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2006 November Report of the Auditor General of Canada

November 2006 Report—Chapter 10

Exhibit 10.3—Requirements of the Financial Administration Act for payments

Sufficient funds are available. Departments must ensure that their total spending does not exceed the amount approved (appropriated) for their program by Parliament (section 32).

The charge is lawful. An authorized departmental official must confirm that the expense is a lawful charge against the appropriation (including assurance that value has been received) before requisitioning or releasing payment (section 33).

Value has been received. Before a payment is made for goods or services received, the responsible departmental official must certify that the performance of the work, the supply of the goods, or the rendering of services were in accordance with the terms and conditions of the contract and that the price charged is in accordance with the contract, or in the absence of a contract, is reasonable (section 34).