Basic Final English 17 Oct 12

Report
CANADIAN FORCES NON-PUBLIC PROPERTY
BIENS NON PUBLICS DES FORCES CANADIENNES
NPP – “Back to Basics from a
Base/Wing perspective”
Comptroller Forum 23-24 Oct 12
Shirley Tang-Jassemi, DGPFSS CFO
Michel Landry, Director of Accounting
Agenda
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CFPFSS/DGPFSS and Finance Division Organization Charts
Scale of Operations
CFPFSS/DGPFSS Delivery Model
Defence Team
National Defence Act (NDA)
NPP Governance
NPP at the Base/Wing Level
NPP Accountability Framework
NPP Financial Authorities
Compliance and Assurance Common Observations
NPP Contracting
Current Issues and Projects
Questions?
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CFPFSS/DGPFSS Organization Chart
Chief of the
Defence Staff
Chief
Military
Personnel
CEO
NPF
NPF HR
(VP HR)
Pers Fin Svcs
(Pres SISIP
Financial Services)
NPP
IM/IT(CIO)
Retail Svcs
(Pres CANEX/
NATEX)
Managing
Director DGPFSS
NPP
NPP Fin
(CFO)
Pers Support Prog
(C PSP)
Military
Quality
of Life
Family Services
Program
(DQoL)
Casualty Support
Management
(DCSM)
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Finance Division Organizational Chart
Chief Financial Officer
Shirley Tang-Jassemi
Executive Assistant
Carol Parnell
Director of Finance
Alain Doucet
Director of Accounting
Michel Landry
Special Advisor to CFO
Sarah Myrer
Snr Mgr Compliance Assurance
René D'Amours
Snr Mgr Bus. Pl. & Budget
Jim Clarke
Corporate Mgmt Acct
Juanita Maillet
National Acctg Mgr
Rob Polem
Acctg Pol & Proc Analyst
Greg MacKenzie
PSP Mgmt Acct
Anthea Abaloo
Financial Analyst
Anne Barton
Deanna Ois
Travel Services Mgr
Christina Legault
Travel Coordinator
Corporate Acctg Asst
Rachel Deault
Corporate Acctg Asst
Nicole Richard
CANEX Mgmt Acct
Mohamed Laroussi
SISIP FS Mgmt Acct
Guylaine Deck
CIP Manager
Janice Bisko
Effective 1 Sep 2012
NFRO Mgr
Selina Zhu
NFATO Mgr
Line Robitaille
NARO Mgr
Wendy Britnell
NAPO Mgr
Lisa Frye
Deployed Ops Acctg Analyst
Fernand Déry
Senior Manager, Projects
Trevor Cloney
Senior Project Mgr DOL
André Brière
Regional Acctg. Mgr (Eastern)
René D'Amours - 9 Bases
Regional Acctg Mgr (Central)
Linda Roorda - 8 Bases
Regional Acctg Mgr (Western)
Ashley Morrison - 7 Bases
Regional Acctg Mgr (Europe)
Peg Proctor
Compliance Assurance Analyst
John Davison
Compliance Assurance Analyst
Jerry Pond
Compliance Assurance Analyst
Lynn Gutoskie
Jr Compliance Assurance Analyst
Dave Roberts
Jr. Compliance Assurance Analyst
PO1 Alain Paré
ABACIS Db Apps Support Mgr
Tony Levesque
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Scale of Operations
• Managing Director of NPP
• CEO of Staff of the NPF, CF
• As a CMP Level 2
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CANADIAN FORCES NON-PUBLIC PROPERTY
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CFPFSS/DGPFSS Delivery Model
Defence
Services
Program
Non-Public
Property
Publicly Funded
Programs
(Public Delivery)
Staff of the NPF,
Canadian Forces
Employee Benefits
And Pension Funds,
Human Res.
NPP M&W
Programs
Casualty
Support
+
Military Family
Services (C108)
Personnel Support Programs (C109)
(NPP Delivery)
CANADIAN FORCES NON-PUBLIC PROPERTY
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The Defence Team
5,600 NPF
Civil Servants
60,000 Regular
CF Personnel
20,000 Reservists
20,000 Ministry
Civil Servants
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Back to Basics - NDA
Section 2 of NDA
“non-public property”
« biens non publics »
– “non-public property” means
(a) all money and property, other than issues of materiel, received for
or administered by or through messes, institutes or canteens of the
Canadian Forces,
(b) all money and property contributed to or by officers, noncommissioned members, units or other elements of the Canadian
Forces for the collective benefit and welfare of those officers, noncommissioned members, units or other elements,
(c) by-products and refuse and the proceeds of the sale thereof to the
extent prescribed under subsection 39(2), and
(d) all money and property derived from, purchased out of the
proceeds of the sale of, or received in exchange for, money and
property described in paragraphs (a) to (c);
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CANADIAN FORCES NON-PUBLIC PROPERTY
BIENS NON PUBLICS DES FORCES CANADIENNES
Back to Basics – NDA
• NPP is a separate type of Crown Property
• The money component is referred as NPF
• NPP can only be used for the benefit of CF personnel
and their families, former members and families or for
any other purpose designated by the CDS
• The FAA does not apply to NPP
• Access to Information Act, the Privacy Act and the
Official Language Act apply to NPP
• The Federal Real Property and Federal Immovable Act
does not apply to NPP owned real property
• NPP of each unit or other element of the CF (other than
disbanded Units or Units in altered circumstances) is
vested in the Commanding Officer of that unit or other
element of the CF and may only be used for the
purposes set out in the NDA
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Back to Basics
NPP Governance
National Governance
• NDA prescribes that the CDS is responsible for the governance of
NPP
• National governance is through the NPP Board
• The board meets at least twice a year
• Other committees in support: NPP Audit Committee, NPP
Investment Committee, NPF Pension Board and the MFF
Committee
Base and Wing Governance
• CFAO 27-6 outlines that Base and Wing Commanders are required
to establish a Base/Wing Fund with specific membership and duties
• Base/Wing Commanders are also responsible and accountable for
the governance of messes and museums located at their unit
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Back to Basics
NPP at the Base/Wing Level
• Base/Wing Fund
– Source of Fund
– Use of Fund
• Base & Wing Fund Subsidiaries
– Golf Courses
– Marina
• Messes
– Obligation to belong
– Cannot subsidize sale of alcohol
• Museums
– Self financed and operates independently, not MW
Program
• Units Funds, Kit Shops
• MFRCs – not NPP – 3rd Party
• CANEX and SISIP – managed centrally
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Back to Basics
NPP at the Base/Wing Level
• Unregulated activities – at the Base/Wing level activities
are either Public or NPP
• CANEX First Right of Refusal
• Transfer of NPP Goods from CANEX to the Public
• Security of NPP is the same as Public – see QR&O
21.72 and 21.73 for reporting
• Representational Expenses
• Restriction on use of NPP – Alienation and misuse
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Back to Basics
NPP at the Base/Wing Level
• Role of Public Comptrollers, Regional Accounting
Managers (RAMs), Non-Public Accounting Manager
(NPAM) and CFO HQ Staff
• A-PS-110-001/AG-002 Morale and Welfare Programs in
the CF – Volume 1 Public Support for Morale and
Welfare Programs and NPP – identifies maximum public
support. For shared Public/NPP programs NPP is not to
be used to make up for a the lack of Public support, in
these cases program needs to be adjusted. NPP is not
to be used to fulfill a public responsibility
• Annual requirement to complete a “Report of Public
Support to Morale and Welfare and NPP”
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CANADIAN FORCES NON-PUBLIC PROPERTY
BIENS NON PUBLICS DES FORCES CANADIENNES
Back to Basics
NPP Accountability Framework
• National and local governance
• CDS Delegation of Authorities for the Financial
Administration of NPP supported by a
requirement to pass a NPP Certification Course
• NPP Letter of Financial Management Attestation
• NPP Contracting Policy
• NPP Travel and Relocation Policy
• HR Policy, Accounting Policy, Sponsorship and
Donation Policy, etc….
• National entities are externally audited
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Back to Basics
NPP Accountability Framework
• CRS is responsible for the audit of NPP within the CF
• Compliance and Assurance Team
• Consolidated Insurance Program
• NPP Fraud Prevention Handbook and Questionnaire
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Back to Basics
NPP Financial Authorities
Three main Components
Authority to Make Financial Commitments and Enter into
Contracts
Authority to Approve Invoices and Other Obligations for
Payments
Authority to Requisition Payment
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Back to Basics
NPP Financial Authorities
Base Commanders – Table 5 of the CDS Delegation of Authorities for
Financial Administration of NPP applies
Key points
• Full PO&M authority
• PO&M for Single Event/Activity is limited to $250K if indebted to CFCF only
$50K
• Capital – no authority if CFCF financed, $250K if self financed, $50K if
indebted to CFCF
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Travel outside Canada and Continental USA limited to CFSU(E) only
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Representational Expenses up to authorized level
•
Write-off - $250K, $50K if indebted to CFCF
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Sponsorship and Donations
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Back to Basics
NPP Financial Authorities
Key points:
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No authority for IM/IT procurement
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Sub-delegation
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Withdrawal and Restrictions
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Incumbent acceptance form
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Mandatory NPP Course Certification
•
Unencumbered –current cash balance less current liabilities
– Base/Wing Fund and subsidiaries as an aggregate
– Messes (individually)
– Museums/Other Unit Funds (individually)
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Back to Basics NPP Compliance and
Assurance Common Observations
• Segregation of Duties & Cash Controls
• CANEX First right of refusal for ATMs
• Contracting Policy – lack of contract, management of
contracts
• CDS Delegation of Financial Authorities for the Administration
of NPP – processing of transaction without proper authority
• Fixed assets verification not carried out
• Compliance with Sponsorships and Donation Policy
• Inadequate financial planning over large single event
• CBA Overdraft
• Little or poor review over financial statements by stakeholders
Note that NPP is not immune to theft and fraud so we need to be
vigilant
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CANADIAN FORCES NON-PUBLIC PROPERTY
BIENS NON PUBLICS DES FORCES CANADIENNES
Back to Basics
NPP Contracting
Policies and Principles
• Reflect the values and ethics of the GoC and, wherever feasible
consistent with the public;
• Responsive to the unique nature and requirements of NPP
organizations;
• Based on a set of principles rather than detailed regulations and
procedures;
• Contracts are to be awarded on a competitive basis;
• Primary importance – operational requirements of NPP Programs
and activities;
• Activities are to be conducted with care, fairness and honesty;
• Reflect best business practices;
• Contracts are to provide value for money; and
• No direct or indirect personal benefit.
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Back to Basics
NPP Contracting
Sole Sourcing
• NPP contracts are to be competitively tendered. However,
competitive tendering may not be required when one or more of the
following circumstances apply:
– Pressing emergency/urgency and delay would prevent the
contracting authority from meeting operational requirements of
NPP programs and activities;
– The nature of the work is such that the solicitation of bids would
not reflect best business practice;
– There is only one supplier capable of providing the required
goods or services or capable of performing the work; and
– The competitive tendering process would not result in obtaining
the best value for money.
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Back to Basics
NPP Contracting
• Prior written approval of DGPFSS is required to enter into any
contract that does not meet one or more of the above noted criteria
or exceeds the limitations imposed by the CDS Delegation of
Authorities for Financial Administration of NPP for directed or noncompetitive contracts which have been set as follows:
– B/W Commanders and DGPFSS Division Heads $50K
– Others: Up to delegated authorities not to exceed $10K
• CANEX has first right of refusal for any new NPP re-sale and
consumer service activities contemplated at any CF base/station
location
• NPP Programs and activities shall, whenever practical, obtain their
goods for re-sale by messes and other NPP organizations,
from/through CANEX
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Current Issues
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Staff of the NPF, CF – no longer have access to Public
acquisition cards
Staff of the NPF, CF – public financial delegated
authorities limited to FAA Sec 32 and 34
Staff of the NPF, CF – access to Claims-X is now being
reconsidered
Staff of the NPF, CF – access to AMEX ITC is now
being reconsidered
Use by NPP of the DND PST Tax exemption under the
RTA
Accounts payable and accounts receivable between
Public and NPP
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Current Projects
• Reserve Accounting Project
• Accounting Information System Project (ABACIS
Replacement)
• BMO Details on Line (DOL) for corporate
purchase card
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BIENS NON PUBLICS DES FORCES CANADIENNES
Reserve Accounting Project
• Focus on Army Reserve units
• Currently 64 Army reserve units are accounted by the
Finance division and approx 286 units are not
• Project concept approved by DGPFSS and Comd CA
• The project will be completed in five distinct phases
• Soon will be working with NAVRES HQ for Naval units
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Reserve Accounting Project
• Phase 1: Survey the reserve units NPP operation scope
and requirements – 90% response rate
• Phase 2: Based on the survey result, formulating service
delivery models – work in progress, target completion by
Oct 2012. The goal is to ensure that the NPP model will
support the Reserve Force NPP operations. The
approved service delivery models will be presented to
Comd CA for endorsement
• Phase 3: Initial trial – FY 2013/14
• Phased 4: Full implementation – FY 2014/15
• Phased 5: Post implementation review – FY 15/16
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Accounting Information System
Replacement
• Why replacement:
– ABACIS was developed over 30 years ago and is
expensive for software developments
– Costly to interface with other software systems
– The software owners will be retiring within next 5
years, thus poses significant continuity risks
– The hardware will become unserviceable within 10
years
– Limited reporting capabilities
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CANADIAN FORCES NON-PUBLIC PROPERTY
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Accounting Information System
Replacement
• Solution is to find a replacement system
• Target date for a replacement system is FY 13-14
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BMO Details on Line (DOL) for
Corporate Purchase Card
• Leverage BMO DOL software to allow managers and
cardholders to review transactions, enter financial coding
and manage approval on line
• Increase efficiency on accounting process and move
toward paperless
• Issue a policy to NPP entities to use the Corporate
Credit Card for all purchases when accepted by supplier
• Entities receive rebate of 1.46% on purchases
• Since Oct 2012 – account statement on line
• Dec 2012 to March 2013 – Training roll out
• BMO DOL will be implemented by April 2013
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QUESTIONS?
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CANADIAN FORCES NON-PUBLIC PROPERTY
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