time as the cash payout, any related amount previously set up in account 199150 is reversed by journal entry, so there is no charge to the appropriation in the year of payout. When the payment amount is equal to the amount recorded as a contingent liability, the journal entry to record the reversal is: Debit Contingent Liability (account 255600) XXX Credit Land – Current Year Add - Contingent Liabilities

(account 199150) XXX When the the payment amount is lower than the amount accrued as a contingent liability and TCA acquisition in the prior year, the difference should be recorded as a credit to the TCA cost account, not the current year addition account, to avoid inappropriately increasing appropriation in the new year. The required journal entries are outlined in subsection E3d Over Accrual of TCA Acquisitions.

Amounts set up as contingent liabilities should be clearly disclosed on Schedule G. Do not include on Schedule G contingent liabilities from organizations within the government reporting entity as listed in Appendix E. F13. Conditional Receipts Policy: Funds received for which the ultimate disposition is not immediately known or which are held for third parties and cannot be paid out until some future date are recorded as conditional receipts. Procedures: F13a. The cut-off date for cash deposits and withdrawals from Conditional Receipts is

March 31st. Deposits made (cash received) and invoices entered to MIDAS after


March 31st must be recorded as new year transactions. Old year amounts can be transferred to the proper revenue or balance sheet accounts within the GRF (Ministries) by journal entry until 3:00 PM on April 16th.

Ensure that there are no unpaid invoices coded to the conditional receipts account at March 31st and that all cash received after March 31st is recorded as a new year receipt.

F14. Liability for Contaminated Sites Policy: A contaminated site is a site at which substances occur in concentrations that exceed the maximum acceptable amounts under an environmental standard. A contaminated site does not include airborne contamination or contaminates in the earth’s atmosphere unless such contaminates have been introduced into soil, water bodies or sediment. To be recorded as a liability for contaminated sites, all of the following must apply to a site outside of productive use or where there is an unexpected event that causes contamination:

1) An environmental standard exists; 2) Contamination exceeds the environmental standards; 3) The government is directly responsible or accepts responsibility; 4) It is expected that future economic benefits will be given up; and, 5) A reasonable estimate of the amount can be made.

Any future increases or decreases to the remediation cost estimate/liability or new contamination will be a GRF expense (increase or decrease) in the adjustment year. The liability for contaminated sites is reduced as remediation is completed. Ministries require an appropriation for planned remediation expenses (i.e. when the decisions are made to remediate and incur costs). An appropriation is not required in the year a liabilities/expense is recorded or adjusted unless a decision to remediate the site is also made. Therefore, the timing of the expense and appropriation may differ. Ministries are to request funding for remediation in their annual budget requests for planned expenditures. Ministries are required to include the Canadian Council of Ministers of Environment National Classification System for Contaminated Sites (NCSCS) category when making budget submissions for remediation of contaminated sites. Procedures: The procedures should be read in conjunction with the Public Sector Accounting Standard PS 3260 Liability for Contaminated Sites. All contaminated sites related invoices and debit memos are to be recorded in the AP Module and contaminated sites liability adjustments are to be recorded by journal entry in the GL Module in accordance with the critical dates outlined in Appendix B.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 59 F14a. Supplementary information to the 5 accounting recognition criteria:

1. Environmental standard exists: Contact the Executive Director, Environmental Protection Branch, Ministry of Environment for additional information on environmental standards specific to your situation. Also an external specialist, such as an environmental engineer may be required for assistance in completing site assessments and liability estimates.

2. Contamination exceeds environmental standard:

If there is uncertainty about the existence of contamination, recognize a liability based on the probability of contamination being confirmed by a future site assessment.

• If the probability is ‘likely’ that a future site investigation will confirm that

contamination exceeds an environmental standard, then recognize a liability if the amount can be reasonably estimated.

• Helpful hints to consider from PS3260.15: It is necessary to review all historical information including:

o the nature of past activities at the site(s) or adjacent properties; o site(s) location, hydrology and geology; o results from testing and field investigations; o similarities to and experience at other known contaminated sites; o significance of site(s); and o cost versus benefit of conducting detailed site assessments.

• No requirement to test all properties for contamination, however, follow-up is required for sites where contamination is suspected.

• Analysis is required to be documented including the steps taken/decisions made with respect to all properties.

3. Responsibility:

Refer to Public Sector accounting guidelines to assist with determining when the government may be directly responsible (PS 3260.18-.22) and when the government has accepted responsibility (PS 3260.23-.31) for the contaminated site.

Ministries need to consider the accounting implications when communicating to the public regarding any plans to spend money on cleaning up contaminated sites that they are not directly responsible for.

Where there is uncertainty about responsibility, an assessment would be needed to determine if the contaminated site should be treated as a contingent liability. If it is likely that a future event will confirm the government’s responsibility, a liability is recognized if it can be reasonably estimated. Information about the contingent liability is required for disclosure purposes if the outcome of the future confirming event cannot be determined. Refer to Section


F12 Contingent liabilities for additional information. 4. Future economic benefits expected to be given up:

The liability is created only if future economic benefits are “expected” to be given up. Expected means that it is reasonably anticipated based on available evidence or logic but is neither certain nor proved (see PS 3260.32 - .35).

If future economic benefits (i.e., requirement to pay out cash in the future) are not expected to be given up, the reason for not recognizing the liability may need to be disclosed. For example, a remediation plan for a site that is contaminated may not require clean up (i.e. restricted access to the site may be satisfactory). There are some situations where cleaning up the site would result in more contamination than leaving the site at its current state.

5. Measurement:

A reasonable estimate of the liability for contaminated sites is based on management’s best estimate of the amount required to remediate contaminated sites. The best estimate is the amount the ministry would pay to settle the liability at year-end. Ministries may use their experience with other similar sites to determine their best estimate. The estimate should consider whether or not third party recoveries are expected. Ministries are to complete an accounting analysis to determine how to account for expected third party recoveries (if any). The estimate of the liability requires professional judgment supplemented by experience, third party quote and in some cases reports from independent experts (see PS 3260.55 - .64). Estimation of the liability for contaminated sites is based on information available at March 31st and includes: • Estimated costs of bringing the site back to current minimum standards based

on the sites use prior to contamination (e.g. industrial, commercial or residential use as appropriate);

• Directly attributable costs (i.e. contractor costs, equipment and facilities, materials, legal costs etc.);

• Cost of TCAs required for remediation to the extent they have no alternative future use; and

• Costs integral to remediation plan involving: o post-remediation operations, o maintenance, and o monitoring.

Only include costs in the measurement of the liability to the extent that they directly relate to the actual remediation of the site under an environmental standard (e.g. planted trees may or may not contribute to the remediation of the site to bring it to the current minimum standards; they may be for visual purposes only and therefore would not be included).


Ministries should consult with remediation project teams and experts (e.g. professional engineers) as needed to determine a best estimate for the liability. Updating the estimate On an annual basis, Ministries are required to evaluate whether or not their best estimate of the liability for contaminated sites needs to be updated to reflect changes in cost estimates (e.g. new technology or methods to remediate, change in remediation plan, increases in labour costs, etc.) or to reflect changes in the present value of the liability. The carrying amount of the liability needs to be updated where these changes are determined to be material. Ministries need to consider whether or not a detailed site reassessment is required due to significant changes in technology and processes used in developing the remediation plan, information obtained from other similar sites, and changes in legislation or other environmental standards. Ministries may use relevant Consumer Price Index (CPI) information for changes in costs related to labour, materials, equipment etc. in order to update the contaminated sites liability. Measurement Techniques Time value of money When the cash flows required to settle or otherwise extinguish a liability are expected to occur over extended future periods, a present value technique is often the best available technique with which to estimate the measure of a liability. Where discounting the expected cash flows, discount rates should reflect Provincial Bond yield rates at the time the liability is recorded. Ministries are to record the liability at its present value using a discounted cash flow method when the amount and timing of the future cash flows is known and has a material impact on the amount of the contaminated sites liability. Otherwise, Ministries may record the liability at the undiscounted value based on the best estimate of what the government would rationally pay to settle or extinguish the liability. Contact Jim Fallows, Executive Director, Treasury Management Branch, Finance at 787-3923 if you require assistance in determining an appropriate discount rate.


The weighted average discount rates based on the Province’s borrowing rates as at March 31, 2017 is as follows:

Year

Provincial Bond Yields

1 0.8 3 1.3 5 1.7 7 2.1 10 2.5 15 3.0 20 3.2 30 3.3

Updating the estimate – time value of money The change in the liability as a result of passage of time is referred to as accretion expense. If a present value technique is applied to calculate the liability, annual accretion expense (non-appropriated) is recorded to update the present value of the liability for contaminated sites using the discount rate at the time the liability was recorded.

F14b. The cost of TCAs required for remediation purposes are recorded as an expense

when the liability is recognized. If a TCA (or a portion of the TCA) has an alternative future use, only the portion relating to remediation activities would be expensed when the liability is recognized.

Any TCA cost, or portion (e.g. percentage) that relates to an alternative future use would be capitalized when the TCA is acquired. Amortization expense would be recorded over the periods of alternative future use. Refer to Section E3. TCAs for the GRF policies and procedures for recording and amortizing TCAs.

F14c. Measurement Uncertainty There may be uncertainty in the determination of the amount at which the liability for

contaminated sites is recognized or disclosed in the notes to the summary financial statement. Refer to Section H4. Measurement Uncertainty for the GRF policies and procedures for measurement uncertainty disclosure.

F14d. Complete Schedule GA to provide supplemental information on amounts recorded in

accounts 258960 – Contaminated Site Liability and 258710 – Contaminated Site Liability - Lorado.

F14e. Sample Journal Entries

1. Adjustments to Existing Contaminated Sites Liabilities or New Contamination Occurs in 2017-18

Adjustments to the existing contaminated sites liabilities may be required (e.g.,


changes in costs of remediation due to inflation, changes in remediation plans, interest if a present value technique is used to measure the liability or other factors). Additionally, contaminated sites liabilities will need to be recorded when new contamination occurs. Cost increases or decreases and liabilities (costs) for new contamination will be recorded as a non-appropriated expense (i.e., no appropriation impact). Contact your Treasury Board Analyst if expense increases are expected. Ministries will record the following journal entries in the GL Module: Increase in liabilities - non-appropriated expenses (increase in cost estimates or new contamination) Debit Change in Year-End Contaminated Sites Liabilities (account 588960) XXX Credit Contaminated Sites Liabilities (account 258960) XXX Financial Impact: Increase in ministry expense, but, no charge to the ministry appropriation (account 588960 not included in spending control). Decrease in liabilities - non-appropriated expenses (decrease in cost estimates) Debit Contaminated Sites Liabilities (account 258960) XXX Credit Change in Year-End Contaminated Sites Liabilities (account 588960) XXX Financial Impact: Decreases in cost estimates reduce ministry expense, but, do not increase the ministry appropriation. Note that a decrease in the contaminated sites liability estimate for a liability recorded in a previous fiscal year would be recorded as a decrease in expenses. This adjustment is not recorded as revenue (refund of prior years’ expenses) since the ministry appropriation is not charged when the liability is recorded. 2. Record Remediation Costs Incurred (charge to Ministry Appropriation)

Ministries will request an appropriation when contaminated sites remediation costs are planned as opposed to when the liability is recorded. Ministries will record the following entry (invoice in the AP Module) to charge their appropriation as invoices are received for environmental contractor services. Debit Contaminated Sites Remediation (account 521700) XXX Credit Accounts Payable (account 253000) * XXX * Credit to account 253000 is automated when invoice entered in AP Module Ministries will record an adjustment in the GL Module (at least quarterly if required) to reduce the contaminated sites liabilities for remediation costs incurred since the last adjustment:


Debit Contaminated Sites Liabilities (account 258960) XXX Credit Change in Year-End Contaminated Sites Liabilities (account 588960) XXX Financial Impact: Decreases in the liabilities from remediation incurred have no impact on ministry expense since the above credit to expense (account 588960) offsets the expense recorded when the remediation costs are incurred (account 521700). The remediation costs incurred results in a charge to the ministry appropriation, however, the above credit to expense has no impact on the appropriation (account 588960 not included in spending control).

3. Adjustments to the Contaminated Sites Liabilities (Lorado Uranium Mine

Only)

The following outlines the entries that Economy will record as invoices are recorded in the AP Module as Lorado remediation work is completed. Debit Contaminated Sites Remediation (account 521700) XXX Credit Accounts Payable (account 253000) * XXX * Credit to account 253000 is automated when invoice entered in AP Module GL journal entry: Debit Contaminated Site Liability – Lorado (account 258710) XXX Credit Change in Year-End Contaminated Site Liability – Lorado XXX (account 521710) Financial Impact: Decreases in the liability from remediation costs incurred have no impact on Economy’s expense since the above credit to expense (account 521710) offsets the expense recorded when the remediation costs are incurred (account 521700). In addition, there is no impact on the Economy appropriation since the change in the liability expense account for Lorado (521710) and the remediation expense account (521700) are both included in spending control. If the contaminated sites liability balance in account 258710 is determined to be higher than the actual or estimated future payments, the excess should be recorded as revenue in account 486905 Change in Previous Years’ Estimates, rather than as a credit to account 521710, to avoid inappropriately increasing appropriation.

Any future increases to the cost of remediation for Lorado are to be recorded as a non-appropriated expense (see entries in sample journal entry #1 above).

F15. Obligations Under Long-Term Financing Arrangements Policy: Obligations under long-term financing arrangements at March 31st represent the Government’s liability for TCAs acquired through public private partnerships (P3s). The obligation is recorded during the construction period at the same time as the TCA.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 65 Procedures: F15a. At the end of the year, ministries need to determine their obligations under long term

financing arrangement based on the percentage of completion basis during the period of construction and compare it to the obligation under long-term financing arrangement balance already recorded to determine whether an accrual entry is required at March 31st.

The total obligation under long-term financing arrangement is calculated by adding:

• total value of nominal payments made during or on completion of construction; and

• the present value of future capital payments discounted to the date the asset is available for use using the Government’s borrowing rate for long-term debt at the time the arrangement is signed.

The total obligation is then multiplied by the portion of the project that has been completed to determine the obligation under long-term financing arrangement at March 31st. All entries accruing obligations under long-term financing arrangements will depend on the specifics of the P3 arrangements in place; however two examples are provided below of entries to accrue obligations under long-term financing arrangements.

1. If the GRF has an arrangement to acquire a TCA through a P3 it is likely that the

following entry will be required at March 31st to record the obligation under long-term financing arrangement on a percentage of completion basis over the period of construction:

Debit TCA additions (account 199XX0) XXX Credit Obligation under long-term financing

arrangements (account 270000) XXX

2. If the GRF has an arrangement to transfer a TCA acquired through a P3 to a third party, the following entry will likely be required at March 31st to record the obligations under long-term financing arrangement on a percentage of completion basis over the period of construction:

Debit Capital transfer expense (account 571500) XXX Credit Obligation under long-term financing

arrangements (account 270000) XXX

If the obligation balance at March 31st is determined to be higher than the actual or estimated future payments, the excess should be recorded as revenue in account 486905 Change in Previous Years’ Estimates, rather than as a credit to asset additions, to avoid inappropriately increasing appropriation.

F15b. Obligations under long-term financing arrangements will be reduced by progress and

capital payments made during the term of the arrangements.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 66 When progress and capital payments are made during the term of the arrangement,

the following entry is required:

Debit Obligation under long-term financing arrangements (account 270000) XXX

Credit Cash (account 100000) XXX Section G: Revenue and Expense Reporting Requirements G1. Revenue Policy: Revenue is recognized in the period in which the transactions or events occurred that gave rise to the revenues (for example user fees are recognized when the services are provided). All revenues are recorded on the accrual basis. For corporate and individual income taxes, cash received from the federal government is used as the basis for estimating tax revenue. Transfers are recorded as revenue in the period that: • the transfer is authorized by the transferring government; and • eligibility criteria, if any, are met by the recipient; except • when and to the extent that there are stipulations that give rise to an obligation that

meets the definition of a liability.

Eligibility criteria are transfer terms that must be met by the recipient to get a transfer. Stipulations are transfer terms that must be met by the recipient after they are eligible for a transfer.

Transfers that include stipulations are recognized as revenue when authorized and eligibility criteria are met unless the transfer stipulations create a liability.

If a liability has been created, revenue is deferred and recognized as the stipulations are met by the recipient. It would be rare that the existence of transfer stipulations would indicate that a liability is created and deferral of revenue can occur.

If a transfer is paid prior to eligibility criteria being met, the eligibility criteria become stipulations and are included in determining whether a liability exists.

For additional guidance on transfers, refer to section F7. Transfers/Grants or the Government Transfers Application Guidance in Appendix M of FAM.

An accrual is not recorded where an amount cannot be determined with a reasonable degree of certainty or where its estimation is impracticable.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 67 Procedures: Refer to section D3. Accounts Receivable for procedures on recording accounts receivable (revenue). Refer to guidance in section D9. Valuation Allowance and Write-offs for Financial Assets if revenue and the related accounts receivable are deemed to be uncollectible. If revenue recorded in a previous year (based on estimates) is determined to be too high and requires adjustment (not as a result of collectibility issues) the adjustment is recorded to the natural account the revenue was originally recorded in as a reduction of revenue. G2. Bank Interest Policy: Bank interest revenue should not be used to reduce any ministry's expenses, nor should interest expense be paid and charged to an appropriation. Procedures: G2a. When bank interest revenue is credited to a ministry's account, a cheque should be

issued to withdraw the credit. The cheque should then be deposited to the GRF bank account by the ministry and recorded as revenue of the GRF.

G3. Returned Items (NSF Cheques) Policy: All NSF cheques received to March 31st should be recorded in the old year. Procedures: G3a. If the AR Module is not used, a journal entry is used to record the NSF cheque.

Example journal entry:

Debit Revenue or Accounts Receivable (coding from original credit entry) XXX

Credit Returned Item Clearing Account (account 100050) XXX The journal entry category is ‘Returned Items (GOS)’.

G3b. If the AR Module is used, an invoice coded to the Returned Items Clearing Account

(account 100050) is entered. The transaction type is “NSF” and the line description is ‘returned item charge’.

The GL date on the invoice must be 31-MAR-18. The AR Module will be available for entering old year transactions until 3:00 PM on April 16th.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 68 Account 100050 Returned Items Clearing Account should be cleared to zero at year-end. If there is a balance in account 100050 at year-end, it should be reported on Schedule J.

G4. Remissions Policy and Procedures: Section 24 of The Financial Administration Act, 1993 provides that the Lieutenant Governor in Council may grant remissions where he/she considers it to be in the public interest or that great hardship or injustice to persons would otherwise occur. Remissions are also granted through other legislation. Section 24 of The Financial Administration Act, 1993 requires that a detailed statement of remissions be included in the Public Accounts. A remission is a return of or an exemption from a liability to pay a tax, royalty, rental, or fee to the Crown. This information is requested on Schedule Y. G5. Expense Policy: The cost of all goods and services must be recorded as an expense in the year they are received. Goods and services received after March 31st are new year expenses regardless of when the order was placed. Amortization of the costs of TCAs is recorded as an expense according to policy in FAM Section 2150 Capital Assets Accounting and Reporting. Procedures: Refer to Section F2. Accounts Payable for procedures on recording accounts payable (expense). G6. Valuation (Bad Debt) Expense for Financial Assets Policy: Valuation allowances are used to reflect financial assets at their net recoverable or other appropriate value. Changes to a valuation allowance are a budgetary cost (subject to appropriation) and reflect changes in the reported value of financial assets.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 69 Procedures: G6a. Expenses to increase a valuation allowance include allowances for doubtful revenue

receivables and for unrecoverable loans and advances. Valuation expenses relating to accounts receivables are recorded in account 576000. Valuation expenses relating to loans and advances are recorded in account 576200. Refer to Section D9 Valuation Allowances and Write-offs for Financial Assets for guidance and examples on recording valuation allowances.

In rare instances, it is possible that the valuation adjustment could result in a recovery. If this happens, the expense of the sub-program is reduced. This negative expense (i.e. recovery) is not available for spending.

G7. Salary Payments Paid through the AP Module Policy: When an employee cannot be set up in time to process the salary payment in MIDAS HR/Pay the salary is paid through the AP Module, and charged to an expense account. The natural account used is 519700 – Salary Payments Processed through the AP Module. All salary payments coded to 519700 in the old year are to be cleared in the old year by a refund to vote processed through MIDAS HR/Pay by March 28th. Amounts in account 519700 that do not get cleared by March 28th will be expensed in the old year (resulting in the salaries being expensed twice: in the AP Module and in MIDAS HR/Pay). When entries are recorded in the new fiscal year to clear old year account 519700 balances, the entries should record revenue (account 486900 - Cash Refunds of Previous Years’ Expenses) rather than a reduction of salaries expense. Procedures: G7a. All outstanding salary payments charged to expense account 519700 – Salary

Payments Processed through the AP Module should be reviewed to determine why the amount has not cleared. If any amounts were charged to the account in error, the correct accounting should be determined.

A GOS-Payables Account Analysis Report and a GOS-Prepayment Status Report

should be run to ensure that information is available for all outstanding advances charged to account 519700. (A standard invoice should be used when salary is paid through the AP Module.)

G7b. Recovery of salary payments made through the AP Module When a payment is recovered through MIDAS HR/Pay, a recurring journal entry is

posted to the GL Module. The journal entry category is ‘Payroll Remittance’. The journal entry attachment provides payroll recovery details such as employee name, chart of accounts coding to the refund to vote clearing account and payroll deduction amount. The lines on the journal are:


Debit Payroll Deductions-accountable advance XXX (200.80001.800003.266000.0.0.0)

Credit ministry’s refund to vote clearing account XXX (xxx.00000.000000.253021.0000.902122.0)

When this journal entry is posted, it is the responsibility of Central Accounts Payable

employees (non-CAP: accounts payable staff) to clear the amount in account 519700 based on the details from the journal entry attachment.

A standard invoice should be used when the salary is paid through the AP Module.

A GOS-Payables Account Analysis Report for old fiscal year will show all amounts paid that are still outstanding.

After a journal entry is processed with information from MIDAS HR/Pay that credits

the refund to vote clearing account, the refund and the salary paid using a standard invoice are cleared using a debit memo by Central Accounts Payable (non-CAP: accounts payable staff). To clear a salary payment in the old fiscal year, the goods received date and the GL date must be on or before March 31st.

The lines on the debit memo invoice type would be:

Debit Refund to Vote Clearing Account (account 253021) XXX

(Coding is from the spreadsheet; project is 902122) Credit Salary Payments processed through the AP Module (account 519700) XXX

(Coding is from the original AP invoice that issued the advance)

Non-CAP: In some cases, these salary payments are made using a prepayment invoice. These payments must be cleared by entering a standard type invoice (not a debit memo) and the prepayment applied. The GOS Prepayment Status Report will display salary advances set up by prepayment type invoices that are currently outstanding. To clear a salary payment in the old fiscal year, the goods received date and the GL date must be on or before March 31st. The lines on the standard invoice are:

Debit Refund to Vote Clearing Account (account 253021) XXX

(Coding is from the spreadsheet; project is 902122)

On applying the prepayment, a “Prepayment Type” distribution line is automatically added to the invoice distributions that credits the appropriate chart of accounts distributions from the original prepayment invoice.

Automated Prepayment Application:

Credit Salary Payments Processed through the AP Module (account 519700) XXX

(Coding is from the prepayment invoice)

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 71 Section H: Other Reporting Requirements H1. General Policy: Specific supplementary information is requested from ministries to facilitate the preparation of the notes to the Summary financial statements. As in prior years, schedules are provided to help ministries summarize this information. H2. Measurement Uncertainty Policy: The nature and extent of measurement uncertainty and the amount of the item subject to measurement uncertainty is disclosed in the notes to the Summary financial statements when it is material and reasonably possible that the amount could change by a material amount during the next fiscal year. Procedures: There may be uncertainty in the determination of the amount at which an item is recognized or disclosed in the notes to the Summary financial statements. An example could be the accrual of transfers from the federal government, when these transfers are affected by changes in economic and demographic conditions in the Province and country. H2a. Schedule O asks ministries to provide information on items where the amount

recognized or disclosed is based on an estimate that could vary by $10,000,000 or more before March 31st. Do not include amounts where the revenue/receivable or expense/payable are from/to organizations within the government reporting entity as listed in Appendix E.

Include the following information on the schedule:

• a description of the item; • the reason for the uncertainty; • the range of reasonably possible amounts; and • the amount of the item for which there is uncertainty (recognized or disclosed).

H3. Contractual Obligations Policy: A contractual obligation exists when a legally binding contract or agreement has been signed with an individual or organization outside of the GRF that will result in the obligation becoming a liability in the future, when the terms of the contract or agreement are met. Contractual obligations do not include amounts already recorded as liabilities at March 31st.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 72 Contractual obligations do not include amounts relating to unsigned contracts or agreements. Contracts that are in the process of being negotiated are also not included. Contractual obligations do not include a ministry’s obligations related to ongoing programs such as health, welfare and education where no formal contract or agreement exists. In these cases, a government does not have a contractual obligation to others and maintains complete discretion as to whether to change the level or quality of its programs. For example, a government has discretion to maintain program funding but is not contractually obligated to do so. However, once a government enters into a contract or agreement, a contractual obligation exists and a certain degree of discretion to avoid the obligation is lost. The Public Sector Accounting Board (PSAB) section 3390 - Contractual Obligations provides guidance indicating that disclosure should include, but is not limited to, the following types: (a) contractual obligations that involve a high degree of speculative risk; (b) contractual obligations to make expenditures that are abnormal in relation to the

financial position or usual business operations; and (c) contractual obligations that will govern the level of a certain type of expenditure for a

considerable period into the future. Agreements that represent usual business operations and set out pay rates or fee for service rates should not be reported as contractual obligations. Examples of these types of contractual obligations include collective bargaining agreements and fee agreements with professionals such as doctors. A multi-year transfer agreement may result in a contractual obligation if the agreement includes clear requirements for future years’ authorization and/or has eligibility criteria. A multi-year transfer agreement that requires further authorization by the ministry prior to making the transfer payment and recording the expense would result in a contractual obligation. A multi-year transfer agreement where the Government has given up its discretion to make the transfer, but the transfer agreement requires the recipient to do something before they are eligible for the transfer would result in a contractual obligation. A transfer agreement to reimburse all or a percentage of eligible costs, commonly referred to as a cost shared agreement, is the most common type of multi-year transfer that would result in a contractual obligation. Once the agreement is signed, the government has given up its discretion to make the transfer. However, there is no transfers expense until the recipient meets the eligibility criteria (incurs the eligible costs). Therefore, there is a contractual obligation for the reimbursement of the eligible costs that have not yet been incurred by the recipient. It is possible that other types of multi-year transfer agreements may have eligibility criteria to be met in the future. In both of these situations the government is contractually obligated to provide the transfer and disclosure of the remaining years’ funding is required. Note that Schedule P does not include future funding for the portion of transfers already recorded as liabilities in the current or prior years. (Refer to Section F7. Transfers)

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 73 All material contractual obligations at the end of the fiscal year must be disclosed in the notes to the Summary financial statements. Disclosing a government’s contractual obligations is useful because it provides information about the nature and extent to which a government’s resources are already committed to meet its obligations. Procedures: H3a. Schedule P asks ministries to supply a list of individual contracts (or large projects

with many small agreements) signed by March 31st, which commit the ministry to spend at least $500,000 after March 31st.

Provide a description of the contractual obligation that will be expensed in future years. Do not include contractual obligations from organizations within the government reporting entity as listed in Appendix E.

H3b. To ensure the completeness and accuracy of reporting contractual obligations,

ministries should, among other things:

• communicate regularly with program staff to determine if any new contracts or agreements have been signed and to assess the nature, duration, and value of those contracts or agreements;

• search for potential contractual obligations by periodically reviewing and following up on media releases and Orders-in-Council; and

• maintain an up-to-date list of signed contracts and agreements, including any relevant details for the future tracking of contractual obligations.

H4. Contractual Rights Policy: For fiscal years beginning on or after April 1, 2017, Public Sector Accounting Standards (PSAB) section 3380 requires disclosure of contractual rights. A contractual right exists when a legally binding contract or agreement has been signed with an individual or organization outside of the GRF that will result in both an asset and revenue in the future, when the terms of the contract or agreement are met. Contractual rights do not include amounts already recorded as assets at March 31st, nor future assets and revenue where no signed contract or agreement exists. Rights, such as the right to tax, arising from legislation are not considered contractual rights. Contractual rights do not include amounts relating to unsigned contracts or agreements. Contracts that are in the process of being negotiated are also not included. PSAB section 3380 – Contractual Rights provides guidance indicating that disclosure should include, but is not limited to, the following types:

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 74 (a) contractual rights to revenue that are abnormal in relation to the financial position or

usual business operations would be disclosed; and (b) contractual rights that will govern the level of certain type of revenue for a

considerable period into the future would be disclosed. The above factors are similar to the factors used for contractual obligations disclosure. The same rationale used to support disclosure of contractual obligations should be used when determining which types of contractual rights should be disclosed. A multi-year transfer agreement may result in a contractual right if the agreement includes clear requirements for future years’ authorization by the transferor and/or has eligibility criteria that the Government has not yet met. A multi-year transfer agreement that requires further authorization by the transferor prior to making the transfer payment to the Government would result in a contractual right for the Government. A multi-year transfer agreement where the transferor has given up its discretion to make the transfer, but the transfer agreement requires the Government to do something before the Government is eligible for the transfer would result in a contractual right. A transfer agreement in which the Government is to be reimbursed for all or a percentage of eligible costs, commonly referred to as a cost shared agreement, is an example of a multi-year transfer agreement that would result in a contractual right for the Government. Once the agreement is signed, the transferor has given up its discretion to make the transfer to the Government. However, there is no transfer revenue until the Government meets the eligibility criteria (e.g. incurs the eligible costs). Therefore, there is a contractual right for the reimbursement of the eligible costs that have not yet been incurred by the Government. It is possible that other types of multi-year transfer agreements may have eligibility criteria to be met in the future. In both of these situations, the Government has a contractual right to receive the transfer in the future and disclosure of the future years’ receipts is required. All material contractual rights at the end of the fiscal year must be disclosed in the notes to the Summary financial statements. Disclosing the Government’s contractual rights is useful because it provides information about economic resources that will be available to the Government in future years to finance operations and/or meet its obligations. Procedures: H4a. Schedule Q ask ministries to supply a list of individual contracts (or large projects

with many small agreements) signed by March 31st that will give rise to assets and revenue of at least $500,000 in the future when the terms of the contract/agreement are met. Provide a description of the contractual right for which both an asset and revenue will be received in future years. Once the Government has received or accrued an amount, that amount is no longer a contractual right. However, for contracts/agreements that extend over multiple years, any remaining amounts that have not yet been received or accrued should be included in the future years’ columns and/or remaining years’ column.


Do not include contractual rights from organizations within the government reporting entity as listed in Appendix E. Ensure that all items reported on Schedule Q are contractual rights resulting from signed contracts. Rights, such as the right to tax, arising from legislation are not considered contractual rights. For further guidance on contractual rights, please refer to the user guide provided to your Executive Director/Director of Administration in June 2017.

H4b. To ensure the completeness and accuracy of reporting contractual rights, ministries

should, among other things:

• communicate regularly with program staff to determine if any new contracts or agreements have been signed and to assess the nature, duration, and value of those contracts or agreements;

• search for potential contractual rights by periodically reviewing and following up on media releases and Orders-in-Council; and

• maintain an up-to-date list of signed contracts and agreements, including any relevant details for the future tracking of contractual rights.

H5. Contingent Assets Policy: For fiscal years beginning on or after April 1, 2017, Public Sector Accounting Standards section 3320 requires disclosure of likely contingent assets. Contingent assets are possible assets arising from existing conditions or situations involving uncertainty. That uncertainty will ultimately be resolved when one or more future events not wholly within the Government’s control occurs or fails to occur. Resolution of the uncertainty will confirm the existence or non-existence of an asset. It is important to note that “uncertainty” here differs from “measurement uncertainty”. For example, there may be measurement uncertainty related to the accounts receivable balance reported in the financial statements. However, there is no doubt that the accounts receivable balance exists (i.e. there is no uncertainty). The two basic characteristics of contingent assets are:

• there is an existing condition or situation that is unresolved at March 31st that indicates there may be an asset; and,

• there is an expected future event that will resolve the uncertainty related to the existence of an asset at year end (the future event proves or disproves the existence of the asset.)

A contingent asset is allowed to be recognized only if it reduces the amount accrued for a related contingent liability and the probability of recovery is likely. Otherwise, a contingent asset is not recognized. Information on the existence, nature, and extent of contingent

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 76 assets is disclosed in the notes to the Summary financial statements when the confirming event is “likely” and material. Determining whether or not to disclose information on contingent assets depends on the assessment of the probability of a future event occurring or not occurring. Disclosure is only warranted when contingent assets are “likely”:

Likely – the probability of the occurrence (or non-occurrence) of the future event(s) is high; Unlikely – the probability of the occurrence (or non-occurrence) of the future event is slight; and Not Determinable – the probability of the occurrence (or non-occurrence) of the future event cannot be determined.

The most common form of a contingent asset is possible litigation proceeds. Contingent assets related to legal actions should be confirmed with the Ministry of Justice, both for the likelihood and estimated amount. Grants, transfers, or contributions that are likely to be recovered because it is likely that a grant/transfer recipient will not meet the conditions related to a particular grant/transfer are also examples of contingent assets. These potential recoveries should only be recorded when the realization of the recovery is virtually certain, such as when conditions have not been met and the recipient is required to repay all or part of the grant. These potential recoveries do not affect the timing of recognition of the expense. Refer to Section F7. Transfers. Ministries may have other items that meet the definition of a contingent asset. Procedures: H5a. Provide a listing of contingent assets in Schedule R. Contingent assets related to

legal actions should be confirmed with the Ministry of Justice, both for the likelihood and estimated amount.

Do not include contingent assets from organizations within the government reporting entity as listed in Appendix E.

H6. Related Party Transactions Policy: A related party exists when:

• One organization has the ability to exercise control or shares control over the other; • The organizations are subject to common control or shared control; or • The organizations share a member of key management personnel and/or a close

family member of key management personnel.

Key management personnel for ministries are the Minister and Deputy Minister. Disclosure is generally required when related party transactions have occurred at an amount other than fair value.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 77 Procedures: H6a. Schedule S asks ministries to supply a list of all transactions that occurred with a

related party outside of the government reporting entity and where the recognized amount differed from fair value. See Appendix E for a listing of all organizations included in the government reporting entity.

Include the following information on the schedule: • Information about the nature of the relationship with the related party; • Description on the types of transactions recognized; • Recognized amounts of transactions (even if the amount recorded was nil),

classified by the financial statement category; • Basis of measurement used; • Outstanding balances, as well as terms and conditions attached to them, at year-

end; and • Contractual obligations and contingent liabilities, separated from other

contractual obligations and contingent liabilities. H7. Restructurings Policy: A restructuring transaction occurs when an organization receives or gives up an integrated set of assets and/or liabilities along with specific programing or operating responsibilities. The recipient organization likely provides no consideration, but if consideration is provided, it would not be based on the fair value of the assets and/or liabilities transferred. For example, a restructuring transaction may include the receipt or relinquishment of:

• some or all of the assets and liabilities of an organization for which the recipient also gains responsibility to continue the activities of the transferring organization; or

• tangible capital assets such as a ferry and docks, along with the responsibility to continue to operate the routes and maintain and operate the assets.

Procedures: H7a. Schedule T requires information for all restructuring transactions that occurred with

an entity outside of the government reporting entity. See Appendix E for a listing of all organizations included in the government reporting entity.

Please provide, for each transaction; • A description of the program/operation that was transferred; • The organization that provided/received the transfer; • The restructuring date; • Assets or liabilities that were transferred; and • Gain or loss incurred from the transaction (if any).

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 78 H8. Subsequent Events Policy: There are two types of subsequent events. One type provides additional evidence relating to conditions that existed at financial statement date and may result in an adjustment to the Summary financial statements. An example would be evidence that a provision for loss is inadequate. The second type of subsequent event relates to conditions that arose subsequent to March 31st and causes significant changes to assets or liabilities in the subsequent period or will or may have a significant effect on future government operations. Disclosure is made in the notes to the Summary financial statements. Examples may include a natural disaster where the government is obligated to provide relief or commencement of litigation where the cause of the action arose subsequent to March 31st. Procedures: Ministries should review events of material financial consequence occurring between March 31st and June 6th. Consider the following types of information or events that, in management’s opinion, would require adjustments to, or disclosure in, the financial statements:

a) new, revised or updated information that has a significant impact on estimates made in the Ministry’s financial records;

b) current status of litigation, claims and other contingencies; c) unusual accounting adjustments made during the subsequent period; d) changes to the Ministry’s assets, including assessments of recoverability, issues or

retirement of debentures and other long-term debt instruments or other changes to working capital;

e) new information or changes that may challenge the use of specific accounting policies;

f) major contracts or agreements made during the subsequent period; and g) other major events such as acquisitions and sales of investments or other assets,

closures, strikes, fires, natural disasters, expropriations, etc. If there are any subsequent events that may be relevant to the Summary financial statements, communicate them to Donica Smart (787-6838) or Royce Bereti (787-6814) as soon as you are aware of them. Ministries will be required to provide confirmation, by email, that no events or transactions occurred between March 31, 2018 and June 6, 2018 (the subsequent period) that would have a material impact on your ministry/office. Ministries will also be asked to confirm by email that no additional events have occurred up to the date of Treasury Board’s approval of the SFS, tentatively scheduled for June 14, 2018.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 79 Section I: Schedule Preparation Procedures I1. Introduction The information contained in the following schedules will be used for the preparation of the Public Accounts. The Public Accounts is an official document of the Government and is published on a yearly basis for tabling within the Legislative Assembly. The purpose of the Public Accounts is to provide a report to the Legislative Assembly on the revenues and expenses of the Province for the fiscal year under review, and on the financial position of the Province at the end of that fiscal year. The information therein is available to the public. Copies of the Public Accounts are provided to Members of the Legislative Assembly, government ministries and agencies and to interested parties across Canada and the United States, including bond rating agencies. With the preceding comments in mind, you may appreciate the importance of ensuring that the information contained within the schedules is accurate. It is the responsibility of ministerial officials to ensure that the schedules are correct. In addition, any questions which arise subsequent to the original preparation of the schedules are the responsibility of that particular ministry. I2. Submitting Schedules Procedures: I2a. All schedules are to be completed and emailed by the Director of Administration or

equivalent to all of the following email accounts no later than April 25th: [email protected] [email protected]

[email protected]

When emailing the schedules, the following statement from the Director of Administration or equivalent should be included: “I certify that the schedules being submitted are correct, as well as all other MIDAS balances not included on the schedules but applicable to my Ministry/Office”. Complete support for the schedules must be available for audit purposes on April 25th.

I2b. Do not change the prior year comparative amounts provided on the schedules as

they agree to the prior year Public Accounts. I2c. All amounts should be input as whole numbers, including those amounts rounded to

the nearest thousand. Do not use decimals when inputting information as this causes rounding errors.

I2d. If the information requested by a particular schedule does not apply to your ministry,

mailto:[email protected]



indicate this by marking "N/A" on the schedule. Do not leave any schedules blank and submit all schedules.

I2e. If a change to a schedule is necessary after the schedule has been submitted,

contact either Donica Smart (787-6838) or Royce Bereti (787-6814) to discuss prior to making any changes. Revised schedules should be immediately emailed to Gladys Hrycak and Melanie Heebner (see email addresses above) with an explanation of the changes provided in the email. A reconciliation to the last MIDAS reports must be included whenever changes are being made.

I2f. Each schedule and the summary schedule are to be reviewed by the Director of

Administration or an equivalent official. I3. Preparation Procedures GRF Revenue A revenue report will be sent to ministries on or around April 23rd. Ministries must verify all amounts on the report, and the Director of Administration or equivalent must send an email certifying the reports are correct to the following email accounts no later than April 25th: [email protected] [email protected]

[email protected] Schedule A - Accounts Receivable and Valuation Allowance This schedule includes totals that must agree to the balances in receivable accounts 107000, 107020, 107100 and 107120. Groups and Categories Accounts receivable and valuation allowances recorded in these accounts must be grouped on the schedule as follows: - Taxation - Non-renewable resources - Transfers from government entities - Transfers from the federal government, and - Other

The Natural Account Manual lists revenue accounts by these revenue categories and can be used to ensure proper categorization of accounts receivable. Include the total receivable amounts by category with no detail. If necessary, separate detailed supporting schedules may be completed for your own purposes. A detailed listing of customer information must be available for audit purposes.



Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 81 Schedule B - Assets Held for Sale This schedule provides the balance and changes in accounts 172000 to 174000, which are used to record assets held for sale. Refer to Section D5. Assets Held for Sale for additional guidance. Schedule C - Loans and Advances This schedule provides information on loans and advances included in accounts 12XXXX. In the first column include the name of the loan, a brief description including, where applicable, the authority under which the loan was made, terms and conditions including interest rate and term to maturity, and any security held. Provide comments on the potential for collection. Also recorded on the schedule are advances, repayments and write-offs and the balance in the loan account, concessionary allowance account and valuation allowance account for the current and previous fiscal year. Include with the loans and advances the following advances: general; relocation; temporary (not travel); travel - temporary; and travel - permanent. Amounts for each type of advance should be listed separately (balance sheet accounts 123700, 123800, 123900, 124000 and 124100). Include advance and repayment amounts for all loans and advances, even if the opening and ending balances are $0. Schedule E - Accounts Payable This schedule includes balances that must agree to the balances in accounts 255000, 255099, 255010 and 255300 at March 31st. Accounts 255000 and 255099 include accounts payable recorded by debit memo at year-end, and payables in account 255099 not cleared by March 31st. Account 255010 – Payables $1,000 and Under are accounts payable recorded by journal entry. Account 255300 includes hold backs payables. Refer to Section F9. Hold Backs Payable for procedures on recording hold backs payables. Accounts payable recorded in these accounts must be grouped and subtotalled by the following types and categories: • salaries and benefits • capital transfers • operating transfers • goods and services • Federal Government repayments – includes repayments relating to income taxes,

equalization, CHST and other repayments • other accounts payable - includes other expenses and other accounts payable such as

revenue refunds


Refer to the Natural Accounts Manual for a list of the natural accounts that are captured under each category.

Transfers payable to the federal government are reported separately within operating transfers. Accounts payable include all goods and services and TCAs received by March 31st and all transfers payable at March 31st for which no cheque has been issued by that date. Items comprising accounts 255000, 255099, 255010 and 255300 are shown by type/category on this schedule. Include the total payable amounts by category with no detail. Separate detailed supporting schedules may be completed for your own purposes. A detailed listing by payee must be available for audit purposes. Account 253000 and accounts 253010 to 253013 (for ministries with special operating units) include accounts payable set up by invoice in the AP Module and not paid at March 31st. The total (balance) of these accounts is included on this schedule, giving a total for accounts payable by ministry. Information on type, category and payee for these accounts is obtained directly from MIDAS reports. Schedule F - Guaranteed Debt This schedule shows the total amount guaranteed as well as amounts which are expected to be paid. The amount which is expected to be paid must have been expensed and recorded as a liability in account 255200 as at March 31st. Refer to Section F8. Guarantees for expense account and supplier information with respect to guarantees. Do not include guarantees from organizations within the government reporting entity as listed in Appendix E. Schedule G - Contingent Liabilities This schedule lists all significant contingent liabilities of the Province. Litigation Include on the schedule the name of the party, a description of the nature of the claim and the claim amount. Also required for each claim is an assessment of the likelihood of loss (likely, unlikely, not determinable) and an estimate of the likely loss or an indication that the loss cannot be estimated. Only include on the schedule those claims where the estimate of loss is equal to or greater than $500,000. Where a loss is likely and reasonably estimable and has been expensed and set up as a liability (account 255600), the amount set up should be clearly indicated. Do not include contingent liabilities from organizations within the government reporting entity as listed in Appendix E.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 83 All pending litigation should be confirmed with the Ministry of Justice both for likelihood and expected amount. Contingent Liabilities due to Organizations within the government reporting entity Litigation claims with organizations within the government reporting entity, as listed in Appendix E, recorded in account 255600 are recorded separately on this schedule. Only where a liability has been recorded in account 255600, should the litigation be listed in this section of the schedule. Other Contingent Liabilities Other contingent liabilities recorded in account 255600 (for other than litigation) are recorded separately within this section of the schedule. The expenditure account (e.g. 199150, 519895, 521010 or 578100) used to record the contingent liability should be listed. Schedule GA – Liability for Contaminated Sites This schedule includes balances that must agree to the balances in the Contaminated Sites Liabilities account 258960, Contaminated Site Liability – Lorado account 258710, the Change in Year-End Contaminated Sites Liabilities account 588960, the Change in Year-End Contaminated Site Liability – Lorado account 521710, and the Contaminated Sites Remediation account 521700 at March 31st. Opening Balance The opening balance must agree to the prior year March 31st balance recorded in account 258960 Contaminated Sites Liabilities and 258710 Contaminated Site Liability - Lorado (if applicable). Expenses Total expenses equals the net amount of all of the journal entries recorded to account 588960 - Change in Year-End Contaminated Sites Liabilities (e.g. for any new liabilities for contamination events that occurred during the year), account 521710 - Change in Year-End Contaminated Sites Liabilities - Lorado (if applicable), and account 521700 – Contaminated Sites Remediation. Payments Includes total payments made for the remediation of contaminated sites during the old fiscal year. Total payments must agree to expense account 521700 - Contaminated Sites Remediation.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 84 Closing Balance The closing balances must agree to the March 31st balance in the MIDAS accounts 258960 and 258710 (if applicable). List of Contaminated Sites Liabilities This section requires information on the nature and source of the liability, the basis for the estimate of the liability, the estimated undiscounted future expenditures and discount rate (if applicable), the estimated recoveries (if applicable), and the reason for not recognizing a liability or contingent liability (if applicable). Include the total liability by location and anticipated timing for remediation (if known). Similar contaminated sites may be grouped together. Separate detailed supporting schedules may be completed for your own purposes. A detailed listing by site must be available for audit purposes. Schedule GB – Capital Lease Obligations This schedule includes capital lease obligations recorded in account 255400 Obligation Under Capital Lease. The amount of the liability is the present value of the future lease payments. The appropriate discount rate to use is the lesser of the Province’s borrowing rate at the inception of the lease or the interest rate implicit in the lease, if determinable. The Province’s borrowing rate can be obtained from Jim Fallows, Executive Director, Treasury Management Branch, Finance at 787-3923. Report the capital lease obligation, by year, of when the capital lease payment is expected to be paid. Yearly amounts include the interest and executory costs. Report a separate deduction for the total interest and executory costs included in the minimum lease payments. The total capital lease obligation should agree to the unpaid liability in account 255400 Obligation Under Capital Lease. Additional information for capital lease expiry dates, interest rates and TCA cost and accumulated amortization amounts is also required. Provide the earliest and latest expiry date based on review of all of your capital leases. The expiry date is the ending date of the capital lease term. Provide the lowest and highest interest rate based on review of all of your capital leases. Provide the total asset cost and accumulated amortization by category for tangible capital assets (TCAs) recorded for all of your capital leases. Schedule H - Unearned Revenue This schedule provides a general description of the types of unearned revenue, for example multi-year licenses, and a total by type recorded in account 257000. List unearned revenue amounts within the appropriate categories listed on the schedule.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 85 A new category for transfers from the federal government has been added to the schedule. Transfers from the federal government are recorded as a liability (unearned revenue) in rare instances when the transfer stipulations meet the definition of a liability (e.g. funding received in advance of incurring an equivalent amount of eligible costs under a cost-sharing agreement). Within each type, indicate the amount of any restricted revenues, and nature of the restriction. Include any balance in account 257020 Unapplied Receipts arising from the AR Module. Schedule I – Obligations Under Long-Term Financing Arrangements This schedule provides information on obligations under long-term financing arrangements included in account 270000 at March 31st. For ministries with obligations under long-term financing arrangements, provide the name of the project, expected completion date, portion of the project that has been constructed and the discount rate, which is the Government’s borrowing rate for long-term debt at the time the public private partnership (P3) arrangement was signed. For each obligation under long-term financing arrangement project, provide the prior year balance that agrees to the March 31st balance in account 270000, additions to the obligation during the year based on the portion of the project that is completed, progress and capital payments made during the year that reduce the obligation and the obligation under long-term financing closing balance that agrees to the March 31st balance in MIDAS account 270000. Schedule J - Miscellaneous Accounts List on this schedule all accounts that should have a ‘zero’ balance but do not, along with an explanation for the balance. Schedule K - Revolving Funds - Accumulated Net Recovery (Expenditure) This schedule summarizes the revolving fund’s transactions for the year, and provides the accumulated net expenditure at March 31st. The revenue, expenditures and net recovery (expenditure) for the year must agree to MIDAS. Accrual adjustments to calculate the Accumulated Net Expenditure on a cash basis must agree with the receivables and payables set up in MIDAS. The net cash recovery (expenditure) must agree with the balance in account 253050 in MIDAS. The accumulated net recovery (expenditure), beginning of year must agree with the balance in account 259900 in MIDAS. The accumulated net recovery (expenditure), end of year must agree to the total of accounts 253050 and 259900 in MIDAS.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 86 The maximum accumulated net expenditure must agree to the most recent Order-in-Council. Schedule M - Tangible Capital Assets (TCAs) - Summary of Change for the Year This schedule summarizes information on TCAs, by capital asset class. It includes beginning of the year balances for the cost and accumulated amortization as well as transactions during the year, such as TCA additions, disposals and annual amortization. Under the main classes of TCAs are categories with distinct thresholds and estimated useful lives. This schedule should be prepared using whole dollars (rather than in thousands of dollars as in past years). All amounts included on this schedule must agree to March 31st MIDAS balances in total and by asset class. This schedule summarizes the following transactions for each main class of TCAs: Opening Cost and Accumulated Amortization The opening balances must agree to the prior year March 31st balance in each of the cost (19XX00) and accumulated amortization (19XX10) accounts. Acquisitions The amounts reported as acquisitions on this schedule must equal the total purchases recorded in each of the current year addition accounts (199XX0). The only exception is when there is a shared service arrangement where one ministry (providing ministry) undertakes capital projects for another ministry (receiving ministry). The receiving ministry will show the asset as an addition. For the providing ministry, the internal recovery offsets the addition and the transaction is not recorded on the TCA summary. If there are additions not recovered, the addition account less any internal recovery should agree to the addition on the schedule. When running reports for TCA acquisitions, period 12 (MAR-18) is used. Remember to net any internal recoveries from the addition accounts. Work-In-Progress

Work-in-progress is the cost of development or construction for projects that have not been completed and, therefore, are not being amortized. Amounts for work-in-progress should be included in the acquisitions and closing cost of TCAs recorded on this schedule. Details of work-in-progress are included on Schedule MB.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 87 External Transfers Ministries may receive assets from or transfer assets to agencies that are not part of the GRF. External transfers occur when an asset is transferred to or from an entity outside of the GRF with no cash proceeds. Assets that are transferred to an entity outside of the GRF with cash proceeds are reported as a disposal in the Summary financial statements. Capital assets transferred to a ministry increase the appropriate category’s cost and in some cases the accumulated amortization account, while transfers out decrease the cost and accumulated amortization account. External transfers are shown separately for each capital asset class on this schedule. Assets transferred to the GRF may include assets transferred on the wind-up of a Crown corporation, assets transferred from another agency or donated assets. The value of the assets transferred depends on the nature of the transaction and any related agreements. Transfers out would be rare. The Assistant Provincial Comptroller, Provincial Comptroller’s Office, Ministry of Finance should be consulted on the recording of any transfer of assets to an agency not part of the GRF. Details of external transfers are included on Schedule MB. Internal Transfers

Ministries may transfer capital assets to and/or from other ministries. Such transfers occur at net book value and involve no exchange of funds. Capital assets transferred to a ministry increase the appropriate category’s cost and accumulated amortization accounts while transfers out should decrease the cost and accumulated amortization accounts. Ministries involved with these transactions should consult with one another to ensure equal respective offsetting entries are made. Each entry should be to the same capital asset category and account for the same value. Internal transfers for each capital asset class are shown separately on this schedule. Details of internal transfers are included on Schedule MB.

Transfers Between Asset Classes These include transfer of assets between asset classes due to errors when initially recording the asset. Details of transfers between asset classes are included on Schedule MB. Write-downs A write-down of a capital asset occurs as a result of a decrease in the quality or quantity of its service potential. A write-down should be recorded and expensed in the period the decrease is measured and expected to be permanent. When recording a write-down, only cost (not accumulated amortization) is adjusted. Write-downs in each capital asset class are shown separately on this schedule and the

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 88 total write-down should agree to the year-end balance in expense account 588850 - Write Down of Capital Assets plus any write downs resulting from the reversals of prior year over accrued TCAs recorded as reductions to the prior year accruals and asset costs accounts. Ministries are responsible for obtaining the appropriate approval before recording any write-downs. Details of write-downs are included on Schedule MB. Disposals The disposal of a capital asset results in its removal from service as a result of sale, destruction, loss, or abandonment. When a capital asset is disposed, the cost and the accumulated amortization are removed from the accounting records and any gain or loss is recorded. Ministries must reconcile the cost and accumulated amortization of any disposed capital assets removed from the account records to the transactions recorded in the appropriate category’s cost (19XX00) and accumulated amortization (19XX10) accounts.

The gain or loss on disposal is the difference between the net proceeds received and the net book value of the asset. The proceeds on the disposal of capital assets and the resulting gain or loss are recorded on Schedule MA. Under the current TCA policies, deemed disposals are allowed for certain infrastructure categories. Refer to FAM Section 2150 Capital Assets Accounting and Reporting. Ministries report disposal adjustments to cost and accumulated amortization by asset class on this schedule. Details of disposals of TCAs, including the proceeds and resulting gain or loss are recorded on Schedule MA. Annual Amortization Ministries must reconcile the total annual amortization recorded in each of the amortization accounts (588000 – 588799) to the amounts reported on this schedule.

Closing Cost and Accumulated Amortization The closing balances must agree to the March 31st balance in each of the cost (19XX00) and accumulated amortization (19XX10) accounts. When running reports for TCA cost, period 13 (ADJ-18) is used.

Schedule MA - Tangible Capital Assets - Gain (Loss) on Disposal This schedule summarizes information on disposals including proceeds and any resulting gain or loss. The amounts on this schedule agree to disposal amounts for cost and accumulated amortization on Schedule M, and for net gains or losses occurring during the

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 89 year agree to the balance in MIDAS accounts 485800 – Gain on disposal of capital assets, 588800 – Loss on disposal of capital assets and account 588801 - Vehicle Gain/Loss (for disposal of CVA vehicles only). This schedule should be prepared using whole dollars (rather than in thousands of dollars as in past years). Schedule MB - Tangible Capital Assets – Work-in-progress, Transfers and Write-downs This schedule provides additional information on work-in-progress, transfers and write-downs by TCA category and class. Work-in-progress is the cost of development or construction for projects that have not been completed and, therefore, are not being amortized. Details on work-in-progress by TCA class are included on this schedule. Amounts for work-in-progress are included in the acquisitions and closing cost of TCAs recorded on Schedule M. For internal transfers, include the ministry the TCA was transferred to or from; and for external transfers, include the entity the TCA was transferred to or from. In rare cases, a ministry may transfer TCAs between asset classes. These transfers are also included on this schedule. Information on write-downs is included on this schedule. When recording a write-down, only cost (not accumulated amortization) is adjusted. (A write-off of a TCA, when both cost and accumulated amortization are adjusted, is recorded as a disposal.) The amounts on this schedule should be totalled by TCA class and agreed to the amounts on Schedule M. This schedule should be prepared using whole dollars (rather than in thousands of dollars as in past years). Schedule MC - Tangible Capital Assets - Fixed Asset Module Acquisitions For those ministries that use the Fixed Asset Module in MIDAS, provide the amount of acquisitions by TCA category recorded in the Fixed Asset Module. This information is required for preparation of the TCA schedule included in Volume 2 of the Public Accounts. This schedule should be prepared so that amounts agree to MIDAS balances in cents (not rounded to the nearest dollar). Schedule MD – Tangible Capital Assets – Private Public Partnership (P3) This schedule provides information on TCAs acquired under P3s. For those ministries that have assets acquired through a P3, provide the legal name of the

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 90 entity with whom the P3 arrangement is with and the name of the project. For each asset acquired through a P3, provide the total cost of the asset calculated using the total nominal value of progress payments made during or on completion of construction and the present value of future payments discounted to the date the asset is available for use using the Government’s borrowing rate for long-term debt at the time the arrangement was signed. Opening Cost and Accumulated Amortization The opening balances must agree to the prior year March 31st P3 balances recorded in each of the cost (19XX00) and accumulated amortization (19XX10) accounts. Acquisitions The amounts reported as acquisitions on this schedule must equal the total P3 purchases recorded in each of the current year addition accounts (199XX0) for Buildings and Improvements or Infrastructure. Annual Amortization The amounts reported as annual amortization on this schedule must equal the total P3 amortization recorded in each of the amortization accounts (588000 – 588799) for Buildings and Improvements or Infrastructure. Closing Cost and Accumulated Amortization The closing balances must agree to the March 31st P3 balances recorded in each of the cost (19XX00) and accumulated amortization (19XX10) accounts. Schedule ME - Unrecognized Assets This schedule includes all unrecognized assets. Categorize each unrecognized asset or group of similar unrecognized assets into the major categories of asset(s): intangible asset; inherited natural resource; inherited Crown land; works of art and historical treasures; or other. Provide the reason(s) for not recognizing the asset(s). Schedule N - Changes in Previous Years’ Estimates This schedule provides information on amounts credited to revenue account 486905 Changes in Previous Years’ Estimates. Only items greater than $2 million should be listed and described separately, however, the total amount listed should agree to the March 31st MIDAS balance.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 91 Schedule O - Measurement Uncertainty This schedule provides information on items, recognized or disclosed in the Summary financial statements, where the estimated amount of the item may vary by $10,000,000 or more in the next fiscal year. Do not include amounts where the revenue/receivable or expense/payable are from/to organizations within the government reporting entity as listed in Appendix E. Schedule P - Contractual and Operating Lease Obligations Contractual obligations are disclosed in the notes to the Summary financial statements. A contractual obligation exists when a legally binding contract or agreement has been signed by March 31st with an individual or organization outside of the GRF, that will result in the obligation becoming a liability in the future, when the terms of the contract or agreement are met. Do not include contractual obligations from organizations within the government reporting entity as listed in Appendix E. List contractual obligations in excess of $500,000 by name of payee or project within the appropriate categories listed. Include a brief description of the contractual obligations expected to be expensed in future years and in what fiscal year(s) the amount becomes an obligation. For contractual obligations where the agreement continues into perpetuity, all amounts expected to become payable beyond five years out should be included within the “Remaining Years” column. For contractual obligations where the total amount of the obligation is known or can be estimated but the years over which the contractual obligation will be settled cannot be specified, explain and include the full amount of the obligation in the 'No Maturity Date' column. Other contracts over $2 million that do not fit within the categories provided should be listed within other. Multi-year transfer agreements where the agreement includes clear requirements for future years’ authorization and/or has eligibility criteria that are not yet met may result in contractual obligations that must be disclosed. Note that Schedule P does not include future funding for transfers already recorded as liabilities in the current or prior years. For contractual obligations arising from a shared-cost agreement, it may be difficult to assess the timing and amount of future cash payments. A best estimate of the timing and amount of future cash payments should be reported on the schedule. This schedule also includes operating lease obligations.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 92 Schedule PA – Private Public Partnership (P3) Payment Schedule This schedule provides a P3 payment schedule that includes obligations under long-term financing arrangements, TCA construction and acquisition contractual obligations and operations and maintenance contractual obligations. List the obligations under long-term financing arrangement in the fiscal year that the amount will be paid. The total obligation under long-term financing arrangement must agree to the March 31st balance in MIDAS account 270000. List the P3 contractual obligations relating to TCA construction and acquisition in the fiscal year the amount is expected to be paid. The total amount for TCA construction and acquisition on Schedule PA must agree to the total amount reported for TCA construction and acquisition on Schedule P on a project by project basis. List the P3 contractual obligations relating to operations and maintenance (which needs to include life cycle/ rehabilitation payments) in the fiscal year the amount is expected to be paid. The total amount for operations and maintenance on Schedule PA must agree to the total amount reported for operations and maintenance on Schedule P on a project by project basis. Schedule Q - Contractual Rights For fiscal years beginning on or after April 1, 2017, contractual rights are disclosed in the notes to the Summary financial statements. A contractual right exists when a legally binding contract or agreement has been signed by March 31st with an individual or organization outside of the GRF, that will result in both an asset and revenue in the future, when the terms of the contract or agreement are met. Do not include contractual rights from organizations within the government reporting entity as listed in Appendix E. List contractual rights in excess of $500,000 by name of payor or project within the appropriate categories listed. Include a brief description of the contractual rights and include what fiscal year(s) the receipts are expected. For contractual rights where the agreement continues into perpetuity, all amounts expected to be received beyond five years out should be included within the “Remaining Years” column. For contractual rights where the total amount of the right is known or can be estimated but the years over which the contractual right will be settled cannot be specified, explain and include the full amount of the right in the 'No Fixed Maturity Date' column. Other contracts over $2 million that do not fit within the categories provided should be listed within other. Multi-year transfer agreements where the Government is the recipient and where the agreement includes clear requirements for future years’ authorization and/or has eligibility criteria that the Government has not yet met may result in contractual rights that must be disclosed.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 93 For contractual rights arising from a shared-cost agreement, it may be difficult to assess the timing and amount of future receipts. A best estimate of the timing and amount of future receipts should be reported on the schedule. Ensure that all items reported on Schedule Q are contractual rights resulting from signed contracts. Rights, such as the right to tax, arising from legislation are not considered contractual rights. For further guidance on contractual rights, please refer to the user guide provided to your Executive Director/Director of Administration in June 2017. Schedule R - Contingent Assets This schedule lists all contingent assets of the Province where the estimate of the gain is greater than $500,000. Litigation Include on the schedule the name of the party, a description of the nature of the claim and the claim amount. Also required for each claim is an assessment of the likelihood of the gain (likely, unlikely, not determinable) and an estimate of the gain or an indication that an estimate cannot be estimated or disclosed due to having an adverse effect on the outcome. Do not include contingent assets from organizations with the government reporting entity as listed in Appendix E. All pending litigation should be confirmed with the Ministry of Justice both for the likelihood and estimated amount. Other Contingent Assets Include separately on this schedule information on other likely contingent assets, such as a potential recovery when it is likely that a grant/transfer recipient will not meet the conditions related to a particular grant/transfer. Schedule S – Related Party Transactions Related party transactions are disclosed in the notes to the Summary financial statements. A related party exists when; one organization has the ability to exercise control or shares control over the other; they are subject to common control or shared control; or they share a member of key management personnel and/or a close family member of a key management personnel. Key management personnel for ministries are Ministers and Deputy Ministers and for the independent offices, the Officers/Commissioners. Do not include related party transactions with organizations within the government reporting entity as listed in Appendix E. List the related party transactions where the amount was not at fair value. Include the

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 94 following information on the schedule:

• The name of the entity or individual with whom the transaction occurred; • Information about the nature of the relationship with the related party; • Description on the types of transactions recognized; • Recognized amounts of transactions (even if the amount recorded was nil),

classified by the financial statement category; • Basis of measurement used; • Outstanding balances, as well as terms and conditions attached to them, at year-

end; and • Contractual obligations and contingent liabilities, separated from other

contractual obligations and contingent liabilities.

If no related party transactions occurred with an organization outside of the government reporting entity where the amount was other than fair value check the box on the bottom of the schedule. Schedule T - Restructurings Restructuring transactions are disclosed in the notes to the Summary financial statements. A restructuring transaction occurs when an organization receives or gives up an integrated set of assets and/or liabilities along with specific programing or operating responsibilities. The recipient organization likely provides no consideration, but if consideration is provided, it would not be based on the fair value of the assets and/or liabilities transferred. Do not include restructuring transactions with organizations within the government reporting entity as listed in Appendix E. List each restructuring transaction where either the assets or liabilities transferred were greater than $500,000. Include the following information on the schedule:

• A description of the program/operation that was transferred; • The organization that provided/received the transfer; • The restructuring date; • Assets or liabilities that were transferred; and • Gain or loss incurred from the transaction (if any).

Schedule U - Pension Plans, Trust Funds, and Special Purpose Funds This schedule provides details of all funds administered by your ministry for funds with assets maintained separately from the GRF. List alphabetically all funds administered by your ministry noting whether the fund is new in the current year and whether it is included in the Summary of Individual Pension Plan and Trust Funds in Volume 2 of the Public Accounts.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 95 Schedule UA lists the assets and liabilities for each pension plan or trust fund included in the Summary in Volume 2 of the Public Accounts. The balances should be from the latest financial statements (audited if available) of the plans and funds closest to March 31st, if the year-end is not March 31st. These are financial statements with fiscal years ending in the period April 2017 to March 2018. Where financial statements are not available, March 31st balances should be recorded. Schedule Y - Statement of Remissions This schedule lists persons and companies who have been granted a remission of taxes, royalties, rentals or fees under the authority of Section 24 of the Financial Administration Act, 1993 or under the authority of other legislation. The listing should identify the Order in Council, the Act, nature of the tax or fee, the name of the person or company and the amount of the remission. The list should include remissions involving unpaid amounts as well as remissions which involve a return of amounts already paid. Provide a brief description of remissions which may provide an exemption at source and would not require a refund. Schedules ZA-ZD - Summary Financial Statements Schedules ZA through ZD are used for the preparation of the Summary financial statements. The schedules are to include inter-entity balances and transactions with entities within the government reporting entity as listed in Appendix E, including subsidiaries of GBEs. Inter-entity balances and transactions are eliminated during the preparation of the Summary financial statements. Transactions with other ministries do not need to be listed on schedules ZA through ZD. Only balances and transactions with entities within the government reporting entity that are equal to or greater than $500,000 are to be included on these schedules. This includes payments to these organizations made from imprest accounts or using Program Remittance Printing. Schedules ZA - Inter-entity Assets List inter-entity receivables as at March 31st from any of the entities included in Appendix E. Schedules ZB - Inter-entity Liabilities List inter-entity balances as at March 31st owing to any of the entities included in Appendix E. Schedules ZC - Inter-entity Revenue List inter-entity revenue transactions recorded throughout the fiscal year with any of the entities included in Appendix E.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 96 Schedules ZD - Inter-entity Tangible Capital Assets Transactions List details of any inter-entity capital asset transactions (transfers, sales or acquisitions) recorded throughout the fiscal year with any of the entities included in Appendix E. Contact FSB, Finance to obtain specific information on inter-entity transactions.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 97 APPENDIX A General Revenue Fund Accounting Policies Basis of accounting These financial statements are prepared in accordance with Canadian public sector accounting standards issued by the Public Sector Accounting Board, with the exception that pension liabilities are not recorded in the financial statements. The General Revenue Fund accounts for defined benefit pension plans on a cash basis. Reporting entity The General Revenue Fund is the general fund, which receives all revenues unless otherwise specified by law. Spending from the General Revenue Fund is appropriated by the Legislative Assembly. Other government entities such as revolving funds, special purpose funds, government business enterprises and other Crown corporations and agencies report separately in other financial statements. Only financial transactions to or from these other entities are included in the General Revenue Fund. Government business enterprises are self-sufficient government organizations that have the financial and operating authority to sell goods and services to individuals and organizations outside the government reporting entity as their principal activity. The Government’s Summary financial statements, which include the financial activities of the General Revenue Fund and other government entities, are provided separately. Specific accounting policies Financial assets Financial assets are assets that could be used to discharge existing liabilities or finance future operations and are not for consumption in the normal course of operations. Temporary investments are recorded at the lower of cost or market. Deferred charges include issue costs and net discounts or premiums incurred on the issue of general debt and related derivative instruments. They are recorded at cost and amortized on a straight-line basis over the remaining life of the debt issue. Loans receivable generally have fixed repayment terms and are interest bearing. Promissory notes issued by Crown corporations are recorded at par; all other loans are recorded at cost. Loans to Crown corporations are presented net of amounts Crown corporations have contributed to sinking funds and net of government business enterprise specific debt. Equity investment in Crown Investments Corporation of Saskatchewan is an advance to the corporation to form its equity capitalization and is recorded at cost. Where there has been a loss in value that is other than a temporary decline, loans and equity investments are written down to recognize the loss.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 98 Liabilities Liabilities are present obligations resulting from transactions and events occurring prior to year end, which will be satisfied in the future through the transfer or use of assets or another form of economic settlement. They consist of obligations to provide authorized transfers where eligibility criteria are met, to repay borrowings, to pay for goods and services acquired prior to year end and to deliver goods or services in the future where payment has been received. Liabilities include contingencies when it is likely that a liability exists and the amount can be reasonably estimated. Public debt is recorded at par, and is comprised of: • government general debt, which is debt issued by the General Revenue Fund to fund government

spending; • Crown corporation general debt, which is debt issued by the General Revenue Fund and

subsequently loaned to a Crown corporation; and • government business enterprise specific debt, which is debt issued by the General Revenue

Fund specifically on behalf of government business enterprises, where the government expects to realize the receivables from the government business enterprises and settle the external debt simultaneously. Government business enterprises for which the government issues debt specifically are listed on schedule 5.

On the Statement of Financial Position, public debt is presented net of loans to Crown corporations for government business enterprise specific debt. Debt servicing charges on the Statement of Operations are presented net of reimbursements of interest for government business enterprise specific debt. Debenture issues that require contributions to a sinking fund are recorded at principal less sinking fund balances. The General Revenue Fund is reimbursed by Crown corporations for all sinking fund contributions made for debt incurred on their behalf. Premiums and discounts on long-term investments within these sinking funds are amortized on a constant yield basis. Debt issues and sinking fund investments held in foreign currencies are converted to the Canadian dollar equivalent at the exchange rate in effect at March 31. Premiums, discounts and issue costs incurred on general debt are recorded as deferred charges. Premiums, discounts and commissions on government business enterprise specific debt are netted against reimbursements by these entities. Unamortized foreign exchange gain or loss represents the unrealized gains and losses resulting from conversion of general debt due and sinking fund investments held in a foreign currency to the Canadian dollar equivalent at the exchange rate in effect at March 31. These unrealized gains and losses are amortized on a straight-line basis over the remaining life of the debt issue. Realized foreign exchange gains and losses resulting from general debt transactions are included in the surplus or deficit. Obligations under long-term financing arrangements represent the General Revenue Fund’s liability for public private partnerships (P3s). These liabilities are recorded on the percentage-of-completion basis over the period of construction of the P3 asset and reduced by progress and capital payments made to the P3 partner. The percentage of completion is applied to the nominal value of progress payments and the present value of future capital payments, discounted to the date the asset is available for use, using the Government’s borrowing rate for long-term debt at the time the agreement is signed. Other liabilities include obligations for contaminated sites recorded using the Government’s best estimate of the amount required to remediate sites for which the Government is either directly responsible or has accepted responsibility. The contaminated sites liability represents the cost of

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 99 activities to bring the site to the current minimum environmental standard based on the nature of its use prior to contamination. These liabilities are reported net of any expected recoveries. Guaranteed debt includes guarantees by the Minister of Finance made through specific agreements or legislation to pay all or part of the principal and/or interest on a debt obligation in the event of default by the borrower. Loss provisions on guaranteed debt are recorded as a liability and an expense when it is likely that a loss will occur. The amount of the loss provision represents the best estimate of future payments net of recoveries. Non-financial assets Non-financial assets are acquired, constructed or developed assets that do not normally provide resources to discharge existing liabilities, but instead are normally employed to deliver government services, may be consumed and are not for sale in the normal course of operations. Inventories held for consumption are recorded at cost and are expensed as they are consumed. Tangible capital assets are recorded at cost and include all amounts directly attributable to the acquisition, construction, development or betterment of the asset but does not include interest. During construction, these assets are recorded based on their percentage of completion and are disclosed as work in progress. Amortization is generally on a straight-line basis over the estimated useful life and commences when the asset is in service. Tangible capital assets procured through P3s are valued at the total of the nominal value of progress payments made during or on completion of construction and the present value of the future capital payments, discounted to the date the asset is available for use using the Government’s borrowing rate for long-term debt at the time the agreement is signed. Revenue Taxation revenue is recognized when the tax has been authorized by the legislature and the taxable event occurs. The taxable event differs for each type of tax; for example, taxation revenue is recognized when taxpayers earn income, purchase products and services, or are in possession of real property. Tax concessions are recorded as a reduction in taxation revenue. For individual and corporation income taxes, cash received from the federal government, adjusted for assessment data from the federal government when it provides a more reliable estimate, is used as the basis for recording the tax revenue. Non-renewable resource revenue is recognized based on the production, sales or profits generated from a specific non-renewable resource. Oil revenue is based primarily on production; potash revenue is based primarily on potash profits generated; and resource surcharge revenue is based on sales of the non-renewable resource. Transfers from the federal government are recognized as revenue in the period during which the transfer is authorized and eligibility criteria are met, except when and to the extent that the transfer stipulations give rise to an obligation that meets the definition of a liability. Transfers meeting the definition of a liability are recognized as revenue as the liability is settled. Expense Expenses represent the government’s cost to deliver public services. Transfers are recognized as expenses in the period the transfer is authorized and eligibility criteria are met. Defined benefit pension plan costs are recorded on a cash basis.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 100 APPENDIX B Critical dates to remember are as follows: Item Complete By Requisitions received by Purchasing, Central Services for March 31st delivery February 2

Requisitions received by Communications Services, Executive Council for March 31st delivery February 28

New year periods opened (future enterable) – new year periods may default March 23

Receipt of goods and services and TCAs charged to old year appropriation March 31

Old year cheque cancellations March 31

Processing of payroll transactions in MIDAS HR/Pay March 31

Receipt of goods or services – Purchasing Module April 9

Recording entries that affect the TCA cost accounts April 9

Recording old year cash deposits for the GRF and other bank accounts (i.e. suspense accounts, revenue transfers accounts, VISA accounts, etc.) April 9

Notification to MIDAS Financials Helpdesk of outstanding purchase order encumbrances, paid by purchase card, to be closed April 11

Access to “other ministries” interministerial clearing accounts April 11

Entries that affect the AR Module April 16 (3 PM)

Validation of BMO purchase card payment April 16 (3 PM)

Adjustments to appropriations April 16 (3 PM)

Automated ministry interface transactions (ministry-managed) April 16 (3 PM)

Journal entries April 16 (3 PM)

Information and staff available to assist FSB, Finance during MIDAS close April 17

Supporting schedules received by Finance and the Provincial Auditor April 25

Information and staff available to assist the Provincial Auditor’s Office April 25 to May 4

Draft GRF financial information goes to Provincial Auditor May 14

Final GRF financial information goes to Provincial Auditor June 6

Representation letter required by Finance June 6

Critical dates related to AP Module processing through Central Accounts Payable have been identified separately on the next page of this Appendix.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 101 Central Accounts Payable Critical Dates: Except as noted, cut-off is 5:00 PM on the dates specified below. The exceptions have a noon cut-off. Invoice received by Central Accounts Payable (includes request for payment) April 9 Old Year invoices received by Central Accounts Payable after April 9th will not be scanned. Invoices available to ministries for coding & approval April 11 (noon) Manual debit memo submissions received by Central Accounts Payable (Except related to Central Services) April 12 (noon) Spreadsheet accrual debit memo submissions to the FSB, Finance (email to ‘FI GRP – AP’) April 12 (noon) Ministry approval cut-off date April 12 Manual debit memo entry & validation by Central Accounts Payable completed April 13 Ministry validation of debit memo interfaces April 13 Final AP Module cut-off April 16 (3 PM) Central Services Invoices (including Information Technology Division): Central Accounts Payable receives Central Services invoices for ministries April 9 Central Services invoices available to ministries for coding and approval April 11 (noon) Accrual debit memo submissions related to Central Services due to Central Accounts Payable (manual, not spreadsheet) April 12 (noon) Ministry approval cut-off date – Central Services invoices April 12 Non-CAP Critical Dates: Invoices and debit memos April 16 (3 PM) Travel Claim Dates: Employee completion of travel expense claims & receipts received by Central Accounts Payable (this includes manual travel claims, i.e. for employees without access to a computer) April 4 (noon) Ministry approval cut-off date for iExpenses claims April 9 Central Accounts Payable audit work complete (consultation with, and action by, travelers if required) April 10

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 102 APPENDIX C Numeric Account Listing Asset Accounts Schedule 100050 Returned Item Clearing Account SHOULD BE 0 (Schedule J) 107000 Accounts Receivable – General Schedule A 107020 Accounts Receivable – Valuation Allowance Schedule A 107100 Accounts Receivable – From Accounts Receivable Schedule A 107110 Accounts Receivable Bank Deposit Clearing Account SHOULD BE 0 (Schedule J) 107120 Accounts Receivable Valuation Allowance – From Accounts Receivable Schedule A 107130 Accounts Receivable Internal Revenues Clearing SHOULD BE 0 (Schedule J) 120600 to 129999 Loans, concessionary amounts, and provision for loss Schedule C 172000 to 174000 Land, Buildings and Inventory for Resale Schedule B 191000 to 199900 TCAs, cost, accumulated amortization and additions Schedules M - MC Liability Accounts 251000 Foreign Currency Payable SHOULD BE 0 (Schedule J) 253000 Accounts Payable – from Accounts Payable – DO NOT USE Schedule E 253001 Future Dated Payment Liability – DO NOT USE SHOULD BE 0 (Schedule J) 253010 Accounts Payable – from Accounts Payable – Org 001 Schedule E 253011 Accounts Payable – from Accounts Payable – Org 005 Schedule E 253012 Accounts Payable – from Accounts Payable – Org 021 Schedule E 253013 Accounts Payable – from Accounts Payable – Org 032 Schedule E 253021 Refund to Vote – Clearing Account SHOULD BE 0 (Schedule J) 253022 Payroll Refund to Vote – Clearing Account SHOULD BE 0 (Schedule J) 253023 Accounts Receivable – Accounts Payable Clearing Account SHOULD BE 0 (Schedule J) 253051 to 253072 - Interministerial Clearing accounts SHOULD BE 0 (Schedule J) 253080 Payroll Interministerial Clearing SHOULD BE 0 (Schedule J) 255000 Accounts Payable – General Schedule E 255010 Payables $1,000 and Under Schedule E 255099 Accounts Payable – Previous Years Schedule E 255200 Guaranteed Debt Payable Schedule F 255300 Hold Backs Payable Schedule E 255400 Obligation Under Capital Lease Schedule GB 255600 Contingent Liability Schedule G 257000 Unearned Revenue Schedule H 257020 Unapplied Receipts Schedule H 258960 Contaminated Sites Liabilities Schedule GA 259900 Accumulated Net Expenditure (Liability) Schedule K 270000 Obligations Under Long-Term Financing Arrangements Schedule I NOTE: If an account that should have a zero balance at year-end does not, include the account on Schedule J, with an explanation for the balance.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 103 APPENDIX D Expense Accounts Used in the GL Module Balance Expense Sheet Account Name Account Account Change in payables $1000 and under: Personal Services Payable - Year End 519891 255010 Travel Expenses Payable - Year End 541892 255010 Transfers - Year End Payables 571893 255010 Contract Services Payable - Year End 521894 255010 Communications Expenses Payable - Year End 532895 255010 Supplies and Services Expenses Payable - Year End 542896 255010 Expensed Equipment and Other Assets Expenses Payable – Year End 569897 255010 Other Expenses Payable - Year End 572898 255010 Change in year-end accruals and adjustments to valuation allowances: Change in Year-end Accrued Supplementary Payroll 516100 255020 Change in Year-end Severance Liability and Other Benefits 519800 255020 Change in Contingent Liability - Salaries and Benefits 519895 255600 Change in Year-end Accrued Employee Leave Entitlement 519900 255100 Change in Contingent Liability - Goods and Services 521010 255600 Change in Valuation Allowance 576000 107020/ 107120 Provision for Loss on Loans and Investments 576200 12XX20 Change in Guaranteed Debt Payable 577100 255200 Change in Contingent Liabilities - Other Expense 578100 255600 Change in Year End Contaminated Sites Liabilities 588960 258960 Reimbursement expense accounts: Reimbursement - Personal Services 519882 N/A Reimbursement - Contract Services 521884 N/A Reimbursement - Communications 532885 N/A Reimbursement - Travel 541881 N/A Reimbursement - Supplies and Services 542886 N/A Reimbursement - Expensed Equipment and Other Assets 569887 N/A Transfers - Reimbursement 571883 N/A Reimbursement - Other Expenses 572889 N/A Expenses related to non-financial assets: Amortization Expense 588000 - 19xx10 588799 (accumulated amortization) Loss on Disposal of Capital Assets 588800 19xx00 (cost) Vehicle Gain/Loss (for disposal of CVA vehicles only) 588801 and 19xx10 (accumulated amortization) Write down of Capital Assets 588850 19xx00 (cost) Change in Inventory Held for Consumption 588900 175000 - 175600 Change in Prepaid Expenses 588950 105000 NOTE: Certain ministry specific accounts are not listed.

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 104 APPENDIX E The government reporting entity includes the following entities: Government Service Organizations Agricultural Credit Corporation of Saskatchewan Agricultural Implements Compensation Fund Boards of Education

Chinook School Division No. 211 Christ the Teacher Roman Catholic Separate School Division

No. 212 Conseil des écoles fransaskoises no. 310 Creighton School Division No. 111 Englefeld Protestant Separate School Division No. 132 Good Spirit School Division No. 204 Holy Family Roman Catholic Separate School Division No. 140 Holy Trinity Roman Catholic Separate School Division No. 22 Horizon School Division No. 205 Ile-a-la Crosse School Division No. 112 Light of Christ Roman Catholic Separate School Division No. 16 Living Sky School Division No. 202 Lloydminster Roman Catholic Separate School Division No. 89 Lloydminster School Division No. 99 North East School Division No. 200 Northern Lights School Division No. 113 Northwest School Division No. 203 Prairie South School Division No. 210 Prairie Spirit School Division No. 206 Prairie Valley School Division No. 208 Prince Albert Roman Catholic Separate School Division No. 6 Regina Roman Catholic Separate School Division No. 81 Regina School Division No. 4 Saskatchewan Rivers School Division No. 119 Saskatoon School Division No. 13 South East Cornerstone School Division No. 209 St. Paul’s Roman Catholic Separate School Division No. 20 Sun West School Division No. 207

Century Plaza Condominium Corporation CIC Asset Management Inc. CIC Economic Holdco Ltd. Commercial Revolving Fund Community Initiatives Fund Correctional Facilities Industries Revolving Fund Creative Saskatchewan Criminal Property Forfeiture Fund Crop Reinsurance Fund of Saskatchewan Crown Investments Corporation of Saskatchewan (separate) Education Scholarship Fund eHealth Saskatchewan Enterprise Saskatchewan Extended Health Care Plan for Certain Other Employees Extended Health Care Plan for Certain Other Retired Employees Financial and Consumer Affairs Authority of Saskatchewan First Nations and Métis Fund Inc. Fish and Wildlife Development Fund Forest Management Funds

Carrier Forest Management Trust Crown Agricultural Land Forest Fund Edgewood Forest Renewal Trust Fund

Island Forests Management Fund L&M Forest Renewal Trust Fund Meadow Lake OSB Forest Management Trust Fund Mee-Toos Forest Management Fund Trust Mistik Forest Management Trust Park Land Forests Management Fund Sakaw Forest Renewable Trust Fund Weyerhaeuser Forest Renewal Trust Fund Zelensky Bros. Forest Management Fund Trust

General Revenue Fund Global Transportation Hub Authority Government House Foundation Gradworks Inc. Health Quality Council Health Shared Services Saskatchewan Horned Cattle Fund Impacted Sites Fund Innovation Saskatchewan Institutional Control Monitoring and Maintenance Fund Institutional Control Unforeseen Events Fund Law Reform Commission of Saskatchewan Livestock Services Revolving Fund Northern Municipal Trust Account Oil and Gas Orphan Fund Operator Certification Board Pastures Revolving Fund Physician Recruitment Agency of Saskatchewan Prairie Agricultural Machinery Institute Provincial Archives of Saskatchewan Provincial Capital Commission Public Employees Benefits Agency Revolving Fund Public Employees Dental Fund Public Employees Disability Income Fund Public Employees Group Life Insurance Fund Queen’s Printer Revolving Fund Regional Colleges

Carlton Trail College Cumberland College Great Plains College North West College Northlands College Parkland College Southeast College

Saskatchewan Agricultural Stabilization Fund Saskatchewan Apprenticeship and Trade Certification Commission Saskatchewan Arts Board Saskatchewan Association of Health Organizations Inc. Saskatchewan Cancer Agency Saskatchewan Centre of the Arts Fund Saskatchewan Crop Insurance Corporation Saskatchewan Grain Car Corporation Saskatchewan Health Authority Saskatchewan Health Research Foundation Saskatchewan Heritage Foundation

Province of Saskatchewan: Year End Reporting Requirements and Procedures 2017-18 Page 105 Government Service Organizations (continued) Saskatchewan Housing Corporation Saskatchewan Immigrant Investor Fund Inc. Saskatchewan Impaired Driver Treatment Centre Board of

Governors Saskatchewan Legal Aid Commission Saskatchewan Lotteries Trust Fund for Sport, Culture and Recreation Saskatchewan Opportunities Corporation Saskatchewan Polytechnic Saskatchewan Professional Teachers Regulatory Board Saskatchewan Research Council Saskatchewan Snowmobile Fund Saskatchewan Student Aid Fund Saskatchewan Transportation Company SaskBuilds Corporation Sask911 Account School Division Tax Loss Compensation Fund Tourism Saskatchewan Training Completions Fund Transportation Partnerships Fund Victims’ Fund Water Appeal Board Water Security Agency Western Development Museum Fund

Government Business Enterprises Liquor and Gaming Authority Municipal Financing Corporation of Saskatchewan Saskatchewan Auto Fund Saskatchewan Gaming Corporation Saskatchewan Government Insurance Saskatchewan Power Corporation Saskatchewan Telecommunications Holding Corporation Saskatchewan Water Corporation SaskEnergy Incorporated Workers’ Compensation Board (Saskatchewan)

Government Partnerships Battlefords First Nations Joint Board of Education Prairie Diagnostic Services Inc. Saskatchewan Entrepreneurial Fund Joint Venture

North Central Shared Facility

General Revenue FundSummary of Schedules of Information to be Included in the Public AccountsFor the Year Ended March 31, 2018

Ministry

CompletedGeneral Revenue Fund Revenue (Provided Separately)

A Accounts Receivable and Valuation AllowanceB Assets Held for SaleC Loans and Advances (Non-budgetary)E Accounts PayableF Guaranteed DebtG Contingent Liabilities GA Liability for Contaminated SitesGB Capital Lease ObligationsH Unearned RevenueI Obligations Under Long-Term Financing ArrangementsJ Miscellaneous AccountsK Revolving Funds - Accumulated Net Recovery (Expenditure)M Tangible Capital Assets - Summary of Change for the YearMA Tangible Capital Assets - Gain (Loss) on DisposalMB Tangible Capital Assets - Work-in-Progress, Transfers and Write-downsMC Tangible Capital Assets - Fixed Asset Module AcquisitionsMD Tangible Capital Assets - Public Private Partnership (P3)ME Unrecognized AssetsN Change in Previous Years' EstimatesO Measurement UncertaintyP Contractual and Operating Lease ObligationsPA Public Private Partnership (P3) Payment ScheduleQ Contractual RightsR Contingent Assets S Related Party TransactionsT RestructuringsU Pension Plans, Trust Funds and Special Purpose FundsUA Pension Plans and Trust Funds DetailsY Statement of RemissionsZA Inter-Entity AssetsZB Inter-Entity LiabilitiesZC Inter-Entity RevenueZD Inter-Entity Tangible Capital Assets Transactions

Prepared by:

Reviewed by:

Submitted on:

Check completed for each schedule or include N/A if the schedule does not apply to your ministry.

Schedule

General Revenue Fund Schedule AAccounts Receivable and Valuation AllowanceAs at March 31, 2018 Link to Summary

Submitted on: 1/0/1900

107020 107120 Net Accounts Net Accounts 107000 (Valuation 107100 (Valuation Receivable Receivable

Category¹ Amount Allowance) Amount Allowance) March 31, 2018 March 31, 2017

Taxation -

Non-renewable resources -

Transfers from government entities -

Transfers from the federal government -

Other - shared services* - - - - Other - Total other - - - - - - Totals 107000 to 1071202 - - - - - - Total Accounts Receivable - -

Net Accounts Net Accounts 107000 107100 Receivable ReceivableAmount Amount March 31, 2018 March 31, 2017

- - -

- - - -

* Detail of Other - shared services

Ministry

2 Agrees to March 31 balance in MIDAS for accounts 107000, 107020, 107100 and 107120.¹ Include total receivable amounts by category with no detail.

Details of accounts receivable equal to or greater than $500,000 owing from government entities are to be reported on Schedule SA.

General Revenue Fund Schedule BAssets Held for SaleFor the Year Ended March 31, 2018 Link to Summary


Account Number/ March 31, 2017 March 31, 2018Name Balance Additions Sales Balance

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total Assets Held for Sale¹ - - - - ¹ Agrees to March 31 balance in MIDAS for accounts 172000 to 174000.

Ministry

General Revenue Fund Schedule CLoans and Advances (Non-budgetary)For the Year Ended March 31, 2018 Link to Summary


Change in Change in

Loan AmountConcessionary

AllowanceValuation Allowance Advances2,3 Repayments3

Concessionary Allowance

Valuation Allowance Write-offs Loan Amount

Concessionary Allowance

Valuation Allowance

- - - - - -

General Advances - Permanent (123700)3 - - - - - - Relocation Advances - Permanent (123800)3 - - - - - - Temporary Advances - Not Travel (123900)3 - - - - - - Travel Advances - Temporary (124000)3 - - - - - - Travel Advances - Permanent (124100)3 - - - - - - Payroll - Holiday Advance (124300)3 - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Totals - - - - - - - - - - -

2 Agrees to March 31 balance in MIDAS for advance accounts 12XXXX.3 Include advance and repayment amounts for all loans and advances, even if the opening and ending balances are $0.

¹ For new loans, briefly describe the terms and conditions, including interest rate, term to maturity and security held where applicable for each type of loan, and provide comments on the potential for collection.

Ministry

Name of Loan; Authority; Description¹

Balance BalanceMarch 31, 2017 2017-18 transactions March 31, 2018

General Revenue Fund Schedule EAccounts PayableAs at March 31, 2018 Link to Summary


March 31, 2017Category1 255000 255099 255010 255300 Total Total

Salaries and benefits -

Capital transfers - Transfers to the federal government - Operating transfers - other - Total operating transfers - - - - - -

Goods and services -

Federal Government Repayments3 -

Other - Total2 - - - - - - Total Account 253000 and 253010 to 253013Total Account 255015Total Accounts Payable - -

2 Agrees to March 31 balance in MIDAS for accounts 255000, 255099, 255010 and 255300. 3 Includes income taxes, equalization, CHST and other repayments to the Federal Goverment.Details of accounts payable equal to or greater than $500,000 owing to government entities are to be reported on Schedule SB.

Ministry

March 31, 2018

1 Include total payable amounts by category with no detail.

General Revenue Fund Schedule FGuaranteed DebtAs at March 31, 2018 Link to Summary


Maximum PrincipleAuthorized Amount of Loan

Item Rate % Guarantee Outstanding March 31, 2018 March 31, 2017 March 31, 2018 March 31, 2017

- - - - - -

2 Agrees to March 31 balance in MIDAS for account 255200.

¹ Total Guarantee = guaranteed principal and interest outstanding at March 31. Do not include guarantees from organizations within the government reporting entity as listed in Appendix E of the Year-end Reporting Requirements and Procedures.

Total Guarantees

Ministry

Total Guarantee¹Liability2

(Account 255200)Maturity Date

General Revenue Fund Schedule GContingent Liabilities As at March 31, 2018 Link to Summary


Likelihood Estimate of ExpenditureName of Party Nature of Claim Claim Amount of Loss Loss Account3 March 31, 2018 March 31, 2017

- - - - Contingent Liabilities due to Organizations within the Government Reporting Entity4 ExpenditureDescription Account3 March 31, 2018 March 31, 2017

- - Other Contingent Liabilities ExpenditureDescription Account3 March 31, 2018 March 31, 2017

- - Total Contingent Liabilities - Account 2556005 - -

5 Agrees to March 31 balance in MIDAS for account 255600.

4 Include litigation claims with organizations within the government reporting entity (as listed in Appendix E of the Year-end Reporting Requirements and Procedures) where, and only where, a liability has been recorded in account 255600.

Total Contingent Liabilities due to Organizations within the Government Reporting Entity

3 Where a contingent liability has been recorded in account 255600, identify the expenditure account (e.g. 199150, 519895, 521010 or 578100) used to record the contingent liability.

Ministry

2 The evaluation of the likelihood of loss and the estimate of the likely loss is based on confirmation from the Ministry of Justice. The likelihood of loss for each claim should be evaluated as being "likely", "unlikely", or "not determinable". No other terminology should be used in this column. The estimate of the likely loss should either include a dollar amount, or the words "not determinable".

Liability - Account 255600Litigation1

Total Other Contingent Liabilities

Description

Total Litigation

Evaluation2

1 Do not include litigation claims where the estimate of the likely loss is less than $500,000, unless a liability has been recorded in account 255600 for the litigation claim. Do not include litigation claims with organizations within the government reporting entity as listed in Appendix E of the Year-end Reporting Requirements and Procedures.

General Revenue Fund Schedule GALiability for Contaminated SitesAs at March 31, 2018 Link to Summary


March 31, 2018 March 31, 2017Contaminated Sites/Environmental Liabilities - opening 1 - Expenses 2

Less Payments (enter as negative) 3

Contaminated Sites Liabilities 4 - -

List of Contaminated Sites Liabilities

4 Agrees to the March 31, 2018 balance in MIDAS for account 258960 and account 258710 (if applicable).

For each contaminated site, provide details below (in thousands) including:(a) the breakdown of the best estimate cost by category (i.e. development of remediation plan, direct remediation costs, cost of assets required and maintenance and monitoring, etc.);(b) the nature and source of the liability;(c) the basis for the estimate of the liability (i.e. significant assumptions, present value technique, etc.);(d) when a net present value technique is used, provide the estimated total undiscounted cash flows and discount rate in the year the liability is recorded (if applicable, provincial bond yield rates at March 31, 2018 were as follows: 5 years 1.7%; 10 years 2.5%; 15 years 3.0%; and 30 years 3.3%);(e) the estimated recoveries recorded as a receivable (if any); (f) the reasons for not recognizing a liability or contingent liability (if applicable); and(g) the best estimate range (Max and Min - to be disclosed in measurement uncertainty on Schedule O).

Ministry

Continuity Schedule:

1 Agrees to March 31, 2017 amount recorded in account 258960 Contaminated Sites Liabilities and 258710 Contaminated Site Liability - Lorado (if applicable).2 Total expenses equals the net amount of all of the journal entries recorded to account 588960 - Change in Year-End Contaminated Sites Liabilities (e.g. for any new liabilities for contamination events that occurred during the year); account 521710 - Change in Year-End Contaminated Sites Liabilities - Lorado (if applicable) and account 521700 - Contaminated Sites Remediation.3 Total payments equals the balance in expense account 521700 - Contaminated Sites Remediation. Includes total payments made for the remediation of contaminated sites during the year.

General Revenue Fund Schedule GALiability for Contaminated SitesAs at March 31, 2018 Link to Summary

1. Site/Project Name - balance as at March 31, 2018 $Details:(a) Breakdown by category:

development of remediation plancapital assets to be acquired (only the portion that will have no alternative use)other direct remediation costsmaintenance & monitoringother (please explain)

Total agrees to above $ - (b) nature & source:(c) basis of estimate:(d) undiscounted cash flows (if applicable): $ discount rate: %(e) estimated recoveries recorded as a receivable (if any): $(f) reasons for not recognizing a liability for a contaminated site (if applicable):(g) Range of best estimate: Min $

Max $

2. Site/Project Name - balance as at March 31, 2018 $Details:(a) Breakdown by category:

development of remediation plancapital assets to be acquired (only the portion that will have no alternative use)other direct remediation costsmaintenance & monitoringother (please explain)

Total agrees to above $ - (b) nature & source:(c) basis of estimate:(d) undiscounted cash flows (if applicable): $ discount rate: %(e) estimated recoveries recorded as a receivable (if any): $(f) reasons for not recognizing a liability for a contaminated site (if applicable):(g) Range of best estimate: Min $

Max $

Grand Total of all Sites - as at March 31, 2018 $ -

Min $ - Max $ -

Combined Range of best estimate (if applicable):

COMPLETE FOR EACH SITE OR GROUP OF SIMILAR SITES

(e.g. ____ contamination from ___ operations)

(e.g. ____ contamination from ___ operations)

General Revenue Fund Schedule GBCapital Lease ObligationsAs at March 31, 2018 Link to Summary

Ministry Submitted on: 1/0/1900

Capital Lease Obligations 1 March 31, 2018 March 31, 20172016/17 - 2017/182018/192019/202020/212021/22 - Remaining YearsTotal Interest and Executory Costs (enter negative)Total Capital Lease Obligations (255400)2 - -

Additional Capital Lease Information:Expiry Date (earliest date for all capital leases)3

Expiry Date (latest date for all capital leases)3

Interest Rate (lowest rate for all capital leases)4

Interest Rate (highest rate for all capital leases)4

Asset Cost by Category5

Land and ImprovementsBuilding and ImprovementsMachinery and EquipmentTransporation EquipmentOffice and Information TechnologyInfrastructure

Asset Cost (Total for all capital leases) - -

Accumulated Amortization by Category5

Land and ImprovementsBuilding and ImprovementsMachinery and EquipmentTransporation EquipmentOffice and Information TechnologyInfrastructure

Accumulated Amortization (Total for all capital leases) - -

2 Total capital lease obligations agrees to March 31 balance in MIDAS for account 255400.

1 Provide the breakdown, by year, of when the capital lease payment is expected to be paid. Yearly amounts include the interest and executory costs which are deducted in total at the bottom of this schedule.

Details of capital lease obligations to a government service organization equal to or greater than $500,000 are to be reported on Schedule SE.

3 Provide the earliest and latest expiry date based on review of all of your capital leases. 4 Provide the lowest and highest interest rate based on review of all of your capital leases. 5 Provide the total asset cost and accumulated amortization by category for tangible capital assets (TCAs) recorded for all of your capital leases.

General Revenue Fund Schedule HUnearned RevenueAs at March 31, 2018 Link to Summary


Description of Types of Unearned Revenue¹ March 31, 2018 March 31, 2017

Total Motor Vehicle Licensing Fees - -

Total Crown Mineral Leases - -

Total Health - -

Total Education - -

Total Transfers from the Federal Government² - -

Total Other - - Total Account 2570003 - - Total Account 257020 Unapplied Receipts (AR Module)Total Unearned Revenue - - ¹ An example of type is multi-year licenses.

³ Agrees to March 31 balance in MIDAS for account 257000.

² Transfers from the federal government are recorded as a liability (unearned revenue) in rare instances when the transfer stipulations meet the definition of a liability (e.g. funding received in advance of incurring an equivalent amount of eligible costs under a cost-sharing agreement).

General Revenue Fund Schedule IObligations Under Long-Term Financing Arrangements Link to SummaryAs at March 31, 2018

1/0/1900

ExpectedPercentage Completion Discount March 31, 2017 March 31, 2018

Project Complete Date Rate Balance Additions1 Payments2 Balance3

- - - - - - - - - - - - - - - - - - -

Total Obligations Under Long-Term Financing Arrangements (270000) - - - -

1 Additions to the obligations under long-term financing arrangements as a result of the portion of the public private partnership (P3) project that was completed during the year.2 Progress or capital payments made during the year that reduce the obligations under long-term financing arrangements.

Ministry

3 Agrees to the March 31 balance in MIDAS for account 270000.

General Revenue Fund Schedule JMiscellaneous AccountsAs at March 31, 2018 Link to Summary


Natural Account Description and Explanation¹ March 31, 2018 March 31, 2017

Ministry

¹Include accounts that should have a zero balance at year end but do not, and provide an explanation for the balance in the accounts. Refer to Appendix B of the Year-end Reporting Requirements and Procedures for a listing of the accounts that should have a zero balance.

General Revenue Fund Schedule KRevolving Funds - Accumulated Net Recovery (Expenditure)For the Year Ended March 31, 2018 Link to Summary


Name of Revolving Fund ____________________________

March 31, 2018 March 31, 2017

Revenue

(Expenses)¹

Net Recovery (Expenditure)² - - Change in Non-cash Activities:³ (Increase)/Decrease in Imprest, Petty Cash & Transfer Accts (Increase)/Decrease in Prepaid Expenses (Increase)/Decrease in Accounts Receivable Increase/(Decrease) in Valuation Allowance (Increase)/Decrease in Advances (e.g. Travel) Increase/(Decrease) in Accounts Payable Increase/(Decrease) in Unearned Revenue Increase/(Decrease) in Other Liabilities

Net Cash Recovery (Expenditure) - Account 253050 - -

Assets transferred to Revolving Fund at no cost

Assets transferred from Revolving Fund at no charge

Accumulated Net Recovery (Expenditure), Beg of Year - Account 259900 -

Accumulated Net Recovery (Expenditure), End of Year4 - -

Maximum Accumulated Net Expenditure5

Accumulated Net Expenditure Remaining to be Spent - -

² Revenue, expenditures and the net recovery (expenditure) must agree to the amount reported on MIDAS.

¹ Total Expenditures are calculated in accordance with the accounting policies used for revolving funds by the General Revenue Fund.

³ Brackets indicate a decrease in cash; for example, an increase in prepaid expense is a decrease in cash; and an increase in accounts payable is an increase in cash.

5 Must agree to the most recent Order-in-Council.

4 Must agree to the total March 31 balance in MIDAS for accounts 253050 and 259900.

General Revenue Fund Schedule MTangible Capital Assets - Summary of Change for the YearFor the Year Ended March 31, 2018 Link to Summary


Office &Land & Buildings & Machinery & Transportation Information Total Total

Improvements Infrastructure Improvements Equipment Equipment Technology 2018 2017Cost:Opening Cost of Capital Assets¹ - - Add: Acquisitions² - - Internal Transfers - from/(to)3 - - External Transfers - from/(to)4 - - Transfers between asset classes5 - - - Less: Write-downs6 - - Less: Disposals7 - - Closing Cost of Capital Assets (A)8 - - - - - - - -

Accumulated Amortization:Opening Accumulated Amortization¹ - - - Add: Annual Amortization - - Internal Transfers - from/(to)3 - - External Transfers - from/(to)4 - - - Transfers between asset classes5 - - Less: Disposals7 - - Closing Accumulated Amortization (B)8 - - - - - - - - Net Book Value (A-B) - - - - - - - - ¹ Opening cost and accumulated amortization for 2017-18 must equal closing 2016-17 balances as reported in MIDAS.² Acquisitions must agree to MIDAS current year acquisitions, net of any internal recoveries.

5 Total transfers of assets between classes must net to $0. Details of all transfers are to be reported on Schedule MB.6 Details of all write-downs are to be reported on Schedule MB.

Ministry

4 External transfers are for transfers of capital assets and accumulated amortization from or to agencies that are not part of the GRF (e.g. Crown corporations). Details of all transfers are to be reported on Schedule MB.

3 Internal transfers are for transfers of capital assets and accumulated amortization from or to other ministries/offices within the General Revenue Fund (GRF). Details of all transfers are to be reported on Schedule MB.

8 Closing cost of capital assets and closing accumulated amortization must agree to the March 31 balance in MIDAS in total and by asset class.

Asset Class

7 Details of all disposals are to be reported on Schedule MA.

General Revenue Fund Schedule MATangible Capital Assets - Gain (Loss) on DisposalFor the Year Ended March 31, 2018 Link to Summary


Straight Line Purchase Date Disposal Date Asset's Capital Asset's Accum. Net BookAmortization Fiscal Year Fiscal Year Cost at Time Amort. at Time Value Proceeds on Gain/(Loss)

Description (TCA category & class)¹ Rate Ending Ending of Disposal¹ of Disposal¹ of Disposal Disposal on Disposal²- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

¹ Total by TCA class. Capital cost and accumulated amortization at time of disposal must equal amounts for disposals by class on Schedule M.

Ministry

² Total gain (loss) on disposal equals balance in revenue account 485800 (Gain on Disposal of Capital Assets), expense account 588800 (Loss on Disposal of Capital Assets) and account 588801 (Vehicle Gain/Loss [For Disposal of CVA Vehicles only]).

General Revenue Fund Schedule MBTangible Capital Assets - Work-in-Progress, Transfers and Write-downsAs at March 31, 2018 Link to Summary


Work-in-Progress (WIP)1 Opening Balance Transfers/ Closing BalanceDescription Account April 1, 2017 Additions Adjustments March 31, 2018

- - - - -

Total - - - -

Internal Transfers² From (To) From (To) Account Cost2 Accumulated2

Description Ministry Cost/Acc Amort. From (To) Amortization (Fr) To Net- - - - -

Total - -

External Transfers³ From (To) From (To) Account Cost3 Accumulated3

Description Entity Cost/Acc Amort. From (To) Amortization (Fr) To Net- - - - -

Total - - Transfers Between Asset Classes4 From Account To Account Accumulated

Cost/Acc Amort. Cost/Acc Amort. Cost Amortization

Write-downs5 Cost Before Cost AfterAccount Write-down Write-down5 Write-down

- - - - -

Total -

4 Include details of all transfers between asset classes reported on Schedule M.5 Total write-downs must agree to total amount reported on Schedule M.

¹ Provide a brief description of WIP by account. WIP amounts are included in balances reported on Schedule M.

³ Total external transfers cost and accumulated amortization must agree to total amounts reported on Schedule M. Details of TCA transfers from (to) government entities where the net book value is equal to or greater than $500,000 are to be reported on schedule SD.

Ministry

Description

Reason for Transfer

² Includes transfers of assets between ministries/offices within the General Revenue Fund. Total internal transfers cost and accumulated amortization must agree to total amounts reported on Schedule M. Consult with other ministries/offices to ensure all transfers from (to) other ministries/offices have been recorded at the same value.

General Revenue Fund Schedule MCTangible Capital Assets - Fixed Asset Module AcquisitionsAs at March 31, 2018 Link to Summary


TCA Category¹ March 31, 2018 March 31, 2017

Land and Improvements

Buildings and Improvements

Machinery & Equipment

Transportation Equipment

Office & Information Technology

Infrastructure

Total Fixed Asset Module Acquisitions² - - ¹ Provide the amount of acquisitions by TCA category recorded in the Fixed Asset Module in MIDAS.² Amounts should agree to MIDAS balances in cents (not rounded to the nearest dollar).

Fixed Asset Module Acquisitions

General Revenue Fund Schedule MDTangible Capital Assets (TCA) - Public Private Partnership (P3)For the Year Ended March 31, 2018 Link to Summary


- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total Buildings and Improvements Acquired Through a P3 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total Infrastructure Acquired Through a P3 - - - - - - - - Total TCAs Acquired Through a P3 - - - - - - - -

2 Opening cost and accumulated amortization of Buildings and Improvements or Infrastructure acquired through a P3 must equal the prior year closing balances as reported in MIDAS.3 Provide the current year acquisitions of Buildings and Improvements or Infrastructure acquired through a P3. Agrees to amounts recorded in MIDAS for the project.

5 Provide the annual amortization of Buildings and Improvements or Infrastructure acquired through a P3 at March 31. Agrees to amounts recorded in MIDAS for the project.

Ministry

Opening Cost2 Acquisition3 Closing Cost4P3 Agreement With: Project Total Cost 1

4 Closing cost and accumulated amortization of Buildings and Improvements or Infrastructure acquired through a P3 must agree to amounts recorded in MIDAS at March 31 for the project.

Opening Accumulated Amortization2

Annual Amortization5

Closing Accumulated Amortization4 Net Book Value

¹ Provide the total cost of the P3 TCA which is calculated using the total nominal value of progress payments made during or on completion of construction and the present value of future capital payments discounted to the date the asset is available for use using the Government's borrowing rate for long-term debt at the time the agreement is signed.

Schedule ME

As at March 31, 2018 Link to Summary


Name of unrecognized asset or group of unrecognized assets 1

Unrecognized intangible assets:

Unrecognized inherited natural resources:

Unrecognized inherited Crown land:

Unrecognized works of art and historial treasures:

Other unrecognized assets:

1 Group similiar unrecognized assets. For example, do not list out each painting that exists. Instead, use one line for a general group called "Paintings". 2 Choose from the following reasons: a) the costs, benefits and economic value of such items cannot be reasonably and verifiably quantified using existing methods; or b) not recognized in accordance with Public Sector Accounting Standards (i.e. land inherited by the Crown, works of art, historical treasures, etc.)

General Revenue Fund

Reason for not recognizing2

Unrecognized Assets

General Revenue Fund Schedule NChange in Previous Years' EstimatesFor the Year Ended March 31, 2018 Link to Summary


Description of Change in Previous Years' Estimates2 March 31, 2018 March 31, 2017

Total Change in Previous Years' Estimates - Account 486905¹ - - ¹ Agrees to March 31 balance in MIDAS for account 486905.2 Items greater than $2 million should be listed and described separately.

General Revenue Fund Schedule OMeasurement UncertaintyAs at March 31, 2018 Link to Summary


Description of item that has Material¹

Measurement Uncertainty Reason for Material Uncertainty Account March 31, 2018 March 31, 2017 Minimum Maximum

Ministry

Range of Reasonably Possible Amounts March 31, 2018Amount Recognized²

¹ In this case material represents amounts that could reasonably vary by more than $10 million in the next fiscal year. Note that the $10 million threshold does not apply for contaminated sites liabilities given that contaminated sites liablities for all ministries will be combined as one total.² Amount recognized in the financial statements and recorded on either the Statement of Financial Position or the Statement of Operations. Do not include amounts where the revenue/receivable or expense/payable are from/to organizations within the government reporting entity as listed in Appendix E of the Year-end Reporting Requirements and Procedures.

General Revenue Fund Schedule PContractual and Operating Lease Obligations Link to SummaryAs at March 31, 2018

1/0/1900

Remaining No March 31, 2018 March 31, 2017Contractual Obligation Description of Contractual 2018/19 2019/20 2020/21 2021/22 2022/23 Years Maturity Total TotalWith:1 Obligation ($)2 ($)2 ($)2 ($)2 ($)2 ($)2 Date3 ($) ($)

- Total policing transfer agreements - - - - - - - - -

- -

Total construction & acquisition of TCAs - - - - - - - - - -

Total P3 operations, maintenance & life cycle rehab. - - - - - - - - - - -

Total computer service agreements - - - - - - - - - -

Total food services agreements - - - - - - - - - -

Total beverage container collection & recycling programs - - - - - - - - - -

Total research and development projects - - - - - - - - - -

Total economic growth projects - - - - - - - - - - -

Total operating transfer agreements - - - - - - - - - - -

Total capital transfer agreements - - - - - - - - - - -

Total other4 - - - - - - - - - Total operating leases5 - Total R.M. & school division tax loss compensation - Total Contractual & Operating Lease Obligations - - - - - - - - -

Ministry

4 Include other contracts over $2 million that do not fit within the categories listed above.5 List the total of all operating leases.

2 Provide the breakdown, by year, of when the contractual obligation or lease payment becomes an obligations. If the contract has no end date, that is it continues into perpetuity, payments are provided by year with the remaining amount included in the remaining years column.

¹ List each contractual obligation over $500,000 separately within the appropriate categories listed above. Add additional lines where required. Do not include contractual obligations from organizations within the government reporting entity as listed in Appendix E of the Year-end Reporting Requirements and Procedures.

3 Include the full amount of the contractual obligation where the amount of the obligation is known or can be estimated but the years over which the contractual obligation will be settled cannot be specified.

Capital lease obligations are reported separately on schedule GB.

General Revenue Fund Schedule PAPublic Private Partnership (P3) Payment Schedule Link to SummaryAs at March 31, 2018

1/0/1900

Remaining Interest & March 31, 2018 March 31, 20172018/19 2019/20 2020/21 2021/22 2022/23 Years Executory Total Total

Project ($) ($) ($) ($) ($) ($) Costs ($) ($)Obligation Under L-T Financing Arrangement1 -

Construction and Acquisition of TCAs2 -

Operations and Maintenance3 -

Total P3 Payment Schedule - - - - - - - - - 1 Represents the liability recorded for the portion of the P3 project completed and the total agrees to the March 31 balance in MIDAS for account 270000.2 Represents the capital portion (including interest) of the P3 project that is not yet completed. List the P3 contractual obligations relating to TCA construction and acquisition in the fiscal year the amount is expected to be paid. The total must agree to the total amount reported for TCA construction and acquisition on Schedule P on a project by project basis.

Ministry

3 Represents the contractual obligation for operation and maintenance (including life cycle/rehabilitation payments) payments for the duration of the arrangement. The total must agree to the total amount reported for operations and maintenance on Schedule P on a project by project basis.

General Revenue Fund Schedule QContractual Rights Link to SummaryAs at March 31, 2018


Remaining No March 31, 2018Contractual Right Description of Contractual 2018/19 2019/20 2020/21 2021/22 2022/23 Years Maturity TotalWith:1 Right ($)2 ($)2 ($)2 ($)2 ($)2 ($)2 Date3 ($)

- -

Total operating transfer agreements - - - - - - - - - -

Total capital transfer agreements - - - - - - - - - -

Total land leases - - - - - - - - - -

Total other4 - - - - - - - - Total operating leases5 - - - - - - - - Total Contractual Rights - - - - - - - -

Ministry

2 Provide the breakdown, by year, of when the contractual right is expected to become an asset and revenue. If the contract has no end date, that is it continues into perpetuity, receipts of the asset and revenue are provided by year with the remaining amount included in the remaining years column.

5 List the total of all operating leases.

¹ List each contractual right over $500,000 separately within the appropriate categories listed above. Add additional lines where required. Do not include contractual rights from organizations within the government reporting entity as listed in Appendix E of the Year-end Reporting Requirements and

3 Include the full amount of the contractual right where the amount of the right is known or can be estimated but the years over which the contractual right will be settled cannot be specified.4 Include other contracts over $2 million that do not fit within the categories listed above.

General Revenue Fund Schedule RContingent Assets As at March 31, 2018 Link to Summary


EstimateName of Party Nature of Claim Claim Amount Likelihood of Gain of Gain

- Total - Other Contingent Assets¹ Description

Name of Recipient March 31, 2018 March 31, 2017

Total Other Contingent Assets - -

Litigation¹

Total Litigation

Ministry

² The evaluation of the likelihood of gain and the estimate of the likely gain is based on confirmation from the Ministry of Justice. The likelihood of gain for each claim should be evaluated as being "likely", "unlikely", or "not determinable". No other terminology should be used in this column. The estimate of the likely gain should either include a dollar amount, or the words "not determinable".

Description Evaluation²

AmountNature of Contingent Asset

¹ Include all contingent assets equal to or greater than $500,000. Do not include contingent assets and contingent recoveries from organizations within the government reporting entity as listed in Appendix E of the Year-end Reporting Requirements and Procedures.

General Revenue Fund Schedule SRelated Party Transactions Link to SummaryAs at March 31, 2018


Amount of Transaction ($)2 by Financial

Statement CategoryBasis of

Measurement Used3Amounts Outstanding at

Year-end (if any) ($)Terms and Conditions of Amounts Outstanding4

Contractual Obligations (if any)

Contingent Liabilities (if any)

Ministry

3 As the recognized amount differs from fair value, explain how the amount recognized was determined.4 For any balances outstanding, describe the terms and conditions related to these amounts.

Check box if there were no related party transactions that occurred with organizations outside the government reporting entity at an amount other than fair value

2 List each related party transaction separately that was recognized at an amount other than fair value by financial statement category (e.g., revenue, expense, etc.).

Related Party1Description of Transaction

Type

(in thousands of dollars)

1 A related party exists when; one organization has the ability to exercise control or shares control over the other; they are subject to common control or shared control; or they share a member of key management personnel and/or a close family member of a key management personnel. Key management personnel for ministries are Ministers and Deputy Ministers. List the ministry's related party transactions that have occurred with organizations outside the government reporting entity (as listed in Appendix E of the Year-end Reporting Requirements and Procedures) where the amount was not at fair value. Include the name of the entity or individual and the nature of the relationship. If no transactions have occurred that meet this criteria check the box below.

General Revenue Fund Schedule TRestructuringsAs at March 31, 2018 Link to Summary


Date of From (To) Assets Liabilities Gain/(Loss)Description¹ restructuring Organization2 transferred in (out) transferred (in) out on transaction

- - - - -

Total - -

2 Include the name of the organization that provided/received the transfer. Do not include restructuring transactions with organizations within the government reporting entity as listed in Appendix E of the Year-end Reporting Requirements and Procedures.

Ministry

1 A restructuring transaction occurs when an organization receives or gives up an integrated set of assets and/or liabilities along with specific programing or operating responsibilities. List each restructuring transaction where either the assets or liabilities transferred were greater than $500,000. Include a description of the program/responsibility transferred.

General Revenue Fund Schedule UPension Plans, Trust Funds and Special Purpose FundsAs at March 31, 2018 Link to Summary


Funds administered by your Ministry/Office¹New in

2017-18²

Included in Volume 2 Summary³

¹ List alphabetically all funds administered by your Ministry/Office, with assets maintained separately from the General Revenue Fund.

³ Indicate whether the Fund is included in the Summary of Individual Pension Plans and Trust Funds in Volume 2 of the Public Accounts (2016-17 pages 256 - 258). On Schedule UA, include financial information for each pension plan or trust fund included in the Summary in Volume 2.

² An assessment of any new funds is required to determine whether the Fund should be included in the Summary of Individual Pension Plans and Trust Funds in Volume 2 of the Public Accounts. If required, contact your Financial Management Branch analyst for assistance with the assessment.

http://www.finance.gov.sk.ca/paccts/paccts17/compendium/reports/Volume2-2016-17.pdf

http://www.finance.gov.sk.ca/paccts/paccts16/compendium/reports/Volume2-2015-16.pdf

General Revenue Fund Schedule UAPension Plans, Trust Funds and Special Purpose FundsAs at March 31, 2018 or financial statement date Link to Summary


NAME OF ACCOUNT: Date¹

Audited FS

(Yes/No)? Cash Investments

Accounts Receivable

(incl. interest) Other Assets Total Assets Liabilities Fund Balance

Total Liabilities & Fund Balance

Prior Year Total Liab. & Fund Balance

Pension Plans- - - - - - - - - - - - - - - - - - - -

Trust Funds and Special Purpose Funds- - - - - - - - - - - - - - - - - - - -

¹ Financial statement date for fiscal year ending in the period April 2017 to March 2018, if applicable. Otherwise, March 31, 2018 balances.

General Revenue Fund Schedule YStatement of RemissionsFor the Year Ended March 31, 2018 Link to Summary


Item and Description¹ March 31, 2018 March 31, 2017

Total Remissions - - ¹ List alphabetically and identify the Order in Council, the Act, nature of the tax or fee, the name of the person or company and the amount of the remission.

General Revenue Fund Schedule ZAInter-Entity AssetsAs at March 31, 2018 Link to Summary


InvestmentsCash Held Accounts Loans Bonds/ Total Total

Due from Name/Authority¹ on Deposit Receivable Receivable Debentures 2018 2017- - - - - - - - - - - - - - - - - - - - -

Total - - - - - - Note: ONLY REPORT AMOUNTS EQUAL TO OR GREATER THAN $500 THOUSAND Accounts receivable included on Schedule A that are owing from a government service organization or a government business enterprise (and their subsidiaries) are to be reported on this schedule. Inter-entity transactions with other ministries do not need to be included on this schedule. ¹ See Appendix E of the Year-end Reporting Requirements and Procedures for a listing of government service organizations and government business enterprises.

General Revenue Fund Schedule ZBInter-Entity LiabilitiesAs at March 31, 2018 Link to Summary


253000to 253013 255000 255099Accounts Accounts Accounts Total Total

Due to Name/Authority¹ Payable Payable Payable Other² 2018 2017- - - - - - - - - - - - - - - - - - -

Total - - - - - -

Note: ONLY REPORT AMOUNTS EQUAL TO OR GREATER THAN $500 THOUSAND

² Include any other accounts payable to a related entity recorded in accounts 255200, 255300, 255400, or 255600 as well as any other liabilities including short-term loans, unearned revenue and long-term debt.

¹ See Appendix E of the Year-end Reporting Requirements and Procedures for a listing of government service organizations and government business enterprises.

Accounts payable included in Schedule E that are owing to a government service organization or a government business enterprise (and their subsidiaries) are to be reported on this schedule. Inter-entity transactions with other ministries do not need to be included on this schedule.

General Revenue Fund Schedule ZCInter-Entity RevenueFor the Year Ended March 31, 2018 Link to Summary


Fees & Total TotalReceived (Receivable) from Name/Authority¹ Sales Interest Dividends Grants Other 2018 2017

- - - - - - - - - - - - - - - - - - - - - - -

Total - - - - - - - Note: ONLY REPORT AMOUNTS EQUAL TO OR GREATER THAN $500 THOUSAND

Ministry


Inter-entity revenue transactions with a government service organization or a government business enterprise (and their subsidiaries) are to be reported on this schedule. Inter-entity transactions with other ministries do not need to be included on this schedule. If there are inter-entity revenue amounts that do not fit into the

General Revenue Fund Schedule ZDInter-Entity Tangible Capital Assets TransactionsFor the Year Ended March 31, 2018 Link to Summary


Transfers from (or Acquisitions)

Gain (Loss)Accumulated Net Book or

Transfer to (from) Name/Authority¹ Proceeds Cost Amortization Value Net Transfer Cost- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Total - - - - - - Note: ONLY REPORT TRANSACTIONS WHERE THE NET BOOK VALUE IS EQUAL TO OR GREATER THAN $500 THOUSAND

Transfers to (or Sales)

Ministry


External TCA transfers included on Schedule MB and the sale or acquisition of TCAs that are from/to a government service organizations or a government business enterprise (and their subsidiaries) are to be reported on this schedule. Inter-entity transactions with other ministries do not need to be included on this schedule.

Part: Appendices Number: J Section: Summary of General Laws – For Boards Date: 2017-09-11 of Directors in the Treasury Board Sector Page: 1 of 15


Summary of General Laws – For Boards of Directors in the Treasury Board Sector

Table of Contents Page

Introduction ........................................................................................................................................ 1 Corporate Powers and Duties............................................................................................................. 3 Crown Employment Contracts ........................................................................................................... 5 Board Remuneration .......................................................................................................................... 5 Treasury Board Policies ..................................................................................................................... 5 Banking .............................................................................................................................................. 6 Appropriation and Grants from the GRF ........................................................................................... 7 Repayment of Surplus ........................................................................................................................ 7 Investments ........................................................................................................................................ 7 Securities of Bodies Corporate .......................................................................................................... 8 Borrowing .......................................................................................................................................... 8 Advances from the General Revenue Fund ....................................................................................... 9 Capital Market Activity ..................................................................................................................... 10 Guarantees.......................................................................................................................................... 10 Purchasing .......................................................................................................................................... 10 Revenue.............................................................................................................................................. 11 Set-offs ............................................................................................................................................... 12 Federal/Provincial Agreements .......................................................................................................... 12 Accountability .................................................................................................................................... 12 Reporting............................................................................................................................................ 13 Audit .................................................................................................................................................. 14 Disposition of Public Records ........................................................................................................... 14 Access to Information ........................................................................................................................ 15 Introduction

This Appendix is intended for directors of public agencies in the Treasury Board Sector to assist them in understanding how general laws affect their roles, responsibilities and duties. Directors of the Crown Investments Corporation of Saskatchewan (CIC) and its subsidiaries should contact CIC for assistance in this regard. There is a fundamental distinction between what individuals may do, and what governments and government-established bodies may do. Unless laws prevent them from doing so, individuals have the freedom to act as they wish. Government can only act if there are laws in place that provide it with the authority to do so.



Government organizations are subject to enabling legislation. Enabling legislation establishes the organization, sets out its powers and duties and provides for the appointment of the board. Government organizations are also subject to applicable general laws. General laws provide broad powers and duties to government officials and groups, which affect the roles, responsibilities and duties of directors of government boards. To understand how general laws affect their roles, responsibilities and duties, directors must understand the complex governance environment that they are part of. For information on the form and structure of government, refer to the Financial Administration Manual (FAM), Section 1000 Form and Structure of the Government. For information regarding accountability processes, refer to Section 1200 Role of the Legislature to Control Public Money (e.g., Legislative Assembly, Provincial Auditor). Refer to Section 1300 Government Management and Control for descriptions of government officials and groups, such as the Lieutenant Governor in Council, Treasury Board, the Minister of Finance, the Provincial Comptroller and the Provincial Archives of Saskatchewan. More detail with respect to the powers and duties of Treasury Board and the Provincial Comptroller is found in Section 1400 Financial Management and Control. Refer to Appendix G General Laws for a list and description of some general laws. This Appendix is intended to assist directors by consolidating, interpreting and communicating the broad powers and dutities provided to government officials and groups through provisions of some general laws. Provisions are consolidated and grouped by type of activity (e.g., financial, reporting, auditing, investing) and by the recipient of that power or duty (e.g., the Lieutenant Governor in Council, Minister of Finance). The legislation that provides the power or duty is referenced following the provision (i.e., in parentheses and in abbreviated form). Links to definitions in Appendix E Glossary are included for convenience. The contents of this Appendix are provided as general information. This Appendix does not provide a comprehensive discussion of the provisions of general laws. In addition, the contents of this Appendix are not to be accepted or construed as a substitute for the provisions of legislation. The information presented is not specific to any particular agency. The actual applicability of the provisions of various general laws to any particular agency depends on whether it is the type of agency within the scope of that particular provision and also upon the particular legislation creating and governing the agency. The board of directors of each public agency would have to be advised by the management of and legal advisors to the particular agency with respect to the extent of the applicability of the various general laws to their particular agency. To the extent that there is inconsistency between these general laws and the specific enabling legislation for the public agency, the specific enabling legislation will usually govern, except where the general provision is stated to override other Acts. However, the provisions of general laws do not necessarily preclude the application of other provisions of other Acts. Directors should consult their legal counsel for advice.



Abbreviations of Acts are as follows: The Archives and Public Records Management Act (APRM) The Crown Corporations Act, 1993 (CC) The Crown Employment Contracts Act (CEC) The Executive Government Administration Act (EGA) The Financial Administration Act, 1993 (FA) The Freedom of Information and Protection of Privacy Act (FOI) The Interpretation Act, 1995(I) The Legislative Assembly Act, 2007 (LA) The Local Authority Freedom of Information and Protection of Privacy Act (LAFOI) The Provincial Auditor Act (PA) The Public Service Act, 1998 (PS) The Public Works and Services Act (PWS) The Purchasing Act, 2004 (P) The Regulations Act, 1995(R) The Revenue and Financial Services Act (RFS) All of the above Acts do not apply to all public agencies (e.g., the powers and duties provided by The Crown Corporations Act, 1993 (CC) apply to the Crown corporations that fall under that Act and the powers and duties under The Interpretation Act, 1995 (I) apply to corporations continued or established by or pursuant to an enactment other than The Business Corporations Act, The Non-profit Corporations Act, 1995, The Co-operatives Act, 1996, The New Generation Co-operatives Act, The Credit Union Act, 1998 or The Crown Corporations Act, 1993). Acts must be referenced to determine the extent of their applicability to a particular agency. Corporate Powers and Duties

Corporations:

• have perpetual succession (I-16(3), CC-20); • may sue and be sued in their corporate name (I-16(3)(a), CC-19(1)); • may contract in their corporate name (I-16(3)(b), CC-19(2)); • may have a seal and change the seal (I-16(3)(c), CC-21)); • may regulate their affairs (I-16(3)(e)); • have moneys and profits, which are the property of the Crown and are for all purposes including

taxation deemed to be property of the Crown (CC-17(3)); • may sue with respect to any tort and be sued with respect to liabilities in tort to the extent the

Crown is subject pursuant to The Proceedings Against the Crown Act, subject to any limitations in enabling legislation (CC-22);

• may purchase liability insurance for an officer or director (I-16(13), CC-48(3)); and • may require any of its employees who receive or disburse moneys or who handle goods on its

behalf to be bonded in any manner and in the amount that it requires (CC-28).

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/A26-11.pdf



http://www.qp.gov.sk.ca/documents/english/Statutes/Statutes/e13-1.pdf

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/F13-4.pdf


http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/I11-2.pdf

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/L11-3.pdf






http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/R16-2.pdf

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/R22-01.pdf

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/P27.pdf



Board of Directors:

• manages the corporation (CC-23(1)); • must act honestly and in good faith with a view to the best interests of the corporation (I-

16(6)(a)) while taking into account its public policy and business objectives (CC-46(1)(a)); • must exercise reasonable care and attention in the performance of their duties (I-16(6)(b), CC-

46(1)(b)); • must comply with legislation governing the agency (I-16(6)(c), CC-46(1)(c)); • must disclose conflict of interest situations relating to proposed contracts with the agency and

abstain from voting on any resolution to approve such a contract, unless the contract relates primarily to the director’s remuneration or to the indemnification of officers or directors (I-17, CC-47);

• hold office at pleasure for a term not greater than three years and notwithstanding the expiry of the term, continue to hold office until a successor is appointed (CC-14(4));

• may appoint committees and fix their remuneration and allowances for expenses (CC-24); • may employ officers and employees and determine their duties, conditions of employment and

remuneration (CC-25(1)); • may appoint or engage professional, administrative, technical or clerical personnel and determine

salaries and other remuneration (CC-25(4)); • may establish a superannuation, group insurance or other pension, superannuation or employee

benefit program (CC-26(1)). Lieutenant Governor in Council:

• appoints one or more persons of which the corporation (board of directors) is to consist (CC-14(3));

• may designate one member of the board as chairperson and one other member as vice-chairperson (CC-23(4));

• may designate the location of the head office (CC-18); • may create a Treasury Board Crown corporation (CC-14(1)); • may wind up and dissolve a Treasury Board Crown corporation and dispose of its assets and deal

its liabilities and obligations (CC-16); • may designate a CIC Crown as a Treasury Board Crown (CC-14(7) and vice versa (CC-11(8)); • may designate a corporation that is wholly owned by the Crown and that is created or continued

pursuant to an Act as a designated Treasury Board Crown (CC-36(d.1)); • may designate employees of a Treasury Board Crown corporation as employees to whom The

Public Service Act, The Public Service Superannuation Act and The Superannuation (Supplementary Provisions) Act are to apply (CC-27).



http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/P43.pdf

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/S64.pdf

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/S64.pdf



Crown Employment Contracts

Directors should be aware that:

• every Crown employment contract (i.e., contract entered into by a Crown employer in which a person enters into an employee-employer relationship with the Crown employer) is a public document and is available for public disclosure (CEC-4); and

• every permanent head and every Crown employee who reports directly to the permanent head is to file a true copy of his or her own Crown employment contract with the Clerk of the Executive Council and the Clerk of the Executive Council is to make these copies available for public inspection during normal office hours (CEC-5).

Board Remuneration1


• the power to appoint a public officer2 includes the power to fix the term of office, terminate the appointment of or remove or suspend the public officer, reappoint or reinstate the public officer, and fix, vary or terminate the public officer’s remuneration and expenses (I-22). However, Treasury Board policies for board remuneration and expenses are found in Section 5005 Per Diem Rates (Boards, Commissions and Committees) and Section 5010 Travel and Other Expense (Boards, Commissions and Committees) of the Financial Administration Manual (FAM).

Treasury Board Policies

Treasury Board:

• may make orders and directives with respect to matters for which it is responsible (e.g., the finances, the administrative policy and management practices and systems, and the accounting policies and practices of the Government of Saskatchewan) (FA-5(a));

• may designate a public agency that is to be subject to its orders and directives (FA-5(d) – overriding provision); and

• may direct any person receiving, managing or disbursing public money to keep any books, records, or accounts it considers necessary (FA-5(e)).

1 This applies to all boards, whether or not they are corporations. 2 Public officer, as defined in The Interpretation Act, 1995.

http://www.qp.gov.sk.ca/documents/English/Statutes/Statutes/I11-2.pdf



Provincial Comptroller:

• ensures, as far as practicable, compliance with Treasury Board orders and directives (FA-10(1)(e));

• may issue directives to ministries and public agencies detailing the manner in which Treasury Board directives are to be complied with (FA-10(2));

• is entitled to free access to files, documents, and records relating to the accounts of ministries and public agencies (FA-11(1)(a) – overriding provision);

• is entitled to require and to receive from ministries, public agencies and revenue officers, any information, reports and explanations (FA-11(1)(b) – overriding provision); and

• may station staff in a ministry or public agency (FA-11(2) – overriding provision). Directors should be aware of the following:

• The applicability of the Treasury Board policies and Provincial Comptroller directives are summarized in Section 1500 Applicability of the Financial Administration Manual of FAM. Appendix B Public Agencies is a list of public agencies.

• A Treasury Board Crown corporation is subject to the orders and directives of Treasury Board (CC-14(6)).

Banking

Treasury Board: • may authorize any moneys not otherwise required to be paid into the General Revenue Fund

(GRF) to be deposited in the GRF on any terms and conditions Treasury Board may set, including the payment of interest on those moneys (FA-20).

Minister of Finance: • may establish, maintain or close accounts in the name of the Crown with any financial institution

on any terms the minister considers appropriate (FA-21). Directors may refer to FAM sections for further information: • Section 3305 Holding Money in the GRF through Consolidated Offset Balance Concentration

(COBC); • Section 3310 Holding Money in the GRF (Other MIDAS Entities); • Section 3315 Terms and Conditions for Moneys held in the GRF; • Section 3605 Approval of Bank Accounts; • Section 3610 Controls over Bank Accounts; and • Section 3615 Bank Account Interest and Charges.



Appropriations and Grants from the GRF

Minister of Finance:

• pays appropriations in the amounts and at the times requested by Crown corporations and agreed to by the Minister (CC-38(2));

• may make grants to a Crown corporation to assist in funding its net operating loss for a fiscal year (unused amounts must be returned) (FA-34).

Repayment of Surplus

Lieutenant Governor in Council:

• may require all or part of an appropriation received that is in excess of a public agency’s needs for a fiscal year be repaid to the Minister of Finance (FA-35 – overriding provision);

• may require all or part of a surplus of a fund established by an Act, other than a trust or superannuation fund, be paid to the Minister of Finance (FA-36 – overriding provision).

Investments

Lieutenant Governor in Council: • may appoint the Minister of Finance or other person to be the agent of a Crown corporation for

the purposes of making or disposing of investments (CC-45(2)). Minister of Finance:

• may arrange all details and do anything required when appointed as the agent of a Crown corporation for the purposes of making or disposing of investments (CC-45(3));

• may provide financial, investment and other related advice and services and charge a reasonable amount (FA-27); and

• may invest any part of the General Revenue Fund in any class of investments mentioned in The Pension Benefits Regulations, in bonds, debentures, notes or other evidences of indebtedness issued by a Crown corporation, or in any other class of investments authorized by the Lieutenant Governor in Council; and may dispose of those investments (FA-38).


• public agencies are authorized to make investments in any class of investments that are permitted for General Revenue Fund moneys (FA-43);

• Treasury Board may make orders governing investments of a public agency, except for certain funds (e.g., Saskatchewan Auto Fund) (FA-8 – overriding provision);

http://www.qp.gov.sk.ca/documents/English/Regulations/Regulations/P6-001R1.pdf

http://www.qp.gov.sk.ca/documents/English/Regulations/Regulations/P6-001R1.pdf



• Crown corporations may invest any part of their capital or operating moneys in any security or class of securities that is authorized for the investment of General Revenue Fund moneys or that is authorized for the investment of those capital and operating moneys pursuant to their enabling legislation (CC-45(1)(a)); and may dispose of investments (CC-45(1)(b)).

Securities of Bodies Corporate


• any Crown corporation may acquire shares, bonds, debentures or other securities of any business organization (i.e., body corporate, organization, partnership, firm or other business), subject to the approval of the Lieutenant Governor in Council, and dispose of those securities (this does not apply to certain securities) (CC-29); and

• the member of the Executive Council responsible for the Crown corporation must table a copy of any contract pursuant to which the securities referred to above were acquired (CC-29(6)) unless the Minister deems it to be detrimental to the commercial interests of the Crown (CC-29(7.1)).

Borrowing


• fixes the sum over which a Crown corporation cannot borrow, unless the borrowing is for paying in whole or in part a previous indebtedness (CC-43(1)).


• Crown corporations may borrow moneys to meet their objects and purposes or exercise their powers (within the established borrowing limitation), subject to the approval of the Lieutenant Governor in Council (CC-40(1));

• Crown corporations may issue, bonds, debentures, or other securities for the purpose of exercising the above borrowing powers with the approval of the Lieutenant Governor in Council (CC-40(2)) and may dispose of the above bonds, debentures or other securities or pledge securities as collateral security, subject to the approval of the Lieutenant Governor in Council (CC-40(5));

• Crown corporations may borrow (within the established borrowing limitation) by way of temporary loans, subject to the approval of the Lieutenant Governor in Council (CC-41(1)) and may execute any cheques, promissory notes or other instruments that may be required in connection with the temporary loans (CC-41(2));

• Crown corporations may not borrow any moneys by the issue and sale of bonds, debentures, or other securities or by way of temporary loans or otherwise, where borrowing would cause the aggregate principal amount of the outstanding bonds, debentures or other securities and the outstanding temporary loans to exceed the sum fixed by the Lieutenant Governor in Council, unless it is for paying a previous indebtedness (CC-43(1));



• interest and instalments of principal and all sinking fund and other debt service charges with respect to the securities issued are a first charge upon a Crown corporation’s revenues (CC-42);

• public agencies may borrow from the GRF or from a financial institution by way of overdraft or line of credit, subject to other applicable provisions of The Financial Administration Act, 1993 or any other Act (FA-44); and

• public agencies may not borrow without the prior approval of the Minister of Finance (FA-46(1)(a) – overriding provision);

Advances from the General Revenue Fund


• may advance moneys out of the General Revenue Fund to a Crown corporation for its purposes in the amounts and on terms and conditions that may be determined by the Lieutenant Governor in Council (CC-39(1)) and may borrow within the Crown corporation’s borrowing limitation on the credit of the Government of Saskatchewan with the Lieutenant Governor’s approval (CC-39(2));

• may advance moneys out of the General Revenue Fund to any public agency in any amounts and on any terms and conditions that may be approved by the Lieutenant Governor in Council (FA-39);

• may advance (without any further appropriation by the Legislative Assembly) to any Crown corporation, any amounts borrowed for the Crown and that may be approved by the Lieutenant Governor in Council (FA-48(1));

• pays from the General Revenue Fund, moneys that are borrowed on the credit of the Government of Saskatchewan and the interest and other charges payable on those moneys and the principal, interest, premium, and other amounts payable on all securities issued for the purposes of borrowing (FA-53, 54, CC-39(5)); and

• is to be reimbursed by Crown corporations for all or the proportionate share of the charges and expenses incurred in borrowing moneys that are advances to them (FA-48(3)).


• may approve amounts and terms and conditions (FA-39, CC-39(1), FA-48(1)); • may cancel all or part, or amend the terms of advances, or transfer the obligation to another

public agency (FA-40 – overriding provision); and • may authorize the Minister of Finance to borrow moneys on the credit of the Government of

Saskatchewan (FA-47(3), CC-39(2)).




Capital Market Activity


• Crown corporations may engage in any capital market activities3 (CC-45.1(2) and (3)) but the Lieutenant Governor in Council may restrict or limit capital market activities (CC-45.1(4)).

• public agencies may not engage in any capital market activity4 without the prior approval of the Minister of Finance (FA-46(1)(a) – overriding provision).

Guarantees


• may guarantee the payment of principal, interest and premium, if any, of any bonds, debentures or other securities issued by a Crown corporation, a loan raised by a Crown corporation, or any indebtedness or liability (CC-44(1));

• may make any arrangements that may be necessary for supplying the moneys required to implement any guarantee and to advance the moneys from the General Revenue Fund (CC-44(5)).

Minister of Finance: • or other officer of the Ministry of Finance that is designated by the Lieutenant Governor in

Council, signs the above-mentioned guarantee (CC-44(3)). Directors should be aware that:

• public agencies may not make guarantees for which the Government of Saskatchewan is liable without the prior approval of the Minister of Finance (FA-46(1)(b) – overriding provision); and

• the Minister of Finance makes a payment required under the guarantee from the General Revenue Fund (FA-62(1)).

Purchasing


• fixes the amount for the purchase or sale price of real property which, if exceeded, requires the prior approval of the Lieutenant Governor in Council (CC-31(4)).

3 Capital marketing activity, as defined in The Crown Corporations Act, 1993. 4 Capital marketing activity, as defined in The Financial Administration Act, 1993.





Directors should be aware that: • a corporation may acquire, hold, and dispose of property other than land (I-16(3)(d)); • a Crown corporation may acquire, lease and dispose of property, subject to the Lieutenant

Governor in Council’s approval if the purchase or sale price of real property is greater than an established amount (CC-31); and

• a Crown corporation may enter into agreements to insure property or to insure against loss or damage to other persons or property (CC-32);

Director of Purchasing, Ministry of Central Services:

• acquires supplies required by public agencies (P-4) and may dispose of surplus supplies (P-5); • may, on request, acquire or dispose of supplies for a public institution5 or participating

jurisdiction6 (P-6). Minister assigned responsibility for The Public Works and Services Act:

• may acquire, by purchase, lease or otherwise, property for public agencies or public institutions7, develop, construct, alter, maintain, manage or operate property for and provide services, accommodation and facilities to public agencies, public institutions or participating jurisdictions8 (PWS-4(2)).

Revenue


• may provide exclusive authority to the Minister of Finance, notwithstanding the provisions of any other Act that provide for the collection of public money other than taxes, to collect or control the collection of that public money (RFS-10(1) – overriding provision); and

• may provide exclusive authority to the Minister of Finance, notwithstanding the provisions of any other Act that provide for the assessment and collection of taxes, to assess and collect those taxes (RFS-10(2) – overriding provision).

Minister of Finance: • may commence collection action to recover public money from a person who has failed to pay

over the public money, has failed to account for the public money, or has failed to apply the public money for its intended purposes (FA-66, 67).

5 Public institution, as defined in The Purchasing Act, 2004. 6 Participating jurisdiction, as defined in The Purchasing Act, 2004. 7 Public institution, as defined in The Public Works and Services Act. 8 Participating jurisdiction, as defined in The Public Works and Services Act.








Set-offs


• the Crown and every public agency has the right to retain as a set-off, from moneys due or payable to a person by the Crown or a public agency: any amount the person owes to the Crown or public agency; any overpayment made by the Crown or public agency; or any outstanding advance made from the General Revenue Fund (FA-42 – overriding provision); and

• Treasury Board may make orders and directives regarding set-offs (FA-42(3)). Federal/Provincial Agreements9


• a minister may enter into a federal-provincial agreement on behalf of an agency of the Government of Saskatchewan for any purpose under the minister’s administration or for which the minister is responsible(EGA-21(2));

• if the Government or agency is liable to make any expenditure greater than $50,000, before entering into the agreement: • the financial arrangements must be approved by the Minister of Finance(EGA-21(3)(a)); and • the Lieutenant Governor in Council must have authorized the minister to enter into the

agreement and approved the terms and conditions (EGA-21(3)(b)). Accountability

Legislative Assembly: • or a committee of the Legislative Assembly, may summon any person as a witness and require

that person to give evidence on oath or under affirmation and to produce any documents and things that the Legislative Assembly or committee considers necessary (LA-35(1)).


• may, on the recommendation of the President of the Executive Council, assign to ministers and transfer from one minister to another, the powers and responsibilities for administering certain Acts and certain portions of Acts (EGA-5); and

• may assign to Treasury Board matters additional to those for which Treasury Board is responsible (FA-4(f)).

9 This covers agreements for any purpose of provincial interest and in particular for the purpose of obtaining for

Saskatchewan the benefits of any programs, arrangements or proposals involving joint participation by the Government of Saskatchewan and the Government of Canada.



Reporting

Directors should be aware of the following:

• Enabling legislation includes financial statement preparation and tabling requirements. • Every Crown corporation must submit to their Minister, in accordance with The Executive

Government Administration Act, a report on their business for their preceding fiscal year and a financial statement showing their business for their preceding year, in any form required by Treasury Board (CC-34(1)).

• Under The Executive Government Administration Act, a person who is required by an Act to prepare a document to be laid before the Assembly must submit the document to the person who is required by that Act to lay the document before the Assembly at least 30 days before the document must be laid before the Assembly (unless a shorter period is specified in their Act) (EGA-13(1)) and the person to whom a document is submitted tables documents within 120 days after the end of the period (EGA-13(2)).

• Treasury Board policy is found in Section 2305 Approval of the Financial Statements of Government Entities of FAM.

Minister responsible for the Crown Corporation:

• tables, in accordance with The Executive Government Administration Act, a report setting out the name, objects, purposes, and head office of newly created Treasury Board Crown corporations (CC-15(3)); and

• tables the annual report and financial statement of Crown corporations in accordance with The Executive Government Administration Act (CC-34(3)) and where the Legislative Assembly is not in session, submits the report to the Clerk of the Legislative Assembly within 15 days of receiving the report (CC-35(1)).


• causes the Public Accounts, which contain the financial statements of the Government of Saskatchewan, to be prepared as soon as is practicable after the end of the fiscal year in the form directed by Treasury Board (FA-5(b), 18);

• tables the Public Accounts on or before October 31 following the end of the fiscal year with respect to which the public accounts relate (FA-18(3) – overriding provision); and

• where the Legislature is not in session, submits the Public Accounts to the Clerk of the Legislative Assembly (FA-18(4)).

Provincial Comptroller: • prepares the Public Accounts (FA-10(d)).



Audit

Provincial Auditor:

• audits the Summary Financial Statements of the Government of Saskatchewan (FA-17); • is the auditor of the accounts of the Government of Saskatchewan and examines all accounts

related to public money and any accounts not related to public money that the Provincial Auditor is required by an Act to examine (PA-11(1));

• or other auditor appointed by the Lieutenant Governor in Council10 audits the records, accounts and financial statements of Treasury Board Crown corporations (CC-33(3));

• may rely on the report of an appointed auditor of a Crown agency or Crown-controlled corporation if he is satisfied that the appointed auditor carried out his duties (PA-11.1(1));

• is entitled to free access to data processing equipment, files, documents and other records of entities he is required to examine (PA-24(1)(a));

• is entitled to receive information, reports and explanations that he considers necessary (PA-24(1)(b));

• may station staff in the ministry or agency being audited (PA-24(2)); • prepares an annual report on the results of all examinations conducted during the year and

submits the report to the Speaker, who tables the report (PA-12, 14); • expresses an opinion on the financial statements11 of: any funds he is required to audit, Crown

agencies, Crown-controlled corporations and accounts not related to public money that he is required to examine (PA-15);

• may perform special assignments at the request of the Lieutenant Governor in Council, where the assignments will not unduly interfere with his duties (PA-16(4)); and

• may prepare any report for the Legislative Assembly that the Auditor considers important or urgent and submits the report to the Speaker, who tables the report (PA-13, 14).

Disposition of Public Records

Provincial Archives of Saskatchewan:

• acquires and preserves public records12 and private records of historical significance and facilitates access to those records;

• is a repository of public records; • manages public records; • supports archival activities and the archival community (APRMA-4); and • appoints the Provincial Archivist to be in charge of the archives (APRMA-17). 10 When another auditor is appointed to audit a public agency, either through this legislation or through specific enabling

legislation, the appointed auditor and the Provincial Auditor follow the recommendations of The Report of the Task Force on Roles, Responsibilities and Duties of Auditors (June 1994).

11 When the Government appoints another auditor, the Provincial Auditor works with the appointed auditor using the framework recommended by the Task Force on the Roles, Responsibilities and Duties of Auditors (June 1994).

12 Public records, as defined in The Archives and Public Records Management Act include a record made or received by a government institution in carrying out its activities, and court records.




• government institutions13 must preserve public records in their possession or control until the records are transferred to the Provincial Archives of Saskatchewan or destroyed (APRMA-21(1));

• every government institution must prepare one or more records schedules respecting the management of its public records and submit its proposed records schedules to the Public Records Committee for review and approval (APRMA-24(1) and (2));

• no public record shall be destroyed unless its destruction is authorized pursuant to an approved records schedule (APRMA-22(1) and (2));

• government institutions must obtain the approval of the Provincial Archivist before destroying a public record (APRMA-24(6)).

Access to Information


• The Freedom of Information and Protection of Privacy Act for government institutions14 and The Local Authority Freedom of Information and Protection of Privacy Act for local authorities15 include the following:

• procedures with respect to accessing records (FOI-5 to 23 and LAFOI-5 to 22); • procedures with respect to the collection and disclosure of personal information (FOI-24 to

33 and LAFOI-23 to 32); • procedures with respect to notice to a third party (FOI-34 to 37 and LAFOE-33 to 36); and • procedures with respect to a review by the Information and Privacy Commissioner (FOI-49

to 56 and LAFOI-38 to 45) and by the courts (FOI-57 to 58 and LAFOI-46 to 47).

13 Government institution, as defined in The Archives and Public Records Management Act. 14 Government institution, as defined in The Freedom of Information and Protection of Privacy Act. 15 Local authority, as defined in The Local Authority Freedom of Information and Protection of Privacy Act.




General Revenue Fund Quarter-end Procedures

Fiscal Year 2017-18

General Revenue Fund Quarter-end Procedures Table of Contents Introduction ................................................................................................................... 3 Recording Accrual Adjustments in MIDAS ................................................................. 5

Program Segment ...................................................................................................... 5 Natural Account Segment ......................................................................................... 6 Recording Accrual Adjustment Journal Entries ..................................................... 6 Public Sector Budgeting ........................................................................................... 8

Determining Amounts of Accrual Adjustments .......................................................... 8 Revenues .................................................................................................................... 9

Taxation ................................................................................................................... 9 Non-renewable Resources ....................................................................................... 9 Transfers from Government Entities ........................................................................ 9 Other Own-source Revenue .................................................................................. 10 Transfers from the Federal Government ................................................................ 11

Expenses .................................................................................................................. 12 Salaries and Benefits ............................................................................................. 13 Goods and Services ............................................................................................... 14 Travel ..................................................................................................................... 15 Transfers ................................................................................................................ 15 Amortization ........................................................................................................... 18

Other ......................................................................................................................... 19 Revolving Funds .................................................................................................... 19 Prepaid Expenses .................................................................................................. 19 Year-end Accounts Receivable .............................................................................. 19 Tangible Capital Assets ......................................................................................... 19 Year-end Accounts Payable ................................................................................... 19 Unearned Revenue ................................................................................................ 20 Interdepartmental Clearing and Refund to Vote Clearing Accounts ....................... 20

Appendix A - MIDAS Accounts Payable Processes ................................................. 21 Appendix B - Natural Accounts ................................................................................. 25

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Introduction Revenue and expense transactions of the General Revenue Fund (GRF) are reported in an income statement (Statement of Operations) at the end of each quarter (June 30, September 30 and December 31). These GRF Quarter-end Procedures set out the requirements of ministries at the end of each quarter. At the end of each fiscal year (March 31) GRF financial information is prepared by the Ministry of Finance and is a significant component of the Summary Financial Statements which are audited by the Provincial Auditor and published in Volume 1 of the Public Accounts. GRF Year End Reporting Requirements and Procedures that set out year-end processes and requirements for reporting at year end are provided to ministries separately. During the year, ministries typically record revenues and expenses as cash is received or paid. This is described as cash accounting. Ministries are required to record revenues earned and expenses incurred during the quarter (year to date). This is described as accrual accounting. At the end of each quarter, ministries are required to review their transactions to identify where cash accounting differs from accrual accounting by more than $1 million per revenue stream or program1 expense (year to date). For these items, ministries are required to record an accrual adjustment in MIDAS by the end of the quarter. Items to be reviewed include the following. Further guidance is provided later in these procedures under the heading Determining Amounts of Accrual Adjustments. Revenues • Provision of goods or services by the end of the period for which revenue has not

been recorded • Transfers (i.e. grants) receivable from others which have been authorized by the

transferor and for which the Province has met eligibility criteria (if any), unless the transfer gives rise to an obligation that meets the definition of a liability

Expenses • Goods and services received by the end of the quarter for which expenses have not

been recorded • Transfers (i.e. grants) authorized by the end of the quarter for which eligibility criteria

(if any) have been met by the recipient Refer to the Government Transfers Application Guidance in Appendix M of the Financial Administration Manual (FAM) for more details and guidance on transfers.

1 Program refers to the allocations in each subvote as presented in the 2017-18 Estimates. Ministries may have chosen to create additional programs in MIDAS to further segregate expenses.

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There are key differences between the preparation of quarterly financial information and the process for preparing year-end financial information:

• The quarterly information is income statement focused. Ministries are to focus on revenues and expenses for the period, which means that accrual of tangible capital asset (TCA) additions is not required, except for TCA additions invoiced by the Ministry of Central Services (CS) (see below) and recording the estimated completion costs for TCA additions arising from Public Private Partnership (P3) arrangements (refer to the TCA section within Other);

• Quarterly information entered in MIDAS does not require supplier detail, which allows the accrual adjustments to be made in the MIDAS General Ledger module;

• Ministries are not required to submit cut-off schedules to Finance; and • Although the quarterly information is expected to be reasonable enough to be

useful, it will not be audited, and therefore requires less precision than is required at year end.

All expenditures recorded in MIDAS, including accrual adjustments recorded at quarter end, are subject to spending controls. That is, expenditures are to be recorded to a suitable appropriation, as required by The Financial Administration Act, 1993. Ministries will need to monitor spending limits to ensure that any required virements or transfers are processed in time to ensure accrual adjustments can be recorded. Note that virements require approval by the Treasury Board Branch of the Ministry of Finance. Ministries wishing for more precision than a $1 million threshold would provide are welcome to record an accrual adjustment for items below the threshold. As well, ministries may choose to accrue revenues and expenses on a more frequent basis than at quarter end. Transactions between CS and all other ministries are, cumulatively, significant to the GRF. For this reason, ministries are required to accrue all amounts for TCA additions and goods and services invoiced by CS that have not yet been recorded. This means that, for accrual adjustments pertaining to goods and services provided by CS, the $1 million threshold does not apply. A process has been established for CS to provide ministries with estimates of unbilled amounts. Refer to the detailed information provided under the Central Services heading in the Goods and Services section of Determining Amounts of Accrual Adjustments. Each ministry is responsible for ensuring that amounts recorded in MIDAS appropriately reflect revenues earned and expenses incurred to the end of the quarter. While there has been a shift in focus to a Summary basis, it is still important to ensure that accruals for GRF revenues and expenses are appropriately recorded in MIDAS each quarter end, for the management of ministry finances and forecasting purposes.

Ministries may wish to create quarter-end accrual checklists and specific procedures for use within their ministry. Ministries may also wish to consider implementing an earlier internal cut-off date or time for accruals to allow time to perform an analytical review of

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the ministry’s revenues and expenses recorded in MIDAS each quarter end, and to identify and make any necessary adjustments in MIDAS by 5:00 p.m. on the last day of the quarter.

The quarterly GRF financial statements include quarterly budget figures based on budget allocations provided by ministries to the Financial Systems Branch (MIDAS Helpdesk). It is important that careful consideration be given when determining the quarterly budget allocations as these are used as a comparison to the actual GRF revenues and expenses at each quarter end.

Recording Accrual Adjustments in MIDAS Accrual adjustments required at quarter end are to be recorded using MIDAS Journal Entries. It is expected that ministries will use reversing journal entries for quarter-end accrual adjustments (see detailed process in the Recording Accrual Adjustment Journal Entries section below). The entry of accrual adjustments at quarter end and the reversal of those entries at the beginning of the new quarter allow ministries to continue with the normal processing of receipts and payments during the year. Quarter-end accrual adjustments must be entered by 5:00 p.m. on the last working day of the quarter (for 2017-18: June 30, 2017; September 30, 2017 and December 29, 2017). The MIDAS General Ledger Module will remain open until 5:00 p.m. on the last working day of each quarter, allowing ministries to record accrual adjustments until the end of the day. Other modules will continue to close at noon. Accrual adjustments recorded in MIDAS are estimates of actuals. This is no different than estimates recorded at year end. As such, all expenditure amounts recorded are subject to spending control. Ministries should consider whether transactions should be recorded at quarter end using normal processes rather than recording a quarterly accrual by journal entry that will be reversed. Examples of transactions that should be recorded using normal processes include: • transfers expense where the recipient is known, the transfer has been authorized

and eligibility criteria have been met; • TCA additions arising from P3 arrangements based on the estimated percentage of

completion costs that have not yet been recorded; and • amortization expense. Program Segment All accrual adjustments must be recorded to an appropriate subvote. Recording an expenditure to a suitable appropriation (or appropriate subvote) means that expenditures are charged to a subvote that, by its description, allows for the

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expenditure. Subvotes, including descriptions that establish their purpose, are approved through the estimates process. Ministries may choose to record accrual adjustments to existing programs and subprograms. Alternatively, to minimize the coding required for accrual adjustment entries, ministries may wish to create new programs or subprograms. Note that all new subprograms must be approved by the Treasury Board Branch of the Ministry of Finance. It is important to monitor spending limits remaining in each subprogram and program to ensure that any required virements or transfers are requested, if necessary, and processed in time to allow the recording of accrual adjustments to expenditure accounts. Natural Account Segment Ministries are to use specific natural accounts created for accrual adjustments at quarter end for the following reasons: • To allow recording of expenditures by journal entry (since no supplier information is

required); and • To enable, for reporting and inquiry purposes, segregation of accrual amounts (i.e.,

to separate from normal day to day transactions), by using a specific range of accounts.

The natural accounts for recording accrual adjustments at quarter end are not to be used at year end. The balance in each of these natural accounts must be zero at March 31. Recording Accrual Adjustment Journal Entries Accrual adjustments are to be entered by the last working day of the quarter end (the GL module will close at 5:00 p.m.). Ministries may choose to have most2 of these entries reversed at the beginning of the next quarter. For all accrual adjustments that will be reversed at the beginning of the next quarter the following process has been established to automate the reversal of the journal entries:

2 Amortization should not be reversed. Refer to the Amortization section under Determining Amounts of Accrual Adjustments in these Procedures) for more information.

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To create a quarter-end accrual adjustment journal entry:

Oracle General Ledger Journals > Enter > New Journal • Journal name (prefix): xxx-QA2017-3 • Journal category: Quarterly accrual Complete Journal entry header information and create journal entry lines.

To create the reversing journal entry: Once the original entry has been POSTED, open the journal and press the reverse button:

B > Reverse Enter the reversal instructions: • Period: Enter the period in which the reversing journal should be posted, or

choose it from the list of values. This should always be the period immediately subsequent to the quarter end (July, October or January).

• Method: Choose Change Sign. General Ledger creates the reversing journal by changing the sign on the debit and credit amounts of the original journal entry. This method is generally used when reversing accrual adjustments as it allows for easy identification and summing of reversals upon viewing/exporting journals.

• Status: This is a display only field that will indicate whether the journal is available to be reversed, or whether it has already been reversed.

Note: You are not able to edit the Batch/Journal names on the reversing entries. The system generated name continues to be the original journal name in quotations preceded by the word Reverses.

Review and post the journal entry. This process creates two journal entries at once: • The accrual adjustment journal entry (original entry) which is posted immediately;

and • The entry to reverse the original entry in the next period, which is posted by FSB.

The Financial Systems Branch will, upon closing the quarter-end period and opening the next period (for 2017-18: July 2017, October 2017 and January 2018), identify and post journals that have been created using this process, reconciling to ensure that all ‘temporary’ accrual accounts have cleared with the posting of the reversing entries. Refer to MIDAS Online Help for detailed procedures on reversing journal entries (MIDAS Desk Manual: Originator, Processing Reversals). 3 For the Journal name (prefix), xxx refers to the vote or entity number. As well, Ministries can assign additional information to the journal name after the required prefix.

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As well, use of recurring journal entries may be beneficial to ministries where the same type of accrual adjustment is required each quarter and only a few of the details change from quarter to quarter (e.g., accrual of in-scope salaries). Refer to MIDAS Online Help for detailed procedures on recurring journal entries (MIDAS Desk Manual: Originator, Processing Recurring Journals). For additional assistance with MIDAS, contact the MIDAS Help Desk at 798-9999 or [email protected]. Public Sector Budgeting MIDAS Public Sector Budgeting (PSB) will include accrual adjustments recorded at quarter end. That is, account code combinations for the accrued revenue and accrued expenses natural accounts will contain actual values. However, future forecasting for these account code combinations is not necessary, and ministries should forecast -nil- balances for each accrued revenue and accrued expense account. Forecasting should occur at the specific account codes. Determining Amounts of Accrual Adjustments Ministries are responsible for ensuring that the appropriate amount of revenue and expenses are recorded in their Vote. The following procedures provide general guidance on recording revenues earned and expenses incurred by the GRF. The GRF uses accounting guidance for senior governments in Canada provided by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. Further accounting guidance can be found in the Public Sector Accounting Standards and in FAM. These procedures speak in general to the need for ministries to record accruals. However, for each revenue stream or program expense, ministries will need to assess whether the adjustment is necessary with respect to the $1 million threshold. For each type of revenue and expense described below, MIDAS natural accounts set up exclusively for quarterly reporting have been provided. As well, MIDAS natural accounts have been set up to record the offsetting debits or credits. The following accounts should be used as offsets to revenue or expense when recording accruals:

Revenue accruals: #107600 - Accrued Accounts Receivable - General #257200 - Accrued Unearned Revenue Expense accruals: #255005 - Accrued Accounts Payable - General #105200 - Accrued Prepaid Expenses

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Further information on Unearned Revenue and Prepaid Expenses is provided under the Other heading in this section. Revenues Revenues are to be recorded in the period that they are earned, can be reasonably estimated and collection is reasonably assured. This may not be the same as the period in which the cash is received. Guidance on determining when specific types of revenue have been earned is provided below. Information is also provided on MIDAS natural accounts: those used for transactions throughout the year, and the natural accounts set up for quarterly reporting. Taxation Taxation revenue should be recorded in the period that gives rise to the tax. For example, sales tax revenue is earned in the period the sale occurs. Note that corporate and personal income taxes are recorded as revenue when received from the federal government. Throughout the year, taxation revenues are coded to the 41**** series of natural accounts. Accrual adjustments at quarter end will be coded to natural accounts set up exclusively for quarterly reporting. The natural accounts to be used are within the range of 498100 to 498110. The accounts each indicate the specific type of taxation revenue to be coded to the account (for the detailed accounts see the Natural Accounts section of Recording Accrual Adjustments in MIDAS in these procedures). Non-renewable Resources Non-renewable resource revenue should be recorded as revenue when the production of non-renewable resource occurs. For example, oil royalties are revenue in the period of oil well production. Throughout the year, non-renewable resource revenues are coded to the 49**** series of natural accounts. The accruals recorded for quarterly reporting will be coded to natural accounts set up for quarterly reporting. The natural accounts to be used are within the range of 498120 to 498128. The accounts each indicate the specific type of non-renewable resource revenue to be coded to the account (for the detailed accounts see the Natural Accounts section of Recording Accrual Adjustments in MIDAS in these procedures). Transfers from Government Entities These transfers consist of amounts received from government entities, such as the Liquor and Gaming Authority and Crown Investments Corporation (CIC). They are

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sometimes referred to as dividends. The amounts are earned based on the type of transfer, and should generally be recognized as revenue in the period that the transfer is authorized. For example, the dividend from CIC to the GRF is revenue of the GRF when declared by CIC. Throughout the year, transfers from government entities are coded to the 47**** series, however the accruals recorded for quarterly reporting will be coded to natural accounts set up for quarterly reporting. The natural accounts to be used include 498140 - Accrued Revenue - Transfers from other government entities and 498141-Accrued Revenue- Transfers from Liquor and Gaming Authority. Other Own-source Revenue Other own-source revenues are earned based on the type of revenue, described below. Throughout the year, other own-source revenues are coded to the 42****, 43****, 44****, 45****, 469*** and 48**** series. The accruals recorded for quarterly reporting will be coded to natural accounts set up for quarterly reporting. Investment income should be recognized as revenue in the period earned or realized. The natural account to be used for recording accrual adjustments of investment income such as interest, premiums, discounts, and exchange is 498165 - Accrued Revenue – Investment income. Other fees and charges include three distinct types of revenue as described below. The natural account to be used for recording accrual adjustments of other fees and charges is 498162 - Accrued Revenue - Other fees and charges.

Fines, forfeits, and penalties should be recorded as revenue when they are imposed. Where there is a time lag between the fine being imposed and being paid, the revenue should be recorded as soon as it can be reasonably estimated. Other licences and permits should be recognized as revenue over the time period that the licence or permit relates to. Sales, services and service fees should be recorded as revenue when the sale has occurred or the service has been provided.

Miscellaneous – Included within Miscellaneous are Transfers from other governments which should be recognized as revenue following the guidelines indicated below for transfers from the federal government. The transfers coded to this account are generally received from municipalities. The natural account to be used for recording accrual adjustments of miscellaneous revenue is 498160 - Accrued Revenue – Miscellaneous. To ensure accurate forecasting, this accrual account should not be used for the accrual of other own-source revenue that fits with the accrual accounts above for investment income or other fees and charges or miscellaneous revenue.

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Transfers from the Federal Government Transfers revenue consists of payments received or obligations owed to a Ministry from the federal government where the federal government does not:

• receive any goods or services directly in return, as would occur in a purchase/sale or other exchange transaction;

• expect to be repaid in the future, as would be expected in a loan; or • expect a direct financial return, as would be expected in an investment.

Transfers should be recognized as revenue in the period that:

• the transfer is authorized by the federal government; and • eligibility criteria, if any, have been met by the recipient; except • when and to the extent that there are stipulations that give rise to an obligation

that meets the definition of a liability. Eligibility criteria are transfer terms that must be met by the recipient to get a transfer. Stipulations are transfer terms that must be met by the recipient after being eligible for a transfer. Transfers that include stipulations are recognized as revenue when authorized and eligibility criteria are met unless the transfer stipulations create a liability. If a liability has been created, revenue is deferred and recognized as the stipulations are met by the recipient. It would be rare that the existence of transfer stipulations would indicate that a liability is created and deferral of revenue can occur. The natural account to be used for recording accrual adjustments of transfers from the federal government is 498180 - Accrued Revenue - Transfers from the federal government. Transfer revenue usually fits into one of the following categories:

Entitlements The federal government has no choice but to provide the entitlement to the provincial government. Legislation or a signed agreement specifies “how much” the provincial government is entitled to receive. The provincial government may be required to meet certain criteria to become eligible for the transfer, but as soon as those eligibility criteria are met, the federal government has an obligation to pay the transfer. Examples of entitlements are the base amount of the Canada Health Transfer and the Canada Social Transfer. An entitlement should be recorded as revenue in the period that the provincial government meets any eligibility criteria, as long as the legislation authorizing the transfer is in force and there are no stipulations that create a liability. Ministries

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should accrue Federal entitlements not yet received where the authorizing legislation is in force and eligibility criteria have been met. Shared Cost Arrangements Shared cost arrangements are usually embodied in agreements that require the federal government to reimburse a Ministry for eligible expenses. Shared cost arrangements should be recorded as revenue in the period that eligible expenses are incurred. Ministries will have to review the shared cost agreement and the expenses incurred to date to determine if an accrual is required. Ministries should accrue revenue for the amount of eligible expenses (or portion thereof) that are reimbursable from the federal government, but have not yet been received, unless there are stipulations that create a liability. In financing shared cost arrangements, payment is made ahead of the recipient incurring eligible costs. When this is the case, the eligible costs are deemed to be stipulations. Revenue is recorded for any payments received in advance of incurring eligible costs, unless there are stipulations that create a liability. Other Transfers (Grants) Grants are transfers where the federal government retains discretion over whether a grant will be provided, what the eligibility criteria are and for how much. Grants should be recorded as revenue in the period the transfer is fully authorized by the federal government, eligibility criteria, if any, have been met by the ministry and there are no stipulations that create a liability. Ministries should accrue grants when any eligibility criteria have been met and the grant has been authorized by the federal government, but the grant has not yet been received.

If a grant is paid prior to eligibility criteria being met, the payment received is recorded as revenue on the basis that the terms of the transfer have been changed, such that the eligibility criteria are deemed to be stipulations. Refer to the Government Transfers Application Guidance in Appendix M of FAM for more details and guidance on transfers. Expenses Expenses are to be recorded in the period that they are incurred.

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Details on determining when an expense has been incurred are provided for the expense types below. Information is also provided on MIDAS natural accounts: those used for transactions throughout the year; and those set up for quarterly reporting. Salaries and Benefits Ministries incur salaries and benefits expenses when employees provide employment services (that is, when they work). Salaries and benefits expenses are recorded in MIDAS in the period that the payment is made (on the pay date). M1 employees are paid for the month at the end of the month, and therefore, the expense is already recorded in the appropriate period. For B1 and B2 employees there is a “lag” time between the pay period (time worked) and pay date, which means that some services have been provided at quarter end, but will be recorded in MIDAS in the subsequent period. At the end of each quarter, an adjustment is required to accrue expenses for unpaid days. B1 employees are typically paid on the 12th day and B2 employees are typically paid on the 6th day after the end of the pay period. For B1 employees in 2017-18, the pay period of June 11th to June 24th has a pay date of July 7th and the pay period of June 25th to July 8th has a pay date of July 20th. That means at the end of the first quarter (June 30th) there are 20 calendar days (June 11th to 30th) on which B1 employees may have worked for which they have not yet been paid. For B2 employees, the pay dates for these pay period are June 30th and July 14th, which means that there are 6 calendar days in June (June 25th to 30th) on which B2 employees may have worked but not been paid. For 2017-18, salaries and benefits for the following number of calendar days may require accrual in the specified month:

# of calendar days to be accrued

Month B1 B2 June 2017 20 6 September 2017 14 14 December 2017 22 8

Salaries and benefits are normally recorded to the 51**** series of natural accounts. For quarterly reporting, accrual adjustments of Salaries and Benefits should be coded to account #587510 - Accrued Expenses - Salaries and Benefits.

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Accrued employee leave entitlement Accrual adjustments for employees’ vacation and other leave entitlements should not be updated in each quarter. These fluctuations during the year have little meaning in the presentation of “how the Government is doing to date”. Goods and Services Expenses are incurred by the government when goods are received and services are provided. Accrual adjustments may be required where goods have been received by the government, or services have been provided to the government before the end of the quarter, but no invoice is yet recorded in MIDAS. Goods and services are normally recorded to numerous natural accounts. Accrual adjustments of goods and services should be coded at quarter end to one of the following accounts:

587520 - Accrued Expenses - Goods and Services 587521 - Accrued Expenses - Utility costs 587522 - Accrued Expenses - P-cards 587523 - Accrued Expenses - Construction Costs

Note that the italicized codes are detailed codes under the general “goods and services” code. Ministries have the discretion of using a detailed code or the general code. Shared Services For shared service arrangements, the Ministry receiving the service should record an expense in the period the service is provided, and the providing Ministry should record a corresponding reimbursement. Ministries will need to coordinate their efforts to ensure interministerial clearing accounts are cleared prior to quarter end. Reimbursements are normally recorded to the 586*** series of natural accounts. For quarterly reporting, accrual adjustments of internal recoveries should be coded to account #586900 - Accrued Internal recoveries. Refer to FAM Section 3007, Shared Services for detailed information. Information on clearing accounts is provided under the heading Other below. Most ministries have shared service arrangements with the Ministry of Central Services. Ministries are to use the following processes for goods and services provided by this Ministry.

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Central Services (CS) invoices All CS invoices relating to goods or services received during the quarter (or year to date) will be entered in Markview prior to quarter end. Ministries are responsible for ensuring that these invoices are approved and validated in Markview prior to quarter end. For transactions that have not yet been billed at quarter end, CS will provide an estimate of the outstanding TCA additions and goods and services amounts to ministries. The Executive Directors / Directors of Administration will receive the estimate(s) at least three (3) working days prior to close of MIDAS for the quarter. This should ensure the receiving ministries have enough time to record the accrual adjustment. Accrual adjustments may also be required where CS invoices have not been validated in Markview prior to quarter end. Refer to the detailed information for recording accruals for TCA additions provided under the Tangible Capital Assets heading in the Other section. All CS invoices, including those relating to the Information Technology Division, require accrual (i.e., the threshold does not apply) due to the significant impact of CS transactions across government. Travel Travel expenses are incurred by the Government when the good or service is provided. Ministries should accrue estimated travel expenses incurred by employees and officials, but not yet paid. Travel expenses are normally recorded to the 54**** series of natural accounts. Accrual adjustments of travel expense should be coded to account #587540 - Accrued Expenses - Travel. Transfers Section 3410 of the Public Sector Accounting Standards defines government transfers as transfers of money from a government to an individual, an organization or another government for which the government making the transfer does not:

• receive any goods or services directly in return as would occur in a purchase/sale or other exchange transaction;

• expect to be repaid in the future, as would be expected in a loan; or • expect a direct financial return, as would be expected in an investment.

Transfers should be recognized as an expense in the period that:

• the transfer is authorized by the Ministry; and • eligibility criteria, if any, have been met by the recipient.

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Eligibility criteria are transfer terms that must be met by the recipient to get a transfer. Stipulations are transfer terms that must be met by the recipient after being eligible for a transfer and do not delay the recording of transfers expense. Professional judgment is required to apply the recognition criteria to the circumstances of a particular transfer. The following guidance on the three main categories of transfers will assist ministries in determining when a transfer should be recorded as an expense.

Entitlements The government has no choice but to provide an entitlement to the specified recipient. Legislation specifies “who” is entitled to receive the transfer and “how much” the recipient is entitled to receive. The recipient may be required to meet certain criteria to become eligible for the transfer, but as soon as those eligibility criteria are met, the government has an obligation to pay the transfer. An entitlement should be recorded as an expense in the period that the recipient meets any eligibility criteria, as long as the legislation or agreement authorizing the transfer is in force. Ministries should accrue any unpaid entitlements at the end of a quarter if the legislation authorizing the entitlement is in force, and recipients have met any eligibility criteria. Shared Cost Arrangements Shared cost arrangements are usually embodied in agreements that require the government to reimburse an individual or organization for eligible expenses. Shared cost arrangements should be recorded as an expense in the period that the recipient incurs eligible expenses. However, in some cases, the recipient may be required to present proof of eligible expenses prior to receiving reimbursement. Ministries will have to review the shared cost agreements to ensure the correct timing of the expense. Ministries should accrue an estimate of eligible expenses incurred by recipients, but not yet paid at the end of the quarter. In financing shared cost arrangements, payment is made ahead of the recipient incurring eligible costs. When this is the case, the eligible costs are deemed to be stipulations. An expense is recorded for any payments made in advance of the recipient incurring eligible costs. Other Transfers (Grants) For grants, the government retains discretion over whether an amount will be provided, what the eligibility criteria are, to whom and for how much.

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Grants typically require two actions by the transferring government. First, the enabling authority must be in place by the financial statement date (i.e. the statute or regulation that establishes the transfer is in force). Second, the transferring government must exercise the authority provided it by the enabling authority. Often, the legal authority only enables the government to provide the grant, and at some point in the future, a decision is made or an action is taken that means the government has given up its discretion to make a transfer. This decision or subsequent action is the exercise of authority and is often evidenced by the signing of an agreement or transfer approval form (e.g., the signature of the Deputy Minister or a Program Manager who is delegated to authorize). Sometimes the signing of a contract or agreement will be the final authorization required, because recipients are entitled to receive the transfers as soon as they meet eligibility criteria embodied in the agreement. The government lost its discretion of whether to provide the transfer when the agreement was signed. Grants should be recorded as an expense in the period the transfer is fully authorized by the Ministry, and eligibility criteria, if any, have been met by the recipient. Ministries should accrue grants that have been fully authorized for recipients that have met eligibility criteria (if any), but remain unpaid at the end of the quarter. If a transfer is paid prior to eligibility criteria being met, the payment is recorded as an expense on the basis that the terms of the transfer have been changed, such that the eligibility criteria are deemed to be stipulations.

Capital transfers are to be recorded and reported separately from operating transfers. Capital transfers are shared cost arrangements or grants provided to a third party such as a school board, regional health authority, university or municipality to acquire or develop capital assets. All other transfers should be considered as operating transfers. Capital transfers should be accrued following the same guidelines as provided for operating grants. For each transfer program, ministries will need to review the legislation establishing and/or agreements governing the program to ensure that transfers expense is recorded in the appropriate quarter. Ministries should record any required accrual to the appropriate payable and expense accounts and only use the quarterly accrual accounts when the recipient is unknown or significant estimation is required. Where the recipient is known, the transfer has been authorized and the eligibility criteria have been met, the transfer should not be recorded to the quarterly accrual account but should be recorded following the same processes normally used to record a transfer. For additional information, refer to the Government Transfers Application Guidance in Appendix M of FAM.

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Transfers expense is normally recorded to the 57**** series of natural accounts. Accrual adjustments of transfers that are reversed after the quarter end should be coded to either account #587570 - Accrued Expenses - Operating Transfers or #587560 - Accrued Expenses - Capital Transfers, as appropriate. MIDAS Processes Ministries need to ensure that transfers are recorded in the period that they are fully authorized and any eligibility criteria have been met by the recipient. Payment processes in MIDAS can be used to facilitate the recording of transfers expense in the appropriate period. Refer to Appendix A for detailed information on MIDAS Accounts Payable processes. Note that recording an expense in MIDAS is not the same as encumbering an appropriation. The MIDAS processes in Appendix A set out how to ensure that an expense is recorded in the MIDAS General Ledger module. Shared Grants Ministries participating in shared grant and shared program arrangements need to ensure transactions are processed on a timely basis, and must ensure that when non-paying ministries have recorded an expense, the reimbursement is recorded by the paying Ministry in the same period. That is, interministerial clearing accounts are required to be cleared prior to quarter end. Coordination between ministries is important. If a Ministry determines it is necessary to accrue a grant or program expense, the other ministry/ministries need to be made aware, and provided with enough time to make an accrual adjustment. Refer to FAM Section 3008, Shared Grants and Programs. Amortization Amortization expense allocates the cost of tangible capital assets over the estimated useful life of the assets. The amortization expense recorded during a period estimates the usage of that asset in the period. Ministries should record amortization in each quarter using the guidance set out in FAM Section 2150. Amounts recorded as amortization expense do not need to be reversed, as no other cash-type entry (i.e., payment) will be made. Amortization expense recorded at quarter end should be coded to the normal amortization natural accounts in the 588*** series. Amounts determined for annual amortization at the beginning of the year may need to change for amortization of new capital items incurred during the year.

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Other Revolving Funds Subsidies provided by ministries to Revolving Funds must be recorded in MIDAS by both the Ministry (as expense) and the Revolving Fund (as revenue) in the same period. Prepaid Expenses Prepaid expenses are payments that are made during a period, where part of the cost relates to a subsequent period (e.g., annual professional dues, memberships and subscriptions). Ministries should record the part of the cost that relates to a subsequent quarter as a prepaid expense in account 105200 – Accrued Prepaid Expenses at the end of the quarter. This process is important in ensuring that only expenses incurred in the quarter get recorded as an expense in the quarter. Year-end Accounts Receivable Account 107000 – Accounts Receivable – General may contain uncleared receivables set up at year end. Ministries need to monitor these receivables and review the account at quarter end to ensure that amounts received during the quarter have been recorded as a reduction to account 107000 rather than coded to revenue. Tangible Capital Assets (TCAs) Account 199900 – Accrued Capital Assets – Current Year Additions should be used to record all TCA additions included on invoices from CS that have not yet been recorded (i.e. CS invoices not approved and validated in Markview prior to quarter end). Ministries may choose to accrue other TCA additions for any dollar amount in account 199900, however, it is not a requirement. Ministries should record TCA additions arising from P3 arrangements at quarter end based on the estimated percentage of completion costs in excess of $1 million that have not yet been recorded. Ministries should record the TCA additions arising from P3 arrangements using the normal TCA current year addition accounts and account 270000 Obligations Under Long-Term Financing Arrangements. Account 199900 should not be used to record TCA additions arising from P3 arrangements and the amounts recorded at quarter end should not be reversed. Year-end Accounts Payable Account 255099 contains uncleared payables set up at year end (see GRF 2016-17 Year End Reporting Requirements and Procedures, F2a#3). When the related invoices are received throughout the year, ministries are to use the MIDAS Accounts Payable module for payment processing. However, the payment is debited to account 255099 rather than an expense account.

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This process is important in ensuring that only expenses incurred in the quarter get recorded as an expense in the quarter. Where ministries have chosen to adjust account 255099 only at year end, it is important that 255099 be reviewed at quarter end, and any required accrual adjustments made. Unearned Revenue Unearned revenue consists of amounts received by the Ministry that have not yet been earned. The Revenue section of Determining Amounts of Accrual Adjustments in these procedures provides guidance on determining when revenue is earned. The balance of revenue received by the end of the quarter, where goods and services will not be provided by the Ministry until a subsequent quarter, should be recorded as unearned revenue at the quarter end. Examples of unearned revenue include the proceeds from annual or multi-year licenses and other licenses and fees received in advance. The portion of the revenue that relates to a subsequent quarter is recorded as unearned revenue in account 257200 – Accrued Unearned Revenues. This process is important in ensuring that only revenues earned in the quarter get recorded as revenue in the quarter. Amounts recorded in account 257020 – Unapplied Receipts should be reviewed at quarter end to ensure receipts are appropriately matched to receivables and cleared out of the account. Interministerial Clearing and Refund to Vote Clearing Accounts Interministerial and refund to vote clearing accounts should be monitored and reconciled on a monthly basis and reasonable efforts should be made to clear these accounts to zero for the quarter end.4 Ministries will need to ensure that when the purchase of goods and services or the provision of transfers is under a shared arrangement that an appropriate amount of time is provided to the receiving Ministry to make an accrual.

4 With the exception of #253022 – Payroll Refund to Vote – Clearing Account. This account may include amounts that will be processed in the next payroll run.

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Appendix A MIDAS Accounts Payable Processes Expensing Transfer Payments Ministries need to review the authority for making specific grant payments (e.g., legislation, agreement, contract) to assess the appropriate timing of the transfer expense. The invoice processing should be reviewed to ensure that the transfer is expensed in the proper period in MIDAS. In MIDAS, the timing of the expense (i.e., the period in the General Ledger Module that the expense is posted) is driven by the GL Date, which is populated by the Goods and Services Received Date. For example, if the Goods and Services Received Date (GSR) is entered as September 15, 2017, the GL date will automatically be September 15, 2017 and the expense will be recorded in the General Ledger module of MIDAS in the September 2017 period. Validating an invoice immediately encumbers the ministry’s appropriation. This is not the same as recording an expense. Ministries need to ensure expenses are recorded in the appropriate period. To Record Expense Prior to Payment Being Made The following example shows how invoice entry can be used to ensure the proper accounting happens in the General Ledger:

A $32,000 grant to an organization is authorized by Order in Council and approved by the delegated signing authority at the beginning of the fiscal year. The agreement requires that the grant be paid in quarterly installments to the organization. An invoice needs to be entered for each payment. Because the expense must occur in the first quarter (all approvals have occurred), the invoices need to be entered and posted to the GL in the first quarter. The following invoices were entered June 20, 2006 after the full year’s budget was available.

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To ensure that each invoice is expensed in June 2006, the GL Date must be in June 2006 (see third column from left). To ensure the payments are made on the appropriate dates, ministries have two entry options: • Preferred option: change the Terms Date to the intended payment date (see third

column from right) and the Terms to Immediate. This option is preferred because the adjusted payment date is shown on the invoice entry screen, and the information is readily available during invoice inquiry.

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• Second option: the payment date for each invoice can be changed using the Scheduled Payments button (do not schedule more than 1 payment per invoice amount).

After invoices are validated and MIDAS processing is complete, the General Ledger module will be updated. The following MIDAS General Ledger screen shows that the full $32,000 expense has been appropriately recorded in June 2006:

Ministries are able to monitor outstanding invoices using the Invoice Register:

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To Record Expense as Payments are Made Some grants may need to be expensed when payment is made during the year; that is, full authorization does not happen until a delegated signing authority has approved the amount for payment. This may be once in a year, or quarterly, or monthly. It is important for ministries to ensure that the process used to initiate payment also records the expense in MIDAS in the appropriate period. GL Date on the invoice is the “trigger” for expense recording, and should not be changed. This also includes the GL Date within Accounting Distributions.

Date of Authorization and Recipient Eligibility = Goods and Services

Received Date = GL Date

It is important, when entering invoices, to remember that expenses cannot be back dated. That is, any invoices that should be expensed in a period must be entered and validated in that period. Option to Accrue If it does not seem appropriate, or would require additional work to align payment processes with timing of expense, ministries still have the option to accrue transfers expense by journal entry at the end of each quarter.

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Appendix B Natural Accounts Quarter-end Accrual Adjustments The following natural accounts have been established to record accrual adjustments. These accounts must not be used at year end (i.e., must have zero balances at March 31).

Natural Account # Description Revenue 498101 Accrued Revenue - Corporation Capital Tax 498102 Accrued Revenue - Corporation Income Tax 498103 Accrued Revenue - Individual Income Tax 498104 Accrued Revenue - Fuel Tax 498105 Accrued Revenue - Liquor Tax 498106 Accrued Revenue - PST 498107 Accrued Revenue - Tobacco Tax 498108 Accrued Revenue - Insurance Premium Taxes

498109 Accrued Revenue - Drivers’ Licences, Registrations and Permits

498110 Accrued Revenue - Mineral Rights Tax 498120 Accrued Revenue - Non-renewable resources 498121 Accrued Revenue - Natural gas 498122 Accrued Revenue - Oil 498123 Accrued Revenue - Potash 498124 Accrued Revenue - Uranium 498125 Accrued Revenue - Sodium Sulphate 498126 Accrued Revenue - Coal 498127 Accrued Revenue - Other non-renewable resources 498128 Accrued Revenue - Resource Surcharge 498140 Accrued Revenue - Transfers from other government entities

498141 Accrued Revenue - Transfers from Liquor and Gaming Authority

498160 Accrued Revenue - Miscellaneous 498162 Accrued Revenue – Other fees and charges 498165 Accrued Revenue – Investment income 498180 Accrued Revenue - Transfers from the federal government

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Expense 586900 Accrued Internal Recoveries 587510 Accrued Expenses - Salaries and Benefits 587520 Accrued Expenses - Goods and Services 587521 Accrued Expenses - Utility costs 587522 Accrued Expenses - P-cards 587523 Accrued Expenses - Construction costs 587540 Accrued Expenses - Travel 587560 Accrued Expenses - Capital transfers 587570 Accrued Expenses - Operating transfers 587580 Accrued Expenses - Other expenses Balance sheet (to offset revenue/expense recording) 105200 Accrued Prepaid Expenses 107600 Accrued Accounts Receivable - General 199900 Accrued Capital Assets - Current Year Additions 255005 Accrued Accounts Payable - General 257200 Accrued Unearned Revenue


Part: Appendices Number: L Section: Fringe Benefit Factors Date: 2016-10-07 Page: 1 of 1


Fringe Benefit Factors

The average rates for fringe benefits are based on actual costs of the previous year. They are as follows:

Fringe Benefit Average Rate CPP 0.03238 EI 0.01653 Workers’ Compensation (up to a maximum salary of $65,130 per employee) 0.014425 Group Life Insurance 0.00100 Dental Plan -in-scope -out-of-scope

0.01385 0.01550

Extended Health Plan -in-scope -out-of-scope

0.02550 0.01550

Disability Income Plan (out-of-scope only) 0.0215 Flexible Benefit (out-of-scope only) 0.00801 Superannuation (New Plan)* -in-scope -out-of-scope

.0755 .0750

Average Rate -in-scope -out-of-scope

17.92% 19.98%

* If the Old Plan is involved, contact PEBA for more information.

In a secondment situation with an organization other than a ministry, if it is not practical to calculate the salary overhead costs (i.e., the Government’s share of employee benefits, such as EI, CPP), the recovery may be determined by applying the above average rates to the gross salary. For more information, refer to Section 3005 Refunds to Vote. These average rates may be used and applied to sharable gross salaries for cost share agreements (e.g., federal, provincial) that allow fringe benefits (i.e., government’s share of employee benefits) as claimable costs, when it is not practical to calculate actual fringe benefits.


Part: Appendices Number: M Section: Government Transfers Application Guidance Date: 2013-04-17 and Template Agreements Page: 1 of 1


Government Transfers Application Guidance and Template Agreements

• Government Transfers Application Guidance

• Template Transfer Agreement

• Template CBO Transfer Agreement To download the above templates, click on a template and the following window will appear:

Important Notice: If you click “open”, the word document will be “read only”. To use the template, you must click “save” and save the file to your ministry directory. Once you have saved the file, close the file download window and open the template from your saved location to begin using the template.

Provincial Comptroller’s Office September 2012

GOVERNMENT TRANSFERS APPLICATION GUIDANCE

PSAB SECTION 3410

Table of Contents RECOGNITION CRITERIA ................................................................................................................................ 1

Transferring Government Recognition ..................................................................................................... 2 Authorization ........................................................................................................................................ 2

Budgetary Authority .......................................................................................................................... 3 Demonstrably Committed ................................................................................................................ 4

Eligibility Criteria ................................................................................................................................... 5 Transferring Government | Recipient Government Symmetry ................................................................ 6 Recipient Government Recognition .......................................................................................................... 6

Authorization and Eligibility Criteria ..................................................................................................... 7 Stipulations ........................................................................................................................................... 7 Liability Assessment .............................................................................................................................. 8

Determining Whether Transfers Received are Liabilities ................................................................. 9 Subsequent Transfers ..................................................................................................................... 10 Unspent Funds ................................................................................................................................ 10

TRANSFER TYPES ......................................................................................................................................... 11 IMPACT OF OTHER ACCOUNTING GUIDANCE ............................................................................................ 11

Liability for a transferring government ................................................................................................... 11 Contractual obligations ........................................................................................................................... 12

PRACTICAL APPLICATION OF PS 3410 GOVERNMENT TRANSFERS ............................................................. 12 Reviewing Transfer Documentation ....................................................................................................... 12 Transferring Government ....................................................................................................................... 14

Assessing when an expense is recognized .......................................................................................... 14 Authorization ...................................................................................................................................... 14

Demonstrable commitment ............................................................................................................ 15 Eligibility Criteria ................................................................................................................................. 15

Recipient Government ............................................................................................................................ 15 Assessing when revenue is recognized ............................................................................................... 15 Authorization ...................................................................................................................................... 16 Eligibility Criteria ................................................................................................................................. 16 Stipulations ......................................................................................................................................... 16 Determining whether a liability exists ................................................................................................ 17

Do the stipulations create a liability for the recipient government? ............................................. 17 Assessment forms ................................................................................................................................... 18

Transferring government assessment ................................................................................................ 19 Recipient government assessment ..................................................................................................... 21

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In PS 3410 Government Transfers, the Public Sector Accounting Board (PSAB) provides recommendations to governments and other public sector entities on accounting for government transfers. The application guidance presented here provides assistance in applying the PSAB recommendations and should be used in concert with the PSAB handbook. PSAB defines government transfers as: Reference PSAB Section

PS 3410.04 Transfers of monetary assets or tangible capital assets from a government to an individual, an organization or another government for which the government making the transfer does not: • receive any goods or services directly in return, as would occur in a purchase/ sale

or other exchange transaction; • expect to be repaid in the future, as would be expected in a loan; or, • expect a direct financial return, as would be expected in an investment.

Government transfers are the most significant expense of the General Revenue Fund and, given their non-exchange nature, determining when it is appropriate to record a transfer expense or transfer revenue can be complex. Legislation provides the government with the ability to make a transfer (i.e., its legal authority), and any regulations, signed agreements or other official documents that are entered into under that legislation are critical to determining the timing of expense. Since there is no exchange of goods or services to identify when an amount is due (i.e., when the transferor owes economic resources to a recipient) an assessment of the legislation, legal documents and any relevant supporting papers is required in order to determine the appropriate timing for recording a transfer. This guidance first addresses expense recognition for transferring governments and follows with revenue recognition for recipient governments. Specific wording from PS 3410, including the glossary and appendices is set out in shaded tables (as above). More specific guidance on how to apply the recommendations to a specific government transfer, including questions to consider is included subsequent to the general guidance. RECOGNITION CRITERIA PSAB provides guidance to transferring governments for recording transfer expense and to recipient governments for recording transfer revenue. The recognition criteria differ for transferring and recipient governments.

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Transferring Government Recognition PSAB sets out two criteria that need to be met for a transferring government to record a transfer expense, the transferring government needs to have authorized the transfer and the recipient needs to be eligible for the transfer. PS 3410.12 A government transfer should be recognized by a transferring government as an

expense in the period the transfer is authorized and all eligibility criteria have been met by the recipient.

Authorization Authorization (set out in PS 3410.28) requires two actions by the transferring government; first, the enabling authority must be in place by the financial statement date (that is, the statute or regulation that establishes the transfer is in force) and second, the transferring government must exercise the authority provided it by that enabling authority. PS 3410.28 (a)

(i) the enabling authority to provide a transfer is in place, which is conveyed through approved legislation, regulations or by-laws of the transferring government, and

(ii) an exercise of authority under that approved legislation, regulations or by-laws has occurred. In essence, a decision has been made by the transferring government under the approved legislation, regulations or by-laws that clearly demonstrates that it has lost its discretion to avoid proceeding with the transfer.

The enabling authority for a transfer provides the government with the legislative authority to make a transfer to an individual or an organization; this type of authority often allows and sometimes requires the government to make a transfer by including phrases like, “the Minister may provide a grant” or “the Minister shall provide a grant.” Some transfer programs are authorized in legislation specific to that transfer (e.g., Active Families Benefit Act), while other transfers are authorized under The Executive Government Administration Act (EGAA), which (for transfers greater than $50,000) requires approval of the Lieutenant Governor in Council through Regulations or Order in Council. Any authorization under the EGAA also requires that the government (usually the minister is specified) be provided authority in another piece of legislation to undertake the activity. The EGAA and this other authorizing legislation work in conjunction to provide the government the authority to make a transfer. Often, the legal authority only enables the government to provide the grant, and at some point in the future, a decision is made and an action is taken that means the government has given up its discretion to make the transfer. This decision and subsequent action is the exercise of authority – that is, the second level of authorization. Exercising its authority leaves a government with little or no discretion to avoid making the transfer. Some transfer agreements may have a number of approval points at different stages of the process; an assessment is required to determine at which of these points the government no longer has discretion.

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An Order in Council (OC) is often part of the process for providing a transfer. The OC might form part of the legal authority, or in some cases could be part of the actions taken by the government to exercise its authority. It is important to look at the OC and other approvals in the context of the whole transfer process to determine when the government has lost its discretion. In many cases, the signature of an individual with the delegated authority to provide that approval will be evidence that the government has exercised its authority. For example, the signature on a transfer approval form of the Deputy Minister or a Program Manager who has the delegated signing authority would be evidence of the exercise of authority. In some cases, the signing of a contract or agreement will be the final authorization required, because recipients are then qualified to receive the transfer (or will be qualified when they meet any eligibility criteria embodied in the agreement). The government loses its discretion whether to provide the transfer when the agreement is signed. Direction from Cabinet or Treasury Board would not indicate loss of discretion. Until an agreement is signed or the delegated authority has provided approval, the government still retains discretion over the transfer. In many cases the government will communicate its intention to provide a transfer. Communications in the form of a public news release or political announcement would not provide evidence that a government has lost its discretion. However, other more direct forms of communication (e.g., letter to the recipient) may need to be considered to determine whether the government retains discretion over the transfer. Determining the point at which government has little or no discretion is not based upon political pressures or moral expectations. While it may be true that a government cannot avoid making certain transfers without serious political repercussions (e.g., in grants for health or education), transfers are accounted for based on the content and structure of the specific arrangement and the transfers guidance. The public or political importance of a transfer does not impact the timing of expense recognition. Budgetary Authority PSAB clarifies that authority to pay (or budgetary authority) may be part of the authorization process. However, a government can still lose its discretion even though it does not have the authority to pay. An assessment is required to determine whether budgetary authority impacts timing of expense recognition. PS 3410.28 In some cases, the authority to pay may be part of the authorization process for the

purposes of this Section and its absence at the financial statement date may indicate that the exercise of authority required by (a) or (b) is not complete. In such cases, the government may retain its discretion to avoid proceeding with a transfer until the authority to pay is in place.

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The term of some transfer agreements extend beyond one fiscal year (multi-year agreements). Budgetary authority may play a significant role in the authorization process in these types of agreements. Agreements may be written such that the Legislative Assembly’s approval of a future year’s budget comprises a part of the authorization process (e.g., where the agreement is no longer binding unless the Legislative Assembly approves the appropriation). The approval by the Legislature of future Appropriation Acts might, in such circumstances, act as the point where the government loses its discretion to avoid making the transfer in that future fiscal year. However, wording in other agreements may indicate that payments will be made “subject to appropriation.” This type of standard clause would not, even in multi-year agreements, provide sufficient evidence that budgetary authority is part of the authorization process. From an accounting perspective, expenses may need to be recorded even though there is no appropriation available. It is important to remember that, “budgetary authority” is not the same thing as “budget room” meaning that, if discretion is lost, an expense must be recorded even when there is no budget available. Demonstrably Committed In rare cases, a government could, through its own actions become “demonstrably committed” to providing authorization. This type of authorization is only valid when the governing legislation (or enabling authority) is not in force, and only applies to a transferring government – it does not impact revenue recognition by a recipient. A government would be demonstrably committed if there was a significant amount of evidence to show that the government has lost its discretion to avoid providing the transfer. PSAB has also specified that for a government to apply this type of authorization, the enabling authority (legislation or regulations) must be in place before the financial statements are completed. PS 3410.28 (b)

(i) actions and communications of the transferring government by the financial statement date clearly demonstrate that it has lost its discretion to avoid proceeding with a transfer and thus the government is demonstrably committed to approving the enabling legislation, regulations or by-laws for the transfer and proceeding with the transfer; and,

(ii) final approval in the stub period of the enabling legislation, regulations or by-laws confirms that the transferring government was demonstrably committed to approving and proceeding with the transfer at the financial statement date.

If it is determined that there is enough evidence to conclude the transferring government has lost its discretion and is demonstrably committed to providing authorization, the authorization criteria has been met for the transferring government at the financial statement date. For transfers without eligibility criteria, an expense would be accrued in the financial statements; where there are eligibility criteria, the expense would be recorded when those criteria are met by the recipient.

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PSAB points to guidance provided in the PS 3200 Liabilities for constructive or equitable obligations to determine whether a government is demonstrably committed to providing a transfer. The paragraphs identified (PS 3200.07 through PS 3200.17) provide detailed guidance on loss of discretion. Eligibility Criteria A recipient’s eligibility is the second of the two recognition criteria for determining timing of expense recognition. Recipients may be required to have certain characteristics or perform certain actions to qualify for a transfer. The transferring government has an expense when it approves the transfer and the recipient meets the eligibility criteria. Most transfer programs include conditions or terms that must be met by the recipient. PSAB classifies all transfer terms that must be met by the recipient as either eligibility criteria or stipulations. PS 3410.08 Eligibility criteria describe who a recipient must be or what it must do in order to be

able to get a government transfer. Stipulations describe how a recipient must use transferred resources or the actions it must perform in order to keep the transfer.

PSAB is clear that the “crucial characteristic that distinguishes” eligibility criteria from stipulations is the timing that the condition is met by the recipient. A recipient must meet eligibility criteria before it qualifies for the transfer. Eligibility criteria are defined in the glossary: Glossary Eligibility criteria are terms imposed by a transferring government that specify who

qualifies to receive a transfer and/or the actions necessary to qualify for a transfer. The nature and substance of the eligibility criteria is such that they must be met before a transfer is provided. They are pre-conditions that must be satisfied in advance in order for a recipient to qualify for a transfer.

PSAB makes it clear that a transferring government would never record a prepaid transfer (PS 3410.13); if the cash is paid (or the transfer is otherwise provided) before the recipient meets eligibility criteria, an expense is always recorded. PSAB explains that when a government provides a transfer before the recipient becomes eligible, that government has made a decision to change the terms of the transfer. In this situation, the unmet eligibility criteria become stipulations of the transfer. Stipulations are discussed in detail under the Recipient Government Recognition section in this document.

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Eligibility criteria set out how a recipient qualifies for a transfer. Eligibility can include characteristics or actions performed. For instance, legislation may set out what characteristics the recipient should have (e.g., must be a municipality or must have suffered flood damage); in other cases, the legislation or agreement may require the recipient to do something to qualify (e.g., the municipality may be required to build a road or the property owner with flood damage may have to make an application by a specified date). Agreements will often contain a schedule of transfer payments. When the transfer has been authorized and the recipient has met eligibility criteria the full amount of the transfer must be recorded as an expense. Delayed cash flow does not delay recognition of the expense. Transferring Government | Recipient Government Symmetry PSAB is clear that symmetrical accounting by the transferor and recipient of a government transfer is not required. That is, when both the transferring government and the recipient government apply PS 3410 to the same transfer, the transferring government may have an expense before the recipient government is required to recognize the transfer in its financial statements. The timing of transfer recognition by one party does not impact the timing of recognition for the other party. Recipient Government Recognition The recognition criteria for recipient governments are similar to those for transferring governments, but for one exception. Recipient governments record revenue when a transfer is authorized by the transferring government and eligibility criteria are met by the recipient, unless the transfer gives rise to an obligation that meets the definition of a liability. The default for recipient governments is immediate recognition of revenue. PSAB splits the revenue recognition criteria for recipient government transfers into three types: Transfers without conditions to be met by the recipient are recognized as revenue when authorized; the recipient government immediately recognizes revenue. PS 3410.16 A transfer without eligibility criteria or stipulations should be recognized as revenue

by a recipient government when the transfer is authorized. Transfers with eligibility criteria but no other terms to be met by the recipient are recognized as revenue when authorized and eligibility criteria are met; in this case as well, the recipient government immediately recognizes revenue, because eligibility criteria are items that must be met before the transfer is provided. PS 3410.17 A transfer with eligibility criteria but without stipulations should be recognized as

revenue by a recipient government when the transfer is authorized and all eligibility criteria have been met.

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Transfers that include stipulations – that is, terms or conditions to be met by the recipient that don’t meet the definition of eligibility criteria – are recognized as revenue when authorized and eligibility criteria are met unless the transfer stipulations establish a liability. In this case, the default for the recipient government is immediate recognition of revenue. If a liability has been created, revenue is recognized as the stipulations are met by the recipient government. PS 3410.19 A transfer with or without eligibility criteria but with stipulations should be

recognized by a recipient government as revenue in the period the transfer is authorized and all eligibility criteria have been met, except when and to the extent that the transfer gives rise to an obligation that meets the definition of a liability for the recipient government in accordance with LIABILITIES, Section PS 3200.

Authorization and Eligibility Criteria Authorization and eligibility criteria have the same meanings for recipient government recognition as for transferring government recognition described earlier. However, authorization for recipient governments does not include the concept of being demonstrably committed to providing authorization. This means that if a transferring government has relied on demonstrable commitment to authorization to fulfill the authorization component in recording a transfer expense, the recipient government would not record the transfer until the subsequent period. Stipulations Stipulations are transfer terms that must be performed to keep a transfer; stipulations differ from recognition criteria, which are met in order to get a transfer. Eligibility criteria matter for the recording of transfers (both expense and revenue), whereas stipulations impact revenue recognition only – and only in rare circumstances. The key to determining whether a transfer term is an eligibility criterion or a stipulation is the timing of when the condition is met; if a condition does not need to be met until after the recipient qualifies for the transfer, that condition is a stipulation. PS 3410.08 …the crucial characteristic that distinguishes the substance of these two types of

transfer terms [eligibility criterion or stipulation] is when they are required to be or are met by a recipient. If a term is required to be and is met before the transfer is provided, it is an eligibility criterion for the purposes of this Section. If a transfer term is met after the transfer is provided, it is a stipulation for the purposes of this Section.

Stipulations might set out the purpose for which transferred resources must be used, for example: to acquire or develop a tangible capital asset; to carry out a specific activity, like provide childcare services; or, to achieve a specific goal, like hiring a specified number of new employees.

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Or, stipulations might specify when resources must be used, for example: in a specific fiscal year (i.e., a particular period of use); or, through a specified number of fiscal years (i.e., a particular pattern of use). As noted in the Transferring Government Recognition section of this document, eligibility criteria become stipulations if the transferring government decides to make the transfer (i.e., pay the cash) before those eligibility criteria are met. Even though the transfer was provided, the terms must still be met, and are assessed as stipulations. It would be rare that the existence of transfer stipulations would indicate that a liability is created and deferral of revenue by the recipient government can occur. The stipulations must be assessed in conjunction with the recipient government’s actions and communications to determine whether an obligation that meets the definition of a liability has been created. Liability Assessment About Liabilities PSAB provides guidance on liabilities in PS 3200. A liability has three essential characteristics: - A government has little or no discretion to avoid the obligation; - There is expected to be a future sacrifice of economic benefits; and, - The transactions or events obligating the government have already occurred. PS 3200.05 Liabilities are present obligations of a government to others arising from past

transactions or events, the settlement of which is expected to result in the future sacrifice of economic benefits. Liabilities have three essential characteristics: a) they embody a duty or responsibility to others, leaving a government little or no

discretion to avoid settlement of the obligation; b) the duty or responsibility to others entails settlement by future transfer or use of

assets, provision of goods or services, or other form of economic settlement at a specified or determinable date, on occurrence of a specified event, or on demand; and,

c) the transactions or events obligating the government have already occurred. PS 3200.07-.08 describe what it means for a government (in this case the recipient of a transfer) to have lost its discretion. Discretion is said to be the ability to make individual choices, judgments or decisions and that if discretion is lost, a government has no realistic alternative but to settle the obligation. The obligation does not depend on future actions of the government or other transactions or events. The government has given up its freedom to make further choices, judgments and decisions related to the obligation. PSAB requires that the future sacrifice of economic benefits be to a third party (PS 3200.19) and the timing of that sacrifice must be specified (PS 3200.21); for example, the payment has to be made on a certain date or when a particular event occurs.

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The past transaction or event that obligates a government distinguishes a liability from a future obligation (PS 3200.22). For most transactions the event is easy to determine; it is usually the point of exchange. For transfers received, any obligating event will derive from the stipulations in the transfer agreement or a combination of the stipulations and any actions and communications of the recipient that are consistent with the substance and intent of those stipulations. PS 3410.21 There may be circumstances when the stipulations of a transfer alone are too broad

to create an obligation that meets the definition of a liability as set out in paragraph PS 3410.20(a). In such cases, a recipient government would review its own actions and communications by the financial statement date to evaluate whether they are consistent with the substance and intent of the transfer stipulations, and determine whether the nature and extent of those actions and communications together with the transfer stipulations create an obligation that meets the definition of a liability…

Determining Whether Transfers Received are Liabilities For a recipient government to have lost its discretion when it receives a transfer, the stipulations would be strong enough and specific enough to limit the recipient’s ability to make individual choices, judgments or decisions related to the use of the funds. Funding provided for general purposes (e.g., “employee recruitment” or “medical equipment” or “operating”) would not meet the liability requirement. Although PSAB specifies that stipulations may indicate that a liability exists, it would be difficult for any stipulations to establish a liability without action on the part of the recipient. Actions by a recipient are likely needed to satisfy two of the characteristics of a liability: • an expectation that economic benefits will be sacrificed, the process of fulfilling the

stipulations would need to be far enough along to ensure that the recipient has an obligation to a third party; and,

• the past transaction or event requirement must be related to the future use of the transferred resources1; that is, having entered into the agreement cannot be enough to meet this characteristic.

Stipulations are expected to be unlikely to indicate that the definition of a liability has been met. To have a liability when a transfer is received, the stipulations in the transfer agreement and the actions undertaken by the recipient government will have established a situation where a past transaction or event has made it so that the government has no discretion but to make a payment or provide a service to a third party.

1 PSAB makes it clear that where future use of the funding is to provide a subsequent transfer, the past transaction or event that establishes a liability is the authorization and meeting of eligibility criteria for that subsequent transfer. This shows that the assessment of whether a liability exists can’t rely on the recipient having agreed to accept the transfer; some other action must have been taken.

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The transfer stipulations need to be strong enough or specific enough to bind the recipient government, such that the liability definition is met. There are limited circumstances where this might occur. It is likely that the only situations where stipulations and recipient government actions could create a liability would be in cost-sharing agreements where the cash is provided prior to the recipient incurring eligible costs. For example, under a cost-sharing arrangement for a capital construction project, the transfer is paid in full before construction is underway; that is, the recipient has not yet incurred a corresponding amount of eligible expenditures (PSAB calls this a financing arrangement in PS 3410.B15 – .B17). It might be appropriate to record a liability for the amount of the excess when: • strong enough stipulations in the transfer agreement constrain the recipient government’s

decisions regarding construction and design; and, • the recipient government has an existing construction contract with a third party to incur

the expenditures. Subsequent Transfers PSAB sets out specific guidance for recording a liability when the transfer will be used to provide a subsequent transfer (e.g., federal government → provincial government → municipality). In these cases, stipulations must be strong enough on their own to record a liability. Specifically, PSAB requires that when the actions and communications of the recipient are being considered in determining whether a liability exists, the past transaction or event that gives rise to a liability is authorization and the meeting of eligibility criteria for the subsequent transfer. This requires that the subsequent transfer be expensed; the corresponding transfer received would be recognized as revenue. Unspent Funds Agreements may specify that the recipient is required to refund unspent transfers to the transferring government. This refund is a separate event from the initial receipt of the government transfer. Terms such as this usually indicate a time period in which the transfer is to be used or indicate a specific event before which the transfer is to be used; if there are remaining unused amounts at the end of the specified period, those amounts are to be returned to the transferring government. Determining whether a liability should be recorded in these cases cannot be made until the specified time period has passed and there is an ability to assess whether the funds have been used. Until that time has passed, the recipient likely has no liability related to the refund.

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TRANSFER TYPES PSAB identifies two specific types of transfers and provides additional guidance in Appendix B on how to apply the standard to entitlements and shared cost agreements. Entitlements are transfers for which both the recipient and the amount of the transfer is established in legislation or regulations (PS 3410.B1). For entitlements, no exercise of authority is required on an ongoing basis; the legislation provides for both stages of the authorization process. As an example, Saskatchewan social assistance is an entitlement. An individual that meets the low-income requirements set out in the regulations is entitled to receive the monthly amount set out in the regulations. Shared cost agreements are between two parties that jointly share the financial responsibility for specific types of costs related to a project (PS 3410.B9). PSAB identifies that there are two types of shared cost agreements, reimbursements of eligible costs incurred and financing arrangements. Both types of shared cost agreements have built-in eligibility criteria; that is, recipients must incur eligible costs to qualify for the transfer. However, in financing arrangements, payment is usually made ahead of the recipient incurring eligible costs. When that is the case, the transferring government has decided to treat eligible costs as stipulations in the agreement. This means that no prepaid asset is recorded; if the government transfer is paid, an expense is recognized. IMPACT OF OTHER ACCOUNTING GUIDANCE Liability for a transferring government A transferring government has a liability when authorization is provided and eligibility criteria are met by the recipient (i.e., when it recognizes an expense). PS 3410.10 specifies that the past transaction establishing a liability for transfers is the authorization of the transfer and the meeting of eligibility criteria. PS 3200 introduces the concept of constructive or equitable obligations. These obligations become liabilities when it can be determined that the government has lost its discretion to avoid the obligation even though there may be no legally enforceable requirement for the government to settle. However, constructive or equitable obligations are not liabilities unless the other two characteristics of a liability are also met; that is, the government expects to give up economic benefits and the transaction or event that obligates the government has already happened. For government transfers, the obligating transaction or event is authorization of the transfer and the meeting of eligibility criteria by the recipient. Constructive obligations are not applicable to expense recognition for government transfers.

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Contractual obligations PS 3390.03 Contractual obligations are obligations of a government to others that will become

liabilities in the future when the terms of those contracts or agreements are met. PS 3390.04 Contractual obligations are distinct from liabilities as there has been no past

transaction or event obligating the government to a future sacrifice of economic benefits at the financial statement date. Until a transaction or event occurs under a contract, a government does not have a liability. Disclosure of information about contractual obligations relates to the unperformed portion of those contracts.

Transfers that are made through an agreement or contract establish a contractual obligation when the transfer is fully authorized (i.e., signing the contract is the exercise of authority by the transferring government), but the meeting of eligibility criteria has yet to take place. In this case, no expense and liability are recorded, because the recipient has yet to meet eligibility criteria. However, the government is contractually obligated to provide the transfer. As well, for multi-year transfers where the legislative authority is in place and an agreement has been entered into, but full authorization has yet to be granted (e.g., a future Appropriation Act will provide full authorization), the transferring government has lost some of its discretion. The government will have a liability as soon as full authorization is granted (e.g., the Appropriation Act is passed). The government is contractually obligated to provide the transfer. Under both scenarios, the agreements satisfy the contractual obligation definition and disclosure of the remaining years’ funding set out in the agreements is required. For all other signed transfer agreements, it is likely that the liability and expense will already have been recorded because full authorization is granted by the agreement. PRACTICAL APPLICATION OF PS 3410 GOVERNMENT TRANSFERS Reviewing Transfer Documentation Legislation, regulations, agreements and other documentation form the legal structure of a transfer and provide the tools in assessing timing of expense and revenue recognition. It is critical to thoroughly review all available documentation related to the transfer, however the following summaries may provide some assistance in making an assessment.

Transfer legislation/regulations may indicate the type of transfer and, consequently, impact the transfer accounting:

Definitions/“Interpretation” section - May define the recipients and in that definition, may establish eligibility criteria; that is,

what a recipient has to be or has to do to get the transfer.

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Authority to provide a transfer There will be a section in the legislation/regulations that allows or requires the minister to provide the transfer. How that authority is worded will indicate different accounting treatments: - “the minister may…” this type of legal authority allows the government to make a

transfer; further authorization will be necessary for the government to have lost its discretion; and,

- “the minister shall…” this type of legal authority requires the government to make a transfer; in these cases the government’s discretion has been limited; it is possible that additional authorization may be required, for example, when the amount of the transfer is decided; however, when the amount of the transfer is also specified in legislation/regulations the transfer is an entitlement.

Transfer details

Legislation/regulations that govern a specific transfer program will set out terms under which the transfer is being provided. These terms may specify eligibility criteria (terms which must be met before a recipient qualifies for the transfer). These will impact the accounting by both transferring government and recipient government. All other terms that a recipient must meet are stipulations, which may only impact the accounting treatment of the recipient.

Transfer agreements are commonly used for specifying details of transfer programs. These agreements are often structured in a similar manner.

- Definition of terms provides specific meaning to words and phrases used in the agreement.

Similar to legislation, eligibility criteria may be identified here.

- Obligations of each party are set out o transferring government’s obligations usually identify the authorization process and

whether any further approvals are required – these will impact timing of expense and revenue recognition.

o recipient government’s obligations identify what the recipient must do; these obligations are eligibility criteria or stipulations, depending on when the action or obligation must be met; eligibility criteria (what a recipient has to be or has to do to get the transfer) will impact expense and revenue recognition, while stipulations (all other terms to be met by the recipient) only impact revenue recognition (and only in some cases).

- Cash distribution details how payments will be made to the recipient; these terms may be

contained in a separate section, or could be included in the transferring government’s obligations. It is possible (common, even) for a transfers expense to be recognized before the cash is paid. The timing of cash payments will rarely impact the timing of transfer expense or revenue recognition (but remember – if the cash is paid – an expense must be recorded by the transferring government).

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- Financial reporting usually requires the recipient to provide updates to the transferring government during the term of the agreement. This form of accountability is a transfer stipulation, because it is a term to be met by the recipient subsequent to receiving the transfer. Stipulations never impact timing of expense recognition and this type of stipulation (an accountability measure) rarely (if ever) impacts the timing of revenue recognition.

However, in certain transfer agreements, reporting requirements will trigger a subsequent transfer. For example, a transfer agreement may specify that if evidence of meeting the original requirements is provided within a certain timeframe, an additional transfer will be provided. In this case, the reporting requirements would be stipulations for the first part of the transfer, but eligibility criteria for the second part. When reporting requirements are eligibility criteria, they impact expense and revenue recognition.

- Termination of agreement is usually available to each party under specific circumstances. The requirement of a recipient to return unused funds to the transferor at the natural end of an agreement would not be accounted for until that time. Termination is an event separate from the original transfer.

Transferring Government Assessing when an expense is recognized A transfer is recognized as an expense when it is authorized and all eligibility criteria are met. Authorization Questions to ask that may help identify the approval points for the transfer program:

- What legislation is applicable? What section provides the government the ability to make

the transfer? - Is the legislation in force? Are there any outstanding provisions? - Are regulations required? Are they in force? - Who in the government needs to okay the transfer?

o Cabinet? o Minister? o Deputy Minister? o Delegated authority?

- Has an agreement with the recipient been reached? Is it documented? And signed? - Are there different stages of approval set out in the process; e.g., program concept,

program design, and/or program delivery. At which of these points does a government representative sign off? Is there a point in any of these processes where it is clear that the government can no longer avoid making the transfer?

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Demonstrable commitment

If, at year end, the legislation that provides the government with legal authority to make a transfer is not yet in force, an assessment needs to be made as to whether the government has provided demonstrable commitment to authorizing the transfer.

- At year-end has the government taken steps to provide a transfer, for which there is not yet

legislative authority? - Has the legislation been introduced and received approvals at various stages? - Are there decision-items (e.g., Treasury Board or Cabinet) showing that the government is

moving forward with the program? - Is there a plan in place to deliver the program or provide the funding? - Does the recipient have a valid expectation that the transfer will be provided? - Is the legislation in force before the financial statements are completed? Eligibility Criteria If there are requirements in the transfer that need to be met by the recipient, consider these questions to identify whether the requirements are eligibility criteria or stipulations:

- Are there specific characteristics identified that the recipient must have before qualifying to

receive the transfer? For example: o have a certain amount of income; or, o be a specific organization or individual (e.g., municipality, recent immigrant to

Saskatchewan, post-secondary student). - Are there things that an individual or organization must do before it would be considered a

recipient? For example: o suffer a loss (e.g., flood damage); o incur eligible expenses (as in a cost-sharing arrangement); o provide a service to the public (e.g., a children’s sports program); or, o apply to receive the grant.

Recipient Government Assessing when revenue is recognized A transfer is recognized as revenue when it is authorized and all eligibility criteria are met, unless the definition of a liability is met.

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Authorization Questions to ask that will help identify the approval points for the transfer program: - What legislation is applicable? What section provides the transferring government (most

often, the federal government) the ability to provide a transfer? - Is the legislation in force? Are there any outstanding provisions? - Are regulations required? In force? - Who in the federal government needs to okay the transfer?

o Cabinet? o Minister? o Deputy Minister? o Delegated authority?

- Is there an existing federal/provincial agreement? - When does a government representative sign off and the transferring government can no

longer avoid making the transfer? Eligibility Criteria If there are requirements in the transfer that need to be met by the recipient, consider these questions to identify whether the requirements are eligibility criteria:

- Are there specific characteristics identified that the recipient must have? For example:

o have a certain amount of income; or, o be a specific organization or individual (e.g., municipality, recent immigrant to

Saskatchewan, post-secondary student);

- Are there things that an individual or organization must do before it would be considered a recipient? For example: o suffer a loss (e.g., flood damage); o incur eligible expenses (as in a cost-sharing arrangement); o provide a service to the public (e.g., a children’s sports program); or, o apply to receive the grant.

Stipulations If there are requirements in the transfer that need to be met by the recipient, after evaluating the eligibility criteria questions above, consider these questions to identify whether the requirements are stipulations:

- Are there any (additional) things that the recipient is required to do once the transfer is

provided? For example: o Use the funds for a specific purpose: make a subsequent transfer (e.g., to a municipality); provide a service to the public (e.g., a children’s sports program);

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construct or purchase an asset (e.g., a highway or medical equipment); or, conduct research on a particular topic (e.g., viability of organic farming or a medical

procedure). o Make use of the funds in a specified time: over a pattern of time (e.g., equally in each year over three years); or, over a specified period (e.g., not before this date or fully used by this date).

o Inform the transferring government on key issues: updates on the use of funds; any changes in key staff; or, any significant findings.

o Comply with the law; o Provide the transferring government with access to documentation; or, o Provide accountability reports.

Determining whether a liability exists If it has been established that there are stipulations in the transfer, an assessment needs to be made as to whether the government has a liability (as defined in PS 3200). A liability has three characteristics: it is the result of a past transaction or event where the government expects to make a sacrifice of economic benefits to others and the government has little to no discretion to avoid settling the obligation. Determining whether a recipient government has a liability in relation to a transfer would be influenced by: (a) the transfer stipulations; or, (b) those stipulations taken together with the actions and communications of the recipient

government before the financial statement date. Do the stipulations create a liability for the recipient government? It is unlikely that stipulations alone would create a liability. Stipulations need to be sufficiently strong enough or specific enough to limit the recipient’s ability to make independent decisions related to use of the funding. Unless the stipulations have some substance, no liability is met and revenue is recognized immediately. Consideration of the recipient’s own actions in relation to fulfilling the stipulations must be given (PSAB says actions would be “consistent with the substance and intent of the transfer stipulations”), particularly in determining whether discretion is lost. It may be appropriate for a recipient government to record a liability on the receipt of a transfer under a cost-sharing agreement. A liability may exist where a transfer is received by a recipient in advance of incurring an equivalent amount of eligible costs (as in a financing arrangement). The revenue would be recognized as the related costs are incurred.

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Outside of cost-sharing arrangements, it is less likely that the form of a transfer would allow for the recording of a liability. However, for any type of transfer, if the liability definition is met, a liability would be recorded and revenue would be recognized as the stipulations are fulfilled. In most situations, the stipulations of a transfer are unlikely to be so restrictive that the recipient no longer has discretion. Revenue from these transfers is immediately recognized. Assessment forms To assist in answering the question of when a transfer should be recorded as an expense or as revenue, templates have been provided that should be completed by all ministries for each transfer program in which it records a transfer expense or receives transfer revenue. The completed templates will form a summary of the accounting discussion and documentation required for each transfer program.

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Transferring government assessment - Determining when to record an expense Transfer program/name Related documents - Legislation - statute specific to the program; or

- ministry statute (where minister gets powers to act) combined with The Executive Government Administration Act (EGAA)

- Regulations - regulations specific to the program - may be enacted under specific legislation; or the EGAA

- Order in Council - required if grant >$50k made pursuant to s. 16(3) of the EGAA;

- may be required pursuant to specific legislation - Agreement - entered into under the Authorizing legislation (above) - Application form - completed by recipient - Transfer payment request form - MIDAS form - Communication to recipient - letter or memo Authorization - Authorizing legislation - Date in force - Wording of authorizing section;

does the section refer to “may” or “shall” make a grant?

- a government has less discretion when it is required to (shall) make a transfer

- List of documentation (internal and external) that requires signature of delegated authority

- What is the evidence to show that the exercise of authority has been made?

Eligibility criteria - Who does the recipient have to

be (specific individual/ organization/government) to qualify for the transfer?

- What is the individual/ organization/government required to do to become a recipient?

Summary - when to record an expense? - Financial statement date

(year-end or quarter-end)

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Transferring government assessment - Determining when to record an expense Transfer program/name - Authorization in place? - Eligibility criteria met? - To what extent? If recipient is eligible after incurring

costs (as in a cost-sharing agreement), then recipient may be eligible for certain percentage of costs (may need to estimate)

Record transfer expense? When the answer to both questions is “yes” record an expense to the extent that eligibility criteria have been met

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Recipient government assessment - Determining when to record revenue Transfer program/name Related documents - Federal legislation - if known - Federal regulations - if known - Order in Council - - Agreement - entered into under the Authorizing legislation (above)

and The Executive Government Administration Act provisions for federal/provincial agreements

- Application form - completed by recipient - Transfer payment request form - MIDAS form - Communication to recipient - letter or memo Authorization - Authorizing legislation - Date in force - Wording of authorizing section;

does the section refer to “may” or “shall” make a grant?

- a government has less discretion when it is required to (shall) make a transfer

- What is the evidence to show that the exercise of authority has been made?

Eligibility criteria - Who does the recipient

government have to be to qualify for the transfer?

- What is the government required to do to become a recipient?

Summary - when to record the transfer? - Financial statement date

(year-end or quarter-end)

- Authorization in place? - Eligibility criteria met? - To what extent? If recipient is eligible after incurring

costs (as in a cost-sharing agreement), then recipient may be eligible for certain percentage of costs (may need to estimate)

Record transfer? When the answer to both authorization and eligibility criteria questions is “yes” record the transfer to the extent the eligibility criteria have been met.

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Recipient government assessment - Determining when to record revenue Transfer program/name Recognize revenue? In most cases, revenue would be recognized in full when

the transfer is recorded. If the transfer agreement contains no stipulations revenue is recognized to the extent that eligibility criteria have been met.

Stipulations? - the things that a recipient

must do under the terms of the agreement that are not eligibility criteria

However, when transfers do include stipulations, a further assessment is required to determine whether the stipulations create a liability. - are there stipulations in the agreement? If yes,

complete stipulations and liability assessment sections. If no, recognize transfer revenue to the extent that eligibility criteria have been met.

Stipulations - What else does the government

(as recipient) have to do under the terms of this transfer?

- What has the government done to satisfy these additional terms?

Liability assessment Consider the requirements of the transfer. Are the stipulations strong and detailed enough so that the government has little discretion over what to do with the funds or assets received? Have we, as the recipient government, taken action in such a way that would establish a liability? Are the following characteristics of a liability met:

- Is there a duty or responsibility to others?

- Was there a past transaction or event?

- Will there be a future sacrifice of economic benefits?

Record liability? - If the answers to any of these three questions is no, there is no liability.

- If each question is answered yes the revenue should be deferred (i.e., a liability recorded).

Recognize revenue? - If there is no liability, revenue is recognized to the extent that eligibility criteria have been met.

- If a liability is recorded, the revenue is recognized as the stipulations are met.

Government Transfers - Template Draft Agreement Instructions have been included throughout this template agreement in blue bold font. These instructions should be removed when drafting your agreements. Government transfers is an accounting term used to describe the transfer of assets by a government to another party where the government does not receive anything directly in return. Government transfers can be in the form of grants, shared cost arrangements or entitlements. Government transfers are to be expensed when they are authorized by the transferring government and any eligibility criteria have been met by the Recipient. The term ‘financial assistance’ has been used throughout this template agreement in place of, or as a reference to, government transfers. The term ‘financial assistance’ should not be confused with the cash payments of that assistance. In some cases, a transfer expense may need to be recorded before the cash payment is made. It is important to differentiate transfers expense (accounting perspective) from cash payments throughout this agreement. The template agreement acknowledges that a Ministry may intend to give up its discretion and fully authorize the transfer in the first year of an agreement (whether the agreement spans one year or multiple years), or a Ministry may choose to retain its discretion and incorporate further authorization steps over the term of a multi-year agreement. This template identifies a possible further authorization step to be the Legislative Assembly’s approval of an Appropriation Act in each future year. Eligibility criteria could also result in recording transfers expense over the term of a multi-year agreement, as transfers are not recorded as an expense until they are authorized and eligibility criteria are met. In all cases, a transfers expense must be recorded when the transfer has been authorized and any eligibility criteria have been met, regardless of whether there is sufficient appropriation. However, an appropriation must be charged when a transfers expense is recorded. Therefore, sufficient appropriation must be obtained through special warrant, virements or other means available. As per The Financial Administration Act, 1993, if sufficient appropriation is not obtained, any amounts expensed in excess of the appropriation for the fiscal year is a first charge against a suitable appropriation in the following fiscal year.

“The Program” has been used throughout this template agreement and can be replaced with different wording to describe the purposes for which the financial assistance (transfer) is to be provided as outlined in Appendix “A” (e.g. delivery of the Program, the provision of Services, the construction of an asset, the purchase of an asset, conduct normal operations).

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THIS AGREEMENT MADE this________ day of ______________, 20xx. BETWEEN:

HER MAJESTY THE QUEEN in right of the Province of Saskatchewan, as represented by the Minister of ***** (hereinafter referred to as the "Minister”)

OF THE FIRST PART

-and- ******** (hereinafter referred to as the "Recipient")

Insert proper full legal name of the Recipient and address (if a corporation - confirm status and name with Corporation’s Branch 787-2962)

OF THE SECOND PART AUTHORIZATION

Authorization under accounting rules requires two actions by the transferring government: the legislative authority (noted in this section) must be in place; and the transferring government must exercise the authority, which indicates the government has made a decision to provide financial assistance and leaves the government with no discretion to avoid it. Often that evidence would be an agreement like this – as long as the agreement does not leave room for the government to avoid providing the financial assistance.

WHEREAS the Minister desires to support (the Program);

AND WHEREAS the Minister is authorized to enter into an Agreement to provide financial assistance to the Recipient for this purpose under the authority granted by sections xx of (insert legislation that authorizes the Agreement);

NOW THEREFORE, the Parties agree as follows: 1.0 DEFINITIONS

For the purposes of this Agreement:

a) “Agreement” means this Agreement and includes all Appendices attached to this Agreement;

b) “fiscal year” means April 1st of one year up to and including March 31st of the next year.

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c) “Program” means the xxxx (Program). (The program) purpose, objectives, outcomes and components are in Appendix “A”.

d) “Minister” includes a lawful delegate of the Minister.

2.0 TERM (This contract may be for multiple fiscal years) 2.1 The term of this Agreement is from April 1, 20xx to March 31, 20xx subject to extension

or termination pursuant to section 8.0.

An issue with multi-year agreements is whether the full amount of the financial assistance (transfer) should be recorded as an expense in the first year of the agreement or whether an annual amount should be recorded as an expense in each year of the agreement. When a multi-year transfer is fully authorized by the transferring Government

upon signing an agreement that spans more than one year, the Government has lost its discretion to avoid proceeding with the transfer and a transfer expense for the full amount of the agreement would be required in the first year, if eligibility criteria have been met.

Alternatively, when the agreement contains a clause that indicates the government still has discretion because authorization has yet to occur in each of the future years, a transfer expense would be recorded in those future years when authorization has been granted, if eligibility criteria have been met.

Note that the eligibility criteria outlined in section 4.0 could also result in recording

transfers expense over the term of a multi-year agreement, as transfers are not recorded as an expense until they are authorized and eligibility criteria are met.

Choose one of the following section 3.0’s: 3.0 BINDING AND ENFORCEABLE OBLIGATION (applicable for one-year or

multi-year agreements)

The following wording can be used for one-year agreements or where the full amount of a multi-year transfer is to be expensed in the first year, as long as eligibility criteria, if any, are met.

3.1 The parties acknowledge that this Agreement creates binding and enforceable obligations

including the obligation to provide financial assistance unless the obligation is suspended in accordance with this Agreement or this Agreement is terminated in accordance with its terms.

OR

3.0 FUTURE YEARS’ AUTHORIZATION (applicable for multi-year agreements only)

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The following wording allows the government to retain its discretion until some point in future years when the Legislative Assembly appropriates the transfer funds. The transfer is expensed in future fiscal years, rather than expensing the full amount of the transfer in the first year.

3.1 The parties acknowledge that this Agreement does not create a binding and enforceable

obligation to provide financial assistance until: a) the Legislative Assembly of Saskatchewan has appropriated funds out of which the

financial assistance may be paid in the fiscal year in which the payment is to be made pursuant to this Agreement; and

b) the Recipient has met the eligibility criteria with respect to the financial assistance as set out in section 4.0.

4.0 ELIGIBILITY CRITERIA (To be met by the Recipient)

Eligibility criteria are what the Recipient must do to qualify for the financial assistance (transfer). Government transfers are not expensed until the eligibility criteria are met, except as noted in * below. Eligibility criteria should be specific enough so that the terms can be assessed or measured for purposes of determining when transfer expenses should be recorded. Examples of eligibility criteria include incurring eligible costs, providing certain services (e.g. hire X number of individuals), delivering a program, purchasing or constructing an asset or providing a report that evidences the Recipient has done something.

Sample wording (the examples provided below are not a complete list as there could be a number of other examples):

Example A - eligible after doing something 4.1 In order to be eligible for financial assistance, the Recipient must have first (delivered the

Program, provided the services, performed research, constructed an asset, purchased an asset, incurred costs, been in operation, etc.) for the purposes described in “Appendix A”. OR Example B - eligible after providing a report

4.1 In order to be eligible for financial assistance, the Recipient must have first provided a

report that provides evidence of the Recipient (doing something e.g. deliver the Program, provide the services, perform research, construct an asset, purchase an asset, incur costs, etc.) for the purposes described in “Appendix A”.

OR Example C - shared cost arrangements

Shared cost arrangements are between two parties that jointly share the financial

responsibility for specific costs related to a project. Typically, authorization occurs

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at the point that the agreement is signed. In these arrangements, the eligibility criteria include the incurring of eligible costs by the Recipient. The transferring Government is required to record the expense at the point that costs are incurred by the Recipient.

4.1 In order to be eligible for financial assistance, the Recipient must have first incurred

eligible expenditures for the purposes described in “Appendix A”. 4.2 For the purposes of paragraph 4.1, eligible expenditures include: a) (list all eligible expenditures - e.g. funding to applicants, direct costs, indirect

administration costs, capital asset purchases, etc.)

* Note that in the event a payment is made prior to the Recipient meeting the eligibility criteria in any of the examples above, the payment would be expensed on the basis that the transferring Government has made a decision to change the terms of the financial assistance (transfer). That is, eligibility criteria become stipulations that are expected to be met after receiving the financial assistance.

5.0 STIPULATIONS (OBLIGATIONS OF THE RECIPIENT)

Stipulations are what the Recipient is expected to do under the Agreement after being eligible for the financial assistance (transfer). Where a transferring Government has paid in advance of the Recipient meeting eligibility criteria, those eligibility criteria become stipulations that are expected to be met after receiving the financial assistance. Conditions that are included as eligibility criteria in section 4.0, should not also be included as stipulations in this section. It should be clear whether a condition is an eligibility criterion or a stipulation.

Examples of stipulations that may be used (not intended to be a complete list): 5.x The Recipient will (deliver the Program, provide the services, perform research,

construct an asset, purchase an asset, incur costs, etc.) in accordance with the terms of this Agreement.

5.x The Recipient agrees that it will practice good governance including (e.g. management of

staff and fiduciary responsibility for the Program). 5.x All payments made pursuant to this Agreement shall be used only for the purpose of

providing (the Program) for which the payment was made and the Recipient shall promptly:

a) notify the Minister of the amount of any payments not used for the purpose of providing (the Program); and

b) unless otherwise directed by the Minister, refund such amounts in accordance with the Minister’s directions.

5.x The Recipient will submit accountability reports as set out in section 7.0.

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5.x The Recipient will immediately notify the Minister if the requirements of this Agreement

cannot be met by it or if the Recipient is unable to maintain adequate staff to provide (the Program).

6.0 PAYMENT SCHEDULE

Government policy requires that the payment schedule be based on the cash flow needs of the recipient. The timing of recording a transfer expense does not necessarily coincide with the timing of cash payments. A transfer expense arises for the transferring Government once a transfer is authorized and eligibility criteria have been met by the Recipient. Any requirements included within this section of the agreement would be payment requirements and not eligibility criteria, unless specifically referred to as such, and therefore, would not affect the recording of government transfers expense. Note that in the event a payment is made prior to the Recipient meeting the eligibility criteria, the payment would be expensed on the basis that the transferring Government has made a decision to change the terms of the financial assistance (transfer). That is, eligibility criteria become stipulations that are expected to be met after receiving the financial assistance.

Sample Wording (the examples provided below are not a complete list as there could be a number of other examples):

6.1 The Minister shall pay the Recipient, for the purposes described in Appendix “A”, in the

amount of: i. $xxxxx upon signing of this Agreement; and

ii. $xxxxx upon the receipt of a progress and financial report, in the form and content acceptable to the Minister.

6.2 Where, in the opinion of the Minister, the Recipient fails to comply with the provisions of

this Agreement, the Minister may withhold any payment due to the Recipient until such time as the Recipient complies with this Agreement to the satisfaction of the Minister. OR

6.1 The Minister shall pay the Recipient, for the purposes described in Appendix “A”, in the amount of $xxxxx per month (or quarter). The first payment shall be paid on the execution of the Agreement.



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6.1 The Minister shall pay the Recipient, for the purposes described in Appendix “A”, in the amount of $xxxxx upon meeting all of the eligibility criteria set out in section 4.0 of this Agreement.



6.1 The Minister shall pay the Recipient, for the purposes described in Appendix “A”, in the

amount of: i. $xxxxx for fiscal year April 1, 20xx to March 31, 20xx

ii. $xxxxx for fiscal year April 1, 20xx to March 31, 20xx iii. $xxxxx for fiscal year April 1, 20xx to March 31, 20xx

6.2 The payments shall be made monthly (or quarterly). The first payment shall be paid on the execution of the Agreement.


this Agreement, the Minister may withhold any payment due to the Recipient until such time as the Recipient complies with this Agreement to the satisfaction of the Minister.

OR

6.1 The Minister shall pay the Recipient, for the purposes described in Appendix “A”, up to a

maximum amount of: i. $xxxxx for fiscal year April 1, 20xx to March 31, 20xx

ii. $xxxxx for fiscal year April 1, 20xx to March 31, 20xx iii. $xxxxx for fiscal year April 1, 20xx to March 31, 20xx

6.2 a) The payments shall be made based on the receipt of xxxx (e.g. monthly, quarterly)

progress and financial reports, in the form and content acceptable to the Minister. b) Payments are due xx days following the receipt of the reports referred to in clause (a). 6.3 Where, in the opinion of the Minister, the Recipient fails to comply with the provisions of

this Agreement, the Minister may withhold any payment due to the Recipient until such time as the Recipient complies with this Agreement to the satisfaction of the Minister.

7.0 ACCOUNTABILITY REPORTS

Include details on the requirements to provide accountability reports not already identified elsewhere within the agreement.

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8.0 EXTENSION, EXPIRATION, TERMINATION 8.1 In the event the parties to this Agreement wish to extend this Agreement, the parties may,

in writing no later than xxxx (date), extend the term of this Agreement for an additional term of up to one year. All of the terms and conditions applicable to the Agreement on the date that it would have expired apply to the extended Agreement.

8.2 The Ministry recognizes the importance of providing adequate notice to the Recipient in

regards to the extension of this Agreement in order to allow for proper planning. 8.3 Either party may terminate this Agreement, without cause, by giving the other party at

least xx days written notice. 8.4 The Minister may terminate this Agreement upon written notice to the Recipient in the

event that:

(a) the Recipient has ceased to meet the eligibility criteria referred to in section 4.0; (b) the Recipient has failed to comply with any of its obligations under section 5.0 or 7.0

and has failed to remedy such non-compliance within the period specified by the Minister in writing; or

(c) the Recipient becomes insolvent, makes an assignment or is petitioned into

bankruptcy, or makes an assignment for the benefit of creditors, or a receiver or liquidator is appointed with respect to all or a portion of the Recipient’s business or property.

8.5 Upon termination of this Agreement, the Recipient will immediately repay to the

Minister any amount already paid to the Recipient other than amounts which have been expended on (the Program) in accordance with this Agreement up to the effective date of the termination. Any amount owing under this paragraph shall be a debt due and owing by the Recipient to Her Majesty in right of Saskatchewan.

9.0 NON-LIABILITY OF THE MINISTER 9.1 The Minister’s responsibility and liability with respect to (the Program) to be provided

by the Recipient pursuant to this Agreement is limited solely to the payments to be made by the Minister in accordance with the terms of this Agreement.

10.0 INDEMNIFICATION 10.1 The Recipient will indemnify and save harmless the Minister and any officer or employee

of the Ministry from all actions, claims, demands, costs, and liabilities, including injury to persons (including death) or loss of or damage to property occasioned wholly, or in part, by any act or omission of the Recipient, its subcontractors, employees, or agents arising out of or relating to the performance of its obligations or duties under this

9

Agreement, including any and all expenses, legal and otherwise, incurred in the defense of any claim or suit.

11.0 GENERAL 11.1 This Agreement is effective as of __________, 20xx, notwithstanding its date of

execution. 11.2 This Agreement will be governed by and construed in accordance with the laws of the

Province of Saskatchewan, and the courts of Saskatchewan shall have exclusive jurisdiction with respect to all matters relating to or arising out of this Agreement.

11.3 Any notice pursuant to this Agreement shall be given by registered mail, courier,

facsimile or electronic transmission addressed to the relevant party as follows: If to the Minister: and If to the Recipient: 11.4 This document, its appendices and any subsequent amendments contain the entire

Agreement between the parties. There are no undertakings, representations or promises expressed or implied between the parties other than those contained in this document, its appendices and any subsequent amendments executed in accordance with section 11.5.

11.5 This Agreement may be amended at any time by the Parties. No amendment or changes

to, or modification of, this Agreement will be valid unless in writing and signed by both parties.

11.6 The Recipient shall not assign this Agreement, in whole or in part, without the prior

written consent of the Minister. IN WITNESS WHEREOF the parties hereto have executed this Agreement as attested by the signatures of their officers fully authorized for such purpose.

HER MAJESTY THE QUEEN IN RIGHT OF SASKATCHEWAN, as represented by the Minister of xxxxxx Per: __________________________________ Date: __________________________________ (RECIPIENT) Per: __________________________________ Date: __________________________________

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APPENDIX “A”

xxxxxxxxxxxxx PROGRAM

PROGRAM PURPOSE PROGRAM OBJECTIVES PROGRAM OUTCOMES

CBO Draft Agreement - Government Transfers Instructions have been included throughout this template agreement in blue bold font. These instructions should be removed when drafting your agreements. Government transfers is an accounting term used to describe the transfer of assets by a government to another party where the government does not receive anything directly in return. Government transfers can be in the form of grants, shared cost arrangements or entitlements. Government transfers are to be expensed when they are authorized by the transferring government and any eligibility criteria have been met by the Agency. The term ‘financial assistance’ has been used throughout this template agreement in place of, or as a reference to, government transfers. The term ‘financial assistance’ should not be confused with the cash payments of that assistance. In some cases, a transfer expense may need to be recorded before the cash payment is made. It is important to differentiate transfers expense (accounting perspective) from cash payments throughout this agreement. The template agreement acknowledges that a Ministry may intend to give up its discretion and fully authorize the transfer in the first year of an agreement (whether the agreement spans one year or multiple years), or a Ministry may choose to retain its discretion and incorporate further authorization steps over the term of a multi-year agreement. This template identifies a possible further authorization step to be the Legislative Assembly’s approval of an Appropriation Act in each future year. Eligibility criteria could also result in recording transfers expense over the term of a multi-year agreement, as transfers are not recorded as an expense until they are authorized and eligibility criteria are met. In all cases, a transfers expense must be recorded when the transfer has been authorized and any eligibility criteria have been met, regardless of whether there is sufficient appropriation. However, an appropriation must be charged when a transfers expense is recorded. Therefore, sufficient appropriation must be obtained through special warrant, virements or other means available. As per The Financial Administration Act, 1993, if sufficient appropriation is not obtained, any amounts expensed in excess of the appropriation for the fiscal year is a first charge against a suitable appropriation in the following fiscal year.

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THIS AGREEMENT MADE this________ day of ______________, 201x. BETWEEN:

HER MAJESTY THE QUEEN in right of the Province of Saskatchewan, as represented by the Minister of ***** (hereinafter referred to as the "Minister”)

OF THE FIRST PART

-and- ******** (hereinafter referred to as the "Agency")

Insert proper full legal name of the Agency and address (if a corporation - confirm status and name with Corporation’s Branch 787-2962)

OF THE SECOND PART INTRODUCTION

Authorization under accounting rules requires two actions by the transferring government: the legislative authority (noted in this section) must be in place; and the transferring government must exercise the authority, which indicates the government has made a decision to provide financial assistance and leaves the government with no discretion to avoid it. Often that evidence would be an agreement like this – as long as the agreement does not leave room for the government to avoid providing the financial assistance. It is not required but it is a good idea to set out the authority for entering into the agreement here. Whereas the Minister desires the delivery of certain services for the purposes of ************* for the period specified herein;

And Whereas the Agency is capable of and prepared to deliver those services;

And Whereas the Minister is authorized to enter into an Agreement to provide financial assistance to the Agency for this purpose under the authority granted by sections *** of (insert legislation that authorizes the Agreement);

Therefore the Parties agree as follows:

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1.0 DEFINITIONS AND SCHEDULES: If there are terms used in this Agreement consistently, then think about defining those terms so that they mean the same throughout.

Definitions can be added or removed as appropriate. Make certain all terms defined in this section are used in the Agreement. Make certain any section numbers referenced in the definitions are correct. Those likely to be required are included. 1) In this Agreement:

(a) “Agency Budget” means the itemized budget allocations of the Agency for delivery of the Services set forth in Schedule “C”

(b) “Agreement” means this Agreement and includes all Schedules attached to this

Agreement;

(c) “Client Records” means file recordings, documents and information kept by the Agency which relate to the provision of Services by the Agency to its clients;

(d) “fiscal year” means April 1st of one year up to and including March 31st of the

next year.

(e) “Records” means Client Records and Services Records

(f) “Services” means those Services set out in Schedule “A”, and unless otherwise indicated includes all labour, equipment and materials which the Agency may require to provide the Services;

(g) “Services Records, means all documents, books, accounts and other information

of the Agency relating to the provision of Services under this Agreement other than Client Records

(h) “surplus funds” means the money remaining at the end of a fiscal year from the

payments the Agency has received from the Minister under this Agreement, after payment of all expenses related to the delivery of Services which are set out in the Agency Budget;

(i) “Term” means the period this Agreement is to be in effect, as specified in section

2.1

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Optional (xx) “quarter” or “quarterly” means the three month period in each fiscal year from

April 1st to June 30th; July 1st to September 30th; October 1st to December 31st; and January 1st to March 31st.

(xx) “operational plan” means the Agency’s plans for the fiscal year including program, capital, financial and human resources plans.

1.2 The following Schedules are included and form part of this Agreement: (a) Schedule “A” - Services (b) Schedule “B” - Payment Schedule

(c) Schedule “C” - Agency Budget (d) Schedule “D” - Reporting Requirements (e) Schedule “E” - Criminal Record Checks (f) Schedule “F” - Record Retention Schedule

2.0 TERM (This contract may be for multiple fiscal years) 2.1 This Agreement will commence April 1, 20xx and will expire March 31, 20xx.

An issue with multi-year agreements is whether the full amount of the financial assistance (transfer) should be recorded as an expense in the first year of the agreement or whether an annual amount should be recorded as an expense in each year of the agreement. When a multi-year transfer is fully authorized by the transferring Government

upon signing an agreement that spans more than one year, the Government has lost its discretion to avoid proceeding with the transfer and a transfer expense for the full amount of the agreement would be required in the first year, if eligibility criteria have been met.

Alternatively, when the agreement contains a clause that indicates the government still has discretion because authorization has yet to occur in each of the future years, a transfer expense would be recorded in those future years when authorization has been granted, if eligibility criteria have been met.

Note that the eligibility criteria outlined in section 4.0 could also result in recording transfers expense over the term of a multi-year agreement, as transfers are not recorded as an expense until they are authorized and eligibility criteria are met. Choose one of the following section 3.0’s:

3.0 BINDING AND ENFORCEABLE OBLIGATION (applicable for one-year or

multi-year agreements)

The following wording can be used for one-year agreements or where the full amount of a multi-year transfer is to be expensed in the first year, as long as eligibility criteria, if any, are met.

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3.1 The parties acknowledge that this Agreement creates binding and enforceable obligations including the obligation to provide financial assistance unless the obligation is suspended in accordance with this Agreement or this Agreement is terminated in accordance with its terms.

OR

3.0 FUTURE YEARS’ AUTHORIZATION (applicable for multi-year agreements only)

The following wording allows the government to retain its discretion until some point in future years when the Legislative Assembly appropriates the transfer funds. The transfer is expensed in future fiscal years, rather than expensing the full amount of the transfer in the first year.

3.1 The parties acknowledge that this Agreement does not create a binding and enforceable

obligation to provide financial assistance until: a) the Legislative Assembly of Saskatchewan has appropriated funds out of which the

financial assistance may be paid in the fiscal year in which the payment is to be made pursuant to this Agreement; and

b) the Agency has met the eligibility criteria with respect to the financial assistance as set out in section 4.0.

4.0 ELIGIBILITY CRITERIA

Eligibility criteria are what the Agency must do to qualify for the financial assistance (transfer). Government transfers are not expensed until the eligibility criteria are met, except as noted in * below. Eligibility criteria should be specific enough so that the terms can be assessed or measured for purposes of determining when transfer expenses should be recorded. Examples of eligibility criteria include incurring eligible costs, providing certain services (e.g. hire X number of individuals), delivering a program, purchasing or constructing an asset or providing a report that evidences the Agency has done something.

Sample wording (the examples provided below are not a complete list as there could be a number of other examples): Example A - eligible after providing the services

4.1 In order to be eligible for financial assistance, the Agency must have first provided the

Services set forth in “Schedule A”.

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OR Example B - eligible after providing a report 4.1 In order to be eligible for financial assistance, the Agency must have first provided a

report that provides evidence of the Agency providing the Services set forth in “Schedule A”.

OR Example C - shared cost arrangements

Shared cost arrangements are between two parties that jointly share the financial

responsibility for specific costs related to a project. Typically, authorization occurs at the point that the agreement is signed. In these arrangements, the eligibility criteria include the incurring of eligible costs by the Agency. The transferring Government is required to record the expense at the point that costs are incurred by the Agency.

4.1 In order to be eligible for financial assistance, the Agency must have first incurred

eligible expenditures for the provision of the Services set forth in “Schedule A”. 4.2 For the purposes of paragraph 4.1, eligible expenditures include: a) (list all eligible expenditures - e.g. funding to applicants, direct costs, indirect

administration costs, capital asset purchases, etc.)

* Note that in the event a payment is made prior to the Agency meeting the eligibility criteria in any of the examples above, the payment would be expensed on the basis that the transferring Government has made a decision to change the terms of the financial assistance (transfer). That is, eligibility criteria become stipulations that are expected to be met after receiving the financial assistance.

If you consider certain conditions to be eligibility criteria, but regularly provide transfer payments in advance of the recipient meeting those conditions, the conditions are then more in the nature of stipulations and what the Agency is expected to do to keep the transfer payments.

5.0 STIPULATIONS (SERVICES)

The Agreement must have provisions which set out the Services to be provided and these must be clearly delineated. I have set this out to be generic – with a Schedule to be modified by each ministry setting out the Services. Care should be taken preparing Schedule A. Stipulations are what the Agency is expected to do under the Agreement after being eligible for the financial assistance (transfer). Where a transferring Government has paid in advance of the Agency meeting eligibility criteria, those eligibility criteria become stipulations that are expected to be met after receiving the financial assistance.

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Conditions that are included as eligibility criteria in section 4.0, should not also be included as stipulations in this section. It should be clear whether a condition is an eligibility criteria or a stipulation.

Examples of stipulations that may be used (not intended to be a complete list): 5.1 The Agency will provide the Services set forth in Schedule “A” in accordance with the

terms of this Agreement. This paragraph would be removed if ‘providing the Services’ is included as eligibility criteria in section 4.0.

5.2 To deliver the Services the Agency will: (a) engage and utilize only suitable and qualified personnel; (b) obtain all licenses, approvals or permits which may be required; and (c) comply with all applicable laws, regulations, bylaws or codes which may apply to

the Services 5.3 Any amendments to the Services shall be agreed upon between the Minister and the

Agency. All amendments must be in writing and signed by the Agency and the Minister. 5.4 The Agency will keep records and submit reports as set forth in section 7.0. 5.5 The Agency shall immediately notify the Minister if the requirements of this Agreement

cannot be met by it or if the Agency is unable to maintain adequate staff to provide the Services.

6.0 PAYMENT SCHEDULE

I suggest moving the specific payment elements to a Schedule where they can be customized to meet the particular needs of the ministry and Agency. I have kept in this section provisions which I am assuming to be relatively standard and used in one form or another in all agreements. There are options to consider on withholding payments and Surplus payments.

Government policy requires that the payment schedule be based on the cash flow needs of the Agency. The timing of recording a transfer expense does not necessarily coincide with the timing of cash payments. A transfer expense arises for the transferring Government once a transfer is authorized and eligibility criteria have been met by the Agency.

6.1 The Minister will pay the Agency for those Services in Schedule “A” in the amount set

forth in Schedule “B”. 6.2 All payments made pursuant to this Agreement shall be used only for the purpose of

providing the Services for which the payment was made and the Agency shall promptly: (a) notify the Minister of the amount of any payments not used for the purpose of

providing such Services; and (b) unless otherwise directed by the Minister, refund such amounts in accordance

with the Minister’s directions.

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6.3 The Agency is responsible for the payment of all expenses incurred by it in providing the

Services and the Minister will not pay any additional amount to reimburse expenses.

Optional clauses (not all clauses go together) Reallocating Funding

6.4 The Agency agrees that all expenditures made by the Agency for Services shall be made in accordance with the allocations set out in the Agency Budget. Where necessary, the Agency may reallocate funds within salary codes and within non-salary codes in the Agency Budget. However, the Agency may not reallocate funds from salary codes to non-salary codes or non-salary codes to salary codes in the Agency Budget, without prior written approval of the Minister.

OR 6.4 The Agency may reallocate funds between categories of budget expenditures set out in

the Agency Budget, provided that the reallocation of funds does not increase or decrease an expenditure item by more than twenty percent (20%). The Agency must obtain the written approval of the Minister for any other reallocation of funds within the Agency Budget. References to the Agency Budget will mean the Agency Budget as amended resulting from any reallocation of funds done in accordance with this provision.

Withholding payments

6.5 In addition to any other rights the Minister may have pursuant to this Agreement, where the Minister on reasonable grounds believes that the Agency has failed to:

a) maintain staffing levels for Services as described in the budget allocations in the Agency Budget ; or

b) provide all Services; payments made pursuant to this Agreement for those Services may be reduced in an amount deemed appropriate by the Minister and the Agency shall promptly refund to the Minister the amount of any payments received for those Services in excess of such reduced amount.

OR 6.5 Where, in the opinion of the Minister, the Agency fails to comply with the provisions of

this Agreement, the Minister may withhold any payment due to the Agency until such time as the Agency complies with this Agreement to the satisfaction of the Minister.

OR 6.5 If the Agency should neglect to provide the Services in a timely fashion, or fail to

perform any provision of this Agreement, the Minister may, after providing not less than ______________ Notice to the Agency, and without prejudice to any other right or remedy he may have, perform or arrange for the performance of such Service. The Minister may deduct all reasonable costs incurred from any payment due to the Agency.

Board expenditures 6.6 Unless otherwise specifically provided in the Agency Budget, payments made under this

Agreement may not be used to pay board members of the Agency except as specified below; (a) funding may be used to reimburse board members for reasonable travel, meal and

accommodation expenses, provided: (i) they are required to travel on Agency business; and

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(ii) the rates do not exceed those which are applicable to employees of the Public Service of Saskatchewan;

(b) funding may be used to provide a gifts to a retiring board member, provided the expenditure does not exceed $5 per year of service to a maximum of $50.00.

7.0 RECORDS, REPORTING and ADMINISTRATION

Include details on the requirements to provide accountability reports not already identified elsewhere within the agreement. Any requirements to provide reports included in section 4.0 as eligibility criteria should not also be included in this section.

7.1 The Agency will keep complete and detailed Client Records as may be required for the

Services that it has provided pursuant to this Agreement. The Agency agrees that the Client Records will: (a) contain the details specified in Schedule “F” ; and (b) be maintained and retained in accordance with the criteria listed in Schedule “F”.

7.2 The Agency is responsible for and will maintain such Services records as the Minister

may require, including complete accounts and records of all revenues and expenditures pertaining to payments received and Services provided pursuant to this Agreement which meet generally accepted accounting principles and practices, , including all invoices, receipts and vouchers relating thereto. The Agency will maintain and retain the Services Records in accordance with the criteria listed in Schedule “F”.

7.3 The Minister may conduct a review of the Services provided by the Agency to determine

whether the Agency is complying with this Agreement or make an inspection of any premises occupied by the Agency or any of the Agency's Records at any time. The Agency agrees to co-operate and assist the Ministry in any review, inspection or evaluation process, and in particular agrees to make available to the Ministry any of its Records premises, staff and personnel.

7.4 Without limiting the generality of clause 7.3, the Minister may, at its own expense, audit

or cause to be audited, the accounts and records of the Agency. For the purposes of conducting this audit, the Agency shall: (a) allow the Minister or its auditors to have access to its premises; (b) produce all documents, accounts and records; and (c) co-operate with the Minister or its auditors including making all of its staff and

personnel available to the Minister. 7.5 The Agency will provide the Minister with any information and reports this agreement

that the Minister may reasonably require, including the Reports and information set out in Schedule “D” in accordance with the timing, processes and criteria specified therein. Optional clauses

7.6 In the event of dissolution of the Agency, or the termination or non-renewal of this Agreement, the Agency agrees to return to the Minister:

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(a) all monies provided under this Agreement which have not been spent in providing the Services and all property the acquisition of which was, in whole or in part, funded by monies provided under this Agreement or previous Agreements for similar purposes. All capital and other assets acquired in whole or in part through funding provided under this Agreement or previous Agreements for similar purposes shall be disposed of by the Agency in accordance with procedures approved by the Minister and the proceeds paid to the Minister; and

(b) all client documentation, reports, data, information or material in any form produced or prepared by the Minister and in the possession of the Agency

(c) where requested by the Minister in order to continue Service delivery, all Client Records of the Agency

Board Meetings

7.7 The Agency shall complete and maintain: (a) a written set of minutes of all Board meetings; and (b) a written set of all policies and standards

8.0 CRIMINAL RECORD CHECKS

Optional – depending upon the type of Services to be provided. If not required for all Services, then specify which positions require the completion of the record check.

8.1 The Agency will ensure that all new staff members involved in the provision of Services

provide the Agency with a criminal records check completed by an appropriate police service in accordance with the Criminal Records Check requirements attached as Schedule “E”.

9.0 CONFLICT OF INTEREST 9.1 Agency boards must develop, approve and follow a policy to prevent any conflict of

interest between the private interests of employees or board members and their respective responsibilities to clients or the public.

The policy must be consistent with the policy used by the Government of Saskatchewan (refer to the Saskatchewan Public Service Commission Human Resource Manual, www.gov.sk.ca/psc/hrmanual, Section PS 801).

9.2 The Agency shall upon request of the Ministry demonstrate on an annual basis that they

have an effective Conflict of Interest policy in place, and that they are conducting Conflict of Interest reviews according to policy.

10.0 CONFIDENTIALITY

NOTE: these clauses apply solely to records and information provided by the Minister – they do not create rules of confidentiality for Client Records or

http://www.gov.sk.ca/psc/hrmanual

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information created or obtained by the Agency. These rules would be specified in Schedule F.

10.1 The Agency acknowledges that in order to provide the Services, it will require and

receive documents, data and other information from the Minister, including personal information within the meaning of The Freedom of Information and Protection of Privacy Act and/or personal health information within the meaning of The Health Information Protection Act (collectively referred to throughout this paragraph as “Confidential Information”). In that regard, the Agency agrees that it will:

a) protect and secure the Confidential Information to ensure that it remains

confidential and will not disclose the same to any third party without the express written authorization of the Minister except as may be required to perform the Services or as may be authorized or required by law;

b) not use or disclose the Confidential Information for any purpose other than for the provision of the Services under this Agreement;

c) promptly return the Confidential Information to the Minister, or destroy the Confidential Information in a manner approved by the Minister and provide written confirmation to the Minister that it has been so destroyed, when it is no longer required by the Agency to provide the Services, and in any event no later than the termination of this Agreement.

10.2 The Agency will make the Confidential Information accessible only to those of its

employees who require it to perform the Services and shall ensure that such employees are aware of and abide by the obligations of confidentiality under section 10.1.

10.3 The Agency will immediately advise the Minister:

a) if the Agency knows or suspects that the Confidential Information may have been compromised;

b) if the Agency or an affiliated company of the Agency is served with an Order, demand, warrant or any other document purporting to compel the production of any of the Confidential Information, including an order made pursuant to the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT); and

c) should the Agency become aware that any requirement of this Article 10.0 has been breached.

10.4 The Agency will indemnify and save harmless the Minister from any actions, causes of

action and liabilities of any form or kind arising out of or relating to the breach of any of the Agency’s obligations under this Article 10.0.

10.5 The Agency agrees to permit the Minister to have access to the Agency’s premises, records and employees at any reasonable time, to perform any reviews and audits that the Minister considers advisable to ensure that the Agency is meeting the requirements of this Article 10.0 and the Agency will provide its full co-operation for the purposes of such reviews or audits.

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MINISTRY OF HEALTH PROVISIONS 10.1 The Agency acknowledges that the Minister has a statutory obligation to protect personal

health information and personal information in its possession or control pursuant to The Health Information Protection Act and The Freedom of Information and Protection of Privacy Act.

10.2 If the Agency receives documents, data, or information from the Minister for the

purposes of this Agreement which would be personal information within the meaning of The Freedom of Information and Protection of Privacy Act and/or personal health information within the meaning of The Health Information Protection Act (collectively referred to as “Confidential Information”), the Agency agrees that it will: (a) only use the Confidential Information in a manner consistent with The Freedom of

Information and Protection of Privacy Act and The Health Information Protection Act, as the case may be;

(b) keep the Confidential Information separate and apart from other information and not combine the Confidential Information with other information;

(c) not use the Confidential Information for any purpose other than the provision of services under the Agreement;

(d) make the Confidential Information only accessible to those of its employees who require it to perform the services and shall ensure that the employees are aware of and abide by the obligations of clause 10.2;

(e) immediately advise the Minister if it knows or suspects that the Confidential Information has been or may have been compromised, or if any provision of clause 8.2 has been breached; and

(f) promptly return the Confidential Information to the Minister when it is no longer required to provide the services under the Agreement, and in any event within 30 days after the termination or expiration of this Agreement.

10.3 (only include where the Contractor is a “trustee” within the meaning of HIPA) The parties acknowledge that for the purposes of providing the Services pursuant to this

Agreement, the Agency may be required to collect and use personal health information from its clients. The Agency specifically acknowledges that it is a “trustee” within the meaning of The Health Information Protection Act and as such agrees to comply with that Act in the course of providing the Services.

10.4 The Minister acknowledges that personal health information in the custody and control of

the Agency may only be disclosed to the Minister in accordance with the provisions of The Health Information Protection Act. For greater certainty, the Minister and the Agency agree to the use and disclosure of personal health information for the purposes of planning, delivering, evaluating or monitoring the Services of the Agency.

10.5 Upon the expiration or termination of this Agreement, the duties imposed on the Agency

as trustee with respect to personal health information in its custody or control continue to apply until the Agency transfers custody and control of the personal health information to either of the following at the direction of the Minister:

(a) another trustee; or

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(b) an information management service provider that is a designated archive within the meaning of The Health Information Protection Act.

11.0 TERMINATION OF THE AGREEMENT

EXAMPLE 1 11.1 Either party may terminate this Agreement, without cause, by giving the other party at

least **** days written notice. 11.2 On the happening of any of the following events: a) the Agency failing to comply with the terms of this Agreement; b) the Agency declaring insolvency or bankruptcy or making an assignment for the

benefit of creditors, or a receiver or liquidator of its business or property is appointed;

c) the Agency failing to comply with any legislation applicable to the Agency, the Services the Agency is delivering or any legislation governing the rights of the clients of the Agency;

d) the Agency failing to obtain Criminal Record Checks as required by section 8.1; the Minister may exercise any of the options described in section 11.3. 11.3 On the occurrence of any event described in section 11.2, the Minister may: a) waive the Agency's failure to comply with the terms of this Agreement; b) provide the Agency a further period in which the Agency shall comply with the

terms of this Agreement; or c) by written notice to the Agency, terminate this Agreement; 11.4 Where the Minister provides the Agency with a further period to comply with this

Agreement pursuant to section 11.3 (b), and the Agency fails to comply with this Agreement within that period, the Minister may exercise any of the options described in section 11.3.

11.5 Where the Minister receives a notice pursuant to section 5.5, the Minister may: a) exercise any of the options described in section 11.3; and/or b) replace the Agency with another service provider to perform the Services for the

remaining period of this Agreement or for a temporary period of time as may be required, and deduct from any payments payable to the Agency the costs for the replacement services contracted.

11.6 Waiver by the Minister of the Agency's failure to comply with any terms of this

Agreement shall not be deemed to be a waiver of any subsequent failure to comply nor a waiver of any other terms of this Agreement. Waiver by the Minister of the Agency's failure to comply with this Agreement shall not be construed to be modification of the terms of this Agreement unless stated to be such in writing and signed by the Minister.

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11.7 The rights and remedies of the Minister provided in this Article 11.0 shall not be exclusive and are in addition to any other rights and remedies provided by law or under this Agreement.

11.8 Subject to the other provisions of this Agreement, in the event that this Agreement is

terminated prior to expiration, the Agency shall be entitled to payment for Services provided prior to the date of termination.

EXAMPLE 2

11.1 The Minister or the Agency may terminate this Agreement without cause by giving at least **** days written notice of its termination, in which case any liability of the Minister pursuant to this Agreement or arising from its termination will be limited to paying the Agency for those Services provided (based on reasonable rates for the type of services provided and reasonable expenditures incurred in providing the services) prior to the date of termination. The Agency will provide to the Minister an itemized invoice of Services provided, and related fees and expenses claimed, to the date of termination, together with any substantiation of such services and related fees and expenses reasonably requested by the Minister and the Minister will make payment within thirty days after receipt of such.

11.2 If the Agency defaults in the performance of any of its obligations under this Agreement,

the Minister may, by giving written notice of termination to the Agency, terminate this Agreement if the Agency has not remedied the default after the expiration of 30 days after the Minister has given to the Agency notice of the default. In the event of termination pursuant to this provision, the Agency will not be entitled to any payment pursuant to this Agreement except to the extent that the Minister determines that the Services provided prior to termination have any value to the Minister.

11.3 If the Agency dissolves, becomes bankrupt or insolvent or files a general assignment for

the benefit of its creditors, the Minister may, by giving written notice of termination to the Agency, terminate this Agreement forthwith without notice. In the event of termination pursuant to this provision, the Agency will not be entitled to any payment pursuant to this Agreement except to the extent that the Minister determines that the Services provided prior to termination have any value to the Minister.

11.4 The Agency will immediately repay to the Minister any amount already paid to the

Agency which exceeds the amount to which the Agency is entitled under sections 11.1, 11.2 or 11.3.

11.5 The rights and remedies of the Minister provided in this Article 11.0 shall not be

exclusive and are in addition to any other rights and remedies provided by law or under this Agreement.

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Additional clauses Survive termination (11* should be included)

11.* Provisions which, by their nature and effect are necessary to survive the termination or expiration of this Agreement shall do so, and for greater certainty shall include the following provisions: sections 6.2 and 6.5 (a) Article 7.0 (b) Article 10.0 (c) Sections 11SP1 or 11SP2 etc (surplus provisions) (d) Article 13.0

Surplus payments (one needs to consider how this fits in with multi-year funding) Example 1

11.SP1.1 The Agency shall refund to the Minister within one hundred and eighty (180) days of the end of any fiscal year to which this Agreement applies, any surplus funds. For greater certainty this includes any reserves or retained funds accumulated by the Agency from funds received from the Minister pursuant to this or previous Agreements

11.SP1.2 Notwithstanding clause 11.SP1.1, the Minister may authorize in writing the Agency to

retain the surplus funds mentioned in that clause for purposes substantially similar to or related to the provision of the Services, as more particularly set out in the authorization.

11.SP1.3 In addition to any other provision under this Agreement, the Ministry may reduce or

withhold from any payment required to be made to the Agency pursuant to this Agreement where, in the opinion of the Ministry, the amount of funding paid pursuant to section 6.1 is in excess of the reasonable cost of delivering the Services.

Example 2 11.SP2.1 In the event of dissolution of the Agency, or the expiration or termination of this

Agreement and any subsequent extensions, the Minister may, within one year of such expiration or termination, or of satisfactory performance of obligations contained herein: a) demand a refund of unspent funding provided pursuant to this Agreement and any

subsequent extensions; b) demand the return of any property purchased with the funding provided pursuant

to this Agreement and any subsequent extensions; and c) where the Agreement is terminated prior to the completion of a period for which a

payment has been made, the Agency shall refund to the Minister the unearned amount of the payment made for that period.

The Agency shall deliver the refund and/or property to the Minister within thirty (30) days of the demand.

11.SP2.2 Notwithstanding section 11.SP2.1, the Minister may in writing authorize the Agency to retain any or all of the unspent funding for any expenditure approved in writing by the Minister.

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OPTIONAL Business Continuity Plan

11.BC.1 To ensure that the public interest in the provision of Services is always protected, the Agency will establish a business continuity plan for continuation of Services should events arise which may be expected to result in an interruption in the delivery of Services. By way of example, but without limiting the generality of the forgoing, events which may trigger the plan are labour strikes, terrorism threats, floods, pandemic illness and other emergency situations which may impact the ability of the Agency to deliver Services.

12.0 NON-LIABILITY OF THE MINISTER 12.1 The Minister’s responsibility and liability with respect to the Services to be provided by

the Agency pursuant to this Agreement is limited solely to the payments to be made by the Minister in accordance with the terms of this Agreement.

13.0 INDEMNIFICATION AND INSURANCE 13.1 The Agency will indemnify and save harmless the Minister, its officers, employees and

agents, from and against any claims, liabilities, demands costs, expenses and causes of action of any nature whatsoever that may be made against the Minister, its officers, employees and agents:

(a) arising out of the breach or failure to perform any provision of this Agreement by the Agency its contractors or its agents;

(b) relating to injury (including death) to persons or loss of or damage to property arising out of the willful misconduct or negligence of the Agency, its officers, employees, contractors, or agents.

13.2 The Agency shall maintain insurance covering:

(a) General Liability Insurance covering premises and operations liability, non-owned automobile, elevators (if applicable);

(b) Completed Operations Liability; (c) Contractual Liability; and (d) Vehicle liability insurance covering all owned vehicles used by the Agency to

provide Services

The Limit of Liability shall be not less than two million dollars ($2,000,000) per occurrence, unless approved in writing by the Minister. The Government of Saskatchewan shall be added as Additional Insured to all the policies described in this section.

13.3 The Agency will provide to the Minister evidence of the required insurance prior to

commencing any Services under this Agreement 13.4 All policies shall be with insurance companies licensed to do business in Saskatchewan.

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14.0 INDEPENDENT CONTRACTOR 14.1 The Agency expressly acknowledges and agrees that it has no authority to act as an agent

of the Government of Saskatchewan or the Minister and will not hold itself out as such an agent.

15.0 ASSIGNMENT AND SUBCONTRACTING 15.1 Without the prior written consent of the Minister, the Agency shall not: a) assign, either directly or indirectly, this Agreement or any right under this

Agreement; or b) subcontract any obligations of the Agency under this Agreement. 15.2 Any subcontract entered into by the Agency shall not relieve the Agency of any of its

obligations under this Agreement or impose any obligation or liability upon the Minister to any such subcontractor.

16.0 GENERAL 16.1 This Agreement will be governed by and construed in accordance with the laws of the

Province of Saskatchewan. 16.2 Any amount owed to the Ministry pursuant to this Agreement shall be a debt due and

owing to Her Majesty the Queen in right of Saskatchewan. 16.3 Any notice pursuant to this Agreement shall be given by registered mail, courier,

facsimile or electronic transmission addressed to the relevant party as follows: If to the Minister: and If to the Agency: 16.4 This document, its appendices and any subsequent amendments contain the entire

Agreement between the parties. There are no undertakings, representations or promises expressed or implied between the parties other than those contained in this document, its appendices and any subsequent amendments executed in accordance with section 16.4.

16.5 This Agreement may be amended at any time by the Parties. No amendment or changes

to, or modification of, this Agreement will be valid unless in writing and signed by both parties.

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Optional Dispute Resolution In the event that there is a dispute between the Minister and the Agency about whether the Agreement has been fulfilled or concerning the performance of any of its terms, both parties agree to attempt to resolve the matter in a meeting between the Agency and the Minister or the Minister’s representative(s), and, if such a meeting does not resolve the matter, to involve an independent mediator to attempt the resolution of the dispute before formal legal action is pursued. Public Acknowledgement The Contractor will acknowledge the contribution made by the Minister in any information released or announced to the public concerning the subject matter of this Agreement.

The Contractor will acknowledge the financial contribution and support from the Minister on any promotional or educational material.

Ownership of Materials If applicable All documents, materials and information developed or produced pursuant to this Agreement shall be the property of the Minister and may not be used for any purpose other than the provision of the Services, without the express written consent of the Minister. All such documents, materials and information shall be delivered by the Agency to the Minister as requested by the Minister, or upon the termination or expiration of this Agreement. Assistance An employee of the Minister may be assigned to supply assistance and advice as may be requested by the Agency and agreed to by the Minister. Compliance with Law The Agency agrees that it shall at all times maintain itself in good standing as a registered non-profit corporation in Saskatchewan pursuant to The Non-Profit Corporations Act, 1995 of Saskatchewan or The Co-operatives Act as the case may be and shall comply with all requirements under such legislation.

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

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SCHEDULE “A”

SERVICES TO BE PROVIDED BY THE AGENCY

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SCHEDULE “B”

PAYMENT SCHEDULE This schedule will list much of the detail that may have previously provided for in the body of an agreement.

It will detail: • The level of payment per fiscal year • Any amendment to the level of payment for a subsequent fiscal year (for

example, a provision might be included permitting the Minister to increase or decrease the payment set for fiscal year 2 to a maximum of a particular amount or %

• How the payments will be made (frequency - invoices provided etc) Government policy requires that the payment schedule be based on the cash flow needs of the Agency. The timing of recording a transfer expense does not necessarily coincide with the timing of cash payments. A transfer expense arises for the transferring Government once a transfer is authorized and eligibility criteria have been met by the Agency. Any requirements included within this section of the agreement would be payment requirements and not eligibility criteria, unless specifically referred to in section 4.0, and therefore, would not affect the recording of government transfers expense. Note that in the event a payment is made prior to the Agency meeting the eligibility criteria, the payment would be expensed on the basis that the transferring Government has made a decision to change the terms of the financial assistance (transfer). That is, eligibility criteria become stipulations that are expected to be met after receiving the financial assistance. Sample Wording (the examples provided below are not a complete list as there could be a number of other examples):

B.1 The Minister shall pay the Agency, for the Services described in Schedule “A”, in the amount of:

i. $xxxxx upon signing of this Agreement; and ii. $xxxxx upon the receipt of a progress and financial report, in the form and

content acceptable to the Minister.

OR

B.1 The Minister shall pay the Agency, for the Services described in Schedule “A”, in the amount of $xxxxx per month (or quarter). The first payment shall be paid on the execution of the Agreement.

OR

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B.1 The Minister shall pay the Agency, for the Services described in Schedule “A”, in the amount of $xxxxx upon meeting all of the eligibility criteria set out in section 4.0 of this Agreement.

OR

B.1. The amount payable by the Minister for the fiscal year: (i) from April 1, 2010 to March 31, 2011 is an amount of *********;

(ii) from April 1, 2011 to March 31, 2012 is an amount of *********; (iii) from April 1, 2012 to March 31, 2013 is an amount of *********; B.2 The amounts referred to in B.1 (ii) and (iii) may be increased or decreased at the sole

discretion of the Minister by an amount not exceeding 10 per cent of the amount listed. Any such increase or decrease must be specified in writing.

B.3 Payments of amounts referred to in B.1 will be made on the first day of each month in

equal monthly instalments of one-twelfth (1/12) of the total amount unless otherwise agreed to by the Ministry.

OR B.1. The amount payable by the Minister for the fiscal year: (i) from April 1, 2010 to March 31, 2011 is an amount of *********;

(ii) from April 1, 2011 to March 31, 2012 is an amount of *********; (iii) from April 1, 2012 to March 31, 2013 is an amount of *********; B.2 The amounts referred to in B.1 (ii) and (iii) may be increased or decreased at the sole

discretion of the Minister by an amount not exceeding 10 per cent of the amount listed. Any such increase or decrease must be specified in writing.

B.3 Payments of amounts referred to in B.1 will be made contingent on the receipt of:

(i) monthly (or quarterly) progress and financial reports in the form and content acceptable to the Minister as set out in section ******* of this Agreement;

(ii) (list all requirements needed to make payment). B.4 Payments are due 30 days following receipt of information referred to in B.3.

OR

2.1 The Minister will pay to the Agency for the provision of the Services:

(a) the amount of $xxx,xxx for the fiscal year from April 1, 2010 to March 31, 2011; and

(b) the amount of $xxx,xxx for the fiscal year from April 1, 2011 to March 31, 2012. 2.2.1 The amounts payable by the Minister pursuant to clause 2.1(a), will be paid as follows:

a) a payment of $x,xxx upon signing of this Agreement;

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b) a second payment of $x,xxx on September 1, 2010 contingent on receipt and approval by the Minister of the year-end activity and financial reports required pursuant to a previous contract between the Minister and the Agency for the year April 1, 2009 to March 31, 2010;

c) a third payment of $x,xxx on December 1, 2010 contingent upon receipt by the Minister of the mid-year progress and financial reports for the year required pursuant to sections *******; and

d) a final payment of $x,xxx upon receipt and approval by the Minister of the year-end activity and financial reports for the year from April 1, 2010 to March 31, 2011 required pursuant to sections **********.

2.2.2 The amounts payable by the Minister pursuant to clause 2.1(b), will be paid as follows:

a) a payment of $x,xxx contingent upon receipt of the work plan for the fiscal year 2011-12 and the Legislative Assembly of Saskatchewan appropriating funds out of which the financial assistance may be paid in a fiscal year in which the payment is to be made pursuant to this Agreement;

b) a second payment of $x,xxx on September 1, 2011 contingent on receipt and approval by the Minister of the year-end activity and financial reports for the year from April 1, 2010 to March 31, 2011 required pursuant to sections ***** of this agreement;

c) a third payment of $x,xxx on December 1, 2011 contingent upon receipt by the Minister of the mid-year progress and financial reports for the year required pursuant to sections ******; and

d) a final payment of $x,xxx upon receipt and approval by the Minister of the year-end activity and financial reports for the year from April 1, 2011 to March 31, 2012 required pursuant to sections ******.

2.3 The amount referred to in 2.1 (b) may be increased or decreased at the sole discretion of

the Minister by an amount not exceeding 10 per cent of the amount listed. Any such increase or decrease must be specified in writing.

2.4 The Agency and the Minister have entered into an existing contract for services dated

April 1, 2008, which expires March 31, 2010. If pursuant to that contract expiring, the Agency is required to repay to the Minister an amount provided pursuant to it, the Agency may submit to the Minister a written request to use that amount for the Services under this Agreement, together with a description of the proposed use of such amount and a detailed budget relating to its use. The Minister may then authorize the Agency to retain, in addition to amounts payable pursuant to subsection 2.2, all or part of such amount to be used for the Services. Upon such authorization, the Services and the Service Budget for the year will be deemed to be amended to incorporate such additional budget items approved by the Minister and references to the 2010-2011 Service Budget will be deemed to be the Service Budget as so amended.

2.5 If at the end of the fiscal year 2010-2011, the Agency is required to repay to the Minister

an amount pursuant to this contract for that fiscal year, the Agency may submit to the Minister a written request to use that amount for the Services under this Agreement for the fiscal year 2011-2012, together with a description of the proposed use of such amount and a detailed budget relating to its use. The Minister may then authorize the Agency to

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retain, in addition to amounts payable pursuant to subsection 2.3, all or part of such amount to be used for the Services in 2011-2012. Upon such authorization, the Services and the Services Budget will be deemed to be amended to incorporate such additional budget items approved by the Minister and references to the 2011-2012 Service Budget will be deemed to be the Service Budget as so amended.

2.6 All funds provided pursuant to this section 2 may only be expended by the Agency to

provide the Services and only in accordance with the Budget attached as Schedule C.

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SCHEDULE C

AGENCY BUDGET

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SCHEDULE “D”

REPORTING REQUIRMENTS Here list the financial, statistical and other reporting that the Agency is required to provide under the Agreement. Note: one needs to think about how this will be structured with a muti-year agreement Examples: 1 The agency will provide:

a) Mid-year Activity Report on Services and a Statement of Operations in the forms attached as Appendix D1 and D2 respectively, based on the period April 1, 2010 to September 30, 2010, to be submitted no later than November 15, 2010;

b) Statement of Operations in the form of Appendix D2 based on the period October 1, 2010 to December 31, 2010, to be submitted no later than February 15, 2011;

c) Year-end Activity Report on Services delivery in the form of Appendix D3 and Summary of Operations in the form of Appendix D4 based on the period April 1, 2010 to March 31, 2011, to be submitted no later than May 15, 2011; and

d) Audited financial statements of the Agency for the period April 1, 2010 to March 31, 2011, to be submitted no later than June 30, 2011.

2. At least 90 days prior to the end of each fiscal year of this Agreement, the Agency will

provide to the Minister with an annual operational plan, in a format and containing the detailed information which may be specified by the Minister.

Example 1 The Agency will provide the Minister with quarterly income and expenditure reports, in a

format set by the Minister, based on the previous quarter to be submitted no later than: July 31st, for the quarter April 1st to June 30th; a) October 31st, for the quarter July 1st to September 30th; b) January 31st, for the quarter October 1st to December 31st; and c) April 30th, for the quarter January 1st to March 31st; or except as otherwise stated in this Agreement.

2 The Agency shall be required to provide the Minister with an annual financial report for

the fiscal year, no later than 90 days after the Agency’s fiscal year end. The format of the annual report is prescribed as follows: when revenues from all sources are between $25,000 and $100,000 in the previous fiscal

year, an annual audited or reviewed financial statement; or a) when revenues from all sources exceed $100,000 in the previous fiscal year, an

annual audited financial statement; or b) where revenues from all sources are less than $25,000 in the previous fiscal year, a

year-end financial statement, or as otherwise specified by Minister. Example

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The Agency shall provide to the Minister, in a format satisfactory to the Minister, the following reports:

[If the contractor is not required to submit reports (e.g. consultant, small dollar amounts might have one report) then insert the program and financial reports that they are expected to provide and remove sections (a) to (d).]

by May 15,__, an operational plan which includes a narrative and an annual budget of

all sources of revenues and expenditures related to the services provided under this Agreement;

[Clause (b) is used only for those agencies receiving Health revenue more than $250K; under $250K the reports can be up to the discretion of the Ministry e.g. semi-annual, no report until year end.]

by the 30th day following the last day of each quarter, quarterly revenue and

expenditure reports as well as statistical and program reports covering the services of the Agency provided during the immediately preceding quarter;

[Choose one of the three bullets below based on the total amount of funding of the Third Party (e.g. 1st bullet > $250K; 2nd bullet >$25K <$250K; 3rd bullet <$25K) but can require audits for riskier entities]

by no later than June 30, 20__, audited financial statements prepared by an individual

with an accounting designation in accordance with Canadian generally accepted accounting principles, including an Internal Control report and a Legislative Compliance report or management letter;

-or-

by no later than June 30, 20__, financial statements prepared in accordance with Canadian generally accepted accounting principles with a review conducted by an independent third party.

-or- by no later than June 30, 20__, year-end financial statements prepared by the Agency in accordance with Canadian generally accepted accounting principles.

by June 30, 20__, an annual report covering the services provided under this Agreement for the preceding fiscal year.

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SCHEDULE “E”

CRIMINAL RECORD CHECKS EXAMPLES E.1 Before any person provides Services the Agency shall ensure that person has provided

the Agency with a Criminal Record Check including a vulnerable sector check, completed by a municipal police force or the Royal Canadian Mounted Police, with respect to all criminal convictions and outstanding criminal charges. This paragraph does not apply to anyone employed by the Agency prior to April 1, 1997. this seems to be an anomaly for CPSP

E.2 The Agency shall establish a set of criteria to guide acceptance or denial of a person to

provide Services on behalf of the Agency based on the outcome of the Criminal Record Check. The Agency agrees that such criteria will ensure that no person shall be permitted to provide Services who has been convicted of a criminal offense relating to acts of violence, sexual assault, intimidation, criminal harassment, uttering threats or fraud for which they are not eligible for a pardon. The Agency shall provide the Minister with a copy of the criteria developed within 30 days after the date it is developed, or amended.

E.3 The Agency shall review the completed Criminal Record Check and shall record whether

the Criminal Record Check indicates that the applicant has a criminal record. If so, the Agency shall record why the application for employment was accepted or denied in accordance with the criteria developed in section E.2. The Agency shall return the Criminal Record Check to the applicant to whom it relates and will not make a copy. The Criminal Record Check is the property of the applicant.

E.4 The Agency shall be solely responsible for any decisions made regarding the involvement

in the delivery of Services of staff in accordance with section E.3 above. E.5 The Agency shall maintain confidentiality with respect to the information obtained from

the Criminal Record Check. The Agency shall only use the information to assess the applicant’s suitability to provide the Services.

E.6 The Minister is not responsible for any costs associated with obtaining the Criminal Record Check. Optional – criminal investigation/charges E.7 The Agency will inform all individuals involved in providing Services that they are

required to inform the Agency of any subsequent dealing with the criminal justice system including when they become aware they are: under investigation, charged with or awaiting court disposition of a criminal offence; a respondent under The Victims of Domestic Violence Act; or a defendant under section 810 (peace bond) of the Criminal Code.

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Example Criminal Record Check

This requirement has been developed to ensure that all persons involved in the provision of Services are able to work in a safe environment. 1. Criminal Record Check Requirements

1.1 The Agency shall ensure that all new board members, staff and volunteers involved in the provision of Services, provide the Agency with a Criminal Record Check completed by an appropriate police service using the format as attached.

1.2 Within 60 days of entering into this Agreement, all current board members, staff

and volunteers will have a Criminal Record Check completed.

1.3 The Agency shall inform all individuals involved in the Provision of Services that they are required to disclose any subsequent dealing with the criminal justice system including when they become aware that they are: under investigation for an alleged criminal offence; charged with or awaiting court disposition of a criminal offence; a respondent under The Victims of Domestic Violence Act; or a defendant under section 810 (peace bond) of the Criminal Code.

1.4 Prospective board, staff and volunteers will have a Criminal Record Check

completed prior to becoming involved in the provision of Services. Applicants for a staff or volunteer position shall provide the Criminal Record Check at the time of application.

1.5 The Minister is not responsible for any costs associated with obtaining the

Criminal Record Check. 1.6 The Agency shall provide to the Minister, upon request, a written log outlining

the individuals who have completed a Criminal Record Check. 1.7 The Agency shall maintain confidentiality with respect to the information

obtained from the Criminal Record Check and is subject to The Freedom of Information and Protection of Privacy Act. Failing to maintain confidentiality is a breach of this Agreement and may result in the termination of this Agreement.

2. Use of Criminal Record Check Findings

2.1 Within 60 days of entering into this Agreement, the Agency shall develop a set of criteria to guide acceptance or denial based on the outcome of the Criminal Record Check for new or existing board members, staff or volunteers for involvement in the provision of Services.

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2.2 The following provision will, as a minimum, form part of the criteria to be

developed:

The Agency shall ensure that during the Term of this Agreement no person shall be employed as a staff member or serve as a board member or volunteer with the Provision of Services, who has been convicted of a criminal offence relating to acts of violence, sexual assault, intimidation, criminal harassment, uttering threats or fraud for which offence the person is not eligible to seek a pardon under the Criminal Records Act.

2.3 The Agency shall provide the Minister with a copy of the criteria developed. 2.4 The Agency shall be solely responsible for any decisions made regarding the

involvement in the provision of Services of board members, staff or volunteers, in accordance with subsection 2.1 above.

3. Record Keeping

3.1. The Agency shall review the completed Criminal Record Check and shall record whether the Criminal Record Check indicates that the board member, staff person or volunteer has a criminal record and why the person was accepted or denied.

3.2 The Criminal Record Check is the property of the person. The Agency shall return

the Criminal Record Check form to the person, subject to subsection 3.3. 3.3 The Agency shall maintain a written log, recording all Criminal Record Check

requests. The log shall contain the following information: name of applicant. Χ date application was submitted. Χ date form returned to applicant, endorsed by the appropriate police agency

and presented to the Agency. Χ outcome of the check, that is, Criminal Record or No Criminal Record. Χ a record of the reasons for the applicant being accepted or denied

employment, if an application is returned indicating a criminal record exists.

3.4 The Agency is responsible for any information obtained under this section. The

Agency shall retain information obtained from the Criminal Record Check in secure file cabinets or rooms which are locked when not directly under the control of a person authorized by the Agency.

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Criminal Record Check To: Chief of Police, or NCO i/c RCMP

I am applying for a position of trust with the organization/ministry identified below. A criminal record check for criminal convictions and outstanding charges is required before my application can be considered.

Name of Organization/Ministry: Program: Board Member Employee: Position Volunteer Contact person: Phone:

(see instructions on the reverse of this form) (PLEASE PRINT) PERSONAL INFORMATION FOR COMPLETION BY APPLICANT

Name Last First Middle Other (if applicable)

(Under Other, show maiden name or any other name you have ever used) Address: Street City/Town Postal Code Birth Date: / / Birth Place: Year Month Day City Province/State Country Date: / / Applicant’s Signature Year Month Day

RESULTS OF CHECK FOR COMPLETION BY THE POLICE ( a photocopy will not be accepted)

A name check of police records reveals:

No criminal record based on the information provided

The following criminal convictions or outstanding charges: (attach record if lengthy)

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A possible criminal record that is being verified by a fingerprint check.

Date / / Signature, name and position of Officer Year Month Day Dept Stamp Police Dept or RCMP Detachment

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INSTRUCTIONS TO APPLICANT

A criminal record check is required before your application can be processed. Complete Part A on the reverse side. Take this application to the local police if you live in a city

or town policed by a municipal police service. If you live elsewhere, take it to your nearest RCMP detachment. Please sign and date this application in the presence of the police officer accepting it.

If the police:

are satisfied as to your identity, they will conduct a name search, and complete Section B. The police may require you to pay a fee for this service. Please forward the completed original application form and any other original information supplied by the police to the organization/ministry so that your application can be considered. A photocopy will not be accepted.

are not satisfied as to your identity, or if the check reveals a record, the police may

require your fingerprints before the record can be released. Major city police services may verify the fingerprints at their headquarters. However, in most instances, the police will take your fingerprints and return the fingerprint form to you with an envelope addressed to:

The Commissioner R.C.M. Police PO Box 8885 OTTAWA, Ontario. K1G 3M8 ATTENTION: Identification Services Directorate, Civil

Section Please mail the fingerprint form and the postage prepaid envelope along with a

certified cheque or money order payable to “The Receiver General of Canada” for $25.00, plus $1.75 GST, to the RCMP to the above address. This fee is in addition to any fee charged by the police for the initial check.

The RCMP will waive the processing fee for fingerprints if the applicant is applying for a

volunteer position. The applicant must indicate the volunteer position directly on the fingerprint form before it is forwarded to the above address.

Please advise the organization/ministry if fingerprint verification is required, as this will delay

processing your application from one to two months (or more). The fingerprints will be compared to the central RCMP Criminal Record File, and the record, or

letter indicating there is no record, and the fingerprint form will be returned to you. Please forward the completed original form and any other original information supplied by the police to the organization/ministry so that your application can be considered. A photocopy will not be accepted.

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A criminal record will not automatically result in your application being denied, depending on the Criminal Record Check criteria of the organization/ministry. Your record will be discussed with you if it is relevant to the position to which you are applying.

A record check is only valid for six months.

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SCHEDULE F RECORDS RENTENTION

A Client Records Detail/Content Rules 1. list details of rules for client records (what they must contain, confidentiality rules, any restrictions on how they can be used or disclosed) Retention Rules 2. list the rules associated with the maintenance and retention of client records B Business Services Records Detail/Content Rules 1. list details of rules for business records (what they must contain, revenues, invoices, receipts, how kept etc) Retention Rules 2. list the rules associated with the maintenance and retention of business records

[Type text]

USING THIS FORM: • This form is used to obtain the approval of the Provincial Comptroller or delegate prior to

opening a bank account. For further information on related Treasury Board policy and Provincial Comptroller’s directives refer to Section 3605 Approval of Bank Accounts.

• While the form can be completed electronically, a form signed by the Corporate Services Head is submitted to the Provincial Comptroller’s Office (PCO). A digital signature will not be accepted.

• Original signatures for signers are to be included with the Application to Open a Bank Account; these are provided to RBC at the time of approval.

• Names and contact information of Authorized Banking Contacts should be provided. According to RBC requirements, only signers and Authorized Banking Contacts on file at RBC can contact the RBC Commercial Client Service Team for Assistance. Typically, the Client Service Team would be contacted for transaction inquiries, requests for correction when errors have been identified, and to notify the bank to return items through the clearing (e.g., a fraudulent cheque identified in daily cheque matching).

• A completed Bank Account Internal Control Questionnaire must accompany the Application to Open a Bank Account.

• Once approved, the Provincial Comptroller’s Office will communicate the approval to RBC with a copy to the ministry Corporate Services head and the ministry representative in charge of the bank account.

• Contact the Cash Manager, Treasury Management Branch for RBC Express© access (e.g., to view transactions).

SUBMIT COMPLETED APPLICATION TO OPEN A BANK ACCOUNT TO:

Executive Director, Financial Management Branch Provincial Comptroller’s Office Ministry of Finance 2350 Albert Street REGINA SK S4P 4A6

http://www.finance.gov.sk.ca/fam/pdf/3605.pdf

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