Download Financial Management Policy - Six Nations Of The Grand River

MEMORANDUM
TO:
File
FROM:
General Finance Minutes - June 19. 2000
DATE:
June 29, 2000
RE:
Resolution #7
The following resolution was passed at the General Finance meeting held on the above noted date. May
this be for your information/action.
(7)
Moved by Donald Whitlow and seconded by David Hill, that Six Nations Council approve the second reading
of the Financial Management Policy, Motion (31) on the February 7, 2000 Special Council Agenda which
was HELD on February 24, 2000
In-Camera Session. General Finance Minutes.
CARRIED.
Sincerely,
SIX NATIONS COUNCIL
Eleanor Garlow
Finance Assistant
FINANCIAL
MANAGEMENT POLICY
PAGE 1
FINANCIAL MANAGEMENT POLICY
Table of Contents
1. General................................................…………………… Page 4
2. Bookkeeping System.......................................……………. Page 7
3. Chart of Accounts........................................……………… Page 7
4. Filing System............................................…………………. Page 8
5. Receipt of Funds.........................................……………….. Page 8
6. Bank Accounts............................................………………. Page 8
7. Petty Cash...............................................…………………. Page 8
8. Purchases................................................………………… Page 9
9.. Approval of Payments.....................................……………… Page 11
10. Disbursements...........................................… ……………. Page 11
11. Payroll..................................................………………….. Page 13
12: Contract for Service.....................................……………… Page 14
13. Tenders/Contracts........................................…………….. Page 14
14. Employee Travel..........................................………………. Page 16
15. Chief & Council Travel...................................……………….Page 16
16. Inventories..............................................…………………. Page 21
17. Capital Assets Accounting and Control System.......…………….. Page 21
18. Disposal of Assets.......................................……………….. Page 22
19. Budgetary Process, Control and Reporting..........……………….. Page 22
20. Cash Management and Securities Policy.............………………..Page 25
21. Accounting.............................................…………………… Page 25
22. Corporate Credit Cards...................................…………….. Page 25
23. Audit..................................................……………………… Page 27
24. Responsibility for Observance-Financial Regulations .…………. Page 29
25. Amendments to Financial Regulations......................………. Page 29
APPENDICES
Table of Contents
A......................................... Signing Authorities
B..........................................Chart of Accounts
C..........................................Employee Information
D..........................................Pay Authorization Form
E......................................... Monthly Reporting Requirements
F.......................................... Cash Management Policy
G.......................................... Corporate Credit Card List
Six Nations of the Grand River
Financial Management Policy
FINANCIAL MANAGEMENT POLICY
1.
General
1.1 This policy details the requirements for recording and reporting all financial transactions
and events affecting the financial position of the Six Nations of the Grand River and its
recognized sub-funds. All of the sub funds of the Six Nations of the Grand River shall
adhere to the requirements.
The goals of these policies are to provide a standard framework for recording and
reporting all financial transactions and events affecting the financial position of the Six
Nations of the Grand River and its recognized departments.
1.2 These Policies will be referred to as the SIX NATIONS OF THE GRAND RIVER FINANCIAL
MANAGEMENT POLICY and will come into force upon the passing of a Band Council
Resolution.
1.3 In these Policies:
I.
"Accounting" is the art of recording, classifying, reporting, and interpreting the
financial data of an organization.
II.
"Accounts Payable" is a debt owed to a creditor for goods or services purchased on
credit.
III.
"Accounts Receivable" is an amount receivable from a debtor for goods or services
sold on credit.
IV.
"Asset" is a property or economic resource owned, managed or controlled by Six
Nations of the Grand River.
V.
"Auditor's Responsibility" is limited to performing the audit investigation and
reporting the results in accordance with generally accepted auditing standards.
VI.
"Balance Sheet" is a statement of financial position of any economic unit disclosing as
at a given moment of time its assets, at cost, amortized cost, or other indicated
value, its liabilities, and its ownership equities.
VII.
"Band Member" will have the same meaning as in the Indian Act.
VIII.
"Budget" is a systematic planning of the Six Nations' total expenditures of Revenue,
Capital and Departmental contributions.
IX.
"Contract" is an agreement between parties for the construction or repair of any
work; the purchase of any service, item, commodity, equipment, goods, materials or
supplies.
X.
"Contracting Authority" is the Six Nations of the Grand River.
X.
"Council" is the Six Nations of the Grand River members who are elected by the Six
Nations of the Grand River membership to represent them.
XI.
XIII.
XIV.
XV.
"Deferred Revenue" are funds received in advance which have been set aside for
certain programs or expenditures.
"Department" has the same meaning as in the Indian Act.
"Disbursements" are' all monies paid out by a person authorized by the Six Nations of
the Grand River to pay out monies on behalf of the Six Nations of the Grand River or
any member thereof.
"Equity" is a right, claim or interest in an asset or assets.
XV.
"Expenditures" are funds which the Six Nations of the Grand River expects to pay out
during a given Fiscal Year whether or not such funds are actually
paid out.
XVI.
"Fiscal Year" is the twelve month period in which the Six Nations of the Grand River
carried out projects for which it has prepared a budget. For the purpose of these
Policies, the Fiscal Year will be from April First to the following March Thirty-First.
XVII.
"General Finance Committee" is the Six Nations of the Grand River Council as the
whole, with a quorum of five.
XVIII.
"Generally Accepted Accounting Principles" are the broad rules adopted by the
accounting profession as guides in measuring, recording, and reporting the financial
affairs and activities of an entity.
XIX.
"Inventories" any class or group of materials or supplies, not yet expensed or
capitalized. This would include finished goods, materials, supplies and merchandise
on hand. Its valuation is cost or market whichever is lower.
XX.
Liability" is a debt owed.
XXII.
"Net Income" (surplus) is the excess of revenues over expenses.
XXIII.
"Net Loss" (deficit) is the excess of expenses over revenues.
XXIV.
"Progress Payment" is a payment made by or on behalf of the Six Nations of the
Grand River under the terms of a contract in respect of a portion of the work done
under the contract prior to the completion of the whole work to be done under the
contract as identified by a payment schedule.
XXV.
"Receipts" are all monies received by virtue of the operations of the Six Nations of
the Grand River.
XXVI.
"Resolution" is a Six Nations of the Grand River Council Resolution (B.C.R.- Band
Council Resolution)
XXVII.
"Revenues" are funds which the Six Nations of the Grand River expects to receive
within a given Fiscal Year whether such funds are actually received or not.
XXVIII. "Signing Authority" is a person designated and approved by the Six Nations of the
Grand River Council to have signing authority for the Six Nations of the Grand River.
See Appendix "A".
XXIX.
"Statement of Operations" is a summary of the revenues and expenses of an
accounting unit or group of such units and resulting in a net profit/loss figure for a
specified period of time.
XXX.
"Sub Fund" is a department/entity/enterprise/ business or an incorporated company
that is controlled by or obligated to report to Six Nations of the Grand River as per
their funding agreement.
XXXI.
"Tender" is a signed offer for the performance of any work; purchase of any item,
commodity, equipment, goods, materials or supplies or the performance of a service
of any kind.
l.4 It will be the responsibility of the Six Nations of the Grand River's Director of Operations, to
ensure the implementation of these policies so that:
a. A complete record of all financial transactions is provided in a form suitable for
decision making and audit purposes.
b.
Financial management policies and procedures are in place to provide accountability
to the community that financial matters are being administered in a manner which
ensures value for money and the continued solvency of Six Nations of the Grand River
operations.
c.
Assets of the Six Nations of the Grand River are administered to enable the Six
Nations of the Grand River to meet its financial responsibilities and to foster a
reliable reputation in the business community.
d.
Six Nations of the Grand River employees who handle Six Nations of the Grand River
assets are given proper and consistent direction for the performance of their duties.
e.
Six Nations of the Grand River funds for which the Six Nations of the Grand River is
responsible are safeguarded.
2. BOOKKEEPING SYSTEM
2.1 An adequate bookkeeping system is to be maintained to record all financial transactions
utilizing the Xyntax software.
2.2 The bookkeeping system is to be maintained on an accrual basis.
2.2 The books of account are to consist of a General Ledger and the appropriate Journals. This
ledger is to be updated monthly by recording therein the information accumulated in the
daily records.
3. CHART OF ACCOUNTS
3.1 The Finance Department and the Financial Controller are responsible for the maintenance
of a comprehensive and current Chart of Accounts.
3.2 The Financial Controller will prepare a standardized chart of accounts to be used for each
profit/cost centre. This information will be forwarded to the Directors/Managers/
Supervisors for their review and comments. It is the responsibility of each
Director/Manager/Supervisor to inform the Financial Controller of any desired/required
changes to this information on an ongoing basis.
3.3 A current copy of the chart of accounts is included in Appendix "B" of this Policy.
4. FILING SYSTEM
4.1 An adequate filing system is to be established and maintained for seven years for the
retention of minutes of all Six Nations of the Grand River meetings, Six Nations of the
Grand River Council Resolutions, copies of vouchers and documents including bank
statements and cancelled cheques which support the transactions recorded in the
bookkeeping system.
5. RECEIPT OF FUNDS
5.1 A consecutively pre-numbered receipt is to be prepared for all monies received by the Six
Nations of the Grand River. The original receipt is to be issued to the payer, indicating
the date and the amount received, the source and the purpose or reason for the payment
to the Six Nations of the Grand River.
5.2 All monies received are to be kept intact in a safe place. The Financial
Controller/Financial Control Officer/Bookkeeper is to ensure all the necessary precautions
for the safekeeping of all funds received until they are deposited to the proper bank
account of the Six Nations of the Grand River in a chartered bank designated by the
Council of the Six Nations of the Grand River.
5.3 All monies received are to be deposited in the bank as soon as possible and at no time less
frequently than once a week.
5.4
Funds received by the Six Nations of the Grand River are not to be deposited to the credit
of an individual. Any payments to individuals are to be through the appropriate
disbursement records
5.5 Funds held in trust by the Six Nations of the Grand River are to be deposited into a
separate Six Nations of the Grand River Trust Account designated for that purpose.
6. Bank Accounts
As per Resolution #7 of the General Finance Meeting dated January
22, 1996 as follows:
“That this Council approve the recommendation from the
Band Support Funding Committee to approve that no
further bank accounts be opened without a Band Council
Resolution and, further; the signing authorities will
be authorized by Band Council Resolution."
7. PETTY CASH
7.1 The Six Nations of the Grand River may, by resolution,
establish a Petty Cash Fund.
7.2 All petty cash payments shall be recorded, supported by
receipts and accounted for in the monthly financial
statements.
7.3 Replenishment of petty cash shall be made as required.
7.4 Responsibility for the custody of the petty cash fund is to be vested in one designated
employee.
8. PURCHASES
8.1 RESPONSIBILITY OF DEPARTMENTS
The Directors/Managers/Supervisors shall have the following
duties and responsibilities.
a) To have charge of and be responsible for the procurement of all supplies/services for, or on
behalf of Six Nations of the Grand River.
b) To ensure that adequate budgetary funds are available to meet the cost of any supplies or
services prior to any directive to procure such supplies or services.
The Directors/Managers/Supervisors will be responsible for all supplies and services, with the
following exceptions which shall be approved by Council:
a) Consulting services namely, auditing, financial, planning,
medical services and insurance carrier;
b) Land and building acquisition and disposal.
8.2 AUTHORITY TO INCUR EXPENDITURES
The Director/Manager/Supervisor may purchase all supplies and
services required by the department subject to the following:
a) Supplies and services not exceeding $5,000.00 after obtaining the most favourable price,
either through written quotations from known suppliers or estimated quotations
depending on the nature of the contemplated work, the urgency of the requirements and
the general trade practice and market conditions. The Director/Manager/Supervisor has
the authority to designate this responsibility.
b) Supplies and services of $5,000.00 or more, but not exceeding $20,000.00 after inviting
written quotations from at least three suppliers and after receiving approval to purchase
from the Director of Finance and the Director of Operations.
c) Supplies and services of $20,000.00 up to $100,000.00, will adhere to Section 13 of this
policy. For supplies and services greater than $100,000.00 the same procedure is
followed with the additional requirement of Council approval as per section 13 of this
policy.
d) All expenditures involving long term commitments (e.g.
leases) must be reviewed by the respective Directors and by the respective Committee
and then must be signed by at least one of Six Nations of the Grand River signing
authorities.
8.3 PURCHASE ORDERS
Purchases over $5,000 must be accompanied by a purchase order approved by
Directors/Managers/ Supervisors. Utilities and payroll costs are excluded from this
requirement.
8.4 EMERGENCY PURCHASES
These are envisioned to be purchases whereby a delay in their acquisition could constitute a
threat to the employees/community's health and safety and to maintain essential
services. It is recognized that the Public Works Department provides essential services to
the community for seven days/week, 24 hours/day and therefore, must meet Health and
Safety at all times.
a) In case of an emergency situation which requires the immediate purchase of supplies
and services, the Director/Manager/Supervisor shall secure, by open market procedure at
the lowest possible price.
b) Where any emergency purchase has been made, the Department head shall forthwith
submit a report to the Director of Operations with a copy to the Director ofFinance.
c) It shall be the responsibility of the Director of Finance to ensure that the emergency
purchase system is monitored and controlled to avoid its use to circumvent normal
purchasing procedures.
8.5 GIFTS
a) Gifts are not to be purchased with Six Nations of the Grand River funds for Chief,
Councillors, employees or families of the employees, Chief and Council.
b) Flowers are an acceptable expenditure in instances of illness and bereavement
provided the current budget can cover such an expenditure.
c) Retirement gifts will be determined on an individual basis upon Council's direction.
9.
APPROVAL OF PAYMENTS
9.1
All payment of invoices under $5,000.00 are to be approved by the
Director/Manager/Supervisor.
9.2
All payments in excess of $20,000.00 are to be accompanied
by Committee approval documents.
9.3
No cheques are to be issued in payment of any invoice unless goods or services have been
received, as evidenced by a signed delivery slip and invoice, unless services have been
rendered, or the contract has provided for an advance of funds.
9.4
Invoices are to be paid on or before the due date to take advantage of all possible
discounts, and to avoid late charges.
9.5
Where progress payments are made in connection with any contract a hold back
equivalent to at least 10% of the contract price will be withheld until the job has been
completed to the satisfaction of the overseer of the contract.
9.6
The Six Nations of the Grand River, shall not make any loans to Six Nations of the Grand
River members, employees or Chief and Councillors. An authorized exception would
apply to Housing Loans to Six Nations of the Grand River Members and loans for Economic
Development purposes and in accordance with loan policies and procedures.
9.7
Six Nations of the Grand River Council resolutions authorizing payments shall be recorded
in the minutes of Six Nations of the Grand River Council meetings - such minutes are to be
signed by the Chief and retained as a permanent record available for inspection.
9.8
Payment periods and pay days will be established by Six Nations of the Grand River
Council resolution.
9.9
Payment with respect to payroll such as the Receiver General and WSIB, Life & Health,
and Pension Contributions are to be approved by the Director of Finance. (Note: Iroquois
Lodge and Day Care have been granted the authority to make their own payroll
remittances.)
10. DISBURSEMENTS
10.1
No disbursement or payment is to be made without certified supporting documentation
such as an invoice, voucher, purchase order, etc. Original invoices are to be attached,
copies of invoices are not to be considered as certified supporting documentation.
10.2
All disbursements are to be by cheque except for those payments made through the petty
cash fund.
10.3
All cheques issued against the Six Nations of the Grand River bank account(s) are to be on
the form prescribed by the Six Nations of the Grand River Council and are to be
sequentially numbered for periodic accounting of all numbers.
10.4
The Six Nations of the Grand River Council shall authorize three or more persons to sign
cheques drawn on its account(s) . See Appendix “A”
10.5
All cheques are to be signed by at least two of the signing authorities. An exception to
this will be the Bingo cheques for the Super Jackpot bingo prize which runs seven days a
week/two times a day. These cheques can also be used for the Mini Monsters and Monster
Jackpot prizes. Due to the frequency and occurrences of these payments these cheques
are signed by one signing officer in advance. No more than six cheques are signed in
advance. These cheques are to be kept in a safe and secure location. Upon the signing of
new cheques to replace the previously released ones, a copy of the cancelled cheques
along with the winning card (signed by the prize winner) is to be presented to the
signing authority in order that replacement cheques
will be signed.
10.6
All financial controllers and signing authorities are to be bonded. This shall be reviewed
annually by the Director of Finance.
10.7
No Six Nations of the Grand River cheques are to be signed in blank.
10.8
All cheques are to show the proper amount as well as a description of payment
and/or period covered before being presented with the appropriate supporting
documentation to the authorized signing officers.
10.9
10.10
All blank cheque forms are to be kept in a safe and secure place.
Where a payee reports that a cheque has not been received, or where subsequent to its
delivery the cheque was lost, destroyed or stolen, the matter is to be referred
immediately to the appropriate bank and a stop payment is to be placed on the cheque.
10.11
Cheques issued on the Six Nations of the Grand River's bank account(s) and which are not
cashed six months after the date of issue are to be cancelled and reissued only upon
identification and demand of the proper payee.
10.12
All monetary transactions are to be entered promptly in the appropriate Six Nations of
the Grand River records.
11. PAYROLL
11.1
Individuals performing services for the Six Nations of the Grand River under Personal
Service Contracts are not considered employees of the Organization and are not covered
by the policies and procedures of this section.
11.2
Weekly time sheets are to be entered/submitted on Monday before noon following the
end of the week time period, excluding when there is a Holiday on the Monday time
sheets are to be submitted on the preceding Friday by noon. Failure to submit a time
sheet will cause the employee's pay to be withheld for a one week period. Once
completed by the respective employees, these timesheets will be forwarded to the
bookkeeper and the necessary accounting entries will be made to the accounting records.
This procedure will aid the Finance Department in ensuring that internal charges are
properly billed or charges to the various contribution agreements and contracts, where
permitted. The exception being those enterprises/departments that do their own payroll
(Iroquois Lodge, Day Care, Research)
11.3
The salary range information will be used by the Directors/Managers/Supervisors in
setting salary levels for their respective budget areas. This information is to be forwarded
to the Director of Operations and the Director of Finance for approval. This procedure
will normally be performed prior to finalization of the annual operating budget. It should
be kept in mind that certain funding agreements specify salary levels that may be charged
for services performed.
11.4
An Employee Information form (See Appendix "C") will be completed and this will be used
by the Payroll Officer to set the employee up in the payroll system.
11.5
Payroll will be processed using the Xyntax accounting software. All employees will be
paid by cheque on a weekly basis.
11.6
The Personnel Manager is responsible for obtaining approval for hiring decisions, finalizing
the employment agreement with the new employee, maintaining the documentation in
the personnel file, administering compensation and benefits (excluding Research and
Iroquois Lodge) and approving requests and claims for compensation and benefits and
approving requests and forwarding them to Finance for payment.
11.7
It is the responsibility of the Personnel Manager to ensure that Finance is informed on a
timely basis of all new hires, changes in compensation and benefits and employee
termination. The Personnel Manager should ensure that adequate information in the
format set out in this policy is provided to Finance to support the processing of payroll
transactions. (Excluding Iroquois Lodge)
11.8
The Director of Finance is responsible for the processing of all new hire, termination and
compensation actions as advised by Human Resources, completion of all documents
required for payroll purposes and issuing of cheques for compensation and benefits as
approved by the Personnel Manager. (Excluding Research and Iroquois Lodge)
11.9
The Personnel Manager must complete and forward to the Director of Finance a "Pay
Authorization Form" (see Appendix "D") form for each of the following pay actions: new
hires, changes to either salary or benefit levels, requests for absences or leaves and
employee termination. Receipt of an approved "Pay Action Request" form by Finance
provides them with the authority to process the requested pay action.
11.10
Withholdings - The Payroll Department will be allowed to recover amounts owed to the
Six Nations of the Grand River departments by Council employees. Reasonable attempts
shall be made to work out a reasonable repayment schedule with the employee.
See the Garnish of Wages Policy for court order
garnishees.
11.11
Employee Absences - See Employment Policy.
11.12
Employee Termination - See Employment Policy.
11.13
Garnishment of Salaries and Wages - See Employment
Policy.
11.14
Sick Leave - See Employment Policy.
11.15
Vacation Leave - See Employment Policy
12. CONTRACT FOR SERVICE - see Hiring Policy & Procedures
13. TENDERS/CONTRACTS
13.1
For Construction and Repairs refer to the Tendering Policy for Construction and Repairs.
13.2
An invitation to tender must be extended by the Contracting Authority and three tenders
should be received when possible, before any contract is let.
13.3
The invitation to tender, either by advertisement, poster or invitation must indicate:
a)
the date and hour of closing;
b)
sufficient details from which comparable bids can be made;
c)
the date, hour and place tenders will be opened, which shall not be less than ten
business days;
and
d)
if a security deposit is required.
13.4
The Six Nations of the Grand River Council may require a security deposit of 10% of the
total value of the contract from the tenderers.
13.5
All tenders shall be returned to the department which called for the tender in a sealed
envelope, addressed to the contraction sub fund at the Six Nations of the Grand River
Administration Office, clearly marked "Tender for..." on the lower left hand corner and
the date and time of receipt shall be recorded and initialed by the receiver on the
unopened envelope of the tender when received.
13.6
Upon receipt, the sealed tenders shall be deposited in a safe place until the time for
the opening of bids.
13.7
At the appointed time when all tenders are opened it shall be the duty of the department
personnel and/or Committee to read aloud all tenders, giving the name of tenderer and
the amount of the bid.
13.8
The name of the tenderer, project, date of bid and amount shown must be recorded in a
book provided for this purpose and marked “Record of Tenders.”
13.9
At the next General Finance meeting or any other full council meeting of the Six Nations
of the Grand River Council the Finance Director shall place before Council all tenders
received and any recommendations from the department and it shall be the responsibility
of Council to review the tenders in excess of $100,000.00 and award the contract.
13.10
The lowest tender received shall be accepted unless the Six Nations of the Grand River
Council deems it in the best interest of the community to do otherwise.
13.11
Where the lowest tender is not accepted, a quorum vote of the Six Nations of the Grand
River Council is required before awarding the contract, and the reasons shall be recorded
on the resolution awarding the contract.
13.12
Upon acceptance of a tender, a binding contract shall be signed by both parties and shall
become part of the records of the appropriate department.
13.13
Awarding of Contracts shall be by resolution or by recorded and approved motion of the
appropriate Committee of Six Nations of the Grand River Council.
13.14
Where progress payments are to be made in connection with any contract, the Finance
Director shall hold back an amount equivalent to 10% of each progress payment until the
job has been completed to the satisfaction of the contracting authority or their engineer.
14. EMPLOYEE TRAVEL
See Six Nations Council Employment Policy.
15. CHIEF & COUNCIL TRAVEL
15.1
It will be the responsibility of Chief and/or Council to determine whether, when, by
whom, and by what means travel shall be undertaken. Once travel is authorized, the
conditions and payments prescribed in this Policy shall be undertaken. Once travel is
authorized, the conditions and payments prescribed in this Policy shall apply. The
provisions of the Policy are published as directives and not as permissive guidelines. It
provides only for the traveller's responsible, legitimate expenses necessarily incurred and
nothing in the Policy is intended to permit any payments that can be construed as income
or other compensation to the person travelling on official Council business.
15.2
Travel outside of Canada must be approved by full Council.
15.3
Workplace is the location at, or from which, a councillor ordinarily performs the duties of
their positions. This is ordinarily the Council Administration Building. In the case of a
councillor whose duties are of an itinerant nature, the actual building to which he/she
returns to prepare and/or submit reports, etc., and where other administrative matters
pertaining to the councillors duties are conducted.
15.4
Incidental expenses include such items as gratuities, laundry, dry cleaning, and other
personal supplies and services. As per the Treasury Board Rates as established by the
Federal Government, reimbursement for these incidental expenses.
15.5
Actual and reasonable expenses are the actual costs incurred supported by proof of
payment and the amount the Council or the Director of Finance deems to be reasonable,
based on experience of what such costs should be in the circumstances.
15.6
When an exceptional travel situation arises and a person is exposed to unusually high
costs, the Councillor may be reimbursed the actual expenses to the extent that Council
considers the expenses claimed are reasonable and only if the Council is made aware of
the situation prior to travelling.
15.7
It is emphasized that, as a general rule, the Council expects all Councillors to present
themselves at their work places on their own time and at their expense. Expenses
incurred in connection with attendance at meetings, etc., which are of personal, cultural
or general community interest, but not a mandatory requirement of Council, will not be
reimbursed.
15.8
Time spent in transit at the request and approval by the Council will be at the specified
per diem rate. Compensation does not include time spent away from home after
destination is reached.
15.9
Councillors travelling on Six Nations of the Grand River business will be allowed one
telephone call home per day not to exceed ten (10) minutes per call.
15.10
The Council is responsible, before authorizing travel, that the travel and living expenses
authorized fall within the spirit and intent of the provisions of this Policy, and that these
are reasonable and justifiable considering the circumstances of the trip.
15.11
The Director of Finance is responsible for ensuring that travel arrangements of
Councillors are properly authorized, that there is documentation to support all approved
claims and that adequate internal controls exist to ensure that funds allocated to travel
are not misused.
15.12
Any expenses that are not Council related will be deducted from the respective
Councillor's honorarium. Travel must be authorized by resolution.
15.13
Except for short journeys, where the use of a motor vehicle or train is more economical,
air travel is the accepted normal method of transportation on Six Nations of the Grand
River business. The comfort and speed of mode aircraft and cost considerations dictate
that the most economical means shall be used, i.e., economy class, excursion fares, group
fares, family plans, etc. First Class air travel shall not be allowed. Where in the opinion
of the Council, because of the exceptional circumstances involved, first class air travel is
unavoidable, the exception must be approved by the authorizing official.
15.14
If anyone chooses to travel by other means he/she will be paid at the lower rate, air vs.
vehicle.
15.15
When anyone has an aversion to air travel Six Nations of the Grand River shall endeavor
to schedule the work so that time will permit the person to travel by other means only
when on Six Nations of the Grand River business.
15.16
If anyone’s travel destination is in excess of 200 miles (322 kilometers), the use of one's
own vehicle should not normally be authorized unless travel by commercial carrier
presents significant inconvenience or is not deemed practical by the Council, in terms of
over-all costs including salary, travelling, and personal expenses.
15.17
In the interests of driving safety, when travel by private vehicle is authorized, a person
shall not normally be expected to drive more than:
a)
b)
150 miles (242 kilometers) after having worked a
full day;
200 miles (322 kilometers) after having worked one half day; or
c) 300 miles (438 kilometers) on any day when the person has not worked. The mileage
rates payable for authorized official use of private cars shall be in accordance
with Treasury Board Rates as amended from time to time.
d)
In addition to the rates payable, a person shall be reimbursed the actual necessary
costs incurred for road, ferry, bridge, tunnel tolls, and parking charges.
e)
No additional amounts are payable to anyone for carrying passengers. It is
anticipated, however, that when more than one person is travelling on official
business to one destination, the Six Nations of the Grand River will often find
economical to request people to use one private vehicle.
f) The use of rental vehicles may be authorized where( in the opinion of the Council, this
method of travel is economical and practical. Reimbursement shall include the
cost of insurance paid to vehicle rental agents for release of liability. In order to
conserve energy, compact sized cars are to be used. Mid sized cars shall be
considered secondly. Full sized automobiles shall only be rented when the number
of passengers to be carried or the bulk or weight of goods to be transported
warrants the use of a larger vehicle.
15.18
Taxis may be used when use is justifiable and reasonable. Inter-city travel through the
use of local bus, subway, or street-car should also be encouraged where such use will
facilitate the carrying out of official business.
15.19
Everyone shall be reimbursed the actual and reasonable expenses incurred for
commercial accommodation authorized by the Six Nations of the Grand River. The
Six Nations of the Grand River shall normally authorize travellers to stay in establishments
which are conveniently located and comfortably equipped. The use of luxury
accommodation shall not be authorized.
15.20
Although everyone is normally expected to stay in commercial accommodation, the Six
Nations of the Grand River shall not reasonably refuse permission for anyone to make
arrangements for private non commercial sleeping accommodations at a rate of $50 per
night.
15.21
If the first and/or last day in travel status is less than a full calendar day and sleeping
accommodation is authorized during the journey then incidental expenses plus meals will
be paid.
15.22
Through the total period in travel status, deductions from the daily allowance shall be
made in respect of meals provided such as meals en route, and meals
included in conference registration fees.
15.23
Anyone may request a trip advance to cover his/her expenses for an authorized trip on
official business. The amount to be provided shall be based on a reasonable estimate of
the total anticipated reimbursable expenses as allowed by Six Nations of the
Grand River.
15.24
A trip advance shall be accounted for with the Finance Department within fifteen (15)
days of the completion of the trip for which the advance was authorized.
15.25
There is no objection to persons using their personal credit cards, provided the cost of
travel is not increased thereby.
15.26
All those persons using Council credit cards must provide documentation for all expenses
to the Director of Finance immediately after return from travel or one day after the use
of the card.
15.27
The following “actual and reasonable” expenses shall be reimbursed if supported by
vouchers, receipts or other appropriate documents:
a) All commercial transportation costs whether or not they were purchased or provided
by Council but not including local transportation expenses.
b) En route accommodation not included in the basic fare or ticket purchased or
provided by the Council.
c) overnight accommodation.
d) Car rentals including insurance coverage.
e) Excess luggage.
f) Taxis.
g) Parking charges.
h) Authorized long distance calls on Council business.
i) Public stenographic, fax, or typist services or rental of office equipment.
j) Hospital, medical and other expenses arising from illness, injury or death and not
covered through other benefits or insurance.
k) Necessary disbursements in connection with the operation of Council vehicles.
15.28
The Director of Finance shall ensure that all travel requiring supporting documentation is
Properly authorized and that any exceptions to the provisions of this Policy are either
approved or not reimbursed. This task shall include verification of the following:
a) A periodic review of the delegated levels of authority to ensure that travel
arrangements are being authorized and resulting claims approved at
an appropriate level.
b) That transportation tickets purchased out of Six Nation of the Grand River funds, are
only for the person, the trip, the mode and the class of
transportation authorized.
c) That credit is obtained for any cancelled portions of that trip.
d) That expenses incurred for side trips for personal reasons and/or unauthorized
stopovers are not paid out of Six Nations of the Grand River funds.
e) That the time of trip departure and return are
reconciled with claims for meals.
15.29
The Council shall follow Federal Treasury Board Guidelines and regulations for travel,
excluding the private accommodations rate.
16. INVENTORIES
16.1
Physical assets inventory records shall be maintained for all goods, materials, and
supplies.
16.2
Inventories that are written off/sold must be approved at the Committee level.
16.3
A physical count and reconciliation of all inventories shall be completed annually prior to
March 31.
17. CAPITAL ASSETS ACCOUNTING AND CONTROL POLICY
17.1
Responsibility and accountability for the custody and use of a capital asset extend over its
useful life.
17.2
All capital assets must be accounted for by each sub fund on auditable records until
disposal or write-off.
17.3
This policy applies to all capital assets acquired by the Six Nations of the Grand River.
17.4
All capital assets with a normal life expectancy of one year or longer and an acquisition
cost of $1,000 or greater are to be recorded in the capital asset sub ledger.
17.5
Upon acquisition of a capital asset the sub-fund will record the asset in a capital asset sub
ledger which will contain the following information:
-
Unique identification number - to be assigned in numerical sequence by the sub-fund
Asset description
Acquisition cost
Name of department and person who has been given
custodial responsibility.
17.6
This requirement applies not only to assets purchased by the Six Nations of the Grand
River but also to donated assets and gifts (e.g., carvings, prints and other works of art).
17.7
The sub fund is responsible for maintaining the capital asset sub ledger, ensuring that all
additions, disposals and changes are recorded in the sub ledger and properly reflected in
the sub funds financial statements as required. On an annual basis the sub fund shall
have taken a physical inventory of capital assets in their custody. This inventory must
be performed independently of the custodian. A record of the results of the annual
inventory shall be forwarded to the Director of Finance.
18. Disposal of Assets
(a) Directors/Managers/Supervisors must advise the Director of Finance of the planned
disposal of capital assets including the planned method of disposal and the estimated
recovery value if any. All assets to be disposed shall be disposed of through the tender
process, public auction or such other method as will maximize the recovery proceeds to
Six Nations of the Grand River. Council approval is required for planned disposals in
excess of $5,000. The Director of Finance will provide written authorization to the
Directors/Managers/Supervisors of both the disposal and the planned method of
disposition.
(b)
(c)
A write-off of a capital asset is required when the annual physical count of assets is
completed and the counts indicate that the Six Nations of the Grand River has fewer
assets than are recorded in the accounting records. Directors/Managers/Supervisors will
be required to provide a written explanation for the reasons why an asset cannot be
accounted for. A summary of all assets written-off and the reasons why, shall be
provided to the General Finance Committee by the Director of Finance on a quarterly
basis.
Losses of capital assets through either theft or negligence must be reported immediately
to the Director of Finance who will investigate the cause of the loss at the sub-funds
expense. Where appropriate the Six Nations of the Grand River insurance carriers will, be
notified.
19. BUDGETARY PROCESS, CONTROL AND REPORTING
19.1
The annual budget is the vehicle by which the Council exercises fiscal responsibility and
control over expenditures. The objective of this policy is to provide guidance to Six
Nations of the Grand River officers and Directors/Managers/Supervisors in the process to
be followed in preparing the annual budget and the outgoing monitoring and control of
expenditures.
19.2
The annual budget provides the authority to spend and control expenditures within
approved limits.
19.3
Budgetary Cycle
(a) The Directors/Managers/Supervisors establishes the annual priorities and budget planning
document which is then communicated to their respective Committees by the end of
January.
(b) The Committee would then forward the annual priorities and budget planning document
to the Director of Finance who will then forward to the General Finance Committee
for approval by the end of March.
(c) Since the budget is the vehicle by which the Six Nations of the Grand River provides the
Directors/Managers/Supervisors the authority to spend, it is important that the exercise
of this authority be monitored on a regular basis throughout the year. Actual
expenditures should be compared to budgeted expenditures on a regular basis and
significant variances investigated and explained. The Directors/Managers/Supervisors are
ultimately responsible for the monitoring and control of expenditures charged against
their budgets. The following are the steps that have been established to ensure effective
monitoring and control of budgets.
19.3.1
Monthly Reporting
(a) By the end of each month the sub funds will make available (See Appendix "F") to
each of the Directors/Managers/ Supervisors a detailed budget report setting out
both the previous month and year to date actual and budgeted expenditures and
variances of actual expenditures from budget.
(b) The Financial Control Officer/Financial Controller/Bookkeeper will make changes to
the monthly budget reports as requested by the Directors/Managers/Supervisors
and prepare a summary budget report for the sub fund setting out both the
previous month and year to date actual and budgeted expenditures by sub fund
with explanations of all significant variances.
19.3.2
Quarterly Reporting
(a) By the end of the month following the end of each quarter, the Financial Control
Officer/Financial Controller/Bookkeeper will provide to each of the
Directors/Managers/Supervisors a detailed budget report setting out both the
previous month and year to date actual. and budgeted expenditures and variances
of actual expenditures from budget.
(b) Within five working days of receiving the monthly report, the
Directors/Managers/Supervisors will review the reports with the Financial Control
Officer/Financial Controller/Bookkeeper and review any discrepancies noted or
any changes required and explanations for all budget variances.
(c) The Financial Control Officer/Financial Controller/Bookkeeper will make changes to
the monthly budget reports as requested by the Directors/Managers/Supervisors
and using the budget variance explanations received from the
Directors/Managers/Supervisors prepare a summary budget report for the sub
fund setting out both the previous month and year to date actual and budgeted
expenditures by sub fund. This report will provide comments on significant
budget variances, action plans to bring these variances under control, areas of
concern and recommendations for budget revisions.
(d) By the month end following each quarter the Directors/Managers/Supervisors shall
provide the Committee a copy of the budget summary and the budget analysis.
(e) A Committee meeting should then be convened to review these reports and approve
action plans to bring variances under control and to approve revisions to budgets.
(f) Following the Committee meeting all approved budget revisions are communicated to
the Director of Finance. The Director of Finance will then revise the budgets
accordingly and if necessary present the revised budget to the General Finance
Committee.
19.3.3
Budgetary Revisions
(a) Revisions to budgets which will result in the addition of expenditure line items that
were not in the original approved budget (e.g., a new program activity) must be
approved and documented through a resolution at Committee level for approval
by General Finance.
NOTE: It is the responsibility of the governing political body (Six Nations Council) to
assist the individual entities to identify, access and secure the dollars to meet their
budget requirements.
(b) When it becomes apparent that budgets are projected to be overspent it is the
responsibility of the Directors/Managers/Supervisors to advise the Committee and
provide a deficit recovery plan to the Director of Finance immediately.
19.3.4 Funds
(from a particular program) surplus at year end will remain in the Six
Nations of the Grand River account to apply against the cost of this program in
the ensuing year.
19.3.5 Year-End Requirements
In order to accurately reflect the result of the Six Nations of the Grand River
operations in its’ year-end financial statement it is important that all liabilities
existing at the March 31st fiscal year-end for work performed, goods received,
services rendered or other items are recorded in the accounts.
20. CASH MANAGEMENT AND SECURITIES POLICY
See Appendix "F".
21. ACCOUNTING
21.1
Bank reconciliations are to be prepared for the end of each calendar month, upon
receipt of bank statements and cancelled cheques from the bank, by the 15th of
the proceeding month. All bank reconciliations are to be reviewed by the
respective Directors/Managers/ Supervisors.
21.2
Monthly financial statements in the format prescribed by Six Nations of the Grand
River Council shall be prepared from the information contained in the General
Ledger after completion of postings for the month.
These statements are to include actual receipts and expenditures for the month
and are to show a comparison of current balances for each activity with budget
estimates.
21.3
Monthly listings of Accounts Receivable and Accounts Payable are to be prepared
and reconciled to the General Ledger control accounts where applicable.
22. CORPORATE CREDIT CARDS
22.1
Six Nations of the Grand River recognizes that Councillors and staff frequently
travel and acquire many expenses when conducting Council business and that
conducting Council business necessarily leads to Council expenses. However not
all expenses are covered by Council, but under certain terms and conditions some
expenses will be reimbursed by Council. Council also recognizes the necessity and
convenience of having a credit card when conducting Council business. The
following lists terms and conditions where expenses will be covered by Council.
Council also recognizes the convenience and ease of using credit cards to cover
expenses. The use of credit cards for expenses allows for no cash outlay and an
itemized list of expenses and a ready receipt for purchases. However, credit use
is a privilege allowed by Council which is subject to abuse. Therefore Council
feels there is also a need to develop appropriate rules and guidelines for credit
card use.
22.2
The Authority to modify the authorized credit card user list (Appendix "H') is
delegated to the Director of Operations. The Director of Finance will be
responsible for approving all credit card expenditures within the limits set by the
financial regulations. The authority to modify this policy is with the General
Finance Committee.
22.3
The following will apply to authorized persons conducting Six Nations of the Grand
River business unless directed otherwise by Chief and Council. These are the
standards that are needed for conducting Six Nations of the Grand River business
and accumulating expenses. Theses standards must be equitable for all and
applied equally when conducting Six Nations of the Grand River business:
`
I
Only authorized expenses will be reimbursed by Six Nations of the Grand River
under the terms and conditions listed herein.
II
Receipts or documentation must be provided to the Director of Finance in order
to have a valid claim for expenses unless otherwise exempted herein.
III
Authorized expenses are the actual and reasonable expenses normally covered by
Six Nations of the Grand River for authorized persons conducting Six Nations of
the Grand River business. The terms and conditions for use, outlined below, shall
apply to all persons on Six Nations of the Grand River business or as authorized by
Six Nations of the Grand River resolution.
IV
Credit Cards must only be used for authorized business expenses. The terms and
conditions for use will be listed herein and will apply to all authorized users.
V
Personal use of the cards will not be allowed.
VI
Receipts must always be provided to the Finance Director for all Six Nations of the
Grand River credit card charges.
VII
Only authorized users as listed in Appendix "G" may use Six Nations of the Grand
River credit cards.
VIII
Any use other than stipulated must be approved by Six Nations of the Grand River.
Ix
All Credit Card receipts/invoices MUST be submitted to the Finance Department
weekly. Travel advances must be reconciled within 15 days after return from
travel.
X
Credit cards must not be used for "cash advances".
XI
If cards are abused then they must be turned in on request by the Director of
Finance.
XII
Cards that are lost or stolen must be reported immediately to the Director of
Finance. This will ensure notice to the proper authorities.
XIII
Whenever there is a Six Nations of the Grand River Nomination and a Chief or
Councillor is not nominated they cease to be an authorized user and must return
their card to the Finance Director immediately.
XIV
Expenses other than listed must be approved by Six Nations of the Grand River
Resolution.
XV
When notice in writing, revoking credit card privileges, is given to an authorized
credit card user, the users privileges cease and the card must be turned in to the
Director of Finance immediately upon receipt of such notice. An appeal may be
made to the Director of Operations who will make a final decision on the matter.
XVI
The privileges may be reinstated at a later date at the discretion of the Director
of Operations.
XVII
An updated list of authorized credit card holders will be issued by the Director of
Finance annually.
23. AUDIT
23.1 A yearly audit is to be conducted of the records of the Six Nations of the Grand River.
The Six Nations of the Grand River shall be responsible for the submission to the
Department following the end of the fiscal year, March 31st, the audited financial
statements in triplicate reporting the financial position of the Six Nations of the Grand
River as at March 31. Submission to be no later than June 30th.
23.2 The auditor is engaged by the Six Nations of the Grand River by means of an annual
engagement letter signed by the Chief.
23.3
The following terms of reference shall apply to the audit appointment:
a.
The financial statements shall report all Six Nations of the Grand River financial
activities.
b.
The auditor shall have the right of access at all reasonable hours to the accounting
records, supporting vouchers and documents, including minutes of Six Nations of the
Grand River meetings, as they are entitled to require from the Six Nations of the Grand
River staff and members of Six Nations of the Grand River and any Committee thereof
such information and explanations as in their opinion is necessary to enable them to
carry out the audit.
c.
The examination shall be in accordance with generally accepted auditing standards and
shall include a general review of accounting procedures and such tests of accounting
records as the auditor considers necessary in the circumstances.
d.
The financial statements shall be prepared on the accrual basis and in accordance with
generally accepted accounting principles and are to consist of:
1. Balance Sheet and Statement of Revenue and Expenditures for each Six Nations
of the Grand River sub fund, with budget comparisons where possible.
ii. Details of Surpluses and/or Deficits for each funded program.
iii. A consolidated Balance Sheet and Statement of Revenue and Expenses.
23.4
The consolidated audited financial statements shall be signed by the Chief and Director of Finance
and its acceptance recorded through a Six Nations of the Grand River Resolution. The statements
shall be available for examination during office hours to any Six Nations Band Member at the Six
Nations Administration Building; subject to conditions that may be required by Council from time
to time. The consolidated audited financial statements are not to be provided to the Department
The Department will receive supplemental financial statements.
23.5
The Director of Operations and the Director of Finance, shall review and may implement the
recommendations made by the auditors.
24.
RESPONSIBILITY FOR OBSERVANCE OF FINANCIAL REGULATIONS
The Chief, Council and all employees of the Six Nations of the Grand River are responsible for
ensuring compliance with this Financial Management Policy.
25.
AMENDMENTS TO FINANCIAL REGULATIONS
This Financial Management Policy may be amended by a two-thirds majority vote of the elected
Six Nations Council of the Six Nations of the Grand River.
APPENDIX "A"
SIGNING AUTHORITIES
Council
Director of Finance
Director of Operations
Financial Controller
Elected Chief Councillor
Welfare Caseworker
Personnel Manager
Public Works
Director of Public Works
Executive Secretary
School Maintenance Supervisor
Housing
Housing Administrator
Programs Administrator
Membership Manager
(Plus Council's signatories)
Lands Research
Researcher 1
Administrator
(Plus Council's signatories)
Daycare
Daycare Supervisor
(Plus Council's signatories)
Welfare
Welfare Administrator
Diane C. Hill, Welfare Caseworker
Irene M. Williams, Welfare Caseworker
Kimberly Bomberry, Welfare Caseworker
(Temporary-Covering a Maternity Leave)
(Plus Council's signatories)
Bingo
Manager
Assistant Manager
(Plus Council's signatories)
APPENDIX "B"
Pg I
1234 - MASTER CHART OF ACCOUNTS
Listing of Chart of Accounts
Account
Sub-Ledger
Group
Code Length
Code
Errors
Description
Balance Sheet Accounts:
10001 PETTY CASH
10100 CASH ON HAND
10150 BANK GENERAL
10151 BANK - #1
10152 BANK - #2
10153 BANK - #3
10154 BANK - #4
10155 BANK - #5
10156 BANK - #6
10157 BANK - #7
10158 BANK - #8
10159 BANK - #9
10160 BANK - #10
10161 BANK - #11
10162 BANK - #12
10163 BANK - #13
10164 BANK - #14
10165 BANK - #15
10900 INVESTMENTS TERM DEPOSITS
10910 INVESTMENT
11010 A/R DINA CONTROL
11020 A/R CEIC
11030 A/R GRETI
11040 A/R NATIONAL HEALTH & WELFARE
11050 A/R OTHER FEDERAL AGENCIES
11100 A/R PROVINCIAL
11200 A/R C.R. SEARS
11210 A/R H. C. PEATSON
11220 A/R MOHAWK CHAPEL
11300 A/R OTHER
11301 ACCRUED A/R
11302 A/R L & H ADVANCES
11303 A/R NPAAMB
11305 ALLOWANCE FOR DOUBTFUL ACCTS
11500 G.S.T. PAID ON PURCHASES
11510 G.S.T COLLECTED
11520 PROVINCIAL SALES TAX PAID
12010 INVENTORIES
13010 PREPAID SALARIES
13020 PREPAID BENEFITS
13030 PREPAID EXPENSES
13100 PREPAIDS OTHER
13310 DUE TO CAP REPLACE RES FUND
13315 DUE TO WATER/SEWER COMMITTEE
14000 FIXED ASSET
#-1
#-2
Errors
Group Code Not on File
Group Code Not in B.S. Range
01/14/00
14:39
Oper: A.W.
10001
10100
10150
10151
10152
10153
10154
10155
10156
10157
10158
10159
10160
10161
10162
10163
10164
10165
10900
10910
11010
11020
11030
11040
11050
11100
11200
11210
11220
11300
11301
11302
11303
11305
11500
11510
11520
12010
13010
13020
13030
13100
13310
13315
14000
#-3
#-4
Group Code Not in P & L Range
Group Code Wrong Type
Pg 2
1234 - MASTER CHART OF ACCOUNTS
Listing of Chart of Accounts
Account
14005
14010
14015
14020
14025
14030
14035
14040
14045
14050
l5000
15001
15005
15010
15011
15012
15013
15014
15020
15021
15030
15038
15039
15041
15042
15043
15044
15049
l5050
15051
15052
15053
15058
15065
15066
15067
15068
15070
15073
15074
15075
15076
15077
15078
15079
15080
15081
#-1
#-2
Sub-Ledger
Code Length
Description
ACCUM DEPRECIATION #1
FIXED ASSET
ACCUM DEPRECIATION #2
FIXED ASSET
ACCUM DEPRN FURN & EQUIP
FIXED ASSET
ACCUM DEPRN VEHICLES
FIXED ASSET
ACCUM DEPRN COMPUTER
FIXED ASSET
DUE TO/FROM SIX NATIONS COUNCIL
DUE TO/FROM PAYROLL
DUE TO/FROM COMMUNITY HALL
DUE TO/FROM SOCIAL SERVICES
DUE TO/FROM NATIVE LITERACY
DUE TO/FROM CORRECTIONS
DUE TO/FROM HOME SUPPORT
DUE TO/FROM DAY CARE
DUE TO/FROM HOUSING
DUE TO/FROM IROQUOIS ESTATES
DUE TO/FROM PUBLIC WORKS
*DUE TO/FROM EDUCATION PROGRAM
DUE TO/FROM H. C. PEATSON
DUE TO/FROM H. C. PEATSON
DUE TO/FROM RUBY SEARS
DUE TO/FROM CHIEFSWOOD MUSEUM
DUE TO/FROM HEALTH SERVICES
DUE TO/FROM TOURISM BLDG PROJ
DUE TO/FROM ECONOMIC DEVELOPMT
DUE TO/FROM TOURISM
DUE TO/FROM FORESTRY
DUE TO/FROM EMPOYMENT & ECON
DUE TO/FROM AQUACULTURE
DUE TO/FROM IROQUOIS VILL CTR
DUE TO/FROM SN COMMERCL BLDGS
DUE TO/FROM EAGLE'S NEST BC
DUE TO/FROM SN EMPLOY/BUS CTR
DUE TO/FROM SPECIAL SERVICES
DUE TO/FROM SCHOOL "A"
DUE TO/FROM SCHOOL B
DUE TO/FROM GANOHKWA SRA
DUE TO/FROM NEW DIRECTIONS
DUE TO/FROM LIBRARY
DUE TO/FROM S. N. NATURAL GAS
DUE TO/FROM RESEARCH
DUE TO/FROM RECORDS MANAGEMENT
DUE TO/FROM POST SECONDARY
Errors
Group Code Not on File
Group Code Not in B.S. Range
#-3
#-4
01/14/00
14:39
Oper: A.W.
Group
Code
Errors
l4005
14010
14015
14020
14025
14030
14035
14040
14045
14050
15000
15001
15005
15010
15011
15012
15013
15014
15020
15021
15030
15038
15039
15041
15042
15043
15044
15049
15050
15051
15052
15053
15058
15065
15066
15067
15068
15070
15073
15074
15075
15076
15077
15078
15079
15080
15081
Group Code Not in P & L Range
Group Code Wrong Type
Pg
3
1234 - MASTER CHART OF ACCOUNTS
Listing of Chart of Accounts
Account
15082
15083
15085
15087
15089
15090
15091
15094
15096
15099
15100
17000
17100
17200
17300
17400
20010
21010
21020
21100
21110
21111
21112
21113
21114
21115
21116
21117
21118
21119
21150
21151
21152
21153
21154
21170
21171
2ll72
21173
21174
22010
22015
22020
22030
22040
22050
22100
#-1
#-2
Description
DUE TO/FROM COM. EDUC. PROJECT
DUE TO/FROM ARENA
DUE TO/FROM IROQUOIS LODGE
DUE TO/FROM YOUTH LODGE
DUE TO/FROM RECREATION
DUE TO/FROM WOODLAND CENTRE
DUE TO/FROM NATURAL GAS
DUE TO/FROM OHKWA:RI
DUE TO/FROM SN GEO SYSTEMS
DUE TO/FROM S.N. BINGO HALL
DUE TO/FROM COMMUNITY HALL
LONG TERM RECEIVABLE
CAPITAL OUTLAY
RESERVE FUNDING
CONTINGENCY RESERVE
CASH RESTRICTED
BANK LOANS/OVERDRAFT
ACCOUNTS PAYABLE
RESIDENT TRUST LIABILITY
SHORT TERM PAYABLES
UNEXPENDED BALANCE - AGR REC
UNEXPENDED BALANCE - REN/ADD'L
UNEXPENDED BALANCE - S. P. LOAN
UNEXPENDED BALANCE - S. P. GRAN
UNEXPENDED BALANCE - FIRE FUND
UNEXPENDED BALANCE - LEND LOAN
UNEXPENDED BALANCE - S.R. LOAN
UNEXPENDED BALANCE - S.R. GRAN
UNEXPENDED BALANCE - R.R.A.P.
UNEXPENDED BALANCE - SANITATlO
LEAD GOVERNMENT ASSISTANCE
NEDP GOVERNMENT ASSISTANCE
INAC GOVT ASSISTANCE IEDF
INAC GOVT ASSISTANCE ARCH
PROVINCIAL CAPITAL GRANT
ACCUM AMORTIZATION LEAD
ACCUM AMORTIZATION NEDP
ACCUM AMORTIZATION IEDF
ACCUM AMORTIZATION INAC
ACCUM AMORTIZATION PROV COUNC
SALARIES PAYABLE
VACATION PAY PAYABLE
UIC PAYABLE REG - VGY170730
UIC PAYABLE ADJUSTED-LTP478515
CPP PAYABLE REGULAR-VGYl70730
CPP PAYABLE ADJUSTED-LTP478515
INCOME TAX-VGYl70730
Sub-Ledger
Code Length
01/14/00
14:39
Oper: A.W.
Group
Code
Errors
l5082
15083
15085
15087
15089
15090
15091
15094
15096
15099
15100
17000
17100
17200
17300
17400
20010
21010
21020
21100
21110
21111
21112
21113
21114
21115
21116
21117
21118
21119
21150
21151
21152
21153
21154
21170
21171
21172
21173
21174
22010
22015
22020
22030
22040
22050
22100
Errors:
Group Code Not: on File
#-3 Group Code Not in P & L Range
Group Code Not: in B. S. Range #-4 Group Code Wrong Type
Pg 4
1234 - MASTER CHART OF ACCOUNTS
Listing of Chart of Accounts
Account
22105
22110
22112
22115
22120
22125
22130
22135
22140
22145
22150
22155
22160
23005
23010
23020
23030
23040
23050
24010
24015
24020
24040
24050
24060
25000
25010
25100
25200
29010
29012
29014
29016
29020
29030
29035
29040
29050
Sub-Ledger
Code Length
Description
INCOME ADJUSTED-LTP478SlS
LIFE/HEALTH INSURANCE DEDUCT
SEMI FLEX BEN PAYABLE
BLUE CROSS DEDUCTIONS PAYABLE
PENSION PAYABLE
WORKMENS COMPENSATION PAYABLE
CANCER PREMIUM DEDUCT PAYABLE
HOUSING LOANS DEDUCT PAYABLE
DAYCARE DEDUCTIONS PAYABLE
CANADA SAVINGS BOND DEDUCT PAY
PAYROLL SAVING DEDUCT PAYABLE
SUPPORT PAYMENT PAYABLE
COMPUTER PURCHASE DEDUCTION
UNEARNED REVENUE
ACCRUED SALARIES
ACCRUED AUDIT
ACCRUED OTHER
SPONSOR ORGZ TRUST LIABILITY
COMMUNITY FUND TRUST LIABILITY
LOANS PAYABLE
INTEREST PAYABLE
LONG TERM DEBT
KEY DEPOSIT WATER SYSTEM
CUSTOMER DEPOSITS
METER RENTALS
ROYAL BANK DEMAND LOAN
COMMON SHARES
ECONOMIC DEV FUND LOAN PAYABLE
ECONOMIC DEV COMM LOAN PAYABLE
FUND BALANCES
FUND BALANCE
FUND BALANCE
FUND BALANCE
SURPLUS/DEFICIT
DEPRECIATION
PREVIOUS YEAR DEFICIT
CONTRIBUTED SURPLUS
RETAINED EARNINGS
01/14/00
14:39
Oper: A.W.
Group
Code
22l05
22l10
22112
22115
22120
22125
22130
22135
22140
22145
22150
22155
22160
23005
23010
23020
23030
23040
23050
24010
24015
24020
24040
24050
24060
25000
25010
25100
25200
29010
29012
29014
29016
29020
29030
29035
29040
29050
Profit & Loss Accounts:
30100
30101
30105
30110
30115
30120
#-1
#-2
REVENUE FEDERAL DINA
OTHER FEDERAL REVENUE - TRUST
REVENUE FEDERAL NATIONAL HEALT
REVENUE FEDERAL CANADA EMPLOYM
SHORT STAY
REVENUE FEDERAL CMHC
Errors
Group Code Not on File
Group Code Not in B.S. Range
#-3
#-4
30100
30101
30105
30110
30115
3Ol20
Group Code Not in P & L Range
Group Code Wrong Type
Errors
Pg 5
1234 - MASTER CHART OF ACCOUNTS
Listing of Chart of Accounts
Account
30190
33100
33110
33120
33130
33135
33140
33150
33160
33170
33180
35100
37100
37110
37120
37130
37131
37135
37140
37145
37150
37180
37182
37184
37186
37188
37189
37190
37195
37200
38100
38101
38104
39900
40010
40015
40020
40025
40030
40050
40055
40060
40065
40070
40075
40077
40080
#-1
#-2
Sub-Ledger
Code Length
Description
REVENUE FEDERAL OTHER
REVENUE PROVINCIAL COMSOC
REVENUE PROVINCIAL MTO
REVENUE PROVINCIAL SOLICITOR
REVENUE PROVINCIAL EDUCATION
ATTENDANT CARE REVENUE
REVENUE PROVINCIAL NATIVE CB
REVENUE PROVINCIAL ONAS
REVENUE PROVINCIAL ICO
REVENUE PROVINCIAL OTHER
REVENUE - LOAN PROCEEDS
FUND REVENUES - BAND
OTHER REVENUE GRETI
OTHER REVENUE JOBS ONTARIO
OTHER REVENUE CHIEFS OF ON
OTHER REVENUE MISCELLANEOUS
OTHER REVENUE USERS FEE
DONATION REVENUE
OTHER REVENUE ADMIN FEES
OTHER REVENUE - SNEDF
OTHER REVENUE NPAAMB
OTHER REVENUE INTERNAL
OTHER REVENUE INTERNAL
OTHER REVENUE INTERNAL
OTHER REVENUE INTERNAL
OTHER REVENUE INTERNAL
MINI GAME CARD SALES
REVENUE - INTEREST EARNED
REVENUE - OTHER
REVENUE FROM FUND EVENTS
REVENUE DEFERRED
REVENUE DEFERRED - RECREATION
REVENUE DEFERRED PREVIOUS YRS
EXPENSE RECOVERY
SALARY/WAGES FULL TIME
SALARY/WAGES PART TIME
OVERTIME SALARIES/WAGES
UNEMPLOYMENT INSURANCE
LIFE & HEALTH INSURANCE
PENSION
BLUE CROSS
WORKERS COMPENSATION
VACATION PAY
CANADA PENSION PLAN
EMPLOYEE TRAINING
CLIENT TRAINING
CASUAL/CONTRACT/RELIEF
Errors:
Group Code Not on File
Group Code Not in B.S. Range
01/14/00
14:39
Oper: A.W.
Group
Code
30190
33100
33110
33120
33130
33135
33140
33150
33160
33170
33180
35100
37100
37110
37120
37130
37131
37135
37140
37145
37150
37180
37180
37180
37180
37180
37189
37190
37195
37200
38100
38101
38104
39900
40010
40015
40020
40025
40030
40050
40055
40060
40065
40070
40075
40077
40080
#-3 Group Code Not in P & L Range
#-4 Group Code Wrong Type
Errors
Pg 6
1234 - MASTER CHART OF ACCOUNTS
Listing of Chart of Accounts
Account
41000
42100
42102
42150
42152
42155
42200
42210
42220
42250
42252
42300
42302
42350
42400
42410
42420
42450
42500
42550
44001
44002
44100
44102
44105
44107
44108
44109
44110
44115
44116
44117
44120
44122
44125
44130
44135
44138
44140
44145
44155
44160
44161
44162
44165
44168
44170
#-1
#-2
Sub-Ledger
Code Length
Description
GENERAL WELFARE DISBURSEMENTS
HEATING & AIR CONDITIONING
HEATING & A/C SERVICE FEE
HYDRO
HYDRO SERVICE FEE
HYDRO REBATES
OPERATIONS & MAINTENANCE
RESTORATION
STORAGE
TELEPHONE
TELEPHONE SERVICE FEE
WATER
WATER SERVICES FEE
REPAIRS
CLEANING
CLEANING SERVICE/LINEN
TREE PLANTING EXPENSE
OPERATIONAL SUPPLIES
GARBAGE DISPOSAL
RENT
RECREATION - OTHER EXP
PUBLIC WORKS - OTHER EXP
HONORARIA
SCHOLARSHIP AWARDED
DONATIONS
EXPENSES - MOW'S
EXPENSES - USER FEES
TRANSFERS
TRAVEL EXPENSES
MILEAGE ALLOWANCES
ACCOMMODATIONS EXPENSE
INCIDENTALS EXPENSE
TRAVEL ALLOWANCES
RELOCATION/MOBILITY
OFFICE SUPPLIES
COURIER SERVICES
POSTAGE
DUES & SUBSCRIPTIONS
SUNDRY
SECURITY
LEGAL FEES
PROFESSIONAL FEES
BINGO LICENCE FEES
AUDIT FEES
BANK CHARGES
DEPRECIATION EXPENSE
INTEREST EXPENSE
Errors:
Group Code Not on File
Group Code Not in B. S. Range
01/14/00
14:39
Oper: A.W.
Group
Code
Errors
41000
42100
42102
42150
42152
42155
42200
42210
42220
42250
42252
42300
42302
42350
42400
42410
42420
42450
42500
42550
44001
44002
44100
44102
44105
44107
44108
44109
44110
44115
44116
44117
44120
44122
44125
44130
44135
44138
44140
44145
44155
44160
44161
44162
44165
44168
44170
#-3 Group Code Not in P & L Range
#-4 Group Code Wrong Type
Pg 7
1234
Account
44175
44177
44180
44182
44185
44190
44194
44195
44l96
44200
44205
44210
44213
44214
44215
44216
44218
44219
44220
44222
44225
44230
44232
44233
44300
44400
44402
44405
44500
44520
44525
45010
45015
45020
45022
45025
45026
45028
45029
45030
45040
45050
45051
45052
45053
45054
45055
#-l
#-2
MASTER CHART OF ACCOUNTS
Listing of Chart of Accounts
Sub-Ledger
Code Length
Description
PRINTING EXPENSES
SIGNAGE
ADVERTISING
SPECIAL EVENTS
FLOWERS
GIFTS
GST EXPENSE
BAD DEBTS
CASH SHORT/OVER
COFFEE FUND
INSURANCE
COMPUTER SUPPLIES
BUDGET MONITORING
CLINICS
MEETING COSTS
COMMUNITY MEETINGS
GATHERINGS
WORKSHOPS
EDUCATIONAL/TUITION EXPENSES
STUDENT FINANCIAL ASSISTANCE
SCHOOL MONITORS
ELEMENTARY GRADUATION/AWARDS
SECONDARY GRADUATION/AWARDS
SECONDARY GRADUATION AWARDS
ELECTION EXPENSES
PROF/ADMINISTRATIVE DUES
ADMIN SUPPORT
AUDIT EXPENSES
TRANSFER TO BAND OPER. FUNDS
BUSINESS SUPPORT
RESOURCE MANAGEMENT
LEASED OFFICE EQUIPMENT
LAND/BUILDING PURCHASE
COMPUTER EQUIPMENT
COMPUTER SOFTWARE/LICENSES
COMPUTER NETWORKING SYSTEM
COMPUTER REPAIRS
YEAR 2000 COMPLIANCE
Y2K CELEBRATIONS
FURNITURE & FIXTURES
FURNITURE & FIXTURES REPAIRS
EQUIPMENT PURCHASES
PRIOR YEARS DEFICIT
ROADS
IROQUOIS LODGE
ARENA OVERDRAFT
TRUCK LEASE
Errors
Group Code Not on File
Group Code Not in B. S. Range
#-3
#-4
01/14/00
14:39
Oper: A.W.
Group
Code
Errors
44175
44177
44180
44182
44185
44190
44194
44195
44196
44200
44205
44210
44213
44214
44215
44216
44218
44219
44220
44222
44225
44230
44232
44233
44300
44400
44402
44405
44500
44520
44525
45010
45015
45020
45022
45025
45026
45028
45029
45030
45040
45050
45051
45052
45053
45054
4SO55
Group Code Not in P & L Range
Group Code Wrong Type
Pg 8
1234 - MASTER CHART OF ACCOUNTS
Listing of Chart of Accounts
Account
45056
45057
45060
45061
45065
45070
45075
45080
45085
45090
45095
49000
49100
51010
51015
51020
51025
51030
51035
51040
51045
51050
51055
51060
51065
51070
51075
51999
52100
52105
52200
52300
52310
52315
53000
53100
53101
53102
53103
53104
53105
54000
54050
54100
54150
54151
54152
#-l
#-2
Sub-Ledger
Code Length
Description
RESEARCH DEPARTMENT
JEPP
EQUIPMENT REPAIRS
ENVIRONMENTAL ISSUES
COMMUNITY/SOLIDARITY
TRAIN DERAILMENT
BREAD & CHEESE
ABORIGINAL GAMES
MOHAWK CHAPEL
BAND REP
CHRISTMAS BASKETS
ACCOUNTS PAYABLE DISCOUNTS
DEFICIT REDUCTION EXPENSE
GAS
DIESEL
OIL
VEHICLE PURCHASE
PREVENTATIVE MAINTENANCE
REPAIRS
RENTAL REVENUE
CONTRACTOR
MATERIALS
MACHINE TIME(STATISTICAL ACCT)
MISCELLANEOUS
ENGINEERING
TENDER PREPARATION
CONSTRUCTION INSPECTION
STATISTICAL OFFSET ACCOUNT
PURCHASED MEALS
KITCHEN SUPPLIES
PURCHASED SERVICES
PERSONAL NEEDS
PERSONAL ALLOWANCES
LAUNDRY & LINENS
ALLOCATION TO RESERVE FUND
DEPRECIATION EXPENSE
AMORTIZATION EXPENSE LEAD
AMORTIZATION EXPENSE - NEDP
AMORTIZATION EXPENSE - IEDF
AMORTIZATION EXPENSE - INAC
AMORTIZATION EXPENSE - ECDV
PROGRAM EXPENSES
TOUR EXPENSE
JOB DEVELOPMENT
SHIRTS/CAPS/POSTERS
TRANSLATION
ABORIGINAL CIRCLE
Errors:
Group Code Not on File
Group Code Not in B. S. Range
0.1/14/00
14:39
Oper: A.W.
Group
Code
45056
45057
45060
45061
45065
45070
45075
45080
45085
45090
45095
49000
49100
51010
51015
51020
51025
51030
51035
51040
51045
51050
51055
51060
51065
51070
51075
51999
52100
52105
52200
52300
52310
52315
53000
53100
53101
53102
53103
53104
53105
54000
54050
54100
54150
54151
54152
#-3 Group Code Not in P & L Range
#-4 Group Code Wrong Type
Errors
Pg 9
1234 - MASTER CHART OF ACCOUNTS
01//14/00
Listing of Chart of Accounts
Account
54153
54200
54201
54202
54205
54206
54207
54208
54210
54215
54220
54230
54240
54245
54250
54260
54300
54400
54500
54600
54650
54700
54750
55000
55001
55002
55003
55004
55005
55006
55007
55008
55009
55010
60100
60110
60120
60200
99997
99998
99999
#-1
#-2
Sub-Ledger
Code Length
Description
JUST SAY NO TO DRUGS
PRIZES AWARDED
CONT. RE PRIZES AWARDED
CONT. SUPER PRIZES AWARDED
SUPER JACKPOT PRIZES AWARDED
MONSTER PRIZES AWARDED
MINI GAME PRIZES AWARDED
CHASERS PAYOUT
LICENCE FEES
MANAGEMENT FEES
SPECIAL EVENTS
BINGO CASH SHORTAGE
(AVERAGE)
SPONSOR ORGANIZATION PAYOUTS
COMMUNITY FUND PAYOUTS
BINGO CARD PURCHASES
NEVADA TICKET PURCHASES
CONSTRUCTION COST
ARCHAEOLOGY
MARKETING
PROJECT COORDINATION
RESEARCH ASSISTANT
FACILITATORS
CONSULTANT
CONSTRUCTION - BUILDING
CONSTRUCTION - LANDSCAPING
CONSTRUCTION - APPLIANCES
CONSTRUCTION - MANAGER
CONSTRUCTION - UTILITIES
CONSTRUCTION - ARCHITECT
CONSTRUCTION - INSURANCE
CONSTRUCTION - INTEREST
CONSTRUCTION - AUDIT
CONSTRUCTION - ORG1N EXPENSE
CONSTRUCTION - CONTINGENCY
MAJOR CAPITAL EXPENDITURES
CONCESSION HONORARIUMS
CONCESSION CASH SHORTAGE(OVER)
MINOR CAPITAL EXPENDITURES.
RESIDENT CLEARING
PAYROLL CLEARING
PAYROLL SUSPENSE
Errors:
Group Code Not on File
Group Code Not in B. S. Range
Oper: A.W
Group
Code
Errors
54153
54200
54201
54202
54205
54206
54207
54208
54210
54215
54220
54230
54240
54245
54250
54260
54300
54400
54500
54600
54650
54700
54750
55000
55001
55002
55003
55004
55005
55006
55007
55008
55009
55010
60100
60110
60120
60200
99997
99998
99999
#-3 Group Code Not in P & L Range
#-4 Group Code Wrong Type
EMPLOYEE INFORMATION
10 Digit Band No. _______________________________________ Date: __________
NAME - First: ________________ Initial:
Last:_________________________
BIRTH DATE:____________________ SEX: ______ BAND NO. ___________________
S.I.N. _____________________ MARTIAL STATUS: ___________________________
ADDRESS- STREET: _________________________ CITY: _______________________
PROVINCE: ONTARIO
POSTAL CODE: _________________________
TELEPHONE NUMBER: (Area code) _________________________________________
DEPARTMENT & POSITION: ________________________________________________
RATE OF PAY: _________________________ HRS OF WORK: ____________________
DATE STARTED: _____________________ DATE FINISHED: ______________________
G. L. ACCOUNT: ____________________ EMPLOYEE CODE: _____________________
SUPERVISOR'S NAME: ______________________ PHONE NO.: ____________________
OTHER INFORMATION
PREVIOUS HISTORY: ______________________________________________________
DEPARTMENT: ________________________ SALARY: __________________________
SPOUSE NAME: ________________________ BIRTH DATE: _______________________
EMERGENCY NOTIFICATION - Name: _________________________________________
Relationship: ____________________________ Telephone No.: __________________
ALTERNATE NAME: ___________________________________________
RELATIONSHIP: _______________________
Telephone No:____________________
APPENDIX "D"
AUTHORIZATION FORM
Job Description/Salary/Range
Employee: ________________________________ Dept:_____________________________
Position: _________________________________10 Digit Status #:____________________
JOB DESCRIPTION
NEW
AMENDED
Funding identified for this Job Description? Yes No
New Job Description Title:_______________________________________________
Amended Job Description Title:___________________________________________
Effective Date:___________________________________
SALARY
ANNUAL INCREASE
ADJUSTMENT NOTE:________________
Funding identified for this Salary Amendment? Yes
No
Current Salary: _______________Salary Adjusted To:________________________
Effective Date:___________________
SALARY RANGE
NEW
AMENDED
Funding identified for this Salary Range Amendment? Yes No
Current Salary Range From: ____________________
To:___________________
Amended Salary Range From: ____________________
To:__________________
Effective Date:_______________________________________
AUTHORIZATION
Employee Signature (for acceptance of new job description):___________________________
Department Director/Manager: ____________________________________________________
Director of Operations::___________________________________________________________
Financial Authorization (if required):________________________________________________
Date:_______________________________________
APPENDIX "E"
MONTHLY REPORTING REQUIREMENTS
1. Consolidated balance sheet. This should include comparative figures for the prior
year.
2. Consolidated statement of operations (profit and loss). This should include actual
figures for the month, year to date, budget, and variance from budget to actual.
3. A report to Council from the Fund Administrator indicating the financial highlights of
the month. It is not possible for the Finance Department to be as familiar with
the sub-funds as the accountants and administrators. This written report is
considered to be an essential part of the financial reporting process to Council.
The report should include descriptions of any significant activities in the month,
explain any large variations from budget, detail any significant budget over-runs
that may be expected or variations in revenue/expense that may lead to surplus
or deficits at year end along with how these surpluses or deficits will be dealt
with.
4. Confirmation of review of the financial statements.
To ensure the accuracy of the accounting records, the fund accountant and
administrators are required to review their monthly financial statements prior to
submission to the finance department.
As part of this process, the administrator should confirm to the Director of
Finance that the financial information has been reviewed in accordance with the
Draft Closing Procedures.
The following wording is proposed:
"I confirm that I have reviewed the attached financial
information for (name of fund) and that the month end
procedures have been performed in accordance with the Draft
Closing Procedures."
_______________________
Name of Administrator
_________________________
Date
7.
Monthly closing procedures
In order for the fund accountants to prepare accurate financial information on a consistent
basis, it is necessary for them to carry out certain specified procedures at each month end.
The basic purpose of these procedures is to ensure that:
(i)
all revenue and expense items and journalized transactions have been accurately
recorded.
(ii)
all significant actual to budget variances are adequately explained.
(iii)
the contents of all balance sheet accounts are properly analyzed.
(iv)
all sub-ledgers and control accounts (primarily receivables, payables and bank) have
been properly reconciled.
(y)
commitments and contingencies are identified and brought to the attention of the
Director of Finance.
(vi)
changes in financial circumstances (actual or potential) are identified on a timely
basis for appropriate action.
(vii)
year end reporting requirements for financial statement purposes are efficiently
addressed on a timely basis.
We have prepared a summary of proposed month end and year end closing procedures for
your consideration (see Appendix 7).
Six Nations of the Grand River
Appendix 7 - Draft Closing Procedures
The monthly closing procedures for all funds should include, as a minimum, the following
items:
*
A detailed review of all general ledger accounts should be performed by the
accountant. All account balances should be supported by documentation
(i.e. reconciliations). Unusual balances should be investigated in detail to ensure that
amounts are correct. Any errors detected through this review process should be
corrected by an adjusting journal entry booked in the current month. Trying to book
journal entries in the period to which they relate will reduce the effectiveness of monthly
reports since prior period adjustments often receive minimal scrutiny at a senior level.
*
Monthly financial statements should be prepared for the Administrator, Chief and
Council, complete with budget to actual figures. The financial statements should at
least include a current balance sheet and a profit and loss statement which shows both
monthly and year-to-date figures. Explanations for significant fluctuations from
budget/prior year should be documented and retained on file for future reference.
Six Nations of the Grand River
Appendix 7 - Draft Closing Procedures
Page 2
Cash
*
All bank accounts should be reconciled to the general ledger account. In preparing the
reconciliation, the preparer should:
- Note the period-end balance from the bank statements.
- Obtain from the bank the cancelled cheques for that account for the period.
- The cancelled cheques should be sorted numerically.
- The cancelled cheques should be agreed to the cheque listing (cheque register) for
the period. Any remaining cheques which did not clear the bank in the period are
listed as outstanding cheques on the reconciliation. Cancelled cheques written In
prior months should be agreed to the outstanding. cheque list on the prior month's
bank reconciliation. Any cheques related to previous months which have not cleared
the account are also listed as outstanding.
- The total of outstanding cheques (current and prior months) is deducted from the
balance per bank statement. A list of the outstanding cheques should be attached
to the bank reconciliation.
Six Nations of the Grand River
Appendix 7 - Draft Closing Procedures
Page 3
- Deposits shown on the bank statement should be agreed to deposits made in the
account during the month. Any remaining deposits in the month not yet reflected in
the bank statement are considered to be outstanding deposits and should be added
to the balance per bank statement on the reconciliation.
- The bank statement should be examined In detail for any unusual items (i.e. items
that are not cheques or deposits). Such items would generally include service
charges, interest, miscellaneous fees, transfers between accounts, wire transfers,
etc. Items which have not been reflected in the Company's general ledger should
be recorded by the preparation of a journal entry prior to month-end closing.
- The "adjusted bank balance" (period-end balance per the bank statement adjusted
for outstanding cheques, deposits, etc.) should be compared to the bank account
balance per the general ledger (after reflecting journal entries for unusual items as
noted above). If the totals do not agree, the unreconciled difference should be
investigated and brought to the attention of the reviewer immediately. Any unusually
large unreconciled amounts (i.e. possibly differences greater than $1,000) should
also be brought to the attention of the Director of Finance.
- Adjustments for reconciling items should be recorded monthly.
Six Nations of the Grand River
Appendix 7 - Draft Closing Procedures
Page 4
- The reviewer should receive the bank reconciliation and all support, including the
bank statements, outstanding cheque list and documentation concerning transfers,
etc. Items should be vouched to appropriate supporting documents by the reviewer.
The reviewer should Initial the reconciliation as evidence that the review process has
been completed.
* Those funds with a cash receipts log should agree this log to deposit records to ensure
that all cash received has been deposited and recorded (note that this should have
been performed already on a daily basis throughout the month).
* The cheque log should be reviewed and followed-up for any missing
items.
We have provided an example of a standard bank reconciliation for your information.
Accounts receivable
* Accounts receivable accounts, including the accounts receivable sub-ledger (if
applicable), should be reviewed in detail to ensure that all balances are collectible and
that collection efforts are started on overdue amounts.
* Consideration should be given to setting up an allowance for doubtful accounts reserve
for any receivables for which collection may be in doubt. Approval should be obtained
from the fund administrator before writing off any balances.
Six Nations of the Grand River
Appendix 7 - Draft Closing Procedures
Page 5
* A review of funding agreements should be performed and an accrual established for
any funding which is due but has not yet been received. Copies of all funding
agreements should be maintained In an easily accessible location for ease of reference.
* Additional accruals should be booked for any amounts that are due (ie. Interest, rents,
etc.) but not yet received.
* The accounts receivable sub-ledger should be reconciled to the general ledger control
account on a monthly basis prior to issuing the financial statements. Differences should
be investigated and resolved on a timely basis. Any unusual reconciling items or
unreconcilable differences should be promptly reported to the Fund Administrator
and/or Director of Finance as appropriate.
For funds where a sub-ledger is not maintained in support of an accounts receivable
general ledger account, the account should be analyzed monthly in detail and
reconciled to the general ledger.
Accounts payable
* Accounts payable and accrual accounts should be reviewed in detail by the accountant
at month-end. Adjustments should be booked to the general ledger as necessary.
Particular consideration should be given to items which have carried over from previous
months and which have not yet cleared.
Six Nations of the Grand River
Appendix 7 - Draft Closing Procedures
Page 6
* The accounts payable sub-ledger should be reconciled to the general ledger control
account on a monthly basis p4or to issuing the financial statements. Differences should
be investigated and resolved on a timely basis. Any unusual reconciling items or
unreconcilable differences should be promptly reported to the Fund Administrator
and/or Director of Finance as appropriate.
* For funds where a sub-ledger is not maintained In support of an accounts payable
general ledger account, the account should be analyzed monthly in detail and
reconciled to the general ledger.
* For payable items that arrive late in the period (ie. after closing the month-end
Sub-ledger), or for expenses incurred in the period but not yet received (ie. interest,
rents, payroll, etc.), an accrual should be established at month-end. Generally, these
accrual entries would be reversed at the start of the next period.
Due to/from Council
* The accountant should review the monthly activity in the due to/from accounts.
Supporting documentation for all items should be obtained from the Finance
Department and maintained on file. Any items in dispute should be resolved on a timely
basis and the journal entry booked as a current item.
Six Nations of the Grand River
Appendix 7 - Draft Closing Procedures
Page 7
Revenue/expenses
*
*
Funding agreements should be reviewed to ensure that all funding received or due to
be received has been recorded.
Expense accounts should be reviewed and compared to previous months/years to
ensure that all expenses have been recorded appropriately.
Year-end
At year-end items in addition to the standard monthly closing procedures will also need to
be prepared. Attached is a copy of the standard annual requirements letter which details
the additional schedules required for audit purposes
To be completed by each Sub-Fund, Program, Enterprise bookkeeper
on a quarterly basis and sent to the Director of Finance within
2 weeks after the end of each quarter complete with all attachments.
(Circle One)*
1.
2.
FINANCIAL STATEMENTS:
(a)
Have Financial Statements covering the quarter be prepared, in
standard format and submitted to Committee for review?
YES NO
(b)
Does the Statement Of Operations balance with the Trial Balance?
YES NO
(C)
Does The Statement of Operations balance with the Balance Sheet?
YES N0
TRIAL BALANCE:
(a) has a Trial Balance of the General Ledger accounts been taken as at
the end of the quarter?
YES NO
(b) Does the Trial Balance balance?
3.
4.
GENERAL LEDGER:
(a) Have all Cash Receipts, Cash Disbursements, Payroll and General
Journal entries been balanced?
YES NO
YES NO
(b) Have all the journals been entered, verified for correctness batch
status reports run, backups completed, and posted to the
general ledger?
YES NO
(c) Have all Cash Receipts, Cash Disbursements Journal Entries for
the quarter been properly recorded in the journal books?
YES NO
BANKING: (Applicable to those having Bank Accounts)
(a) Has an accurate Bank Reconciliation Statement been prepared for each
bank account for each month in the quarter?
YES NO
(b) Have the Bank Reconciliation Statement(s) been reviewed by the
appropriate individual(s)?
YES NO
(c) Does the General Ledger Bank Account agree to the Bank
Reconciliation Statement(s)?
YES NO
(e) Have all restricted monies been set aside in investments?
YES NO
(f) Have all restricted monies been transferred to the Band Operations
Fund?
YES NO
(g) Has approval been received from the proper authorities to do 4. c, d,
and/or e?
YES NO
(h) Are all Bank accounts setup at CounciI's preferred banker - The
Royal Bank in Ohsweken?
YES NO
If not, why not?
5. DUE TO/FROM (INTERCOMPANY)AND/OR REVENUE AND EXPENSE ACCOUNTS
(a) Have all the Due To/From (Intercompany) Accounts between the
sub-fund, program, enterprise and the Band Operations Fund been
properly reconciled as at the end of the quarter?
YES
NO
AND OR
(b) Have all the Revenue and Expense Accounts between the program, and
the Council's respective General Ledger Accounts been properly
reconciled as at the end of the quarter?
YES NO
6. PURCHASES:
(a) Have all Cash Disbursements been properly approved by an authorized
body or personnel?
YES NO
7. PAYROLL:
(a) Has the Payroll Journal been reviewed and initialed by the
respective Director/Program Manager/Program Administrator
Program Supervisor, for all pay periods in the quarter?
YES NO
(b) Have payroll liability accounts been analyzed and reconciled to
ensure correct payments are remitted?
YES NO
To/From (Intercompany) Account?
8.
9.
YES NO
ACCOUNTS RECEIVABLE & ACCOUNTS PAYABLE:
(a) Has a list of Accounts Receivable been prepared as at quarter's end
(includes approved funding due from funding agencies)?
YES NO
(b) Has a list of Accounts Payable been prepared as at quarter's end?
YES NO
(c) Has the Accounts Receivable and Accounts Payable been reflected in
the General Ledger Accounts?
YES NO
VARIANCE:
PROGRAM/SUB - FUND/ENTERPRISE/BOARD:
BUDGETED
QUARTER
ACTUAL
QUARTER
VARIANCE*
%
___________
________
_________
___
__________
_______
________
___
BUDGETED
Y-T-D
ACTUAL
Y-T-D
VARIANCE*
%
___________
_________
_________
____
___________
_________
_________
____
REVENUE
EXPENSE
SURPLUS/(DEFICIT)
REVENUE
EXPENSE
SURPLUS/(DEFICIT)
(*NOTE: If the Variance is greater that 5% in surplus or greater than 0% in deficit please provide a
complete explanation of the cause(s) of the Variance and what action will be taken to remedy the cause
of the variance.)
10. CASH FLOW FORECAST:
(A)
APRIL, 19
MAY
BEGINNING
BALANCE
RECEIPTS
DISBURSEMENTS
ENDING
BALANCE
JUNE
OCTOBER
NOVEMBER
DECEMBER
JANUARY, 19
FEBRUARY
MARCH
(b) Have detailed monthly cash flows been provided to the Director of
Finance on a monthly basis showing actual for each month passed and
projected to March 31?
YES NO
11. ATTACHMENTS:
(a) Statement of Operations to the end
of the quarter;
YES
NO
(b) Balance Sheet to the end of the
quarter;
YES
NO
(c) Trial Balance to the end of the
quarter;
YES
NO
(d) General Ledger to the end of the
quarter;
YES
NO
(e) Due To/From Intercompany) Account
reconciled;
YES
NO
(f) Revenue and Expense Accounts
reconciled;
YES
NO
(g) Bank Reconciliation Statement(s)
for each bank account;
YES
NO
(h) List of Accounts Receivable to the
end of the quarter;
YES
NO
(i) List of Accounts Payable to the end
of the quarter;
YES NO
(j) Detailed Cash Flow.
12. RECEIVING & REVIEWING OF INFORMATION:
PROGRAM/SUB - FUND/ENTERPRISE/BOARD:
BANK RECONCILIATION(S) Received
Reviewed by: Director of Finance
INTER-FUND ACCOUNT
YES
/ /
NO
YES
NO
RECONCILIATIONS:
Received
YES NO
Reviewed by': Director of Finance
/ /
ENTERPRISE/SUB-FUND:_____________________________
FOR THE PERIOD COVERING:_________________________
R E V E N U E S:
BUDGETED
(Y-T-D)
YEAR-TO-DATE
VARIANCE (%)
$_______
$___________
$__________
E X P E N D I T U R E S:
BUDGETED
YEAR-TO-DATE
_________
---- ---
____________
----------
VARIANCE (%)
___________%
----------
SURPLUS/(DEFICIT):
BUDGETED
$_______
YEAR-TO-DATE
$_________
VARIANCE (%)
$___________
SIGNATURE OF BOOKKEEPER:______________________________________
DATE:___________________________________
SIGNATURE OF DIRECTOR/PROGRAM MANAGER:_________________________
DATE:___________________________________
SIGNATURE OF DIRECTOR OF FINANCE:____________________________
DATE:___________________________________
EXHIBIT I
SIX NATIONS COUNCIL
ACCOUNT ANALYSIS
ACCOUNTS RECEIVABLE
This analysis should be prepared for each program by funding source.
Accounts
Receivable
Debit (Credit)
$
Revenue
Debit (Credit)
$
Balance, April 1, 1994
XXX
Payments Received Re 93/94:
Month
Month
(XXX)
(XX)
Balance
Approved Funding for 1994/95
NIL
XXX
XXX
Funding Adjustments, if any
+/-
+/-
Month
Month
(XXX)
(XX)
_____
Balance, March 31, 1995
TOTAL
TOTAL
_______
_______
Payments Received for 1994/95 Funding:
Balance per General Ledger:
Accounts Receivable (Account No. XXXXXXX) TOTAL
Revenue Account No.:
XX
XXX
XX__
TOTAL
_____
Note: The above totals should be agreed to correspondence
with agencies and Council records.
QUARTERLY INTERNAL CONTROL QUESTIONNAIRE
Page 5
QUARTERLY QUESTIONNAIRE: Received
YES NO
Reviewed by: Director of Finance
MANAGEMENT LETTER
RECOMMENDATIONS:
Completed
/
/
YES NO
Reviewed by: Director of Finance
/
/
REVIEWED BY (PROGRAM/BOARD)
/
/
REVIEWED BY (DIRECTOR OF FINANCE)
/
/
REVIEWED BY (DIRECTOR OF OPERATIONS)
/
/
REVIEWED BY SIX NATIONS COUNCIL
/
/
COMMENTS:
*****************************************
SUBMITTED BY:
APPENDIX "F"
CASH MANAGEMENT AND SECURITIES POLICY
This policy has been designed to provide an effective framework
for the optimal utilization of cash resources of the Six Nations
of the Grand River and the basic need to protect and preserve
capital while maintaining the liquidity to meet on-going
financial requirements.
Therefore, the basic objectives of cash management shall, in
order of priority, be as follows:
a)
b)
c)
d)
e)
f).
g)
Adherence to statutory requirements.
Preservation of principal.
Ensuring availability of cash to meet disbursements and
other obligations.
Maintenance of liquidity.
Diversification of investment portfolio.
Competitive return on investments commensurate with
constraints in a) to e) above.
Regular review of the effectiveness of the policy in meeting
the above objectives.
Loans to other Six Nations of the Grand River departments or
entities are not to be considered as investments for the purpose
of this policy. These types of transactions must be approved by
Council and authorized by Band Council Resolution.
1.0 AUTHORITY
This policy is based on the authority for investments as
provided by the Six Nations of the Grand River Council.
2.0 INVESTMENT QUALITY RESTRICTIONS
2.1 The Six Nations of the Grand River shall not invest in
a security offered by a borrower with a bond rating
lower than "A".
2.2 The Six Nations of the Grand River shall not invest in
securities of financial institutions with a commercial
paper rating lower than R-l Low.
2.3 The parent of a Schedule "B" bank must also possess a
commercial paper rating of A-1 or P-1 from Standard and
Poor or Moody's respectively.
APPENDIX "F"
POLICY
CASH MANAGEMENT & SECURITIES
3.0 TERM
3.1 Term shall not exceed one year.
3.2 Exception to this are the H. C. Peatson Educational
Trust Fund, Ruby C. Sears Memorial Educational Fund and
the Education Severance Trust Fund. These funds invest
for the long term.
4.0 INVESTMENT TRANSACTIONS AND SAFEKEEPING OF
SECURITIES
4.1 Either the Director of Operations or Director of
Finance in conjunction with the appropriate
Director/Manager of the investing entity shall be
authorized to enter into arrangements with banks,
investment deals and brokers, and other financial
institutions for the purchase, sale, redemption and
safekeeping of securities and to execute and sign
documents on behalf of the Six Nations of the Grand
River and perform all other related acts in the day to
day operation of the investment program. The
Director/Manager can designate another person who can
make a recommendation to the Director/Manager on the
appropriate investment.
5.0 DEFINITIONS
5.1 Credit ratings developed by the Canadian Bond Rating
Service (CBRS) for government securities (federal,
provincial and municipal)
AAA
Highest Quality
AA
A
Very good quality
Good quality
BBB
Medium grade
BB Lower medium grade
B
Poor quality
C
Speculative
D
Default
5.2 Credit ratings developed by the Dominion Bond Rating
Service (DBRS) for non-government securities (banks,
trust and loan corporations)
R1
R2
R3
Prime credit (High, Middle or Low)
Medium grade
Below medium grade
5.3 Credit ratings developed by Moody's Investors Service,
Inc. and Standard and Poor's Corporation for parents of
Schedule ‘B’ Canadian Banks.
Moody's
Highest Quality
P-1
Standard & Poor's
A-1
Page 2
APPENDIX "F"
POLICY
DRAFT
CASH MANAGEMENT & SECURITIES
5.4 The following are the six major chartered banks
referred to in this policy:
- The Royal Bank of Canada
- The Canadian Imperial Bank of Commerce
- Bank of Montreal
- The Bank of Nova Sc6tia
- The Toronto Dominion Bank
- The National Bank of Canada
5.5 The other banks referred to in this policy include all
the banks, except those described in 5.4 above named in
Schedule # and `#IT" to the Bank Act (Canada) who
qualify under the criteria established in this policy.
6.0 Policy Maintenance
#.l The Director of Finance shall develop and maintain
suitable procedures which provide for effective control
and management of investments and a reasonable
assurance that the investments are properly managed and
adequately protected.
#.2 All cash management transactions shall be properly
recorded and interest earnings distributed monthly to
the various funds, as the case may be, in accordance
with policies and generally accepted accounting
principles for the Six Nations of the Grand River.
7.
Authorized Securities
7.1 Bonds-Federal, Provincial, Municipal
Bonds are direct obligations of the issuing agency.
The term is generally for a period of one year or more.
These bonds are fully secured and as such are fully
registered in the name of the purchaser. Trading of
the bonds on the secondary market makes them highly
liquid. Municipal bonds are also known as
"Debentures'.
7.2 Government of Canada-Treasury Bills
Canada Treasury Bills are issued weekly via tender for
terms of 91 and 182 days and every second week for a
term of 3#S days. Bills are also offered in the
secondary market maturing 9n any given Friday
Trea3ury bills are issued in bearer form only and are
sold at a discount to mature at par. Denominations are
$1,000, $5,000, $25,000, $100,000 and $l,000,000.
Page 3
APPENDIX "F"
POLICY
DRAFT
CASH MANAGEMENT & SECURITIES
7.3 provincial
Instruments are available from all Canadian Provinces
either directly or though various authorities, (e.g.)
Ontario' Hydro, issue sort-term notes) in the form of
either treasury bills or, promissory notes.
Provincial Treasury Bills are issued on a discount
basis in denominations of $25,000, $100,000, $500,000
and $1,000,000 (except Newfoundland which has a minimum
of $100,000). Terms are 91 days and the bills are
generally issued weekly.
In addition to treasury bills, promissory n6tes are
issued from time to time with varying terms and
available in discount or interest bearing form.
Instruments are traded heavily on the secondary market
and may therefore be readily cashed to ensure
liquidity
7.4 Municipal
Municipalities may from time to time issue pr6missory
notes against the credit of the municipality for
varying lengths of time. The notes are generally
issued by upper tier municipalities in discount form
and trade on the secondary market.
7.5 Banks and Trust Companies
7.5.1
Bearer Deposit Notes - These instruments are
obligations that are secured by the general
credit of the issuing bank. BDN's are sold
at a discount to mature at par. Terms to
maturity can vary from one week to one year.
The minimum amount for investment is $100,000
and BDN's trade actively in the secondary
market.
7.5.2
Banker's Acceptances - These instruments are
essentially a commercial bank draft drawn by
a borrower for payment on a specified date
and "accepted" by the bank, in other words,
bank assumes risks. BA's are issued in
discount form with a typical term not
exceeding one year. BA's are usually
denominated in multiples of $100,000 and are
widely traded and extremely liquid.
7.5.3 Swapped Deposits - A swapped deposit is
essentially an investment package comprlsed
of a foreign pay (generally $U.S.) deposit
and at: a matching foreign exchange contract
Page 4
APPENDIX "F"
POLICY
CASH MANAGEMENT & SECURITIES
In a "swap", the investor's Canadian dollars
are exchanged into $U.S. which are then used
to purchased a $U.S. bank certificate of
deposit (generally a minimum of $5 million
U.S.#. At the same time the forward or
exchange rate at maturity ($U.S. Canadian)
is purchased thus locking in the Canadian
yield. (In a swap deposit the currency
exposure is nil) . This instrument is
available in interest bearing form only and
is for all intents a fixed term investment of
less than one year.
7.5.4
Mortgage Certificates - The certificates are
promises made by the chartered banks, or
their wholly owned and controlled
subsidiaries, to pay to the registered holder
the principal sum purchased, plus interest
accrued at a fixed rate on a pre-determined
date. The principal is used to finance the
bank's/subsidiaries' holdings of first
mortgages and the securities are
unconditionally guaranteed by the banks. The
certificates which are usually in amounts of
$1,000 upwards in increments of $100, are
transferable but not redeemable before
maturity.
7.5.5
Certificates of Deposits, Term Deposits &
Guaranteed Investment Certificate# - These
instruments are available in interest bearing
form only and as such are generally
registered in the name of the purchaser.
Liquidity is virtually non-existent and due
to the lack of a secondary market therefore
these instruments become non-transferable
fixed term investments.
7.5.6
Commercial Paper (CP) - Is an unsecured
promissory note issued by a corporation.
Companies issue CP because it provides
greater financial flexibility and allows them
to finance seasonal cash flow and working
capital need at lower rates than
conventional bank borrowings. Lenders
(purchasers or investors; buy CP because this
type of investment provides a superior return
compared to other alternatives, such as
Treasury Bills or BAs.
APPENDIX "F"
CASH MANAGEMENT & SECURITIES POLICY
Investments in Commercial Paper are
considered secure for a variety of reasons.
The companies who issue the notes are
generally large and mature. Many CP programs
are backed by bank lines of credit to Support
the credit of the CP.
APPENDIX "G"
CORPORATE CREDIT CARD LIST
Name
Title
Chief
Councillors
Debra Vyse
Ruby Jacobs
Dufferin Davis
Arliss Skye
Dr. Paulette Tremblay
Peter Martin
Brenda MtPleasant
Elected Chief
12 Elected Councillors
Financial Controller
Manager of Health Services
Technical Services Manager
Director of Social Services
Senior Executive Officer
Policy Analyst
Director of Lands Research
Day Care Supervisor
***List updated on October 15, 2002 by Paula Hill. Please inquire with the Finance Department for confirmation of this list **