5. Authority codes for 2014–2015

5.1 Introduction

This section provides an explanation of the authority classification which, for government-wide reporting purposes, identifies the authority codes required for accounting transactions.

The primary purpose of the authority codes is to identify expenditure transactions for accountability and reporting in the Public Accounts of Canada according to the specific votes and other authorities in the Estimates, other authorities included in specific statutes; and in addition, to identify the nature of revenue, by tax and non-tax revenue. Other authority codes (non-appropriated authorities) are also established by central agencies to facilitate the identification of various accounting transactions that do not require the use of appropriations.

An appropriation is an authority of Parliament to pay money out of the Consolidated Revenue Fund (CRF) and as such, provides parliamentarians with control over most expenditures of the government. As a general rule, transactions are recorded against an appropriation on an expenditure basis; however, there are certain expenditures that are not charged to an appropriation until a payment is required.

The authority code identify expenditures transactions as follows:

Statutory expenditures

Statutory expenditures are those that Parliament has approved through legislation (other than Appropriations Act) that set out the purpose of the expenditures and the terms and conditions under which they may be made.

Non-statutory expenditures

Non-statutory expenditures are those that Parliament approves annually through an Appropriation Act. Once approved the vote wording and the expenditure authority attributable to each vote become the governing conditions under which these expenditures may be made.

Non-appropriated transactions

Non-appropriated authority codes identify accounting transactions that do not require the use of appropriations (i.e., expenditure or revenue are already recognized [e.g., amortization expense or the receipt of revenue credited to vote] or expenditure is not charged to appropriations until the payment is required [e.g., severance pay]).

5.1.1 Classification for the authority codes

The authority codes are designed to identify accounting transactions as being:

Budgetary expenditures

Budgetary expenditures that are made in accordance with specific votes or other authorities in the Estimates, or to statutory appropriations or other authorities included in various statutes and elsewhere. Budgetary expenditures consist of the cost of servicing the public debt; operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

Budgetary revenue

Budgetary revenue related to tax revenue and user charges, payable or charged based on specific legislation, regulations or contracting authority. All tax revenue are statutory and the non-tax revenue authority codes identify the basis under which departments charge users for the provision of products or services and includes goods, regulatory and optional services, information products, use of public facilities and rights and privileges (licences, permits, patents, copyrights, etc.).

Non-budgetary authorities

Non-budgetary authorities that comprise assets and liabilities transactions for loans, investments and advances, or specified purpose accounts, that have been established under specific statutes or under non-statutory authorities in the Estimates and elsewhere. Non-budgetary transactions are those expenditures and receipts related to the government's financial claims on, and obligations to, outside parties. These consist of transactions in loans, investments and advances; in cash and accounts receivable; in public money received or collected for specified purposes; and in all other assets and liabilities. Other assets and liabilities, not specifically defined in G to P authority codes are to be recorded to an R authority code, which is the residual authority code for all other assets and liabilities.

Non-appropriated authorities

Non-appropriated authorities are established as central agency requirements to facilitate the identification of transactions that do not require the use of appropriations (e.g., amortization expenses for capital assets or the allowance for severance pay which is not charged to an appropriation until a payment is required).

5.2 List of authority codes

In this section you are given a choice of two versions for the list of authority codes: a summary version that gives you the list of codes number and name; and, a detailed version that, in addition to the code number and name, include the description, the restriction to specific departments and the note(s) that apply to a code.

Departments should review the descriptions to ensure that their departmental codes are aligned to the correct authority codes and are being used for the intended purpose. At this time, a description is not available for all authority codes.

Authority codes—Summary for 2014–2015

5.3 List of release notes—Authority codes

• 5.3.1 Appendix A—Release notes in date order—Authority codes for 2014–2015
• 5.3.2 Appendix A—Release notes in code order—Authority codes for 2014–2015