In order to support the financial management of projects, recipients are strongly advised to implement an appropriate project accounting system to collect and track all CTI project costs and funds received for the ITC project from all sources and to prepare financial reports requested by the ITC program in accordance with the certification bodies. Accounting for ITC projects should remain separate from the recipient`s ordinary operations and project expenditures should be readily established. Financial accounting should be consistent with generally accepted accounting principles. A positive valuation, considered a donor, is not a reasonable value received by the supplier to determine whether the transfer of assets is a contribution or an exchange transaction. There is a capital agreement between two parties that agree to merge cash, capital and other assets within the same company to carry out transactions. The capital is provided in exchange for a portion of the company`s equity. In addition, any correspondence relating to authorizations issued by the Canadian Department of Justice regarding costs that are not specifically covered by the agreement or exemptions from a clause in the agreement should be retained. This would include all departmental authorities for budget increases above the level allowed by the agreement for a given category of expenditure. This procedure can be implemented shortly after the signing of the agreement or after receiving the first interim financial report. It consists mainly of an interview with the recipient and project staff to discuss internal control policies and procedures, as well as an audit of the audit trail, archiving system and documentation stored to support transactions. ASU 2018-08 offers “indicators” rather than clear lines in the distinction of a scholarship contribution.
ASU 2018-08 offers “indicators” rather than clear lines in the distinction of a scholarship contribution. NRPs should evaluate the terms of each agreement by taking into account the following indicators to determine whether the transaction is primarily a contribution or exchange: transaction documents are an organization`s financial history. In the case of an audit, the statutory auditor reviews documents that support the alleged costs. It is therefore essential that all supporting documents be stored and easily accessible to the recipient`s address. The Agreements of the Canadian Department of Justice contain a clause indicating how long the recipient will retain the project documentation. An indicator of the conclusion that an asset transfer is a contribution or exchange is that the positive spirit of the action as a donor is not an appropriate value that the donor receives.
