Sea Logistics Qualification Board Questions Flashcards
Duties and Responsibilities of SYO
The SYO shall be responsible to the CO for the efficiency and effectiveness of the Logistics Dept. He/she shall also be responsible to the XO for disciplinary, welfare and
administrative matters for personnel employed in the Logistics Dept. Specifically, he shall:
a. Be accountable to the CO for the overall CRR of the Logistics Dept and to provide Logistical Support;
b. Provide timely advice to the CO on tactical and administrative logistics Considerations;
c. Act as DivO for the Logistics Dept (may delegate MS and Below to A/HOD when borne) and supervise Division Heads to ensure accurate maintenance of divisional records, conduct of performance evaluations, and monitoring of individual training;
d. Be responsible for the overall material management practices and procedures including local procurement;
e. As Unit Comptroller, be responsible on behalf of the CO for all comptrollership responsibilities including the accuracy and probity of all financial transactions conducted in both public and non-public accounts;
f. Ensure timely and professional personnel administrative and financial services are provided including financial and SISIP counselling;
g. Provide management and oversight of the resource allocation process, budget forecasting, financial analysis and reporting;
h. Ensure compliance with rules and regulations are adhered to and timely pay and benefits services are delivered;
i. Ensure that laundry services are operated efficiently and in accordance with applicable orders and regulations;
j. Ensure that all aspects of accounting, procurement, warehousing and sales of non-public goods in support of the ship’s personnel support organization (including providing management advice to the Ship’s Committee);
k. Oversee the management of hotel services including food services, messing facilities and officers’ accommodation;
l. Organize the overall transportation requirements;
m. Manage the Contamination Control Organization and related equipment; and
n. Be responsible to the CO all aspects of logistics that may not be specifically covered above and to the XO for all other ship related duties.
Role and responsibilities of the senior pay writer
a. Conduct general pay parades as directed by the Logistics Officer and subject to the CO’s approval. Times and places as promulgated in Routine Orders
b. The safekeeping, disbursement, replenishment and daily balancing of the WCF.
c. All other advances of pay will be for earned pay only and shall only be made when approved by the CO;
d. Ensuring all casual payments are only made as required for personnel proceeding on leave or duty;
e. May, with the approval of the Logistics Officer, accept ship’s personnel’s monies for safekeeping when the ship is deployed; and
f. Assume the duties and responsibilities of the Senior RMS Clerk in his/her absence
Loss and overages of Public Funds
Overage: When an overage is not reconciled within 72 hours, the overage shall be deposited to the Receiver General (RG) as Miscellaneous Revenue. For an overage under $20, no action is required other than depositing the overage to the RG.
a. Less than $10 → no formal investigation is required and overage not need to be reported to NDHQ;
b. $10 - $250 → letter of explanation is required;
c. More than $250 → Summary Investigation (SI) must be conducted.
Loss: Any loss in Public Funds Account, shall be carried in that account until NDHQ provides a FIN CODE or payment to offset the loss. Deficiencies where, no criminal act is known or suspected:
a. $250 or less → letter of explanation;
b. $250 - $1,000 → Summary Investigation;
c. $1,000 or more → Board Of Inquiry.
Actions that need to be done in case of deficiencies in a Public Funds, which may be due to a criminal act:
a. Report the matter to Military Police immediately;
b. Order of Summary Investigation or Board Of Inquiry to investigate the circumstances; and
c. Where the perpetrator is know, (1) consider whether disciplinary action should be taken and (2) in consultation with the AJAG’s office → administrative deduction/recovery action may be taken against the member.
d. Finally, where a criminal act is involved and the perpetrator admits guilt, the requirement to conduct a SI or BOI may be waived at the CO’s discretion.
Investigation Requirement:
a. Ensure the discrepancy is immediately reported to the CO in writing;
b. Confirm discrepancy and the amount and inform the CO of your findings;
c. CO shall report (Initial Report) by message all losses of public funds and overages in excess of $20, which can not be reconciled within 72 hours, to NDHQ/DMPAP with info to MARLANT HQ/N71 and CCFL.
Security of Public Funds
Security Containers (safes): Approved security containers shall be provided for the safekeeping of public funds as follows:
a. $1,000 or less → may be kept in an approved filing cabinet with built in hasp or equipped with an approved locking bar set and secured with approved padlock rated S2/83 in protected area;
b. $1,000 - $50,000 → shall be kept in an approved safe;
c. $50,000 and more → shall be kept in an approved safe with additional security measures including (1) intrusion alarms, (2) sufficient lighting, (3) walls are floors to ceiling, (4) frequent MPs rounds etc…
Safe Combination: Persons to whom a safe has been provided for the safekeeping of public funds in their charge shall change the combination;
a. Immediately on assuming the responsibility as a public funds holder;
b. Whenever it’s suspected that compromise may have occurred;
c. At least once every six month; and
d. On supersession.
Armoured Car Services:
Working Capital Fund
The WCF is an accountable advance to an accounting officer (AO) for issuing other accountable advances and for making payments of pay and allowances, travel and moving expenses, and other expenditures authorized by service regulations and orders.
- It’s like a line of credit from the Receiver General (RG);
- It’s used to conduct daily business on board the ship (paying claims, issuing advances to members, etc…);
- To decrease/increase WCF → email/call N8;
- WCF shall be kept to minimum and is based on OPSKED; if the WCF is too low, we might have a problem (especially when at sea and there’s ACS connectivity issue), however if it’s too high, the Government incurs interest fees;
Appropriate level of WCF: The amount of a WCF shall be kept to the minimum required to meet authorized disbursements by taking into account these:
a. Number of pay day planned;
b. Port services;
c. Allowances (R&R, OPAS, etc…);
d. Miscellaneous entitlement (LTA, HLTA, CTA etc…);
e. Ration;
f. TD;
g. Currency requirement; and
h. Various grant.
To transfer WCF to another ship:
a. Both supplying and receiving ships contact N8 for approval and level required;
b. Supplying will call the bank to organize a delivery and will deliver a cheque to the bank;
c. The receiving ship will receive the money from the bank;
d. The supplying ship will issue R-series advance (an advance sold to another ship to transfer funds from one ship to another) to the receiving ship for the amount requested;
e. And the receiving will issue DND 508 receipt to the supplying ship;
f. The receiving ship will buy the advance. This will be reflected in the supplying ship’s DRMISS report; and
g. The supplying ship will finalize the advance and their WCF will decrease.
Senior Pay Writer takes over WCF:
a. Complete Senior Pay Writer Supersession check list;
b. Cash count Head cashier/sub-cashier;
c. Generate report 6173 to reconcile DRIMS with ACS
d. Review outstanding voucher (advances and claims);
e. Review sensitive paid record;
f. Complete handover certificate and send to N7 within 5 working days; and
g. Change safe combination.
Ways cashiers could steal money:
a. Cashier could give himself an advance, fill out the form; meanwhile WCF continue to balance, → mitigate the risk by carefully analyzing advance and verifying their authenticity;
b. Cashier could generate a claim for himself and forge the approving signature; → mitigate the by daily review of cashier activity including review of all claims;
c. Cashier could borrow money on Friday and replace it Monday morning; → mitigate the by periodically conducting surprise cash verification first thing Monday morning;
d. Cashier could forge the signature of a member → mitigate the risk by checking personally all the AR;
e. Cashier could submit a receipt more than one time.
Miscellaneous note:
a. System Adjustment (SA) when finalize decrease WCF while KRs increase it;
b. SA could increase WCF if a member is putting money on his pay guide;
Cash Count
The examination of cash will determine if the balance of cash and cash vouchers per CF 120 agrees with the actual amount of cash and cash vouchers on hand. Public funds must therefore be segregated from other cash held by the cashier(s). All cash and vouchers, even though they may not be public funds, must be counted, identified, and balanced. There are 2 types of cash count, (1) monthly cash examination which is XO responsibility and (2) Quarterly cash verification which is SYO responsibility.
Monthly surprise cash examination: XO is responsible for the surprise monthly cash examination. Historically, it’s delegated to the A/HOD or Junior MARS Officer. The Head-cashier, Sub-cashier, NPF and SYO holdings are checked during the surprise cash verification. A member of at least PO2 can be appointed to conduct a cash examination.
Quarter verification: Conducted by the SYO every quarter and what to look for are:
a. 6173 daily report and daily cash count conducted;
b. Check debit/credit balances;
c. Check sensitive pay guide at least for last 3 months;
d. Upload are occurring weekly or at least at $5,000;
e. Safe combination changed every 6 months or as required if compromise; and
f. Review open ARs and examine outstanding claims and advances.
Claims
What to look for when auditing a claim:
a. Authority;
b. Mathematic correctness;
c. FIN CODES
d. Incidentals are properly calculated and not double entered;
e. Original receipts;
f. Recovered advances if issued;
g. Approval for CO’s TD must came from CCFL via message/email; and
h. Signatures.
Minor Travels Expenses Claims – MTEC:
a. For duty travel from 1 to max of 7 days;
b. No advance taken;
c. Meals have supporting documents with original receipt;
d. Use high rate mileage (0.53);
e. Engineering Flash-up covered under MTEC; and
f. Authorized by SYO.
Forms used in Pay Office:
a. CF 106 – Acquaintance Roll (AR);
b. CF 370 MTEC;
c. CF 52 – General Claims;
d. DND 99 – Travel Claims;
e. DND 508 – Financial Receipt. and
f. CF 432 – Standing Advance
Advance or Unearned pay
Advance or unearned pay:
a. Proceeding on leave up to 30 days;
b. TD or posting;
c. Compassionate leave granted but not Compassionate Travel Assistance (CTA).
Payable at Year End
Ttransactions pertaining to previous Fiscal Year (FY) which could not be settled until the new year. These transactions are applied to the old FY. Criteria to qualify as a PAYE:
a. As at 31 March, the work has been performed and the goods have been received and the services have been rendered;
b. The amount is due and payable iaw the terms of a contract entered into on or before 31 March;
c. The debt cannot be discharged during period 13;
Budget
The defense budget is referred to as a vote therefore, defense budget is awarded during budged debate and resulting vote. Therefore Vote → Request to Parliament for funding, Vote 1 → Personnel/operations/maintenance, Vote 5 → Capital, Vote 10 → Grants/contribution and Statories Account consisting of pension and employment insurance.
Budget Preparation Timeline:
- Fiscal Year runs from 1 Apr to 31 March;
- May/June – Estimate Call letter;
- June/July – RCN prepares budget;
- Aug/Sep – Director Budget prepares DND budget;
- Oct – DND submission to TB;
- Feb/Mar – tentative funding approval;
- Apr/May – Authority to spend 25%; and
- June/July – Approval to spend remaining 75%.
Reporting periods: quarterly to N3 (Cdr Boutin) - Q1 June, Q2 Sep, Q3 Dec, Q4 Jan, Feb, March;
Budget Flow Down to the ship:
- TB to DND (level 0 )
- DND to RCN (level 1)
- RCN to N72 (level 2);
- N72 to MARLANT/N3 (level 3)
- MARLANT/N3 to ship (level 4)
Capability Planning: In order to set the budget for the ship, N3 does the capability plan for all ships – it is operationally driven and based on sea days, ports visits, and major work to be completed, TD & Grants, LCPA, Port Services, Rations and Communications.
- It is important to notice that Commitments are reviewed regularly to ensure accuracy of the Free Balance is maintained.
- On board the ship, CO acts basically like RC Manager who may delegate that responsibility to the SYO who then acts like RC Administrator
- Once the budget gets allocated to the ship, each section within the ship gets their budget controlled by the SYO for the locally purchased items. The SYO must put in place some control measures in order to control the flow of the budget. Those controls measures can be to have the LPOs forms signed by the Section Head for X amount of money to a max of Y. When Local Purchase Order (LPO) form is used on board ship. This will ensure that all aspects of Expenditure Initiation and Commitment Control are adhered to IAW the FAA. It will also assist both the Logistics Officer and the Senior Storesman in tracking the ship’s budget. Have credit card register and as well LCPA register to help control those restricted items like ammunition, weapon, hazmat, radar items etc…
Logistics Officer shall ensure that all personnel have completed as a minimum the Expenditure Management Course (EMC) and CCC and the appropriate Delegation of Financial Authorities form in order to spend public fund.
Financial coding – FIN CODE:
- 1681 – UIC (Unit Identification Code);
- AK – Hierarchy; Chain of the Command in the organization;
- L101 – Fund (the 1 represents vote 1); source of funding/spending authority;
- 2106 – General Ledger. In everyday life, the general ledger classifies and records financial transactions by type: asset, liabilities, equity, expenses and revenue within DND; and
- 1700645 – Internal order number. Internal order is cost collector by activity and by course. It is permanent and may be grouped into an IO Group. This field is not mandatory.
budget Management
Budgets are allocated to the ships from Fleet based on a costing of the OPSKED, which is based on average expense. Ships may encounter significant cost differences which may cost differentials between the model and actual costs in their monthly budget report. Changes to the OPSKED will result in budget allocation amendments up/down to be actioned quarterly.
The allocation of LCPA funding provides ships with increased flexibility to decide the range and quantity of items to be procured. Controls are to be established to ensure that procurements are tracked and that purchases are essential to the ship’s operation. Personnel involved in both the budget management and procurement process are to be properly briefed regarding their responsibilities and accountabilities.
The SYO is responsible for providing oversight, bookkeeping and the development of a mentorship and training program so as to ensure that all personnel involved with the use of public funds are adequately prepared for their duties and responsibilities. This includes, but not limited to ensuring that all applicable personnel have completed as a minimum the Expenditure Management Course (EMC) and hold the appropriate Delegation of Financial Authorities Form. A control measure will consist of holding a copy all EMC test result and delegation forms on board the ship by the SYO.
In order to ensure that Command has an awareness of the ship’s fluctuating budget situation, the SYO must brief the CO on a monthly basis. Budget status reports should also be provided to all HODs at the same time.
DRMISs remains the Government of Canada’s official book of financial account. SYO must do a DRMIS training and obtain a current access to it in order to access budgetary data to confirm expenditures, commitments and the transactions reported against the unit budget, review unit budget for erroneous charges.
A Local Purchase Order (LPO) form should also be used on board ship. This will ensure that all aspect of Expenditures initiation and Commitment Control are adhered to iaw the FAA. It also assists the SYO and the Snr Storesman in tracking the ship’s budget.
Delegation of Financial Authority
Section 32 - Expenditure Management Planning: ensures that sufficient free balance exists to meet the obligation of the contract and that the planned expenditures are officially committed. It does also involves contracting authority and this ensure that the contracting rules are followed; there are; (1) Spending Authority, (2) Expenditure Initiation Authority (3) Commitment Authority, (4) Authority to Contract.
- Spending Authority consists of four specific elements: expenditure initiation, commitment control, contracting and confirmation of contract performance and price.
- Expenditure Initiation Authority is the ability to make decisions to obtain goods or services that will result in the eventual expenditure of public funds, such as the decision to hire staff, to order goods and services or to authorize travel for program purposes.
- Commitment Authority is the authority delegated by the Deputy Minister (DM) to incumbents of positions to confirm the availability of funds before an agreement is entered into
- Authority to Contract is the authority delegated by the MND, to persons occupying specific Department of National Defence and CF positions or fulfilling specific organizational functions, to enter into and sign contractual documents on behalf of the Department.
In applying section 32 these criterias must be met:
- Transaction is best value possible;
- Ensure sufficient fund exists;
- Have proper authority for the transaction;
- Comply with contracting process;
- Record the commitment and; and
- Prepare budget status report;
Section 34 – Account Verification : Confers authority for certifying the receipt of goods/services and that these are in agreement with terms/conditions of the contract by which they were procured. In applying section 32 these criterias must be met:
- Confirm price iaw contract;
- Confirm that goods/services iaw contract;
- Verify contract terms for advance payment;
- Ensure that invoices are original;
- Ensure not duplicate payment;
- Check amount against credit note;
- Observe and apply PODD (Payment On Due Date);
- Verify GST/HST;
- Verity that PST is not included;
- Verity that invoice value does not exceed the contract value;
- Ensure that items received are recorded in SCA (Supply Customer Account) or appropriated DA (Distribution Account); and
- Certify the account iaw section 34 of the FAA (Financial Administration Act).
Section 33 - Payment: This delegation ensures that all payments have been duly certified pursuant to section 34 of the FAA and that they are timely, properly authorized and legal as prescribed by the Policies. Only 3 persons hold section 33 in MARLANT. Check list before applying section 33:
- Valid contract;
- Section 34 verification performed;
- Appropriate signing authority;
- Funds are available;
- Goods/services are received;
- Original invoices;
- Check for duplicate payment;
- Price and performance iaw contract;
- PODD (Pay on due date); and
- Check for any incurred interest.
Certification:
- Date;
- Initial;
- Position; and
- CERTIFIED AS PER SECTION 33 OF THE FAA
Hospitality
Hospitality is an area where diligence is required particularly because of the public perception regarding these types of expenditures. Approving authorities will be held accountable for hospitality provided by their subordinates and must therefore clearly understand the intent of providing hospitality. All hospitality events must be justifiable, well managed and the associated costs reasonable. If in doubt, approving authorities should seek the assistance of their chain of command and/or financial chain of command to determine the appropriateness of a planned hospitality event. Hospitality is not an entitlement, but rather may be used to assist in the conducting of DND/CF business.
Hospitality: Event(s) determined essential to be provided to guests by reasons of:
a. Facilitating the conduct of DND/CF business and contributing to the achievement of DND/CF objectives; or
b. In the broad context of official protocol, in relation to the achievement of DND/CF objectives.
In order to provide hospitality, the event must demonstrate a direct link to a DND/CF business requirement and/or to promote good working relationships through exchanges of information with representatives from other governments and/or business sectors. In some circumstances and within restrictions defined in this policy, hospitality can also be provided to federal government persons.
Type of event: is based on, (1) what is the primary purpose of the event and (2) who are the participants. This will determine what type of event is required Federal Government versus non-Federal. Alcohol: All Hospitality Request (HR) involving alcohol, regardless of the amount, requires MND approval. When alcohol is permitted providing:
a. A thorough evaluation of the risks and possible liabilities to DND/CF;
b. Matter of courtesy, diplomacy or protocol involving external parties/persons in government events;
c. All requests involving alcohol must include justification as to the appropriateness of serving alcohol in terms of official protocol, including a summary of risks and possible liabilities to DND/CF.
Refreshments: Approving authorities can no longer approve food; non-alcoholic beverages only. Food/snacks are minimum approval of L2 (CCFL) Adviser with Authority of MARLANT.
Hospitality – Financial Limit:
a. Food and non-alcoholic beverage:
Food/beverage cost per person Standard cost/person Maximum cost/person Breakfast 1.5 X Breakfast allowance (15.60) 1.5 X Standard cost Refreshment 0.75 X Breakfast allowance ( 15.60) Lunch 2 X Lunch allowance (14.85 ) Diner 1.75 X Dinner allowance (40.85 ) Reception 2 X Breakfast allowance (15.60 )
b. Alcohol: Percentage of alcohol is based on the cost of the meal, for example: if reception food is $10, alcohol can be no more than $5.
Alcohol cost limit Breakfast Not to be permitted Refreshment 30% of standard cost for a meal type Lunch Diner 50% of standard cost for reception meal type Reception Not to be permitted
Approving Level: An approving authority cannot approve an HR in which they will be in attendance.
Approving Authority Level of Authority Timeline
MND
Official Mementos and gifts
Any item of public property of a distinctly Canadian character and manufacture, including contemporary arts and crafts, and articles representative of all or part of Canadian culture or Canadian manufacturing.
All official mementos shall be items that are made in Canada, and project a clear and positive image of Canada. Where the official memento is in the form of native imagery, artwork or the representation of a specific, well-recognized native symbol, the official memento must be authentic and made by Canadian Aboriginal Peoples.
Approval authority: Memento request for RCN approval included in submission with a HR request that MARLANT would normally have authority to approve. The entire submission, including the HR, must be submitted to RCN for approval.
- CO $50;
- L2 Adviser – up to $55;
- L1 Adviser – up to $75;
- CDS – up to $200; and
- MND – greater than $200.
Roles and responsibilities of Key NPF Personnel
The Senior Steward: PO1 in rank shall be responsible to the SYO for the effective management of the NPF Operations, and efficient operation of the Personnel Support Amenities and Officer’s Hotel services. Specific responsibilities are:
- Responsible to the SYO for the daily management of the Ship’s Exchange;
- Delivery of food services operation for the Wardroom;
- Coordination of official and private entertainment functions held on board;
- The supervision of the Exchange Manager (including laundry and canteen);
- Ensure duties are assigned to all personnel employed in the Section including making recommendations on the appointment of the Commanding Officer’s steward;
- Enforce a high standard of hygiene in all spaces concerned with the preparation and serving of food for the Wardroom and Captain’s Pantry;
- Responsible for the overall supervision of the Steward Division ensuring all stewards follow safety food and beverage handling regulations and follow safety and fire instructions; and
- Ensure stewards are provided with experience and training in all aspects of the trade and rotated through the various positions to develop their professional skills.
Exchange Manager: The Exchange Manager shall be responsible to the NPF Manager for:
- the direct management of the Ship’s Exchange retail activities;
- the purchase of Exchange stock approved by the LogO;
- the effective warehousing of all Exchange stock, until such time as the stock is transferred to the Canteen, mess or other entity, or handed over to a successor following a stocktaking;
- the security and custody of all warehouse stock, and the cash (from sales) which has not been passed to the designated cashier, and all equipment belonging to the Exchange;
- issuing all stock;
- the supervision of all Canteen servers;
- the security of Exchange warehouse spaces and canteen, and the supervision of Canteen security;
- the remittance of all vouchers to the NPF bookkeeper for posting to Simply Accounting no less frequently than weekly; and
- the transfer of all cash on hand to the designated cashier no less frequently than weekly or when the amount of cash held exceeds the applicable level for the available storage.
Note: The Exchange Manager shall be directly responsible to the Log O for the provision of advice to the Log O regarding appropriate Exchange inventory levels and the Exchange purchasing strategy, however purchase authority will be determined by the SYO and the pricing of Exchange stock, ensuring that each retail outlet prominently
displays a retail price list.
Ship’s Exchange
The purpose of the Ship’s Exchange is to generate a reasonable profit for the Ship’s Fund and messes as well as to make available various amenities. The Ship’s Exchange shall operate as a trading concern and shall include the bars, canteen, coin machines, or any other revenue generating activity. Any other competing retail activities shall not be permitted to operate onboard HMC Ships
Ship’s Exchange Capital: The Exchange capital is the difference between total assets and total liabilities. It shall be set at an amount consistent with operational requirements. The capital account shall not be permitted to decrease below $40,000 without N7 approval:
Line of Credit: Instead of applying for deployment loans, ships can apply for a Line of Credit (LOC) not to exceed $150,000. To obtain a LOC, SYO must produce a business case. Ships will be expected to have a positive account balance within 30 days following the end of the deployment.
CFCF Loans: Ship’s Exchange, Ship’s Fund or messes intending on making large capital expenditures, such as a purchase of equipment or furniture or when making renovations, may apply to the CFCF loan at an annual rate of four percent (4%).
Sales at Cost: Sales at cost shall normally be restricted to the Formation Commander, CCFL, CO, Honorary Captain, Ship’s Fund, OPAS, other Ships, and any sale billed to Public Funds (e.g. Official Entertainment). Sales at cost beyond these parameters, such as duty free issues, require the written approval of the CO.
Mark-ups/markdowns: Mark-ups, Markdowns and Markdowns Below Cost shall be recommended by the Exchange Manager and authorized by the Log O on the applicable accounting transaction, with a brief explanation of the transaction. Prior to processing, all imprest stock of the item being adjusted should be returned to the Exchange in order to maintain a consistent selling price throughout the ship.
Pricing and Mark-ups consideration: Inventory mark-up is an important process to confirm that the Ship’s Exchange is generating an appropriate profit on their sales. The mark-up needs to be of at least 13% in order to generate a reasonable profit and it’s based of the following factors on board HMCS STJ:
- HST – 3.3%
- Base levy – 2%
- CFCF levies – 0.75% (CIP - 0.50% and CFPAF loan program - 0.25%)
- Canteen servers – 7%
- Breakage and spoilage – 1%
Base Levy: A contribution to the supporting base (CFB Halifax) consisting of two percent (2%) of retail sales shall be calculated by each ship monthly. While the purpose of this levy varies from base to base, in general it is used to allow the support base to provide services/amenities that are common to all personnel supported by the base such basic cable T.V. service to buildings/jetties and funding to support Base clubs and recreation activities.
Canadian Forces Central Fund CFCF Levy: For regular force units, a contribution to the Canadian Forces Central Fund of a fixed percentage of 0.75% of retail sales shall be forwarded to CFPSA by the 15th of the following month. This contribution is used to provide the funding used to support the CFPAF Loan programme (.25%), while the remainder of 0.50 represents the premium paid for the Consolidated Insurance Program (CIP).
Breakage and Spoilage: On occasion, merchandise held by the Exchange will become unfit for sale. Such losses are a legitimate expense to the Exchange and shall be approved by the Log O for a value of $50 or less at cost and by the CO for losses above this amount. Similar losses experienced by the mess can be handled in one of two ways:
- It can be assumed that the loss should be borne by the Exchange. In this case a one for one replacement of the spoiled item is effected between the Exchange Manager and the Mess Imprest Holder concerned and the procedures at paragraph 1 above apply;
- It may be determined that the loss should be borne by the mess concerned. In this case the mess imprest shall be reimbursed by the designated cashier with the Log O’s approval for the items value at selling price and charged to the appropriate mess equity.
NPF Write-off Authorities
Write-Off Authorities: The write-off authorities per any single occurrence for cash, Exchange Inventory, Imprests, Petty Cash Funds, and property are as follows:
- CO $250,000
- CCFL $500,000
- MARLANT $1,000.000
Trivial discrepancies:
- Warehouse $50 at cost
- Canteen $50 at retail price
- NPF $20 cash (done by SYO)
- SYO’s cash $20 cash (done by CO)
NPF. Loss or overage of NPF Funds.
When a deficiency is detected in an NPF account, the person finding the discrepancy shall contact the SYO immediately. The SYO will inform the CO of the situation and the CO can allow a period of 72 hours to permit a vigorous attempt to reconcile the account.. If, on the expiration of the 72 hours the deficiency remains unreconciled, it shall be reported to MARLANT N7.
Loss with criminal act known/suspected:
- > $1,000
- Inform the MP immediately
- inform MARLANT N7 immediately
- After MP’s investigation, CO may order SI/BOI
Loss with no criminal act known/suspected:
- < $1,000, CO may order an SI
- $1,000 - $5,000, CO shall order an SI
- > $5,000, CO shall order BOI
Way NPF Manager can steal Money:
- Taking money from the safe and leave IOU;
- Using false receipts or re-using old receipt;
- Forging signature;
- Provide a receipt to someone and void it later;
- Use a second receipt book;
- Steal charity money;
- conspiring with the Exchange Manager and paying fictitious supplier; and
- Taking advantage of currency exchange rate personally.
Security of NPF Funds
NPF assets shall be afforded the same degree of security given assets owned by the public. General security requirements are prescribed in CFAO 202-2.
Keys control: The prime consideration governing the control of keys and access to spaces is that of responsibility and accountability. Only those individuals responsible for NPF assets shall have access to those spaces. Key control is a fundamental aspect of NPF security and shall not be compromised.
- The original keys for all NPF spaces shall be held by those individual responsible for the NPP/inventory held in those spaces;
- Duplicate keys to all logistics spaces shall be held in the SYO keyboard, with the exception of the sensitive space that should be held in sealed envelopes on the duplicate keyboard in the CO’s cabin and on the OOD keyboard.
- In the event of an emergency or other exceptional circumstances such that it becomes necessary to enter a space in the absence of the individual responsible, the Log O, NPF Manager or OOD may obtain duplicate key(s) from the OOD or CO’s keyboard. In the presence of an independent witness, the space may then be opened and the requirement carried out.
Ships Funds
The purpose of a Ship’s Fund is to provide a medium whereby the CO can, as recommended by the Ship’s Company Committee, administer NPP for the benefit of all members with the exception of NPF administered through: (1) Messes; and (2) Ship’s Exchange Operating Fund.
Ship's Committee: XO President. SYO Treasurer. Chief Clerk is Secretary. There is a Representative from each Mess deck and:
- Meetings held at least quarterly;
- Standing Authorities reviewed annually; and
- Ship’s committee administers Ship’s Fund with CO’s approval.Source of Revenue: Ship’s Fund income shall be derived from the following sources: (1) Donations; (2) Distribution of profits from Exchange operations and (3) Assessments against individuals participating in a Ship’s activity.Representational Expenses: Representational expenses are defined as those necessary expenditures required to meet hospitality, hosting or protocol obligations of the ship. It is recognized that by virtue of a ship’s mobile nature such expenditures are frequent. These expenses may be set against the Ship’s Fund provided that:
- The expenditure does not qualify for reimbursement from public funds;
- Representational expenses shall not be used to offset food, alcohol, or other costs
associated with hosting Canadian federal government personnel or their spouses.
This exclusion also includes CF military personnel and spouses; - It’s $3105 plus additional $915 for major deployment for HMC Ships.CO’s funds: $1150/year plus additional $310 for major deployment (4 months plus). This amount comes from Ship’s Representational Expense. To be used at the discretion of the CO to meet any obligation of the ship for which no other source of funding exists (service ceremonies, Christmas cards, trophies, entertainment). Formal NPF accounting is required. Funds remaining at the end of the FY are carried over to the next FY.Commander’s funds: CCFL is authorized to receive a grant from the CO’s Fund to establish a Commander’s Fund. The amount is updated annually by message from the MS Compt. This year, it’s $800. The commander’s fund is to be used solely at CCFL discretion.Pay day Raffle: Pay day raffles and fund raising events may be authorized for the purpose of raising funds for registered charities, provided that a minimum of 25% of the proceeds are dedicated to that purpose in Nova Scotia and 35% in British Columbia. On board HMCS STJ, we organize Pay Day Raffle to support “Children Wish Foundation” of St- John’s NL.Charity funds: A Charity Fund trust account may be authorized by the CO for the purpose of making charitable donations to registered charities as approved by the Ship’s
Company Committee. Sources of revenue for the Charity Fund are raffles, donations from individuals for a specific cause or a fund raising event specifically organized for that purpose: - Under no circumstances are Ship’s Fund revenues to be diverted to the Charity Fund;
- Expenditures from the Charity Fund shall not be allowed to place the fund in an overdraft position; and
- Under no circumstances shall funds from the Charity Fund be alienated by gifts provided to members of the ship’s company.Ship’s Fund Gift Fund: CO/XO/Coxn departure / retirement gifts. Funding comes from the gift funds established for the messes. Ship’s Fund revenues shall NOT be diverted for the Ship’s Fund Gift Fund. Disbursements from this fund are approved by the Ship’s Committee.Ship’s fund Loan to individual: Rarely used now due to other sources of loans (CFPAF, etc.). Loan not to exceed $2000 to be paid back within one year by equal monthly installments. Member’s Pay guide is annotated.Compassionate Travel Fund: In order to provide the CO the capability to assist an individual who does not qualify for reimbursement of travel expenses at public expense, with the cost for compassionate travel home, a compassionate travel fund may be established as a trust account. To avoid the alienation of NPF:
- Revenue for the Compassionate Travel Fund must come from any combination of raffles, donations, etc…;
- The Ship’s Company Committee will approve all requests or establish an appropriate Standing Authority.
NPF. Messes
The only authorized messes in the ship are the Wardroom for all officers, the C&PO’s Mess for all CPOls, CPO2s, POls and PO2s and the Master Seamen and Below Mess for all MS, LS, AB and OS in the ship. Each mess shall be governed by a constitution approved by the CO.
Mess Committee: Each mess shall be administered by a Mess Committee responsible to the CO, comprised of a President of the Mess Committee (PMC), Secretary, Treasurer and Committee members. These individuals shall not be remunerated for their participation. The XO shall be the PMC of the Wardroom. The CO shall appoint in writing the PMCs of the C&POs’ (normally the Coxswain) and the MS & B Messes. The reminder of the mess committee shall be elected by the mess members.
Wardroom C & PO MS & B President XO Cox'n Appointed Secretary SYO Chief Clerk LS/MS Clerk Treasurer A/SYO Appointed Appointed Financial Advisor SYO A/SYO
Mess Meeting: Mess committee meetings shall be held:
- At least once per quarter;
- A general mess meeting shall be held at least once every each six month period;
- An extraordinary general meeting may be convened as required.
- Standing authorities shall be reviewed and approved annually; and
- The Mess Constitution is reviewed every 2 years.Mess Funds: are from (1) distribution from Exchange, (2) Mess due and (3) entertainment profit.Mess Expenditure: The PMC, Treasurer or Mess Committee may be empowered to authorize the expenditure of Mess Funds to a limit agreed to at a general mess meeting, subject to the approval of the CO. Such standing authorities are to be clearly defined in mess minutes and are to be reviewed annually at a general mess meeting. For example, the PMC may establish, in writing, a standing authorization for recurring expenses such as bar supplies and subscriptions. All expenditures from mess funds, other than those that have been approved on a standing basis, shall be made on recommendation of a general mess meeting and approved by the CO.Bar operation: The only resale activity permitted in a mess is the bar operation. The bar shall purchase stock for resale only through the Exchange. Bar supplies, such as pre-mix, coasters, stir sticks and automatic dispensers may be purchased direct from the trade using petty cash funds if so authorized by the PMC or Treasurer and within spending limits set at a general mess meeting.
- The Log O shall provide each mess with a fixed amount of cash to establish a bar imprest;
- The bar manager with the exception of the Wardroom Bar Manager may be remunerated at a rate set by a general mess meeting and approved by the CO;
- The bar is to be mustered and cash counted each day in which the bar is open and on change of bartenders;
- The CO may order an independent muster at any time. Reports of stocktaking’s shall be retained on file by the Bar Manager for audit purposes; and
- Current retail price lists shall be posted in each bar.Consumption: The CO and Mess Presidents shall ensure that consumption of liquor by members and guests is kept within reasonable limits. The OOD, Duty Coxswain, and Barman, shall ensure that no alcoholic beverages are served either directly or through mess members to anyone who is, or appears to be intoxicated. (S)He may also limit individual members, or messes generally, in terms of costs or amounts consumed. While individual cases could result in disciplinary action, it is expected that the executive committee and members of these messes will assume the responsibility for the day-to-day conduct of the messes, their members and guests. In this regard, the Mess Presidents may restrict an individual member’s privileges if given grounds to do so.Consumption Control: COs are to ensure that bar supplies are mustered daily and consumption recorded. A record of the monthly consumption of each mess is to be submitted to the CO for monitoring and these records are to be retained onboard for inspection when required.
NPF. Public Grants
Physical Fitness Maintenance Grant - PFMG: Funds provided shall be used for the provision and maintenance of physical fitness equipment
- $17.40/person if unit < 350 and $13.50/person if unit >350 person;
- Items purchased with PFMG becomes NPP;
- Amount annually reviewed by CFPSA and published 1 April annually and sent to NPF bank account semi-annually by CFPSA; and
- Unspent $ carried over to new FY.Reference Library Grant: The Reference Library Grant shall be used only for the purchase and maintenance of books, periodicals and documents for reference purposes.
- $475/year;
- CF52 to replenish;
- The claim for the year shall be reduced by any unspent balance from the previous year’s grant – not carried over!Reading Room Grant: The Reading Room Grant is intended to purchase those reading materials for the ship’s company/library that are not considered reference documents. Examples of this could be periodical subscriptions for material such as newspapers or current affairs magazines.
- $300/year ($165/year + $135 for ships/isolated units);
- Unused balance carried over to new FY.Ship’s Fighting Efficiency Grant: This grant is intended to be used for the purchase/funding of minor fittings, devices, or equipment that tend to promote general efficiency and are not included in the usual outfit of ships; and entrance fees to officials mall arms competitions.
- $273/year;
- Unused balance carried over to new FY.Operational Amenities Support - OPAS: Authorized expenditures must involve a general benefit to the Ship’s company and must not include alcohol, cigarettes or gifts to individuals Ref:
- $0.10/person/day deployed for unit of <250 crew and $0.08/person/day deployed for unit of >250 crew;
- Ships must be deployed away from homeport >72 hours;
- First and last days may be included if ship is deployed at least six hours those days;
- Funds must be fully expended prior to return to homeport;
- Claimed on CF52;
- Used for banyans, snack foods for movie nights, bus tours in foreign ports; and
- Sales from the Exchange for OPAS are at “cost”.Rest and Recreation - R&R: R&R funds are provided to CEFCOM deployed operations for the purpose of enhancing the morale, wellbeing and quality of life of deployed members. Ships tasked for deployment where these funds apply will be briefed directly by CEFCOM.
- $60/person for every month deployed;
- Ships on CEFCOM deployment (NATO, UN, etc.).Recreational Library Grant. The Recreational Library Grant is administered on the Ship’s behalf by the support base, which shall raise the claim on behalf of the Ship. Library grants shall be expended only for the purpose for which they were intended and, wherever possible, during the applicable fiscal year. Unexpended balances shall not be carried over from one fiscal year to the next. The officer commanding a command, in the case of a command pool library, and the CO, in the case of a ship, is authorized to approve the annual maintenance grant on behalf of the Chief of the Defense Staff. In the case of MARLANT, the Recreational Library funds have been used to establish a Command pool library.
Consolidated Insurance Program
The Non-Public Fund Consolidated Insurance Program (NPF CIP) covers all non-public property (NPP) damage/lost of the CF like cigarettes in a flooded space, pallet of beer smashed on the jetty, etc. There is a deductible of $500. CFPSA OTTAWA/CFO 2 is the OPI for the NPF CIP and all correspondence by Ships in connection with the program will be made through the OPI. All correspondence pertaining to an actual claim shall be forwarded via MARLANT N8.
Example of Simply entries in case of claim: and using $5,000 inventory lost and $500 deductible. Debit Credit Miscellaneous Expenses $500 Suspense $4,500 Inventory $5,000
Duty Free
Ship’s Exchange Managers are responsible for canvassing their ships company and placing orders through for duty-free issues in advance of departing on a deployment and storing the duty free items until such time as they are issued. When duty free products are brought on board, they should be segregated from other items. This segregation should be readily apparent to the Exchange Manager and any person (s) conducting a stocktaking.
Custom Acquisition Voucher - CAV 101: Permission to procure Duty Free must be obtained from Canada Border Services Agency (CBSA) through MARLANT (CPO1 Kritcher) using CAV 101:
- Particulars of articles required and declaration of stock on board shall be detailed on the Form CAV 101;
- CAV 101 shall be personally signed by the CO certifying that the ship is proceeding on a voyage outside Canada;
- Completed Form shall be send to Formation HQ for approval not more than 21 days prior to sailing; and
- Even though CAV 101 shall be signed by CO, it can be signed by XO, if CO is absent more than 72 hours.Conditions for Duty Free:
- 12 NM limit for 48 hours at least;
- Submit CAV 101 Form 21 days prior to deploy;
- 3 months entitlement, may be extended to 4 months;
- 1 issue / month / deployment; and
- Member can claim up to $400 if absent of country more than 48 hours and $750 more than 7 days.
Entitlement: Store of Duty Free alcohol shall normally not exceed 3 months’ stock, based on the following monthly allotments per member of the ship’s company:
Officers Chiefs & POs MS & B
Spirits 100 oz 80 oz 60oz
Wines/Liqueurs 100 oz 50 oz 30 oz
Beers 60 60 60
When it is planned to embark the ship’s 3 months maximum, the amounts requested shall be abated by that stock already held on board. Ships proceeding on voyaged of greater than 3 months may apply to the appropriate Formation HQ for permission to carry additional stock.
Personal Duty Free Entitlement: Members are allowed to import only one of the following amounts of alcohol/tobacco free of duty and taxes when a ship returns from a voyage during which she remains outside Canadian waters for more than 48 and members may import alcohol/tobacco products once per calendar month:
Absence $ Exemption Alcohol Exemption Tobacco Exemption
48 hours (2 days) $400 1.5 L of wine
1.14 L of Spirit (40oz)
8.5 L of beer (24 x355 ml) 200 cigarettes
200 loose cigarettes
200 tobacco sticks
50 cigars
7 days $750Custom procedures: - While the ship is in refit but manned, she is authorized to store and consume duty free alcohol in the normal alongside routine; however, may not embark additional stock until 21 days prior to sailing. Unmanned Ship will arrange sale to another ship or cause to be sealed by a Customs officer, all stock involving an entitlement beyond the first day of the refit. Any ships’ stores which are not sold to another ship shall be removed and placed in bonded storage ashore. During refits, the CO may authorize the purchase and sale of duty paid alcohol;
- When the ship is returning from abroad, A completed listing of all duty-free alcohol and tobacco products remaining on the ship, whether purchased in Canada or abroad, shall be prepared on Form E1 “Ship’s Stores Declarations”. “Nil” declarations are required. In addition, the amount of duty-free spirits purchased abroad on that visit and still remaining in stock, is to be reported;
- Ships returning to Canada must report all Exchange goods purchased abroad and remaining in stock upon arrival, regardless of whether or not the items are subject to duties and taxes. The Exchange will then be required to pay duty and taxes on all such articles remaining in stock;
- Ships’ Stores are for consumption on board. Therefore, duty and taxes must be paid on all items. However, if they are purchased by an individual, he/she may take them ashore duty-free if the value falls within his/her personal exemption limit;
- NPF, F&E purchases (including items purchased with NPF grants) made abroad shall be declared and duty paid by the appropriate Ship’s, Mess or Exchange Operating Fund immediately upon return to Canada as part of the normal Customs clearance process; and
- Public Goods purchased by the Public abroad and still on board (including items to be landed immediately) upon arrival in Canada must be declared to CBSA during the Customs Clearance process.Custom Forms:
- Complete prior to arrival in first Canadian Port after issue of Duty Free;
- If any overage of personal amount, faxed it to CBSA;
- CBSA sends the total of the “over entitlement” calculated back to Coxn’s and the amount required to be paid;
- Member sign AR;
- Pay Office cuts a cheque to CBSA; and
- SYO ensures Exchange Manager lists items brought on board and complete general declaration for those items remaining in the Exchange.
NPF Financial Statement
The purpose of financial statements is to present the financial position as at the date on the balance sheet, and to reflect the results of operations for the period in accordance with generally accepted accounting principles.
Balance Sheet: A Balance Sheet is a statement of financial position, a snap shot of the business situation revealing Assets, Liability and Equity (Net Worth).
- Assets: 1010 (cash), 1040 (Bank), Inventory and Accounts Receivable: Is there too much $ tied up in inventory or accounts receivable? How long have accounts receivable been outstanding? GST to claim? Suspense account should be zero at all times. If not, there is a potential problem. Imprest levels of various entities. Are levels correct?
- Liabilities: Accounts Payable - outstanding liabilities to suppliers. Review age of Account Payables and consider ship’s schedule. Know annual grant levels and review if yours are being expended. What are your plans with PFMG? You need to spend Reference Library Grant before the end of the FY. Grants can’t have negative balances. Equity Balances - Excessively high or low? Cannot have negative balance. Miscellaneous Revenue - What is it coming from? Gift Funds - Review levels and standing authorities, if too high/low you must take action. Charity Fund- Are we using these funds?
- Equity: Capital - Must be at least $40K. Can be higher with authority – not lower. Net Profit / Loss from income statement must be distributed to entities monthly. Compare profit/loss to other months. Be able to explain losses or low profit. Are profits and losses being distributed equitably?Income Statement: The Income Statement shows profits. It’s used to Verify % of levies and GST; Breakage and Spoilage; and Profit to be distributed. Note: Distribution of net profit / loss shall be determined by the Ship’s Fund Committee based on a fixed percentage (in proportion to sales by each mess on a per capita basis).
NPF. End month/ End Fiscal year procedure
End Month:
- Inventory synopsis;
- Customer sales summary report;
- General ledger report (cash);
- Monthly cash sales;
- Wages (canteen servers, Ship’s Fund and Messes);
- CFCF and Base Fund levies from retail sales;
- GST Expense from retail sales;
- EI & Income Taxes payable;
- Distributed net profit / loss (ship’s fund and messes);
- Accts Payable / Receivable – aged overdue summary;
- Balance sheet;
- Income statement;
- All journal entries; and
- Bank reconciliation.
End Fiscal Year:
- Close out March and printout March statement which becomes FY year end statement. Do a backup! Exit Simply Accounting and open it again using 1 Apr CY. System will have been cleared of all revenues and expenses in 3700 exchange operating capital. Print a trial balance;
- Clear distributed net profit / loss to zero. Credit distribution net profit and debit exchange operation capital (putting capital to normal level). Print another trial balance.
Laundry Services
Responsibilities: The Log O shall ensure:
- Service laundry is operated efficiently and economically;
- As a minimum, two operators are made available for laundry operations and that additional personnel are provided when the workload so dictates;
- Laundry is included on ship in/out routines; and
- Hours of operation, laundry schedules, and price lists are posted in a conspicuous location in the proximity of the laundry.
The MSEO is responsible for mechanical and electrical maintenance of the laundry equipment.
After service work commitments have been met, the laundry may be used for the washing, drying and pressing of other personal clothing of the ship’s company. Charges to be made to individuals for personal laundry and gratuities payable to operators shall be decided by the ship fund committee. Should any excess revenues remain after operator gratuities have been paid, it shall accrue to the ship fund.
Unclaimed laundry for ships: Unclaimed laundry shall be stored for a reasonable period (6 months) before disposal action is taken. The Log O shall ensure every effort is made to find the owner of unclaimed articles. After a reasonable period, the laundry manager shall:
- Handover of service items to the Sup Sect for CRV action; and
- Place personal items in the Scran locker.
Senior Storeman Duties and responsibilities
The Senior Storeman is responsible to the SYO for the efficient operation of the Supply Section and the administration of all materiel. He shall advise the SYO daily, concerning any incident or condition that may adversely affect the operational readiness of the ship. He shall ensure the following:
a. Authorized materiel held on board;
b. Account are accurately maintained;
c. SCA are up to date;
d. Stocktaking are carried out iaw schedule;
e. Reports and returns made on time;
f. MA level reviewed;
g. Random audit on transactions involving accountable materiel;
h. Section prepared for LCI inspection;
i. Oversight all the aspect of LCPA; and
j. Action timely on Supply section correspondence.
Materiel Authorization - MA
Materiel Authorization is nationally managed and approved listings of items for which entitlement are established, allowing these items to be issued to units. For HMC Ship; we have:
MAST – Mobile Account Ship Table
SHARP – Ship Allowance Replenishment Program (FEL, ESL, GS)
MCAAL – Maritime Command Ammunition Allocation List
Mobile Account Ship Table – MAST:
Authority for equipment tracked items and stock of class A (accountable) and E (controlled) materiel exclusive of repair items, fitted equipment or explosives. Normally of a portable, lasting nature, subject to maintenance and repair. MAST items are held on ship’s Mobile Unit Account (MUA) and they are verified every (1) 4 years, (2) CO supersession, (3) SCA holder change and (4) whenever CO deems necessary.
Ship Allowance Replenishment Program – SHARP:
a. Fitted Equipment List – FEL: list ship’s fitted equipment for which there are on board support part. We are talking here about big part like machinery, radar etc;
b. Equipment Support List – ESL: allowance of repair parts to support FEL.
c. General Store – authority for all other items required to be held on board. They are consumable items.
Maritime Command Ammunition Allocation List – MCAAL: lists under the SCA 8N. It’s important to notice that CSE department does the 100 % annual stocktaking. If within 7 days discrepancies cannot be reconciled, the CO shall be advised. In real case situation, I would advise the CO immediately.
Materiel Authorization Change Request- MACR: Amendment to ESL shall be submitted using the MACR form. The form is to be originated by the ship’s technical authorities as an attachment to an email through the stores office staffed as per MARLANT instruction for furtherance to D MAR P 4-8-3.
LCMM – Life Cycle Materiel Manager
D MAR P – Director Maritime Procurement
DISCO – Director of Supply Chain Operation
Operational Deficiency- OPDEF
Operational Deficiency (OPDEF) are raised by the technical authorities of the ship (CSE, MSE, DECK and AIR department) to inform Command of restricted operational capability of the ship.
CAT 1 Mission critical (Immediate): Represents an immediate and severe impact on current/imminent operations and capability. Is normally associated with a system /equipment defect that prevents the vessel from deploying for an assigned mission/abandoning the current mission to return alongside at the earliest opportunity for repairs. Immediate rectification is required in order to continue with assigned mission.
CAT 2 Mission essential (ASAP): Represents a significant impact on current operations and capability. Is associated with a system/equipment defect that has an undesirable effect but does not prevent the vessel from carrying on with an assigned mission. Rectification is required as soon as possible within the operational program to restore the vessel’s operational capability.
CAT 3 Routine (can wait): Represents a defect that does not greatly impact current operations and capability. Is associated with a system or equipment defect that has no impact on an assigned mission such as a loss of system redundancy, improve quality of life. Rectification is to occur when the operational program permit or during the next programmed maintenance period.
Each OPDEF is given a unique identifier number. They are 2 alpha characters that denote the specific department (CS for CSE, MS for MSE, AR for AIR) followed by a sequential number stating at 001 for each year, and ending with a tac mark and the last 2 digits of the calendar year. Examples are AR001-12.
