Chapter 30 - Write-off, Reporting, and Loss/Damage

CHAPTER 30A-FN-105/AG-001WRITE-OFF, REPORTING, AND LOSS/DAMAGE OF NPPGENERAL1. The overall Non-Public Property approval levels for write-off can be found in theChief of Defence Staff Delegation of Authorities for Financial Administration of Non-PublicProperty (NPP).WRITE-OFF2. Write-off is defined as the authority to adjust accounting records to reflect thedeletion or changed monetary value of an asset or liability arising from an occurrencenot supported by a normal market transaction. Examples of situations in which write-offaction is appropriate are devaluation (write-down), fraud, arson, damage, destruction,theft, loss, fire, disappearance, and deletion of bad debts. Refer to Chapter 11 (Non-Public Funds Consolidated Insurance Program (CIP)) for events that are and are notcovered under the CIP.DETERMINATION OF WRITE-OFF AMOUNT3. The aggregate value of the loss at cost price (for merchandise inventory) or atnet book value (for fixed assets) will be used as the basis for determining theappropriate write-off authority notwithstanding that the loss occurred over a period oftime or is the result of more than one undetected misappropriation of property.4. Where losses are recovered, in whole or in part, the gross amount shalldetermine the level of authority required to approve closure of the incident. Whilerecovery may offset any loss, the situation that contributed to the shortage must bemade known and, if necessary investigated. All requests for write-off shall be supportedby an investigation appropriate to the magnitude of the write-off sought.5. Investigation of a loss or damage to NPP shall be in accordance with QR&OArticles 21.72 and 21.73. Accounting action to recognize the loss or damage shall be inthe month of discovery and shall not be delayed pending the outcome of anyinvestigation.6. Write-offs shall be actioned by a Request for Write-off in memorandum form.Full particulars of the circumstances and reasons for write-off shall be outlined in thememorandum. Guidelines concerning the reporting and processing of write-offs forBase Fund and Messes are presented at Annex A.NOTE: Approval for write-off does not prejudice disciplinary action orsubsequent financial recovery from persons responsible.30-1

CHAPTER 30A-FN-105/AG-001CRIMINAL ACTIVITY SUSPECTED - REPORTING OF LOSS OR DAMAGE7. All NPP related incidents suspected to involve criminal activity and/or otherpotentially sensitive NPP related issues shall be reported immediately through the chainof command to Unit CO’s. This policy applies to all Units. A copy of all submissions toUnit CO’s and replies thereto, shall be passed to the RAM.8. As per QR&O 21.72 and 21.73, when loss of or damage to Non-Public Property issuspected to be the result of a criminal offence, the CO of the unit suffering the loss ordamage shall:a. notify immediately the military police (MP) section if there is one in thelocality;b. if there is no MP section in the locality, notify the civilian police and takeaction in accordance with paragraph 6;c. ensure that any physical evidence of the commission of an offence is leftundisturbed until viewed by the MP or civil policy investigators, or both;d. and subject to subparagraph c, take an inventory as soon as possible toascertain in detail what property is missing and its exact description.9. If there is no MP section in the locality, the CO shall, in addition to complying withsubparagraphs 8b, c and d, report immediately the theft or loss by priorityclassified/designated, as applicable, message to the Base Security Officer responsible forproviding security support, with information copies to Command HQ to the attention of theSenior Staff Officer Security, giving the following information:a. name of unit;b. location;c. description of property lost or stolen, including serial or registration numbersif applicable;d. approximate value of the item(s) lost or damaged;e. date and time of occurrence;f. brief statement of facts surrounding the loss or theft, including anassessment of compromise if loss of classified matter is involved;g. suspects, if any; andh. date reported to and identity of the civil police force.30-2

CHAPTER 30A-FN-105/AG-001REPORTING RECOVERY10. When Non-Public Property previously reported to be lost or stolen is recovered bythe unit, such recovery shall be reported immediately to the nearest MP section or to theBase Security Officer responsible for providing security support. The MP shall ensurethat the civil police agencies and the appropriate staff officers are notified of the recovery.The recovered Non-Public Property shall be returned to the loosing unit provided it is notrequired as evidence and accounting action taken to reverse any previously actionedwrite-offs in whole or in part as applicable.REPORTING WHEN THE INVESTIGATION IS COMPLETED11. Upon completion of an investigation, the information obtained shall be passed tothe CO concerned, who shall comply with CFAO 19-16 if civil prosecution appearswarranted.DISPOSAL12. Except on disbandment of a Unit, or a Unit in altered circumstance, in which caseCFAO 27-9 shall apply, write off authority is also required to dispose of an asset orliability at less than net book value. Net book value is defined as acquisition cost lessaccumulated depreciation charges, if any. NPP disposal procedures are detailed inChapter 28 (Fixed Assets).STOCKTAKING13. For stocktaking results and procedures, refer to Chapter 26 (Stocktaking).Annex A – Guidelines for Reporting and Processing of Write-Offs Base Fund andMesses30-3