Welcome to Nahanni Butte Dene Band

INTRODUCTION

The Nahanni Butte Dene Band (“NBDB”) Financial Policies and Procedures Manual outlines the policies and procedures for financial transactions within the NBDB which must be followed by Band Council and by all staff. It also provides guidelines that the NBDB will use to administer these policies along with the appropriate procedures to be followed. The NBDB must keep all financial policies and procedures current and relevant at all times. From time to time, it will be necessary to modify and amend some sections of the Financial Policies and Procedures Manual, or to add new procedures. Therefore, the Financial Policies and Procedures Manual should be considered as an organic document.

Any suggestions, recommendations or feedback on the policies and procedures in this manual are welcome by management, as without them the required modifications may not be timely. These policies and procedures apply to all employees

Consolidated Financial Statements

The NBDB annual financial statements are consolidated with the annual financial statements of the Nahanni Butte General Store (“NBGS”).

Matching Costs with Revenues

The matching principle requires that expenses incurred by the NBDB must be charged to the income statement in the accounting period in which the revenue, to which those expenses are related, is earned. It is important that each Cost Centre (i.e., Departments, Projects or Contracts) operated by the NBDB, is properly charged with all associated costs, and credited with all associated revenues relating to it.

Consistency

Consistency refers to an accounting practice where similar accounting principles are followed from year to year in a consistent manner and expenses, revenues, assets and liabilities are recognized in the Chart of Accounts in a systematic and consistent manner as well.

Double Entry Bookkeeping

Every financial transaction is required to be entered in the financial system. Data entry in Sage 50 (or in any other financial software) is done by processing a journal entry. Every journal entry has two components, a debit and a credit. The total debits and the total credits of any journal entry must be equal. Unless they are equal, Sage 50 will not allow you to post the entry.

Accrual Accounting

Accounting can be done on a cash basis or on accrual basis. Under the cash basis of accounting, revenues and expenses are recorded based on actual receipts and payments. Whereas, under the accrual basis of accounting, revenues and expenses are recorded based on when an expenditure is incurred (as opposed to “paid”) and when revenue is earned (as opposed to “received”). The NBDB is required to follow Public Sector Accounting Standards (“PSAS”). PSAS requires following accrual accounting. Therefore, the NBDB does not have an option to follow the cash basis of Accounting. The Sage 50 system is based on the accrual basis of accounting and at the fiscal year-end one must take extra care to ensure to accrue all expenses (that have been incurred up to March 31) and recognize all revenues (that have been earned up to March 31).

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