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GC Enterprise IT Portfolio FAQs (view source)
Revision as of 14:36, 22 November 2019
, 14:36, 22 November 2019no edit summary
==External Services==
==External Services==
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<div style="color:#00000; font-size:medium; background-color:#f9d6b8; padding:10px;">'''Question: Now that the External Services section has been broken down into sections, how should I record professional services and other external service costs?'''</div>
<span style="color:#bd5e01; font-size:medium;">'''Answer:'''</span> Cloud service expenses should all be located on the Cloud Services lines, apportioned based on whether the costs are linked to Software as a Service (SaaS), Platform as a Service (PaaS), or Infrastructure as a Service (IaaS) costs. In the event that a cost is shared between SaaS, PaaS, and IaaS services, split the costs based on relative service use, number of FTEs consuming the service, or in another manner that is relevant to your department. Please add a note to Schedule 7 - Notes indicated how you have broken down these costs.
Traditional IT professional service contracts, including consultants, consulting services, and contractors should be grouped under Professional Services.
Other external services, such as third-party (not PSPC) translation services, courier services, and other non-IT related professional services, should be grouped under Other External Services.
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==Transfers - IT Services Provided/Received==
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<div style="color:#00000; font-size:medium; background-color:#f9d6b8; padding:10px;">'''Question: Is there a date for the Transfers to be available to us? Do I need to contact the Departments myself, one by one?'''</div>
<span style="color:#bd5e01; font-size:medium;">'''Answer:'''</span> If Department A is an IT service provider, it will have to contact each of the organizations that it provides services to, to work the transfers. Note that as recipients of the Department A service, they will be looking to Department A to identify their transfer costs too.
If Department A is a recipient of IT services (say from PSPC), Department A will have to contact PSPC to get the transfer amounts. As PSPC has a very large transfer arrangement with departments, Dept A should also contact PSPC to ensure that they submit the transfers in a timely fashion in this round.
TBS will not broker between providers and recipients but will aim to provide as complete departmental contact information possible.
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<div style="color:#00000; font-size:medium; background-color:#f9d6b8; padding:10px;">'''Question: What are key IT Services Received / Provided scenarios and how should they be treatment?'''</div>
<span style="color:#bd5e01; font-size:medium;">'''Answer:'''</span> In general, IT Services Received and Provided are applicable when there is a provision of services based on an agreement between the two organizations, e.g. through a MOU, and would involve cost recovery through some type of interdepartmental settlement.
In all cases, the organization that had the direct IT expenditure (e.g. purchased goods and services from suppliers, expended salary dollars on employees, etc.) will capture IT expenditures in the appropriate six Expenditure Category rows (h/w, s/w, HR, facilities, external services, supplies) against the appropriate Service Group / Service column(s).
The following sample scenarios serve as guidance for whether there should also be an inclusion of associated IT Services Received / Provided. Where a department is capturing IT Services Received or Provided, as part of the due diligence in preparation for CFO attestation the department should validate that the other department is recording the corresponding profile of amounts in their IT Services Provided or Received.
<u>Scenario 1</u> - A department provides non-cost recovered IT services to another department, funded from amounts already in reference levels of the providing department.
The department that provides the IT services will capture IT expenditures in the appropriate six Expenditure Category row(s) of the IT Expenditure Model. There will not be related IT Services Provided entries by the department providing the service nor IT Services Received entries by the recipient department.
<u>Scenario 2</u> - A department provides services to another department through cost recovery
The department providing service will capture the IT expenditures against the appropriate six Expenditure Categories and Services Groups / Services as well as IT Services Provided (negative amounts). The department that provides the funding through cost recovery (e.g. receives the IT services) will capture the corresponding IT Services Received (positive amounts).
<u>Scenario 3</u> - A department provides IT services involving revenue transferred through another department
In this case, there is an authority for revenue, which includes amounts related to expenditure on IT services, which remains with a department rather than the department that will provide the IT services. The funds related to IT services are transferred from the department with the authority to the department that will provide the IT services.
The department that had the direct IT expenditure will capture the expenditures against the appropriate six Expenditure Categories and the Service Groups / Services. It will also capture the associated amounts as IT Services Provided to reflect the revenue received.
The department from which the related funds were passed through will include notes in Schedule 5 that identify the organizations involved, the services provided and the amounts.
Note that in all these scenarios, the transfers of funds between organizations should not be represented as External Services.
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<div style="color:#00000; font-size:medium; background-color:#f9d6b8; padding:10px;">'''Question: How should IT expenditures be captured where departments incurred expenses on behalf of SSC in 2013-14 for end user devices (EUD)?'''</div>
<span style="color:#bd5e01; font-size:medium;">'''Answer:'''</span> There were expenses incurred by departments on behalf of SSC for which transfers had the effect of removing the transactions from department’s DFMS and placing them into SSC ‘s DFMS. These expenditures should not be included in the originating department’s IT expenditure report.
Detail:
On April 3, 2013, through an Order in Council (OIC) (pursuant to the Public Service Rearrangement and Transfer of Duties Act which authorizes an operational reorganization), SSC was given the mandate to provide services related to the acquisition and provision of hardware and software for EUD to 95 federated government departments. All related expenses incurred by departments after the OIC were done on behalf of SSC.
Subsequently, amounts were identified through departmental consultations. Under the co-ordination of the Receiver general, each department (including SSC) processed internal journal vouchers in their DFMS (not processed as an interdepartmental settlement (IS)) which netted out the EUD related expenditures. In this process, departments reversed all expenditures related to the mandate and SSC recorded the same expenditures in its DFMS. The transfer had the effect of removing the transactions from department’s DFMS and placing them into SSC DFMS. Therefore, these expenditures should not be reflected in the originating department’s IT expenditure report but rather in SSC’s. Only IT expenditures not covered by this transfer should be reported by the originating department.
Note that this scenario is different from the IT Services Received from and IT Services Provided to another department that should be captured in the IT expenditure reports where an interdepartmental settlement is created so that departments can transfer incurred costs between one another or collect revenue from one another.
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