Policy on the Delegation of Financial Signing Authorities and Specimen Signatures
For questions or comments, please contact us :
NC-FAS-SFA-NHQ-ACCOUNTING-SERVICES-COMPT-AC-GD
Effective Date: March 2009
Revised: June 2010
Please Note: This policy/document is currently under review and is being updated to reflect new procedures and terminology associated with the implementation of myEMS (SAP)
Table of Contents:
- Policy Objective
- Policy Statements
- Application
- Policy Requirements
- 4.1. Authority to Delegate
- 4.2. Delegation of Financial Authorities
- 4.3. Segregation of Duties
- 4.4. Specimen signatures
- 4.5. Exercising Financial Authorities on an Acting Basis
- 4.6. Training Requirements
4.7. Financial Authorities Requirements - 4.7.1 New Financial Authorities and Amendments to Existing Authorities
- 4.7.2 New Minister
- Roles and Responsibilities
- Delegation of authority Instruments
- Monitoring and Compliance
- Definitions
- References
Appendix A: Glossary of Terms (Type of Financial Authorities)
Appendix B: Delegation of Authority (required elements)
- B.1.Specimen Signature Card GC136
- B.2.Specimen Signature Card FIN 5034
- B.3.Acting Designation Memorandum ADM (FIN5041) and BADM (FIN5043)
- B.4.Financial Signing Authorities Web Application
Appendix D: Frequently Asked Questions
Context
The responsibility for the control and spending of public money is placed on the Minister and Deputy Minister/Chairpersonby Parliament through the , the Financial Administration Act (FAA), and regulations made under the FAA. The Minister and Deputy Minister/Chairperson authorize departmental officials to exercise certain responsibilities on their behalf by delegating these authorities to positions where responsibility can be most effectively exercised and where accountability for results can be determined.
When applying this policy, other policies and directives must also be considered, such as the Hospitality Policy, which further restrict delegation.
Delegations authorized by the Minister are granted to departmental officials for the administration of approved programs for which provision has been made in the Estimates. The objective of the delegations is to give appropriate authority commensurate with operating requirements in terms of volume, amount and type of expenditures predominating at responsibility centres, without limiting the right of senior officers to exercise control over major expenditures, or those which represent departures from authorized programs, or have particular sensitivities.
1. Policy Objective
To ensure accountability and responsibility for the proper control and spending of public money are defined, assigned and exercised in accordance with the Department's decision-making processes and Delegation of Authority Instrument.
2. Policy Statements
It is departmental policy to ensure that appropriate financial and operational management controls are applied to the delegation of financial authorities associated with the expenditure process. This policy must be read in conjunction with Treasury Board’s Directive on Delegation of Financial Authorities for Disbursements, the departmental Guide on Delegation of Authority and the Delegations of Authority manual.
3. Application
This policy applies to all financial signing authorities pursuant to sections 32, 33 and 34 of the FAA and associated with the expenditure process in Human Resources and Skills Development Canada including Service Canada; referred to hereinafter as the Department.
4. Policy Requirements
4.1. Authority to Delegate
4.1.1. It is the Department's policy that the Minister and Deputy Minister/Chairperson must formally delegate and communicate financial authorities in writing.
4.1.2. A delegation of authority may not be re-delegated in whole or in part by the incumbent of the position to which such authority has been delegated.
4.2. Delegation of Financial Authorities
4.2.1. Authorities must be delegated to general categories or generic positions whenever possible. Tables of equivalent positions must be prepared as necessary.
4.2.2. Authorities must be delegated to organizational positions and not to individuals by name.
4.2.3. Before an incumbent can exercise a financial authority, this authority must be formally delegated to the relevant position in accordance with the Delegation of Authority Instrument. The incumbent of the position must also complete a specimen signature card and be formally designated by an officer to whom the incumbent reports.
4.2.4. Managerial positions may restrict the maximum dollar limits on financial delegations of authority within their designated area of authority. However, as a general rule, spending authority should be delegated to responsibility centre managers in relation to their budgetary responsibilities to ensure they have adequate authority and full responsibility for their decisions.
4.2.5 Limits on financial authority to requisition payments or charges against an appropriation must include a maximum dollar amount for each position, unless “full” authority is granted. Where the incumbent of a single position is granted authority for pay input in addition to other payment requisitions, two different limits may be shown in such a case.
4.2.6 The authorities delegated by the Minister and Deputy Minister to a position can be revoked by the superior of the position if it is determined that the delegated authorities are being abused. If this is required, NHQ or regional accounting services should be notified as soon as possible.
4.3. Segregation of Duties
4.3.1. The segregation of duties must ensure that one person does not have complete access and control to the spending and payment process, thereby mitigating the risks associated with misuse of funds.
4.3.2. The following functions should be kept separate to the extent practicable:
- Procurement;
- Verification of accounts;
- Certification of the receipt of goods and provision of services and determination of entitlement pursuant to section 34 of the FAA; and
- Certification of requisitions for payment or settlement pursuant to section 33 of the FAA.
4.3.3. An individual who has been delegated both certification authority (section 34) and payment authority (section 33) may not exercise both authorities on the same transaction.
4.3.4. Individuals shall not exercise spending authority, certification authority or payment authority with respect to a payment from which they can personally benefit directly or indirectly. Every person involved in a transaction from which he/she can personally benefit, should have the expenditure initiation portion of that transaction authorized by a superior officer.
4.4. Specimen signatures
The signature of individuals authorized to exercise an authority, whether on a regular or on an acting basis, must be documented on the Department's standard specimen card or approved equivalent to ensure it can be authenticated before and after the processing of a transaction. (Ref. Appendix B)
4.4.1. A specimen signatures card must:
- Identify the incumbent of the position to which signing authority has been delegated in such a way that it can be clearly referenced in the delegation instrument and table of equivalent authorities (where applicable);
- Be completed for each incumbent of a position delegated signing authority;
- Be prepared as soon as a new employee is appointed to a position with delegated authorities;
- With the exception at 4.4.2, be authenticated by the person occupying a managerial level to whom the incumbent reports.
- Be available in all locations where the signatures will have to be validated or authenticated;
- Be cancelled as soon as the incumbent gives up the duties of the position with delegated authorities or replaced when an organizational or policy change modifies any of the information it contains.
Specify- the department (HRSDC)
- the name of the incumbent;
- the incumbent's PRI;
- the incumbent's title, i.e. the position to which authority has been delegated;
- the incumbent's responsibility centre (RC), the branch or region and specific area(s) of responsibility
- the effective date;
- where applicable, the cancellation date;
- the type of authority and all restrictions on the authority;
- where applicable, that the authority is restricted to acting situations only;
- the signature of the incumbent;
- the name, title and roll-up RC of the Manager to whom the incumbent reports
- that the incumbent has completed the requisite assessment and training; and
- the successful completion date of the requisite assessment.
4.4.2. Authentication
Specimen signature cards must be authenticated by a manager to whom the incumbent reports. However, to ensure flexibility in the authentication process, specimen signatures of the following NHQ and regional positions may be authenticated by authorized officers as follows:
NHQ
The signature of executive heads (Assistant Deputy Minister, Chief Financial Officer and their equivalent) may be authenticated by the Director General of Corporate Accounting and Reporting, the Director General of Financial Policy, Internal Control and Business Services or Deputy CFO.
Regions
- The signature of executive heads (Regional Executive Head or Executive Head Service Management) may be authenticated by the senior CFOB executive officer in the region.
- The signature of business lines directors who report to positions outside of their headquarters area in the regions may be authenticated by the local RC Director in the region i.e. by the Director responsible of the RC budget of the Service Centre.
- The signature of the senior CFOB executive officer in the regions may be authenticated by the Director / Manager / Chief, Accounting Services in the regions.
- The signature of other regional officials with delegated financial authority who report to positions in NHQ may also be authenticated by the Director / Manager / Chief, Accounting Services in the regions.
4.4.3. To validate the identity of the incumbent, the authentication/authorized officer or a witness within the Department and known to the authentication officer should be present when the incumbent signs the specimen signature card. In order for a witness to attest to the identity of the incumbent, the following note or equivalent should be included in the restriction area of signature card:
""I (name of witness), (position of witness), (section/branch), attest that I have witnessed (name of incumbent) sign this specimen signature card.
(Witness signature)".
4.4.4. All delegated authorities and specimen signature cards must be reviewed on an annual basis and updated as necessary to ensure their continuing validity.
4.4.5 Specimen cards, delegated authorities and acting designation memoranda must be retained for a period of six (6) fiscal years following their expiration or cancellation date in accordance with the CFOB Financial Records Retention Policy.
4.5. Exercising Financial Authorities on an Acting Basis
4.5.1. Where an employee is required to temporarily perform the duties of a position with delegated authority, i.e. on an acting basis, this person may only exercise this authority if the responsibilities of the position are also assumed.
4.5.2. It is their designated superior's responsibility to ensure that persons who are delegated financial authorities by the Minister or Deputy Minister understand their responsibilities and successfully complete the requisite assessment and training to ensure that all departmental, legal and regulatory requirements are respected (Ref. section 4.6)
4.5.3. No person shall exercise authority delegated to a position on an acting basis unless this authority is first formally designated and approved by the person to whom the permanent incumbent of the position reports.
4.5.4. A formal Blanket Acting Designation Memorandum (BADM) listing the names and positions of the individuals designated to be acting during one fiscal year should be completed at the beginning of the year to authorize acting assignments on an annual basis. The BADM must be approved by the superior of the permanent incumbent of the position*, and originals are to be forwarded by mail to NHQ/Regional Accounting Operations (ref. Appendix B.3.[a]).
4.5.5. An activation email, indicating which incumbent from the Blanket Acting Designation Memorandum (BADM) will be acting and for what duration, must be sent to NHQ/Regional Accounting Operations when a designated individual starts a specific acting assignment. This is necessary to:
- identify which specific person from the BADM list has started acting;
- specify the start and end dates of the specific acting period (during the fiscal year); and
- confirm that the name was previously approved for acting purposes on the BADM at the beginning of the year and is still valid.
4.5.6. In cases a BADM was not done in advance as indicated in section 4.5.4 a separate formal Acting Designation Memorandum (ADM) specifying the acting period must be approved by the superior of the permanent incumbent of the position*, and the original forwarded by mail to NHQ/Regional Accounting Operations. An email notification is acceptable on a temporary basis, but must be followed by the original copy for records retention (ref. Appendix B.3.[b]).
*Deputy Minister and Deputy Head equivalents are not required to have their ADM or BADM approved by the Minister
4.5.7. A memorandum formally designating acting authority must:
- Specify the name(s) and position(s) of the person(s) who will occupy the position(s) to which authority has been delegated;
- Specify the effective dates;
- Specify the area of authority and any relevant restrictions;
- Be approved by the manager of the permanent incumbent of the position; and
- Bear a statement indicating "acting assignment in the absence of the incumbent" or similar.
4.5.8. Specimen signature cards must be completed for individuals that are performing the duties of a position on an acting basis, only if the individual does not already have a specimen signature card.
4.6 Training Requirements
4.6.1 The TB Policy on Learning, Training and Development and accompanying Directive on the Administration of Required Training require that before any individual exercises a delegated authority, they must have successfully completed the assessments and training commensurate with their responsibilities to ensure they have the knowledge, skills and competencies needed to effectively exercise delegated signing authorities and carry out their duties.
4.6.2 It is the employee's designated superior's responsibility to ensure that their employees are instructed of this Policy and made aware that failure to comply with these requirements within the specified timeframe will result in a suspension of delegated authorities until after successful completion of required training and assessments.
4.6.3 Requests for information on the TB Policy on Learning, Training and Development and related directives should be routed to the departmental required training coordinators:
For Service Canada: http://intracom.hq-ac.prv/sc-college/eng/rtrep.shtml
For HRSDC: please e-mail the required training coordinators at nc-required_training-formation_indispensable-gd.
4.7 Financial Authorities Requirements
4.7.1 New Financial Authorities and Amendments to Existing Authorities
4.7.1.1 New financial authorities are required when a new program is announced or when necessitated by statutory, legislative, or organizational changes. CFOB will conduct an annual assessment of the delegated signing authorities to determine their continuing validity.
4.7.1.2 Normally, amendments are only required when there are changes in organizational structure and responsibility since delegations are made to positions and not to individuals.
4.7.1.3 Requests for new delegations of authority and amendments to existing authorities must be reviewed by the appropriate Executive Head at NHQ or in the region (i.e. if changes to the authorities are within the regional jurisdiction), and forwarded to CFOB at National Headquarters, and accompanied by a full written rationale.
4.7.1.4 Inquiries regarding declarations of equivalencies should be directed to CFOB at National Headquarters.
4.7.2.1 The appointment of a new minister or deputy head does not nullify existing authorities. The Minister is the only person empowered by the FAA to delegate authorities and authorize another person to exercise it on his or her behalf. When a new Minister is appointed, a new delegation instrument must be prepared as soon as possible by CFOB for approval by the new Minister.
4.7.2.2 When a new Deputy Minister/Chairperson is appointed, it is not necessary to have the delegation instrument signed again.
5. Roles and Responsibilities
This policy is issued under the authority of the Chief Financial Officer.
5.1 NHQ/Regional Accounting Services are responsible for:
- Maintaining the original specimen signatures and acting designation memoranda;
- Ensuring that all specimen signature cards in their custody continue to be valid for the purpose(s) for which they were given;
- Ensuring that annual reviews of specimen signatures and memoranda in their custody are carried out; and
- Developing and implementing formal designation procedures to ensure compliance with the requirement at 4.2.3.
5.2 RC Managers are responsible for:
- Reviewing and updating annually their specimen signatures and acting designation memoranda;
- Advising the appropriate NHQ/Regional Accounting Services unit of any changes to designations; and
- Communicating the effective date of cancellation to the appropriate NHQ/Regional Accounting Services unit when a specimen signature is no longer valid.
5.3 Chief Financial Officer Branch is responsible for:
- Maintenance and interpretation of the departmental policy and supporting documents relating to delegation of authorities;
- Conducting an annual review of the delegated financial signing authorities and recommending changes to senior CFOB management;
- Reviewing all requests for new or amended authorities to the delegation instruments.
- Maintaining the delegations instruments on the CFOB website.
6. Delegation of Authority Instruments
The delegation instrument must specify:
- the specific areas and types of authority;
- the organizational positions to which the authorities have been granted;
- the organizational or program areas covered by the authorities, i.e. the extent of the authorities;
- the corresponding maximum dollar limitation delegated to each generic position; and
- any restrictive conditions.
Tables of equivalent positions must:
- be prepared by each branch or region as necessary;
- identify authority by generic organizational positions in the specific branch or region;
- specify areas of authority and whether authority is full or restricted;
- be approved by the Chief Financial Officer.
7. Monitoring and Compliance
This policy and the achievement of expected results will be monitored in a variety of ways including but not limited to assessments under the Management Accountability Framework, examinations of Treasury Board submissions, Departmental Performance Reports, results of audits, evaluation and studies.
8. Definitions
- Authority is the power to make decisions and to give official permission to do something.
- The Department's delegation instrument is the Delegation of Authority Manual.
- A departmental reorganization is a departmental wide change affecting the structure or organization of the department (e.g. the split of the old Employment and Immigration Canada and Human Resources Development Canada into separate entities)
- Designation is the act of identifying in writing both the incumbent of a position with delegated authority and the officer to whom that incumbent reports. For purposes of validating the knowledge of managers and executives in relation to TB Policy on Learning, Training and Development, the designated superior of an employee is the person responsible for that employee's performance evaluation.
- Expenditure Process – includes spending authority and financial authority.
- Financial Authorities – includes payment authority and certification authority.
- Financial Officer – a person who has been trained and appointed to administer financial functions and duties, above the clerical level, regardless of his or her formal job classification. Financial officers are under the functional direction of the Chief Financial Officer.
- Incumbent – the holder of a position or office including a person appointed to an office on an acting or temporary basis.
- Legal responsibility as defined in TB Treasury Board Policy on Learning, Training and Development encompasses responsibilities and authorities flowing from legislation, other instruments such as orders in council, regulations, international agreements, policies, directives or standards and, where applicable, delegated authorities related to the management of finance, human resources and procurement and those related to any other instrument identified by the employer.
- A position is an aggregation of duties and responsibilities within an organizational structure assigned by management and performed by a designated person.
- Procurement involves the acquisition of goods or services with appropriated funds through contractual or other arrangements. The procurement process has four phases:
- Pre-contractual phase
- Contracting phase
- Contract administration phase
- Post-contractual phase
Validate training means confirming and documenting in writing that an individual has successfully completed the requisite training and assessments of the knowledge required to assume the duties and responsibilities attached to the exercise of delegated financial authorities.
9. References
9.1. Legislation
- Appropriation Acts
- Department of Human Resources Act (PDF, 326 KB)
- Financial Administration Act
- Government Contracts Regulations
9.2. Treasury Board Publications
- Contracting Policy
- Policy on Learning, Training and Development
- Directive on the Administration of Required Training
- Directive on Expenditure Initiation and Commitment Control
- Directive on Delegation of Financial Authorities for Disbursements
- Policy on Internal Control
9.3. Other
- Receiver General Directive 2009-1 "Authentication of Requisitions for Payment or Settlement".
- Human Resources and Skills Development (including Service Canada) Delegations of Authority Manual (effective January 11, 2010)".
- Explanatory Notes – Guide on Delegation of Authority".
Appendix A: Glossary of Terms
A.1. Types of Financial Authorities
RC managers must be delegated Spending authority and Certification authority to ensure they have authority and accountability commensurate to their budgetary responsibility. The TB Directive on Delegation of Financial Authorities for Disbursements subdivides spending authority in three components:
- Expenditure initiation;
- Commitment authority;
- Transaction authority;
Expenditure initiation
Is aligned with managerial, budgetary and operational responsibilities. It is primarily derived from the Appropriation Acts that provide the funds for the purpose specified, but is limited by the restrictions imposed through the Government Contracts Regulations, the Travel Directive and other regulations, policies and directives made under the authority of the FAA. This authority is exercised when the decision is made to obtain goods or services that will eventually result in the expenditure of funds. The objective of this authority is to give operational managers the primary responsibility for initiating expenditures charged to their budgets.
Commitment authority
Is the authority to confirm, before a commitment is entered into, that there is a sufficient unencumbered balance available from the relevant appropriation or item included in the estimates to discharge the commitment.
- This authority, delegated to the Chief Financial Officer is exercised pursuant to subsection 32(1) of the FAA.
- Officers who are delegated payment authority rely on these records to meet their responsibility, under paragraph 33(3) (c) of the FAA, to ensure that no balance of an appropriation will be reduced to the point where it is insufficient to meet all the commitments charged against it.
Transaction authority
Is the authority to enter into contracts or sign-off on legal entitlements (e.g. employment insurance payments). Includes the authority to enter into a contract with an individual or an organization for the procurement of goods and services. The authority for the procurement of goods is granted by Public Works and Government Services Canada (PWGSC) in accordance with the Department of Supply and Services Act. Contracting for services is regulated by the Government's Contracting Policy, Treasury Board directives on contracting and PWGSC directives and policy set out in the Department's Policy on Government Procurement. Specific limits of delegations to managers who have expenditure initiation, purchasing and budgetary responsibilities are included in the Delegation of Authority Manual.
Certification authority
Is the authority to confirm contract performance and price pursuant to section 34 of the FAA, by certifying that:
- Work has been performed, goods have been supplied, services have been satisfactorily rendered and the payee is entitled to and eligible for payment;
- Contract terms have been met and where the price was not specified by contract, it was deemed reasonable;
- The transaction is accurate and financial coding has been provided;
- Advance payments were in accordance with the contract;
- Applicable statutes, regulations and policies have been complied with (e.g. travel, hospitality, departmental bank accounts, salaries etc);
A.2. Payment authority
Is the authority to requisition payments and charge them against appropriations and is delegated to positions classified "financial officer" who can independently verify that other officers properly exercise spending authority and related financial controls. Payment authority may not be exercised without the supporting signature of the officer with section 34 authority.
It is the responsibility of financial officers with payment authority to:
- Review the transactions for reasonableness and for the lawfulness of the payments;
- Review quality assurance processes and appropriate financial controls to ensure the adequacy of the account verification in section 34 of the FAA; and
- Be in a position to state that the process is in place and is being properly followed.
Appendix B: Delegation of Authority (required elements)
B.1. Specimen Signature card GC 136B
The speciment card Specimen Signature (GC136) (PDF, 27 KB) (opens new window) is the standard government card and is used in the Department for the delegation of section 33 of the FAA
B.2 Specimen Signature Card FIN 5034
The specimen card Specimen Signature (FIN5034) (PDF, 151 KB) (opens new window) is the specimen card in use in the Department for the manual delegation of expenditure initiation and section 34 of the FAA.
Only one copy of Specimen Signature (FIN5034) (PDF, 151 KB) (opens new window) must be completed for internal financial delegation (expenditure initiation and section 34). However, one copy of form GC 136 is also required for PWGSC when section 33 is delegated to a position.
B.3 Acting Designation Memorandum
- Advance designation of acting authority by blanket memorandum and activation of specific acting period by e-mail notification
Blanket Acting Designation Memorandum (BADM) (FIN5043) (PDF, 98 KB) (opens new window) (refer to section 4.5.4) - (b) In the absence of advance designation of formal acting authority Blanket Acting Designation Memorandum (BADM) (FIN5043) (PDF, 98 KB) (opens new window) (refer to section 4.5.6)
B.4 Financial Signing Authorities Web Application
The Signing Authority Web Application (SAA) is managed by Accounting Services, NHQ. This central system provides electronic access to the Delegated Authorities and facilitates the maintenance of the departmental specimen signature cards. http://signatures.prv/Signatures/index.cfm?APP=SA&ACT=Search&Dsp=Incumbents&LANG=E
To ensure consistency at the organizational level, all custom changes or equivalents to the systems at items B.2 and B.3 must be approved CFOB, NHQ.
Appendix C: Guidelines
C.1. Amendments to Specimen Signature Cards
Section 4.4.1 items (f) and (g) require that specimen signatures be replaced and re-authenticated in the following situations:
- When the signature of the incumbent changes (e.g. due to health reasons);
- When there is a legal name change (e.g. by marriage);
- In case of a departmental re-organization (e.g. the split of a department resulting in the creation of a new agency. A situation where the position title changes, but the duties of the position remain the same does not constitute a departmental reorganization and does not require a new signature card; neither does a change of RC number within the same program branch); or
- As a result of a policy change requested by senior officials or initiated by the financial policy branches (e.g. a Treasury Board Secretariat [TBS] directive implementing a new authentication process).
The other administrative data listed on the form FIN 5034 are included for the designation of the incumbent and the identification of the areas of responsibilities (i.e. position, title, RC, restrictions, type of spending authority and specific areas of responsibility) and changes in this administrative data do not require a new specimen signature card. In such situations, an explanation note emailed to the appropriate NHQ/Regional Accounting Services unit is adequate.
The information note must include the effective date of the change and should be forwarded by the manager of the incumbent to the appropriate Accounting Services unit as soon as the change to the designation or area of responsibility is known.
C.2 Restricting Financial Authorities
Managers cannot delegate or re-delegate financial authorities, but they can restrict these authorities.
Where appropriate, delegated authorities may be restricted by:
- geographical location;
- organizational structure;
- activity;
- function;
- reduced dollar limits; and
- (f) any other local restrictions,
Commensurate with the duties and responsibilities of the positions; or in special situations such as very small offices with partially trained employees, special projects, or limited budgets.
Appendix D: Frequently Asked Questions
The information in this section is intended as a tool to assist you in your duties and help you provide a better quality of service to our clients. The section will be updated on an ad-hoc basis and will incorporate clarifications on recurring questions.
D.1 - Specimen Signature Cards
1 - What information must be entered in the restriction field of the specimen signature card (FIN 5034)?
Section 4.4.1 of the policy specifies that the type of authority and any restrictions must be identified on the specimen signature card.
To identify the types of authorities that a position has, the specimen signature card should indicate the following information:
- For operating funds and transfer payments: any restrictions to the authority areas and dollar levels indicated for a given position in the Delegation of Authority Instrument. That is, any deviation from the Delegation of Authority Manual must be documented on the card.
- For special financial signing authorities, write off, waiver and reduction of interest the specimen signature card should state, as applicable, the following sentence: "Authority for write-off/waiver and reduction of interest/special financial authorities for the position as indicated in the Delegation of Authority Manual". The reason is that expenditure initiation and expenditure approval checkboxes only apply to operating funds and Grants and Contributions. Therefore, all other types of financial authorities must be specifically identified. A similar sentence should be included for Canada Pension Plan, Old Age Security and Annuities Program.
- Where generic position titles as specified in the Delegation of Authority Instrument have not been used, the specimen signature card should identify in the position title field if the individual is a manager or a functional specialist. This is needed to satisfy the training requirements of the Learning Policy.
Note: The specimen signature card only includes financial authorities; therefore its completion is not required for human resources, employment insurance or administrative and information authorities.
D.2 - Required Training
- What are the training requirements for the functional specialists with regard to the exercise of delegated authorities under the new training policy?
The exercise of delegated authorities is not suspended for functional specialists at this time. This group includes executive assistants, program officers/analysts, team leaders and any other position identified in the Delegation of Authorities Manual who may exercise a financial authority but does not manage a budget.- Officers, team leaders and other functional specialists who do not have budgetary responsibilities may only exercise authority as per the Delegation of Authority Instrument when the manager responsible for the budget authorizes it by signing the designation section of the specimen signature card.
- Since functional specialists exercise authorities on behalf of and in support of RC managers, the RC manager who is responsible for the budget remains accountable for the use of those funds and for the proper exercise of responsibilities attached to delegated authorities.
This section will be revised once required training is made available to functional specialists.
- Does the Policy on Learning, Training and Development apply to actors appointed in a position with delegated authorities?
Yes. Individuals in acting appointments need to take the required training/validate their knowledge in order to exercise delegated authorities. Officers in acting positions are essentially exercising the duties of their manager in his absence and are consequently both responsible and accountable for effectively carrying out the roles and responsibilities attached to the acting position they are occupying. This requirement is outlined at section 4.5 of the Policy and applies to both short term and long term actors. For further clarification on the application of this requirement, please contact your required training coordinator. - Would individuals currently exercising section 33 for Income Security Programs (ISP) payments retain their delegated authority or would they have to validate their knowledge through the on-line test and/or take the course?
Individuals exercising section 33 for ISP payments, Annuities payments or similar programs are considered functional specialists and can therefore retain/obtain delegated authorities. Training programs for functional specialists are currently under development. Upon completion of the training packages all functional specialists exercising financial authorities will have to attend the Required Training as requested under the Leaning Policy. It is recommended however that those functional specialists who exercise section 33 take the required training for managers in the meantime since they exercise payment authority and have greater accountability. - Can a manager act at an EX-02 or EX-03 level if he has validated his results at the EX-01 level?
Yes. It was recently clarified that managers and executives who have successfully completed their knowledge assessment and have valid results for their current level can act at one level above since both managers and EX-01 executives fall in the same EX-01 knowledge validation category.
Although EX-01 executives and non-EX managers attend different training courses, they are required to successfully complete the same online validation test, which is the EX-01 Executive’s Validation Test. In addition, both managers and EX-01 executives must validate their knowledge of the legal responsibilities attached to the duties at the EX-01 level. Finally, acting assignments in the Department - whether short on long term - are based on operational requirements versus available resources. Although rare, circumstances may still require that a non-EX manager acts in an EX-02 position.
Note that for acting periods cumulatively longer than four months, managers and EX-01 executives are required to take the training and validate their knowledge at their acting level.
D.3: Segregation of duties
Can a subordinate exercise section 34 approval on the personal expenditures of the supervisor, e.g. travel or hospitality?
No. The situation of having an employee certify a supervisor's expenses raises issues of proper segregation of duties, managerial budgetary responsibilities as well as an appearance of conflict of interest.
Section 4.3 of the Policy states that the segregation of duties must ensure that one person does not have complete access and control to the spending and payment process, thereby mitigating the risks associated with misuse of funds. Item f of section 4 of the TB Policy on Account Verification also states that "no person shall exercise spending authority (section 34) with respect to a payment from which he or she personally can benefit, directly or indirectly". Based on the above, since the delegate in the RC certifies the expenses of the RC on behalf of the RC manager (i.e. person responsible for the budget), that employee cannot certify the RC manager's personal expenditures. That would be equivalent to having the RC Manager certify his own personal expenditure claims which is in contravention of the Policy. For example, a director's travel expenditures must be authorized by the superior (expenditure initiation) and should also be approved by the same superior or by a delegate for the superior.
Finally, there is the semblance of conflict of interest and public scrutiny that must be considered since there is always a possibility that the employee certifying section 34 may not find acceptable certain expenses if he or she determines they are outside the provisions of the applicable Policy or in contravention of the expenditures authorized by the RC manager's superior when the manager exercised expenditure initiation authority. Employee-related transactions such as training, leave requests or travel expenses should therefore be certified by the reporting supervisor/manager/executive with delegated authority.