Introduction
To provide a convenient means of financing posting loans and certain advances to civilian employees posted abroad under the Foreign Service Directives, a working capital account has been established with the Department of Foreign Affairs and International Trade (hereinafter referred to as "Foreign Affairs").
Application
This Foreign Affairs' facility is available:
(a) for loans - to Foreign Affairs and all departments other than the Department of National Defence and the Royal Canadian Mounted Police to finance posting loans to employees being posted or who have been posted outside Canada under the Foreign Service Directives; and
(b) for advances - to Foreign Affairs and all departments to finance certain advances made at missions to employees outside Canada under the Foreign Service Directives.
The Department of National Defence and the Royal Canadian Mounted Police will continue to finance posting loans, whether made in Ottawa or at posts abroad, through accounts previously established for this purpose.
Implementation
Effective April 1, 1980, all posting loans, medical expense advances, accommodation security deposit advances and advances for public utilities made under the Foreign Service Directives are made from this working capital account.
Issue of Loans and Advances
Issue of Loans
All duly authorized requests for issuance of Receiver General cheques for posting loans on behalf of other government departments except the Department of National Defence and the Royal Canadian Mounted Police must be submitted by the financial branch of the requesting department to the Department of Foreign Affairs and International Trade, Attention: Director, Strategic Policy, Planning and Monitoring Division (AEF).
Issue of Advances
The Head of Mission has been delegated authority to approve and issue to operational personnel of all government departments at posts, advances for medical expenses (FSD 42), accommodation security deposits (FSD 26), and advances for public utilities (FSD 25), provided that the requests for such advances are duly recommended and/or approved by the senior program officer at the mission of the department concerned.
Records of Loans and Advances
All loans and advances issued against the requisitions of a department are naturally the responsibility of that department, thus requiring it to maintain adequate accounts and records to permit the collection of repayment and any interest payable, as well as to meet the needs of the Fiscal Accounts for the accounting of the loans and advances and of any interest collected.
Repayment of Posting Loans
All posting loans will be repayable in accordance with the repayment charts for this purpose drawn up from time to time by Foreign Affairs in consultation with Finance Canada. Recovery in all instances will be through payroll deductions. Because of the fixed time restraints involved, the relative personnel pay input forms must be in the hands of the Pay Office of Government Services Canada at least three weeks prior to the pay period in which the first deduction will occur.
Foreign Affairs will make standing arrangements with each department concerned for the refund to the working capital account each month of all sums recovered during the month.
Repayment of Advances
All advances made from the Foreign Affairs' working capital account will be recoverable in accordance with the requirements of the particular Foreign Service Directive involved. Each department concerned will establish procedures to ensure that repayments due from employees are in the hands of the appropriate Foreign Affairs' financial officer at the mission or at Foreign Affairs' headquarters by the due date.
Repayment of Loans and Advances Under Special Circumstances
Where an employee's tour of duty is terminated before the planned date, the department must make suitable alternative arrangements, where necessary, for the repayment of any loans or advances outstanding and advise Foreign Affairs of the arrangements made. Where loans and advances made at the post are involved, the arrangements should be made with the concurrence of Foreign Affairs.
If the service of an employee terminates while loans or advances are still outstanding, the normal practices will be followed to ensure that all amounts due to the Crown are recovered.
Enquiries
Enquiries regarding implementation details of the procedures referred to in this Appendix should be addressed to the Department of Foreign Affairs and International Trade, Attention: Director, Strategic Policy, Planning and Monitoring Division (AEF).