Aug 28, 2017 – This section contains policy, procedures and guidance used by Immigration, Refugees and Citizenship Canada (IRCC) staff. The authorities have posted this information on the Department’s website as a courtesy to all stakeholders.
The Manual Accounting System
The EXT 1203A – Manual Fee Collection
The authorities designed the Record of Immigration Cost Recoveries form i.e. EXT 1203 to record the fees collected and to report the fees in accordance with the categories specified in the fee schedule. Officers will need to complete this form on a daily basis. In addition, they will need to list each applicant from whom they have received the fee payment.
The authorities require only missions with manual fee collection systems to use the EXT 1203. Officers will need to number the EXT 1203 consecutively for each form used. In addition, officers will need to use separate forms for each currency accepted by the mission.
For instance:
- Officers could use 17/08 for Monday’s local currency
- Officers could use 18/08 for Monday’s Canadian currency
- Officers could use 19/08 for Tuesday’s local currency
- Officers could use 20/08 for Wednesday’s local currency and,
- Officers could use 21/08 for Wednesday’s Canadian currency
It is worth mentioning that the first number represents the number of the form and the second number represents the year.
The Cost Recovery File
The Cost Recovery Clerk will need to maintain a well organised cost recovery file. The clerk will need to retain this file for seven years in a secure place. The cost recovery file will typically contain:
- Copies of the EXT 1203s
- Copies of the official receipts provided to the applicants
- Official receipts from the accountant and,
- All requests for refunds
The Detailed Procedures for Manual Accounting Systems
It is worth mentioning that a manual accounting system will invariably have a number of inherent weaknesses. This is why it is essential that the Cost Recovery Clerk, the Mission Accountant and the Cost Recovery Officer (CRO) understand the importance of their roles. Manual systems typically lend themselves to a greater number of unintentional errors. More importantly, manual systems lend themselves to intentional errors by unprincipled individuals as well.
The Role of the Cost Recovery Clerk in a Manual Accounting System
The Cost Recovery Clerk will need to perform the following functions for each transaction:
- The clerk will need to issue an official receipt, which is sequentially numbered, from the official book obtained from the Mission Accountant, in the name of the payee
- The clerk will need to include on the official receipt the category of service applied for (such as permanent residence, student visa etc.) and the appropriate file number
- The clerk will need to distribute the official receipt as follows:
- The clerk will need to hand over the white copy to the payee, if present
- The clerk will need to retain the yellow copy with the immigration copy of EXT 1203
- The clerk will need to attach the pink copy to the copy of the EXT 1203 that the clerk will typically need to send to the accountant and,
- The clerk will need to attach the gold copy to the application form
- The clerk will need to record all the required information on the EXT 1203 for the applicable currency
- This will serve to ensure that the clerk has recorded the amount collected under the correct line object and,
- The clerk will need to write the word ‘Void’ across the front of the official receipt – in case the official receipt is spoiled or cancelled for any reason
- In addition, the clerk will need to attach all copies to the accountant’s copy of form EXT 1203
- The authorities require the clerk to avoid disposing of any receipts
As a best practice measure, the authorities require a Canada Based Officer (CBO) to sign or initial all voids and cancellations.
What Are the Summary Procedures that the Cost Recovery Clerk Will be Responsible for Performing at the End of Each Day?
At the end of each day, the Cost Recovery Clerk will need to follow certain procedures. These include:
- Completing a separate EXT 1203 for each currency collected that day i.e. local, Canadian and US at the end of each business day
- Reconciling the fees collected at least once each day
- The Cost Recovery Clerk will need to close off the EXT 1203 during the time when the reconciliation of the fees takes place
- Closing off the EXT 1203 more than once a day to permit the accountant to perform a verification in case the collection of fees is very heavy
- Closing off the EXT 1203 by drawing a line beneath the last entry and totalling all the individual fee category columns
- The Cost Recovery Clerk will also need to enter the grand total after the last entry
- Reconciling the EXT 1203 with the official receipts and the fees received and signing at the bottom of the form under the words ‘Prepared by’
- Providing an explanation to the designated Canada Based Officer (CBO) in case there are differences between the EXT 1203, the official receipts and the fees received
- Remitting the fees, the original and duplicate copies of the EXT 1203s and the pink copies of the official receipt to the accountant on a daily basis
- Waiting with the accountant until the accountant performs the reconciliation and provides the clerk with an official receipt and,
- Attaching this official receipt to the third copy of the EXT 1203 retained in the cost recovery file
In some cases, it is possible that the Cost Recovery Clerk will be responsible for preparing the deposit. This is typically so in case there is no Mission Accountant. In this scenario, the Cost Recovery Clerk will need to follow certain procedures each day. These include:
- Preparing the bank deposit slips
- Handing over the deposit to the person going to the bank and ensuring that the person going to the bank initials the deposit slip for the amount received as well
- The Cost Recovery Clerk will typically do this once the Cost Recovery Officer (CRO) has reviewed and initialled the deposit slip
- It is worth highlighting that the Cost Recovery Clerk cannot prepare the deposit slip and make the deposit at the bank
- Ensuring, in conjunction with the Cost Recovery Officer (CRO) or the designated Canada Based Officer (CBO), that the amount deposited equals the amount sent to the bank for deposit, once the depositor returns
- Thereafter, the Cost Recovery Clerk will need to attach a copy of the bank deposit slip, which bears the initials of the bank teller, to the EXT 1203 and submit it to the accountant, while retaining a copy in the Cost Recovery Officer’s (CRO’s) cost recovery file
- Obtaining a copy of the official bank receipt from the accountant and matching it to the copy of the EXT 1203 retained in the cost recovery file once the accountant has received notification of the deposit from the bank
- Situations could arise where the clerk has included more than one day’s EXT 1203s in the deposit made either to the Mission Accountant or directly to the bank
- In this scenario, the clerk will need to use an adding machine for reconciling the totals for each currency on the individual EXT 1203s with the amount deposited
- The clerk will need to attach the adding machine tape to the official receipt in the cost recovery file
The Cost Recovery Clerk will need to review and sign the applicable undertaking along with the Canada Immigration Centre (CIC) officer each year.
The Role of the Cost Recovery Officer (CRO) in a Manual Accounting System
The Cost Recovery Officer (CRO) has the responsibility of ensuring that the system is operating effectively. The two important levels of assurance that the Cost Recovery Officer (CRO) will typically try to obtain are that:
- All immigration revenues that the Cost Recovery Clerk has received have been reported on the EXT 1203 and,
- All funds reported on the EXT 1203 have been deposited with the Mission Accountant (or with the bank in cases where the Immigration Section makes the bank deposits directly
The authorities require the Cost Recovery Officer (CRO) to carry out a Cost Recovery Systems testing by undertaking the following procedural checks quarterly. The Cost Recovery Officer (CRO) will typically need to:
- Ask the Mission Accountant if the accountant has attached copies of the official receipts to the copy of the EXT 1203 that they receive
- Ask the Mission Accountant whether the accountant reviews the sequence of the official receipts attached to the EXT 1203s and whether the accountant follows up on any that might be missing
- Select a sample of five applications received during the quarter from the log of applications received
- For each application selected, the Cost Recovery Officer (CRO) will need to:
- Ensure that a copy of the official receipt is on the application file
- Ensure that the fee charged based on the official receipt is correct
- Ensure that the applicant’s name has been specified on the EXT 1203 and,
- Ensure that the fee appearing on the EXT 1203 is the same as the one on the official receipt
- For each application selected, the Cost Recovery Officer (CRO) will need to:
- Review the EXT 1203s given in the cost recovery file
- In this, the Cost Recovery Officer (CRO) will need to:
- Ensure that the EXT 1203s cover the entire quarter i.e. that no EXT 1203s are missing
- Ensure that each EXT 1203 includes an official receipt from the Mission Accountant
- It is worth mentioning that the Mission Accountant might have combined more than one EXT 1203 on one official receipt and,
- Ensure that the amount of funds transferred to the Mission Accountant, based on the official receipt, matches the fee given on the EXT 1203
- The Cost Recovery Officer (CRO) will need to do this for a sample of two EXT 1203s
- In this, the Cost Recovery Officer (CRO) will need to:
- Review the sequence of the official receipts issued to applicants, which the clerk would have attached to the EXT 1203s in the cost recovery file
- For this, the Cost Recovery Officer (CRO) will need to:
- Ensure that the number of the first official receipt issued is sequential to the last one issued in the previous quarter
- Ensure that there are no breaks in sequence
- Situations could arise where the sequence might have breaks
- In this scenario, the Cost Recovery Officer (CRO) will need to ensure that these breaks are either because of the finishing of the book of receipts or voids – in which case, the Cost Recovery Officer (CRO) will attack all four copies to the accountant’s copy of the EXT 1203 and,
- Note the number of the last official receipt issued for this quarter for next quarter’s test
- For this, the Cost Recovery Officer (CRO) will need to:
The above-mentioned responsibilities are the sole preserve of the Cost Recovery Officer (CRO). Thus, the Cost Recovery Officer (CRO) will not be able to delegate these responsibilities to the Designated Immigration Officer (DIO).
The Role of the Accountant in all Accounting System
The authorities are aware that manual accounting systems feature a risk where an unscrupulous Cost Recovery Clerk could issue official receipts, collect and pocket the fees and then, destroy the official receipts without recording them on an EXT 1203. To eliminate this occurrence, the authorities have made the accountant responsible for logging the numbers of the official receipts provided to the immigration program. The accountant will also need to update the log while submitting each official receipt with the EXT 1203, noting whether the official receipt was in use or void. Prior to issuing a new book of receipts, the accountant will need to review the log. This review of the log will serve to ensure that the accountant has accounted for all the receipts that the clerk has issued previously.
The authorities require the accountant to review and sign the applicable undertaking with the Canada Immigration Centre (CIC) officer each year. This helps in ensuring the separation of duties, thereby avoiding potential collusion.
Source: Immigration, Refugees and Citizenship Canada (IRCC)