CPPM Procedure Chapter E: Special Types of Disbursements
This chapter of the Core Policy and Procedures Manual provides direction on special types of disbursement processing including legal encumbrance procedures, government chargecards, and payments by government agent cheques.
- E.1 Legally Encumbered Payments
- E.2 Government-Approved Chargecards
- E.3 Travel Card
- E.4 Business Transaction Account (BTA)
- E.5 Province of British Columbia Vehicle Service Cards
- E.6 Purchasing Card
- E.1.1 General Overview
- E.1.2 Third Party Demand
- E.1.3 Garnishing Order
- E.1.4 Commercial Assignments
- E.1.5 Bankruptcy and Insolvency
- E.1.6 Inter-Ministry Set-off
- E.1.7 Making Payments to Encumbered Vendors
The Corporate Compliance and Controls Monitoring Branch (3CMB), Office of the Comptroller General is responsible for managing the encumbrance function and processing payments by the Province that have become legally encumbered through federal or provincial legislation or the common law, as a result of third party demand, garnishing order, assignment and, or inter-ministry set-off.
Once the legality of an encumbrance is established, 3CMB places the debtor on stop pay status in the respective payment system(s).
3CMB cannot exercise discretion in complying with the requirements of an encumbrance order. In particular, encumbered payments resulting from a garnishing order, third party demand and, or assignments, could lead to the Province becoming financially and legally liable, if the payments subject to those encumbrances are not processed correctly in accordance with the terms of the order and the applicable law.
Information collected on debtors is strictly used for the purposes of managing encumbrance orders and processing encumbered payments. 3CMB cannot provide this information to any person outside of the Branch for purposes other than the legal encumbrance function.
Encumbrance orders received by a ministry must be immediately forwarded to 3CMB.
Corporate Compliance and Controls Monitoring Branch
Office of the Comptroller General
PO Box 9462 Stn. Prov. Govt.
Victoria BC V8W 9V8
A Third Party Demand is a legal order issued by a federal or provincial government agency with the legislated authority, requiring the Province to redirect money to a third party, otherwise owing to the debtor.
Examples of Third Party Demands include:
- Notice of Attachments – Issued by the Family Maintenance Enforcement Program for family maintenance payments;
- Requirement to Pay – Issued by Canada Revenue Agency to recover outstanding income/excise tax, GST/HST, and CPP;
- Demand on Third Party – Issued by the Employment Standards Branch, Province of BC to recover outstanding payment of salaries and wages from employers;
Demand on Third Party – Issued by Human Resource Social Development of Canada to recover outstanding employment insurance.
A Garnishing Order is a court order requiring the Province to redirect money to the Court, otherwise owing to the judgement debtor.
Pursuant to Section 6 of the Court Order Enforcement Act, a Garnishing Order which names a public servant as the judgment debtor must be served on the Deputy Minister of Finance or by leaving them for that deputy minister at the following address:
Deputy Minister of Finance
C/O Corporate Compliance and Controls Monitoring Branch
Office of the Comptroller General
PO Box 9462 Stn. Prov. Govt.
Victoria BC V8W 9V8
If the salary or wages of the public servant are usually paid by a board, commission, government agent or officer other than the Deputy Minister of Finance, the garnishing order must also be served on either the chief officer, chair of the agent, or the officers by or through whom the salary or wages of the employee are usually paid. The legal requirements for proper service of these orders are set out in Section 6 of the Court Order Enforcement Act.
Pursuant to Section 8 of the Crown Proceeding Act, a Garnishing Order which names a government supplier, individual or legal entity to which the Province owes money (other than for the salary or wages of a public servant), as the judgment debtor, must be served on the Attorney General of BC in Victoria. Such an order is deemed to be sufficiently served, if left at the Victoria offices of the Ministry of the Attorney General, during office hours with a solicitor on the staff of the Attorney General, or mailed by registered mail to the Deputy Attorney General in Victoria. The legal requirements for proper service of these orders are set out in Section 8 of the Crown Proceeding Act.
An Assignment of accounts is the transfer of the right to funds in an account from one party, to another.
Assignments of debts are often executed by a business as security for a loan. Upon the request of the Corporate Compliance and Controls Monitoring Branch (3CMB), ministries must forward copies of the relevant contracts.
Upon receipt of the assignment and copies of the contracts, 3CMB will manage the encumbrance function and process any encumbered payments in accordance with the assignment request.
The government honours properly executed assignments of book debts. Ministries may sign for receipt of documents from, for example, a courier. However, ministries must not sign assignment documents. All such documents must be immediately forwarded to 3CMB.
The government does not accept employees' voluntary assignment of wages.
Assignment in bankruptcy, assignment for the general benefit of creditors or receivership proceedings received by a ministry must be promptly forwarded to the Legal Services Branch, Ministry of Attorney General.
Where the Province owes money to a supplier, individual or legal entity and that same entity owes money to the government, recovery may be initiated by the creditor ministry by completing an Inter-Ministry Set-Off Request form (FIN 11) (PDF) (government access only) and submitting this electronically to 3CMB to obtain Comptroller General approval.
If the payable and receivable are within the same ministry, Intra-Ministry Set-Off Request form (FIN 29) (PDF) (government access only) is to be used, without any involvement from the 3CMB.
This process establishes an offset of the accounts payable against the accounts receivable across government. All regular means of collection must have been considered and attempted by the ministry initiating the set-off prior to using this collection method.
Pursuant to Section 38 of the Financial Administration Act, Treasury Board may, by directive, authorize the Comptroller General to retain money by way of set-off, out of any money due or payable to a person by the government or out of a trust fund, if
- That person owes money to the government,
- An overpayment has been made by the government to that person, or
- An advance made to that person under section 36 has not been repaid or accounted for.
The ability of the Province to set off a debt owed by an employee to the Province is constrained by section 21(1) of the Employment Standards Act, which stipulates that: “except as permitted or required by the Act, or any other enactment of British Columbia or Canada, an employer must not directly or indirectly, withhold, deduct or require payment of all or part of an employee’s wages for any purpose.”
A written authorization from the employee or legal authority (court order, arbitration award filed as deemed court order) is required prior to deduction of an employee’s wages.
Where written authorization from the employee is provided, payroll deduction is set up through the Public Service Agency, without any involvement from the Corporate Compliance and Controls Monitoring Branch.
Once the legality of an encumbrance order is established, 3CMB places the debtor on stop pay status in the applicable payment system(s).
Payments made to the debtor via a government financial system will be diverted to 3CMB for further processing.
If a payment subject to a legal encumbrance is made contrary to the encumbrance order, the Province may be held legally and financially liable.
To avoid bypassing the stop payment controls, ministries should be aware of the potential gaps that may subject the Province to these risks.
CPPM 4.3.19 describes policy for the use and maintenance of government approved chargecards by public servants for the acquisition of certain goods and services. In accordance with the policy, three types of cards are described in these procedures:
- the travel card;
- the Province of British Columbia Service Card (Vehicle Service Card); and
- the Purchasing Card.
For purposes of these procedures, TELUS Calling Cards and taxi company charge cards are not considered to be government-sponsored credit cards or government-approved chargecards.
Ministries may wish to consider issuing corporate telephone calling cards to senior executives who have to make a large number of business related telephone calls while on travel status. This would save the additional hotel surcharges for operator assisted calls.
- E.3.1 General
- E.3.2 Liability
- E.3.3 Eligibility and Restrictions on Use
- E.3.4 Administrative Responsibilities
- E.3.5 Cardholder Responsibilities and Procedures
- E.3.6 Headquarters Outside of Canada
- E.3.7 Procedure for Cancellation
- E.3.8 Spend Dynamics
The objectives for using the travel card are to:
- replace accountable advances, except in circumstances where the card cannot provide the required service and the employee does not qualify for a travel card;
- offer an easier and simpler method of travel planning by supporting the use of an internationally recognized multi-use travel card for use while on travel status;
- provide employees with a less costly and more efficient access to cash required for government approved travel; and
- accumulate expenditure information by supplier for central agency decision making or negotiation of discounts.
A special agreement has been negotiated to allow provincial government employees to use the Bank of Montreal MasterCard travel cards to pay approved travel related expenses and obtain travel cash advances. The cardholder is responsible to pay the monthly statement balances directly to the Bank of Montreal (BMO) and claim for reimbursement by completing and submitting a travel expense report via iExpense.
The travel card also carries the following insurance for the cardholder:
Corporate Travel & Entertainment Program Insurance
- Car Rental Collision Damage Waiver
- Car Rental Accidental Death and Dismemberment
- Car Rental Personal Effects
- Hotel/Motel Burglary
- Unexpected Return Home
- Trip Assistance Services
- Medical Assistance Services
Note: For full details of the terms and conditions of the above and other benefits associated with the use of the card, employees should consult the information package received with their cards or contact their ministry card coordinator.
Renewal of the card is at the option of the card issuer. A ministry, the Office of the Comptroller General or the cardholder may also request cancellation of a card.
The travel card provided by BMO is a personal pay / shared liability product. The Province is liable for all legitimate travel expenses for which the employee has not been reimbursed, and the employee is liable for any unauthorized charges and for approved travel expenses for which they have already been reimbursed. It is the employee's responsibility to pay the monthly statement balance in full by the due date. It is therefore essential that employees and ministry staff submit and process travel voucher reimbursements in a timely manner to avoid account delinquencies and interest charges.
Any provincial government employee, or incumbent of a government position (i.e. an individual seconded from an organization outside the provincial government, but not a contractor, volunteer, etc.) or Order-in-Council appointee is eligible to apply for a travel card.
The travel card is used to make purchases that are in the name of the employee and reimbursed through the submission of a travel claim or business expense approval form.
- While on travel status, cardholders use the travel card to pay for meals, accommodations and local transportations (such as car rentals and cab fares). The card may also be used to pay for minor incidental travel and business expenses.
- While within headquarters, cardholders use the travel card to pay for reimbursable business expenses and local travel, such as parking and taxis.
The card should not be used for:
- purchases for personal use;
- cash withdrawals that are for personal use; and
- purchases for which the Purchasing Card or other government approved charge card should be used (such as business meeting and conference room expenses).
a) Procurement Services Branch Responsibility
Procurement Services Branch maintains a central registry of all government approved travel card cardholders and a listing of ministry travel card coordinators. At least on an annual basis, ministry travel card coordinators are required to reconcile and confirm their ministry cardholders to the central registry.
b) Chief Financial Officer Responsibilities
Ministries are responsible for:
- establishing eligibility guidelines;
- appointing a ministry travel card coordinator/alternate by completing a Commercial Card Coordinator/Alternate Change Application (FIN 182) (PDF) (government access only), and forwarding it to the Government Card Coordinator;
- ensuring that adequate controls are in place to prevent the misuse of the card including duplicate payments and reimbursements;
- processing travel claims promptly to enable the employee to avoid delinquency fees; and
- appropriately limiting the issue of accountable advances.
c) Travel Card Coordinator Responsibilities
Travel card coordinators are responsible for:
- ensuring that the BMO ePurchasing Solutions Corporate MasterCard Account Agreement Program Card Request (FIN 643) (PDF) (government access only) is complete, accurate and authorized;
- ensuring that cardholders understand their responsibilities and receive appropriate training in the use of the travel card;
- ordering travel cards and maintaining cardholder information using the Spend Dynamics system;
- maintaining program documentation including a registry of cardholders that is to be annually reconciled to the central registry available from BMO;
- monitoring the Travel Card Program; and
- ensuring that travel cards are cancelled for cardholders leaving the ministry.
a) Cardholder Responsibilities
Cardholders are responsible for understanding and abiding by all the terms and conditions of being a cardholder. This includes:
- using the card for approved purchases relating to government travel only;
- reviewing monthly statements and reporting fraudulent use of the card;
- taking reasonable steps to ensure that the outstanding monthly statement balance on the card is paid in full and on time;
- claiming reimbursement for expenses on a timely and systematic basis to avoid late payment fees and delinquent accounts;
- ensuring that the card is used directly with merchants wherever possible and that cash advances are kept to a minimum;
- declaring to the expense authority if any benefits have been received from the use of the card or insurance claims are pending under the cardholder agreement; and
- safeguarding the card from loss or misuse.
b) Application Procedures
Individuals who wish to apply for a BMO travel card should:
- request from the ministry travel card coordinator a BMO ePurchasing Solutions Corporate MasterCard Account Agreement Program Card Request (FIN 643) (PDF) (government access only); and
- complete the employee information section clearly and legibly, sign and date the form, and forward to the appropriate ministry expense authority for approval. The employee should read the attached appendixes and seek clarification from the travel card coordinator if necessary.
The expense authority is to complete the Employee Account Authorization Controls section by indicating the transaction, monthly and daily cash advance limits before signing the form and sending it to the ministry travel card coordinator. The ministry travel card coordinator is to review the form for accuracy and completeness and order the travel card using the Spend Dynamics system. The bank will normally mail the card (usually within two weeks) to the travel card coordinator who will forward the card to the employee. The Personal Identification Number (PIN) for cash access at automated teller machines (ATM) will be sent under separate cover about one week later directly to the cardholder.
c) Cardholders on Leave of Absence
Cardholders who go on leave of absence for a period of more than two months shall surrender their card to the chief financial officer. The card's account status should be changed to "Closed" in the Spend Dynamics system. On the return of the cardholder, the card status can be changed to "Open" and the cardholder can start using the card again.
d) Cardholders Moving to Other Ministries
An employee who moves to another ministry must notify the travel card coordinator so the travel card can be cancelled. If the employee requires a travel card in the new ministry they are to request a new travel card following the application procedures above.
e) Payment of Outstanding Balances
Travel card monthly statements must be paid in full by the due date by the cardholder. Interest will be charged on outstanding balances starting on the 31st day after the statement cut-off, which is the third of the month.
Cardholders are responsible to claim reimbursement for expenses on a timely and systematic basis to avoid late payment fees. The ministry has the responsibility to process travel claims promptly. If due to no fault of their own, cardholders are not reimbursed in time to avoid the late fees, the expense authority may authorize reimbursement of the late fees.
Payments must be received by BMO by the due date and can be made:
- by cheque mailed to BMO
- by cash at any BMO
- by automated teller machine
- by telephone banking
- by internet payment
- by electronic funds transfer (EFT) from a cardholder's bank account
- by pre-authorized debit (PAD) from a cardholder's bank account
f) Delinquent Accounts
BMO will not commence any legal action against the cardholder to collect amounts owing without first receiving written confirmation from the Province that such amounts do not represent the reimbursable portion of any authorized expense which was reimbursed.
Temporary accountable travel advances may not be available to employees whose own actions result in the cancellation of the travel card.
g) Transaction Costs
BMO charges a fee of 2% of the cash advance amount if withdrawn from a BMO automated teller machine (ATM) or BMO branch. BMO charges a fee of 4% of the cash advance amount if withdrawn from a non-BMO ATM or non-BMO branch. Additional ATM fees may apply to cash advances taken from ATMs operated by other financial institutions.
Cardholders will be reimbursed for cash advance and ATM fees incurred (if any) on the travel related cash advance.
Employees should make every effort to minimize cash advance and ATM fees by using BMO ATMs.
h) Completing the Travel Expense Report
Expense authorities may authorize the following expenses (enter as miscellaneous and attach the receipts and/or statements):
- the fees charged on cash advances as noted above under "Transaction Costs"; and
- late payment charges if the charges resulted from the cardholder not being reimbursed in time to avoid the late fees. (Attach a copy of the BMO statement and a brief explanation of why the statement could not be paid on time).
The expense authority should review the amount of cash advance for reasonableness for the type and destination of the travel. If the amount is not reasonable, the claim for the cash advance fee should be reduced.
i) Personal Identification Numbers
Shortly after the cardholder receives their travel card, they will receive their Personal Identification Number (PIN) by mail. The Personal Identification Number is required for cash advances and is to be kept confidential. Do not reveal your PIN to anyone. Do not write your PIN on your card. Do not keep your card and PIN in the same location, i.e., wallet, purse, etc.
j) Reporting Lost or Stolen Cards
When a charge card is lost or stolen, the cardholder must immediately advise a BMO customer service representative by telephone:
- In Canada and the US call toll-free: 1 800 361-3361
- Elsewhere call: COLLECT 0 416 232-8020
The cardholder must also immediately advise the ministry card coordinator that the card was reported lost or stolen. This notification will be done initially by telephone, followed up in writing. The card company will issue a replacement card to the employee.
There is no liability to the employee for transactions on cards which have been reported lost or stolen. In cases where transactions have occurred on a card before the cardholder has reported a loss or theft, BMO will review the timeliness of the reporting and the fraudulent transactions and, in most cases, will waive all liability, including the usual $50 liability cap. The cardholder may be required to sign an affidavit of forgery stating that they did not make the charges. In the event that they refuse to sign the affidavit, all charges will be considered their responsibility.
The travel card may be used and statements may be paid in local currency funds by cardholders whose headquarters are outside Canada. Expense authority on the travel expense report will continue to be exercised in the usual way.
Travel card coordinators should ensure that travel cards are cancelled and destroyed if:
- requested by the ministry or Office of the Comptroller General;
- the cardholder leaves the employment of the ministry;
- the card is reported lost or stolen; or
- the card is no longer required.
Normal cancellations, which become effective within 24 to 48 hours, can be requested through the Spend Dynamics system. For emergency cancellations, travel card coordinators can call BMO to immediately request the cancellation. Travel card coordinators are to immediately change the account status to "Closed" in Spend Dynamics.
Note: Travel cards must be suspended (account status changed to "Closed") for the duration that an employee is on extended leave. The card can be temporarily reinstated (account status changed to "Open") if, for example, the employee is required to travel while on extended leave for medical travel assistance (i.e., leave for medical and dental care in accordance with the terms and conditions of employment/master agreement provision).
Travel card coordinators will use the Spend Dynamics system to perform numerous administrative activities including:
- requesting new cards;
- changing the status of cards;
- requesting the cancellation of cards;
- updating cardholder information;
- resetting cardholder account passwords;
- changing the hierarchy "reports to" structure for cards;
- reviewing cardholder statements and transactions; and
- generating various travel card reports.
Cardholders have access to the Spend Dynamics system and can:
- review individual transactions within 24 hours of the transactions being processed by the BMO; and
- review and print monthly statements within 24 hours following the monthly billing cycle date (which is the 3rd of the month).
Spend Dynamics is accessible through the Internet at https://www.bmospenddynamics.com/secure/welcome.asp. You will be asked for your username and password (which were provided in emails from Spend Dynamics). The first time you enter Spend Dynamics, you will be asked to replace the password originally provided with a new confidential password that you supply. Functions that are available to you will be found on your HOME page.
If you require assistance in using Spend Dynamics, contact your travel card coordinator.
- E.4.1 Benefits of Using Business Transaction Accounts
- E.4.2 Appointing a Business Transaction Account Coordinator
- E.4.3 Setting up a Business Transaction Account and a Business Transaction Account Accountholder
- E.4.4 Account Use
- E.4.5 Business Transaction Account Reconciliation and Payment
The Business Transaction Account is a MasterCard account number issued by BMO to a ministry department, branch or office. The account number resides with a travel agency and is used to pay for travel tickets (airfare, bus or train) issued to a select group of individuals that have been identified to the travel agency. There is no plastic card issued and transactions are usually initiated with the travel agency by phone, fax or email.
When tickets are issued by the travel agency, they are to be accompanied by a "nil" invoice/itinerary billed in the name of the department/branch. This invoice/itinerary will be used to reconcile the monthly statement received from the BMO and clear the inter-ministry journal voucher charge-back that is initiated by Procurement Services Branch (Ministry of Citizens' Services). Procurement Services Branch pays the monthly BMO statements on behalf of all ministries and promptly charges back the ministry their business transaction account expenditures.
All purchases made on the business transaction account are to be billed in the name of the department/branch. Car rentals and hotel reservations are not to be booked on a business transaction account and must be paid directly by the employee.
The account also carries the following insurance for the traveller:
One Card Program Travel Insurance
- Common Carrier Accidental Death and Dismemberment
- Flight Delay
- Baggage Delay
- Lost or Stolen Baggage
- Trip Assistance Services
- Medical Assistance Services
Note: For full details of the terms and conditions of the above and other benefits associated with the use of the card, employees should consult the information package received with their cards or contact their ministry card coordinator.
The ministry chief financial officer is responsible for appointing a ministry Business Transaction Account Coordinator by completing a Commercial Card Coordinator/Alternate Change Application (FIN 182) (PDF) (government access only). The completed form must be forwarded to the Government Card Coordinator at Procurement Services Branch.
The business transaction account coordinator's responsibilities include:
- ensuring all forms for setting up a business transaction account are complete and accurate;
- ordering business transaction account numbers and maintaining business transaction account information in Spend Dynamics;
- maintaining a registry of business transaction account accountholders and annually reconciling this registry to the central registry available from BMO;
- monitoring the business transaction account program; and
- informing the government card coordinator of contact information changes.
A separate business transaction account should be established for each department, branch or office in a ministry (there is no limit to the number of business transaction accounts a ministry can use). The business transaction account should be at the level where expense authority and payment reconciliation will occur. This should not be done centrally (i.e., for the entire ministry or division) unless specific procedures have been developed to ensure timely reconciliation and payment.
To request a new business transaction account or update an existing account, complete the Request to Open/Change a Business Transaction Account (BTA) (FIN178) (PDF) (government access only). The business transaction account accountholder is the office contact that will be the custodian of the business transaction account number and function as the main contact with the travel agency. The business transaction account accountholder is to provide contact information for the department/branch and the travel agency. Transaction and monthly limits should be set annually based on actual requirements and must be within the budget allocation of the expense authority to whose budget the expenditures will be charged. Transaction and monthly limits above $10,000 require the additional approval of Procurement Services Branch, as government card coordinator and approval for monthly limits above $100,000 must also be obtained from the Office of the Comptroller General.
The business transaction account coordinator will inform the business transaction account accountholder when the account has been setup. The business transaction account accountholder will then complete and send the Notice to Vendor, Business Transaction Account (FIN 179) (PDF) (government access only) to the travel agency, which includes contact information and the list of authorized users whose travel can be charged to the business transaction account.
The business transaction account accountholders responsibilities include:
- ensuring that the Request to Open/Change a Business Transaction Account (BTA) (FIN178) (PDF) (government access only) is complete and accurate;
- ensuring that the Notice to Vendor, Business Transaction Account (FIN 179) (PDF) (government access only) is complete and accurate;
- ensuring that the Authorized Users list is updated with the travel agency;
- reporting any unauthorized or misuse of the account to the chief financial officer and the BTA coordinator;
- informing the business transaction account coordinator of contact information changes; and
- reconciling monthly BMO statements to the travel agency information and ensuring the reconciliation is approved by the expense authority.
Business transaction accounts are used to pay for authorized travel tickets (airfare, train and bus). Tickets are purchased in the name of the traveller and are billed to the ministry department, branch or office. The business transaction account should not be used for personal travel or cash advances or other travel related expenditures for which the travel card should be used.
Procedures for Purchasing Travel Tickets
- order the ticket from the travel agent and bill to the business transaction account number. Tickets can only be ordered for individuals listed on the Authorized Users List;
- the ticket is received from the travel agency with an invoice/itinerary. The invoice/itinerary is to have a "nil" balance showing the charges and the credit for payment made with the business transaction account;
- the ticket is delivered to the employee. The employee as qualified receiver, signs the invoice to signify receipt of goods;
- the "nil" invoice is held in a pending file until the BMO statement arrives;
- cross-reference the employee Travel Voucher number to the travel agency invoice (at the discretion of ministry expense authority).
When the monthly BMO statement is received, it will immediately be paid by the Procurement Services Branch (Ministry of Citizens' Services) and charged-back to the ministry on an inter-ministry journal voucher to a ministry clearing account. The BMO statement is to be coded and reconciled to the travel agency invoice/itineraries which should have been signed by the qualified receiver (traveller). Discrepancies must be resolved as soon as possible. (Travel agencies should be informed that all charges or credits must be referenced to the original transaction.) The reconciled and coded BMO statement is to be sent to the expense authority for authorization and then entered into the CAS Accounts Payable module as a "zero invoice" to reallocate the expenditures to the appropriate accounts and clear the ministry clearing account.
For assistance in determining entries for Accounts Payable, Business Transaction Account Register forms are available on the OCG Forms site (government access only) to account holders to log purchases and determine GST/HST recoverable amounts. The forms also support reconciliation and expense authority approval of monthly statement transactions.
- E.5.1 Fleet Coordinator
- E.5.2 Issuing Service Cards
- E.5.3 Mandatory Full Service Card Use
- E.5.4 Fuel-Only Card Use
- E.5.5 At-the-Pump Fuel Purchases
- E.5.6 Spare Parts, After-Market Items and Equipment
- E.5.7 Issuance of Cards – Authorized Contractors
- E.5.8 Retail Promotional Programs
- E.5.9 Receipts
- E.5.10 Duplicate Payments
- E.5.11 Storage of Card
- E.5.12 Reporting Lost or Stolen Cards
- E.5.13 Use of Petty Cash
- E.5.14 Payment of Outstanding Balances
- E.5.15 Discounts
- E.5.16 Purchase Limits
- E.5.17 Repair Authorization Process – Full Service
The Fleet Coordinator is the individual designated by the ministry to be the ARI Financial Services, Inc. (ARI) primary contact. In most ministries the coordinator is also the chief financial officer's delegate for the purpose of ordering and cancelling Service Cards.
Service Cards are to be issued as follows:
Full Service Cards – for vehicles requiring both fuel and maintenance services, as well as vehicles leased under the executive lease program (Ministers, Deputy Ministers and eligible Deputy Minister equivalents).
Fuel-only Cards – for vehicles (and equipment, marine vessels and aircraft) that require only fuel purchased at-the-pump, except for daily rentals. Ministries also have the option of issuing Full Service rather than Fuel-only Cards to such vehicles.
The ARI Full Service Card is to be used for all normal motor vehicle operating expenses. This includes the purchase of tires and tire installation and the initiation of repairs and maintenance.
Purchases of car washes and interior detailing may be made with other purchase instruments if the ARI service card is not accepted by the supplier.
The ARI Fuel-only Card is only to be used for the purchase of fuel, lubricants and incidental items. Operators of vehicles issued with a Fuel-only Card must not tender the card for the purchase of maintenance or major repairs.
A Service Card is to be used for all at-the-pump purchases of fuel, lubricants and minor repairs for vehicles, equipment, marine vessels and aircraft. Alternate purchasing methods are only permissible in communities where the Service Card is not accepted.
In order to prevent potential fraud, ARI Service Cards must not be used with pay-at-the-pump card reader devices where PIN-security technology is not available. Pay the purchase by presenting the Service Card to the service centre attendant directly for processing.
With the exception of minor replacement parts (e.g., wiper blades), the Full Service Card cannot be used to purchase spare vehicle parts (except tires), after-market items installed on a vehicle (e.g., winches, special bumpers, canopies) or equipment issued to a vehicle.
The chief financial officer or delegate may authorize the use of the Service Card by a private contractor providing services to the ministry, and operating a government-operated vehicle, if specifically provided for under the terms of the contractor's general services contract.
Employees must not accept any benefits derived from retail promotional programs including coupons, contests, other give-aways, or personal travel points from using the Service Card.
For purposes of reconciling ARI's monthly invoice, ministries should retain receipts for all fuel purchases made with the ARI Service Cards, and copies of work orders for all repair and maintenance work made with the ARI Full Service Card (the work order is not an invoice).
Full Service Card Vehicles – Service centres provide ministries with a work order describing the repairs performed on a vehicle. The work order is for reconciliation purposes only and is not an invoice. ARI pays the service centre. If a ministry pays the service centre causing a duplicate payment, the ministry, not ARI, is responsible for recovering the duplicate payment.
Fuel-only Card Vehicles – If a Fuel-only Card is erroneously used to pay for repairs and maintenance and ARI bills the ministry in duplication, the ministry, not ARI is responsible for recovering the duplicate payment. However, if the repair or maintenance work was approved in advance by a ARI Technician then ARI is responsible for recovering the duplicate payment.
Service Cards are to be kept in a secure place when the vehicle is not in use. Vehicles must be locked at all times when left unattended.
When an ARI Service Card is lost or stolen, the vehicle operator must
- immediately advise ARI by phone (1 855 446-4274) within 24 hours.
- advise the chief financial officer or delegate.
The use of petty cash for gas/oil purchases is permitted only in emergencies, and appropriate cross-references have to be noted on the petty cash replenishment documents for these expenses.
ARI renders a single monthly Diversified Services Invoice to ministries to be paid in full by the due date of each billing cycle or interest may be charged on the total amount owing.
Under the terms of the Fleet Management Services Agreement, the Province:
- receives the better of any discount negotiated by ARI with the oil companies or any discount offered directly to the Province by the oil companies;
- receives the National Account discount negotiated by ARI with the tire companies; and
- has established MSOs with service centres across the province.
To maximize cost savings, fuel purchases should be made from the company offering the greatest discount in a particular location. Information on discounts offered and preferred and optional suppliers is published on the Vehicle Fleet Management site.
There is no limit on the amount or value of fuel that may be purchased at a single time using the ARI Service Cards, or the number of daily purchases that may be made; however, retail fuel stations may have their own limits set for single purchases.
Purchases of lubricants and minor repairs made with the ARI Service Cards are limited to $25.00 per purchase (including applicable taxes and levies) at most service centres. Attempts to purchase more than $25.00 of lubricants and minor repairs will be rejected by suppliers EPOS systems. PetroCan and Esso accept minor repair purchases to $50.00.
The following process applies to repairs and maintenance including tire purchases for vehicles issued with an ARI Full Service Card. Note: Fuel-only Cards are not be tendered for repairs.
Initiating a Repair
Responsibility for identifying the need for a repair and initiating a repair transaction may be assigned to either the vehicle operator or a designated employee (e.g., an equipment supervisor).
Service Centre Procedure
The vehicle operator presents the Full Service Card to the service centre when the vehicle is delivered for service. Before proceeding with a repair, the service centre must determine the final cost of the work.
Value of Work Less than $750
Where the value of the repair is less than $750, the service centre must phone ARI's toll-free line to obtain authorization to proceed. The ARI technician will confirm that the prices being charged are in accordance with the service centre's MSO. If ARI approves the specific work to be performed it will issue an ARI purchase order number to the service centre.
Value of Work Greater than $750
Where the value of the repair exceeds $750, ARI will obtain approval from a ministry contact designated by the appropriate expense authority before authorizing the service centre to proceed with the work. Note: Ministries may define their own thresholds other than $750 with the approval of the chief financial officer or delegate: the threshold limit for the Ministry of Forests, Lands and Natural Resource Operations is $500; however, for the Ministry of Transportation and Infrastructure it is $1,000.
ARI will only pay the service centre the specific amount approved by the ARI technician. This is the amount that will appear on the ARI diversified services invoice.
The vehicle operator must sign and retain the service centre's work order at the time the work is completed and the vehicle is picked up.
The Purchasing Card is the primary instrument for making small dollar value purchases. The authority to purchase is delegated to positions. Individuals holding those positions receive a Purchasing Card and authority to purchase.
Detailed information and Purchasing Card procedures are available in the Purchasing Card Manual.