FD 350-1 - Asset Management

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FINANCIAL DIRECTIVE 350-1
In Effect:
2014-10-20
Last Review:
2014-10-20
Due for Review:
2016-10-20
Asset Management
PROGRAM Internal Services
ALIGNMENT
OFFICE(S) OF Corporate Services Sector
PRIMARY INTEREST
ONLINE @
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http://infonet/cds/cds/350-1-fd-eng.pdf
http://infonet/cds/cds/350-1-fd-fra.pdf
http://www.csc-scc.gc.ca/acts-and-regulations/350-1-fd-eng.shtml
http://www.csc-scc.gc.ca/lois-et-reglements/350-1-fd-fra.shtml
 Financial Administration Act
AUTHORITIES  Treasury Board Policy on Management of Materiel
 CSC’s Financial Signing Authority Delegation Instrument
PURPOSE
APPLICATION
 To ensure appropriate management and safeguarding of movable
assets and to set out specific procedures for certain asset and
commodity classes
 Applies to Correctional Service of Canada (CSC) staff responsible for
and/or involved in the management of movable assets and
inventories
 Does not apply to intangible assets, intellectual property, the
management of records and information, or the management of
seized or confiscated property
CONTENTS
SECTIONS
1 – 11
12 – 19
16
17 – 19
Responsibilities
Governance
Asset Review Boards
Asset Classes
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Asset Management
20 – 31
Asset Verifications
24 – 28
Periodic Asset Verifications
29 – 31
Annual Asset Verifications
32 – 39
Inventories
35
Inventory Classes
36 – 39
40
2014-10-20
Inventory Not To Be Counted
Enquiries
Annex A
Cross-References and Definitions
Annex B
Asset Review Board
Annex C
Asset Survey Board
Annex D
Disposal Review Board
Annex E
Life Cycle Management
Annex F
Attractive Items
RESPONSIBILITIES
1. The National Comptroller will ensure:
a. a physical verification of assets is conducted at minimum once annually
b. assets are used for their intended purpose and are safeguarded
c. institutions, sites, or operational units appoint an Asset Coordinator to oversee their asset
management activities
d. the regional year-end certifications on assets are reviewed and approved on a national level.
2. Regional Comptrollers will:
a. ensure that a regional physical count is conducted within the prescribed timelines
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b. sign off and report the results of the year-end certification on assets to the Director, Financial
Accountability and Reports, within the prescribed timelines
c. ensure that the appropriate documentation of the work done to support the certification
signature is retained.
3. The Director General, Security Branch, will:
a. oversee development of site-specific security plans for facilities, warehouses, and storage,
when necessary
b. provide support to departmental investigations into losses or theft of assets
c. interface with other government agencies for security of controlled assets.
4. National Headquarters (NHQ) Financial Accountability and Reports Directorate will:
a. ensure that all capital assets are accurately recorded in the Public Accounts through their
accurate recording in the Integrated Financial and Materiel Management System
b. support the asset management function by validating capital asset classification and
amortization periods
c. selectively observe the physical verification activity and verify compliance with cut-off dates
d. conduct random verifications/test counts of assets
e. review findings and the Certification of Inventory Count to confirm that the physical inventory is
accurate
f. verify if any receipts, issues, or transfers were completed during the stocktaking.
5. The Director, Contracting and Materiel Services, will:
a. act as the departmental functional authority responsible for all matters pertaining to assets
governed by this directive
b. ensure central agencies policies and directives are communicated to employees
c. initiate and support the annual physical asset verification process and recommend sampling
methodologies to test verification results
d. make recommendations for improvements to the asset and inventory management processes
and procedures
e. oversee the National Manager, Asset Management.
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6. Regional Managers, Contracting and Materiel Services, will:
a. oversee a regional governance structure made up of three Asset Review Boards
b. provide regional subject-matter expertise and liaise with the Director, Contracting and Materiel
Services, for all matters dealing with asset and inventory management
c. work with Asset Coordinators to establish a schedule for stocktaking (will vary depending on
the nature of the assets), ensuring that verifications are conducted at minimum once annually
d. monitor policy compliance within their region.
7. The National Manager, Asset Management, will:
a. provide guidance and oversight for asset management and physical verifications
b. work closely with Asset Coordinators to validate and verify asset acquisition data and invoices
c. ensure that the Asset Coordinator’s role at NHQ is performed.
8. Budget managers will:
a. consult the appropriate Offices of Primary Interest (OPI) when planning acquisitions
b. plan and justify acquisitions as part of life cycle management, pursuant to Annex E
c. be accountable for sound stewardship of public funds entrusted to them and be responsible for
analyzing the risks of not implementing appropriate controls
d. ensure that assets assigned to their staff are protected and safeguarded
e. ensure that assets, including those purchased by an acquisition card under their delegated
authority, are properly recorded in the Integrated Financial and Materiel Management System,
when applicable
f. report any loss or damage to assets in a timely manner and share any relevant information
about circumstances leading up to the loss or damage, to the appropriate authorities
g. actively participate in periodic and annual verifications of assets.
9. Asset Coordinators will:
a. ensure that all capital assets and attractive items within their area of responsibility are
identified, tagged, documented, recorded, and that any change in status or location is updated
in the Integrated Financial and Materiel Management System
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b. oversee periodic and annual verifications of assets within their area of responsibility
c. advise budget managers on matters dealing with assets, inventories, and verifications
d. participate as members of the Asset Review Boards, as appropriate.
10. Custodians will:
a. be responsible and accountable for assets used by them while employed at CSC
b. ensure that appropriate storage, warehouse space, or facility is available
c. ensure that inventories and assets are protected and reasonable measures are taken to
safeguard investments
d. report any changes of the asset’s physical location, loss or damage in a timely manner and
share any relevant information about circumstances leading up to the loss or damage to the
budget manager and the appropriate authorities
e. ensure, if applicable, a signed Authority for Removal of Materiel from Premises
(CSC/SCC 1026) and Loan of Crown Assets to Employees (CSC/SCC 1216) forms are kept on file
to record all activities related to the removal of any item, asset, or materiel from any
premises
f. ensure to notify and/or return the asset(s) to the Regional Asset Coordinator, whichever is
feasible, upon employee departure, suspension of duties, or regional transfer pursuant to CSC
departure procedures, including completion of the Departure Clearance for Employee/
Contractor and Other (CSC/SCC 0816) form.
11. Stock takers will:
a. complete asset counts and reconciliations, as required
b. produce reports, as required.
GOVERNANCE
12. CSC will promote value for money and sound stewardship in the management of assets. This will be
achieved through:
a. strategic and integrated decision-making and management processes to optimize the use of
assets
b. a risk-based and complexity-based approach to these processes, systems, capacity, resourcing,
oversight, and reporting to promote the attainment of program outcomes
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c. a life cycle management approach reflecting direct and indirect costs of assets to ensure
affordability, cost effectiveness, and performance
d. consideration of asset performance and utilization in retention and disposal decisions in
support of program delivery
e. delegations of authority based on need, capacity, and an effective regime of accountabilities
and responsibilities
f. efficient and effective business process management and accurate and reliable information for
managing performance and assigning costs.
13. This directive applies to all assets and inventories managed by CSC, specifically:
a. capital assets [with an acquisition value over $10,000 (excluding taxes)], as outlined in the
Financial Directive FOps-DIR-2014-333 – Accounting for Capital Assets
b. attractive items, as defined in Annex F
c. all departmental inventories.
14. This directive excludes funding and accounting treatment of capital asset transactions, which is
governed by the Financial Directive FOps 2014-333 – Accounting for Capital Assets.
15. CORCAN will follow the policies and procedures outlined in this directive, unless specific CORCAN
Governing Principles are in existence.
Asset Review Boards
16. The following three review boards oversee asset management.
a. The Asset Review Board considers, reviews, and approves adjustments to asset holdings in its
area of responsibility for amounts up to and including $25,000, as outlined in Annex B.
b. The Asset Survey Board considers, reviews, and approves adjustments to asset holdings in its
area of responsibility for amounts greater than $25,000, as outlined in Annex C.
c. The Disposal Review Board reviews and approves any proposed disposal of assets for its site or
region, as outlined in Annex D.
Asset Classes
17. Departmental OPIs will work closely with the departmental functional authority to establish an
acceptable verification and stocktaking process and methodology for each asset class type. NHQ
Financial Accountability and Reports Directorate will provide guidance on applicable sampling
models or approaches.
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18. Asset classes and their dedicated OPIs:
a. information technology hardware, and audio and video equipment (other than security) –
the Chief Information Officer
b. fleet vehicles – the Director General, Technical Services and Facilities Branch
c. land and buildings – the Director General, Technical Services and Facilities Branch
d. audio and video security surveillance equipment – the Director General, Security Branch
e. consumables, including food services – the Director General, Technical Services and Facilities
Branch
f. health related equipment – the Director General, Health Services Branch.
19. For their respective asset class, each OPI will:
a. implement an appropriate control mechanism to plan for, identify, and manage these assets
b. ensure that investment planning for acquisitions is assured and that sustainable development
strategies are in place
c. appoint an Asset Coordinator that will:
i.
manage and record assets in the relevant Integrated Financial and Materiel
Management System
ii.
clearly establish, articulate, and communicate a risk-based asset verification and
inventory control strategy to be applied consistently across CSC
iii.
lead periodic and annual verifications of assets and certify departmental holdings at a
minimum once annually
iv.
request disposal of assets through the applicable programs (e.g. Computers for Schools
Program) and report to senior management annually on disposal strategies.
ASSET VERIFICATIONS
20. CSC is supportive of the use of various stocktaking approaches and methodologies.
21. Verifications are conducted periodically and annually, based on risk analysis.
22. Consult the CMS-INST-2014-005 – Physical Asset Verification Instructions for procedures for
planning and conducting periodic and annual physical asset verifications, including risk analysis and
scheduling.
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23. Different types of stocktaking:
a. Cycle – This methodology counts a small, predetermined set of goods and materials
frequently on a recurring schedule throughout the year in order to reduce or eliminate
inventory errors (e.g. medical supplies are counted at the end and beginning of shifts).
Custodians must ensure that proper and complete documentation is available to support
results or findings.
b. Wall-to-wall – This methodology has Asset Coordinators oversee a physical count of all
holdings at the location under a budget manager’s control. The results or findings are certified
by the Asset Coordinator and an independent party (e.g. Finance).
c. Random (sampling) – This methodology, depending on the nature of the inventory (size,
location, investment, risk, etc.), is used when an Asset Coordinator proposes to use a
sampling of records to determine if the records are accurate and complete. If an Asset
Coordinator proposes this methodology for an upcoming stocktaking, the departmental
functional authority and Finance must be consulted. Once results are available and
conclusions have been reached based on the sampling model, the inventory will be certified
by the Asset Coordinator and an independent party (e.g. Finance). However if error rates
exceed an acceptable threshold indicating that the records may not be accurate, a complete
wall-to-wall inventory verification will be required to be undertaken.
d. Hybrid – This methodology uses both wall-to-wall and random (sampling) approaches. For
instance, a region, institution, or site may opt to conduct a random verification of a sampling
of its assets valued between $1,000 and $9,999.99, but a wall-to-wall verification of all its
capital assets and attractive items. In this example, the sample size of non-capital assets for
the random verification must be sufficiently large so that a conclusion can be reached about
the records of all these assets in the database. The approach and methodology used must be
documented along with the results.
e. Investigative – This methodology is a fact-finding exercise and is neither scheduled nor
planned. It is undertaken to address specific concerns raised by a custodian or an internal or
external authority. Only the staff authorized by their lead OPI will be involved. Prior
consultation with the departmental functional authority is required, and the results of the
verification process will dictate what follows.
Periodic Asset Verifications
24. Periodic asset verifications can be conducted at any time when budget managers perceive a need
to reconcile their own assets inventory records and/or if the departmental functional authority
sees a need to do so.
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25. Verification findings will:
a. confirm accuracy of records
b. identify new assets found
c. report missing, lost or stolen assets.
26. In the event of missing assets, the Asset Coordinator will approach the Asset Review Board or Asset
Survey Board (depending on the value) prior to taking any further action.
27. Once the verification is complete and all corrective measures have been taken, data updates to the
Integrated Financial and Materiel Management System will be required.
28. Supporting documentation of the verification must be kept on file within the area of responsibility
and, if required, be provided upon request.
Annual Asset Verifications
29. The departmental functional authority will initiate the annual verification of assets recorded in the
Integrated Financial and Materiel Management System via a call letter for assets on hand on
March 31st of every year so that current reports can be submitted to NHQ Financial Accountability
and Reports Directorate within the prescribed deadlines and pursuant to the CMS-INST-2014-005 –
Physical Asset Verification Instructions.
30. The different stocktaking methodologies approved for the annual asset verification are:
a. wall-to-wall verification
b. random (sampling) verification
c. hybrid verification.
31. The updated and final regional year-end certifications on assets are signed by the Regional
Comptrollers, and the Director, Financial Operations for NHQ, and submitted to the Director,
Financial Accountability and Reports, within the prescribed deadlines and pursuant to the CMSINST-2014-005 – Physical Asset Verification Instructions. The National Comptroller will review and
provide approval at a national level. The final approved consolidated year-end certification on
assets is submitted to the departmental Chief Financial Officer for submission to the Commissioner.
A copy of the results must be forwarded to the Director General, Security Branch.
INVENTORIES
32. There are two types of inventories at CSC:
a. those that are publicly funded, where CSC is the owner
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b. those that are created using non-public funds, thereby managed outside the direct control of
CSC (e.g. inmate canteens).
33. Although CSC is not accountable for non-publicly funded inventories or stock, it will maintain
complete and accurate records of all inventories.
34. Departmental OPIs will work closely with the departmental functional authority to establish an
acceptable verification and stocktaking process and methodology for each inventory class. NHQ
Financial Accountability and Reports Directorate will provide guidance on applicable sampling
models or approaches.
Inventory Classes
35. Inventory classes and their dedicated OPIs:
a. Building materiel – Technical Services Branch: includes items of materiel used for
maintenance of institutions. Physical counts are to be conducted pursuant to Technical
Services Branch procedures.
b. Commissary canteen items – Technical Services Branch: includes all approved canteen items
purchased by CSC with public funds or by the inmates’ canteen for resale to inmates through
the canteen operations. Physical counts are to be conducted pursuant to CD 890 – Inmate
Owned Canteens.
c. Consumable materiel – Technical Services Branch: includes all materiel that is to be
consumed in a future year directly or indirectly in the delivery of program outputs, for which
no records are maintained after final issue to end user (e.g. builder's supplies, printing and
stationery, hygiene items, non-hazardous cleaning supplies, petroleum, oil and lubricant).
Note 1: includes items stored in bulk by Institutional Services for which the inmates or CSC
officers are considered end users.
Note 2: consumable inventory materiel only requires a stocktaking accuracy of 95%, due to
the nature of the items, the risk of loss, the transaction volume, and the relationship between
the efforts required to control those items versus the benefits achieved by such a control.
d. Custodial items held by stores – Contracting and Materiel Services Directorate: includes all
items, temporarily stored by Materiel Management, for which budget managers are
responsible. Physical counts are to be conducted pursuant to Contracting and Materiel
Services Directorate procedures.
e. Food - Technical Services Branch: physical counts of food are to be conducted pursuant to
SOP 880-1 – Food Services – Central Feeding and SOP 880-2 – Food Services – Small Group
Meal Preparation.
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f. Hazardous materiel – Technical Services Branch: includes any materiel which is flammable,
corrosive, oxidizing agent, explosive, toxic or radioactive. Physical counts are to be conducted
pursuant to Technical Services Branch procedures.
g. Industry equipment – Technical Services Branch: includes items of materiel that are only
consumable through depreciation or wear and tear, and although they may be fixed or
positioned in prescribed places, they do not lose their identity or become integral parts of
other equipment or installations. Items in this category are normally susceptible to ongoing
maintenance. They include all industry and vocational shop controllable items. Physical
counts are to be conducted pursuant to the CORCAN Financial Procedures Manual.
h. Institutional linen, supplies and related items – Technical Services Branch: includes items
such as basic institutional clothing and linen, occupational clothing (e.g. smocks, aprons, and
food service clothing for employees and inmates), uniforms, and supplies. Physical counts are
to be conducted pursuant to Technical Services Branch procedures.
i.
National Depot items – Contracting and Materiel Services Directorate: includes all items
warehoused on a national basis at the National Depot, such as clothing, bedding, linen and
uniforms. Physical counts are to be conducted pursuant to Contracting and Materiel Services
Directorate procedures.
j.
Narcotics and drugs – Health Services Branch: includes non-controlled (non-prescribed) and
controlled (prescribed) medications. Physical counts are to be conducted pursuant to the
Regional Pharmacy Services – Operations and Standards Manual.
k. Raw material: includes material used in the primary production or manufacturing of a good.
Physical counts are to be conducted pursuant to the CORCAN Financial Procedures Manual.
l.
Vehicles, construction, and other equipment – Technical Services Branch: includes all
motorized vehicles, and may include non-motorized vehicles, designed for use with a
motorized vehicle. Physical counts are to be conducted pursuant to ISD 335 – Fleet
Management.
Inventory Not To Be Counted
36. A limited group of inventory is not to be counted in order to:
a. remove low value (and high volume consumption) inventory items from the inventory list
b. reduce work load during year-end inventory counts
c. reduce administration time without impacting the financial or costing information required for
decision making.
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37. The purchase of all supplies that are considered to be of insignificant value (e.g. office supplies that
are in a secure area) are to be expensed in the year in which they are purchased and therefore
should not be considered as inventory items.
38. In stock items that are not part of the inventory should be clearly labeled so that when the
inventory count is done, they are readily identifiable.
39. When unsure if the inventory item should be counted, the appropriate OPI and/or Asset
Coordinator are to be consulted.
ENQUIRIES
40. Contracting and Materiel Services
National Headquarters
Email: [email protected]
Assistant Commissioner,
Corporate Services
Original Signed by:
Liette Dumas-Sluyter
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ANNEX A
CROSS-REFERENCES AND DEFINITIONS
CROSS-REFERENCES
CD 300 – Real Property
CD 320 – Facilities Maintenance Management
ISD 335 – Fleet Management
FD 350 – Contracting and Materiel Management
FD 350-3 – Contracting
FD 350-4 – Acquisition Cards
CD 570 – Security Equipment
FD FOps-DIR-2014-333 – Accounting for Capital Assets
CSC Security Equipment Manual
CSC’s Financial Signing Authorities Delegation Instrument
Defence Production Act
Federal Real Property and Federal Immovables Act
Surplus Crown Assets Act
Public Works and Government Services Canada Policy on Green Procurement
Receiver General Manual – Chapter 10 – Accounting Entries
Treasury Board Accounting Standard 3.1 – Capital Assets
Treasury Board Accounting Standard 3.1.1 – Software
Treasury Board Accounting Standard 3.4 – Inventories
Treasury Board Common Services Policy
Treasury Board Directive on Acquisition Cards
Treasury Board Directive on Disposal of Surplus Materiel
Treasury Board Directive on Losses of Money or Property
Treasury Board Operational Security Standard on Physical Security
Treasury Board Policy Framework for the Management of Assets and Acquired Services
Treasury Board Policy on Accounting for Inventories
Treasury Board Policy on Government Security
Treasury Board Policy on Investment Planning – Assets and Acquired Services
Treasury Board Policy on Management of Information Technology
Treasury Board Policy on Management of Materiel
Treasury Board Security and Contracting Management Standard
DEFINITIONS
Acquisition: a transaction that adds materiel property to CSC’s inventory, including by means of a
donation, sponsorship or lease.
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Asset performance: a performance measure that addresses the cost of operating and sustaining an
asset relative to established standards or targets.
Attractive items: items with a unit price of more than $1,000 and less than $10,000 (excluding taxes)
that are commonly used in their present or slightly modified form. Normally, such items can be
transported by hand, subject to misappropriation and easily converted to personal use. Since they are
particularly subject to loss, fraud or theft, a record of these items must be set up for control purposes.
Betterments: any modification, conversion, upgrade, addition, or other alteration that enhances or
otherwise increases the functionality, efficiency, or capacity of an original asset or one of its
components. A betterment can also be an expenditure relating to the alteration or modernization of an
asset that appreciably prolong the item's period of usefulness or improve its functionality.
Capital assets: for the purpose of this directive, generally include any tangible asset which has been
acquired, constructed or developed with the intention of being used on a continuous basis and not
intended for sale in the ordinary course of business. Capital assets also include betterments.
Departments will treat as a capital asset any asset that, in addition to meeting the above conditions,
has a useful life in excess of one year and a per item cost of greater than $10,000, excluding taxes.
Certification of Inventory Count: a signed document which supports the Letter of Representation for
the annual asset verification. The signed document certifies that the physical counts are in agreement
with inventory records.
Computers for Schools Program: a national, federal government-led initiative that operates in
cooperation with all provinces and territories, the private and volunteer sectors. Program funding
recipients collect, repair and refurbish donated surplus computers from public and private sector
sources and distribute them to schools, public libraries, not-for-profit learning organizations and
Aboriginal communities throughout Canada.
Controlled assets: goods specified in the Schedule – Controlled Goods List of the Defence Production
Act.
Cost minimizing disposal: when the estimated total costs [including direct handling, transportation,
warehousing, and costs to the Crown Assets Distribution Directorate (CADD) and Crown Assets
Distribution Centres operated by Public Works and Government Services Canada, etc.] of a disposal are
likely to exceed the proceeds of sale. Assets with little or no market value may be transferred
gratuitously, may be recycled or otherwise disposed of in an environmentally acceptable manner when
this is the most cost-effective means of disposal and will withstand public scrutiny. In the majority of
these cases, CSC should be creating standing offer agreements via Public Works and Government
Services Canada or have arrangements with CAD for the disposal of wood products, metal, paper and
cardboard, materials or rags and ammunition shell casings, etc. The cost minimizing disposal option is
to be used by exception only.
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Crown asset: any materiel or real property owned or leased by the Government of Canada, including
land, buildings, bridges, wharves, monuments, equipment, and vehicles. It does not include work tools,
office equipment, and furnishings.
Custodian: the possessor of an asset.
Disposable: designed for or capable of being thrown away after being used or used up (e.g. batteries
and ammunition).
Disposal: the removal of assets from a department, whether by transfer of ownership into new hands
or through recycling as scrap.
Fair market value: the price that would be agreed to in an open and unrestricted market between
knowledgeable and willing parties dealing at arm's length that are fully informed and not under any
compulsion to transact.
Intangible assets: assets that lack physical substance, which include brand names, copyrights,
franchises, licences, patents, subscription lists, trademarks, land rights and easements.
Inventory: materiel for use held in stock on premises or at storage facilities, including materiel that is
undergoing repair or is recorded in the Integrated Financial and Materiel Management System.
Inventory control: the control of materiel by means of established materiel accounting and
management methods and procedures.
Letter of Representation: serves as a written confirmation by management to the Auditor General and
to the signatories of the consolidated financial statements of the Government of Canada that
management is responsible for the financial information to be included in the audited consolidated
financial statements of the Government of Canada contained in the Public Accounts of Canada. It also
confirms that management has disclosed all important and relevant information to the external
auditor.
Life cycle management: the effective and efficient management of assets along the entire continuum
from the identification of a requirement to the disposal and replacement of the asset acquired to meet
the requirement. The phases of life cycle management include assessing requirements; analyzing
options; planning acquisition; acquiring; operating, using, and maintaining; and disposing and
replacing.
Materiel: all movable assets, excluding money and records, acquired by Her Majesty in right of Canada.
Movable assets: assets that are tangible and include a broad range of goods such as equipment (e.g.
office, information technology, telecommunications, scientific), furniture and furnishings, and larger
goods (e.g. vehicles and ships).
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Reconcile: comparing two sets of data to ensure that they are accurate and are in agreement (e.g.
verifying that each asset identified during physical asset verification is correctly listed in the Integrated
Financial and Materiel Management System).
Write-down: an accounting action in which the net book value of a capital asset is reduced to reflect a
permanent decline in the capital asset’s value. When a capital asset is written down, the capital asset
remains in the accounting records of the department.
Write-off: an accounting action in which a capital asset is removed from the department’s accounting
records and is not sold for proceeds or traded in (unlike a write-down). A write-off is normally
undertaken when a capital asset is lost or stolen, when there is a long-term expectation that the asset
will no longer contribute to the department’s ability to provide goods and services, or when there is a
permanent impairment due to theft, fire, destruction or obsolescence that renders the capital asset
out of service.
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ANNEX B
ASSET REVIEW BOARD
MANDATE
1. The Asset Review Board (ARB) provides an independent assessment of losses and other proposed
inventory adjustments as part of physical asset verifications.
2. In the case of losses, the ARB will consider the facts or events that led to the loss and make
recommendations with respect to corrective measures.
3. When a request for a proposed inventory adjustment is received, the ARB will consider the
justification for the proposed adjustment and either approve the request or recommend that
further investigation be carried out.
4. The ARB will inform the Regional Chief, Financial Services, or Regional Comptroller of any situation
or occurrence that could indicate a systematic national anomaly.
MEMBERSHIP
5. Members will make decisions on behalf of the site they represent and will have the necessary
delegated authorities to approve or, in the case of institutions, recommend to the budget manager
any losses or inventory adjustments of $10,000 or less as outlined in CSC’s Financial Signing
Authorities Delegation Instrument, Column 38 – Write-Off of Assets.
6. The site Chief, Finance, will be the Chairperson of the ARB.
7. Members may include:

site Chief, Materiel Management

Finance Officers

Asset Coordinator.
REQUIREMENTS
8. The ARB will recommend the write-off of anything less than $10,000 to the budget manager.
9. The ARB will recommend the write-off of anything greater than or equal to $10,000 and less than
$25,000 to the Regional Comptroller.
10. Decisions must be forwarded to NHQ Financial Accountability and Reports Directorate for reporting
requirements.
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METHOD OF OPERATION
11. In instances where the Chairperson may be perceived as having a conflict of interest with respect
to a request presented to the ARB, another regional member will be asked to assume the role of
Chairperson.
12. If and when required, the Regional Chief, Financial Services, or designate, will act as the policy
advisor to the ARB and provide support and/or interpretations of policies.
13. Secretariat services will be provided to the ARB by the site Chief, Materiel Management.
14. In addition to ad hoc meetings to review asset losses and other proposed inventory adjustments as
they arise, members of the ARB will meet at least once a year to review and discuss asset
management trends and to consider the results of annual verifications. These annual meetings can
be coordinated by teleconference with the Asset Survey Board annual meetings to allow for a more
global regional perspective.
15. The ARB will ensure that all decisions are formally recorded and documented. Approved forms will
be saved in the national ARB information management folder established by NHQ Contracting and
Materiel Services on the departmental shared drive (with restricted access).
16. On occasion, the ARB may be asked by the Asset Survey Board to provide rationale for decisions or
to further investigate a particular situation.
17. The ARB members will ensure that when decisions are made, any required adjustments to the
financial and asset databases are made as soon as possible.
REPORTING PROCESS
18. To initiate a review by the ARB of a loss or other proposed asset adjustment, the following
documentation must be submitted to the ARB:
a. a completed Asset Recording and Transaction (CSC/SCC 0958) form from the Asset Coordinator
providing sufficient details to clearly identify the assets requiring consideration by the ARB
b. in the case of asset losses, a detailed narrative of events that resulted in the loss (this
information can be provided by the institution or the Asset Coordinator and/or budget
manager)
c. for other proposed asset adjustments, a justification for the requested change (this information
can be provided by the institution or the Asset Coordinator and/or budget manager).
19. The site Chief, Materiel Management, or the Asset Coordinator will verify the information and
provide a recommendation to the Chairperson.
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20. The Chairperson will ensure that reasonable prudence and probity are exercised.
21. When the ARB has arrived at a decision and/or recommendation regarding the asset adjustment,
the approved Asset Recording and Transaction (CSC/SCC 0958) form will be returned to the budget
manager and a copy will be retained in the national folder.
22. The ARB may recommend further investigation by the budget manager to locate assets prior to
approval.
23. Special procedures apply to the specific commodities identified below:
a. For any loss or theft of controlled assets (weapons and/or personal protective articles), no
approval shall be granted unless the ARB has consulted with the Director General, Security
Branch, about the situation and received support with respect to the final ARB decision.
b. For any theft or write-off of fleet vehicles, no approval shall be granted unless the ARB has
consulted with NHQ Support Services and received their support with respect to the final ARB
decision.
c. For any reported loss or theft of information technology assets, the Chief Information Officer
will be formally advised and requested to adjust the Information Management/Information
Technology System database to reflect the changes to the departmental holdings.
24. Once CSC’s annual verifications are complete, site ARBs will share the findings and results with the
Asset Survey Board for review and final endorsement. The annual Certification of Inventory Count
results will be co-signed by the Senior Finance Officer and Regional Manager, Contracting and
Materiel Services.
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ANNEX C
ASSET SURVEY BOARD
MANDATE
1. The Asset Survey Board (ASB) provides an independent assessment of losses of assets and other
proposed inventory adjustments presented by the Asset Review Board.
2. In the case of losses, the ASB will consider the facts or events that led to the loss, and make
recommendations with respect to corrective measures.
3. When a request for a proposed inventory adjustment is received, the ASB will consider the
justification for the proposed adjustment, and either approve the request or recommend that
further investigation be carried out.
4. The ASB will inform the Director, Contracting and Materiel Services, of any situation or occurrence
that could, in the opinion of the ASB, indicate a systematic anomaly.
MEMBERSHIP
5. Members will make decisions on behalf of the region they represent and must have the necessary
delegated authorities to approve any losses or inventory adjustments up to $100,000, in
accordance with CSC’s Financial Signing Authorities Delegation Instrument, Column 38 – Write-Off
of Assets.
6. The Regional Comptroller will be the Chairperson.
7. Members may include:

Regional Manager, Contracting and Materiel Services

site Chief, Materiel Management

Regional Warehouse Supervisor

Asset Coordinator.
REQUIREMENTS
8. The ASB investigates losses of value greater than or equal to $25,000 and less than $100,000. A
copy of the report and recommendations is to be sent to the relevant senior managers in the
region.
9. The ASB will recommend write-offs less than $10,000 to the budget manager.
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10. The ASB will recommend write-offs equal to or greater than $10,000 to the Regional Comptroller.
11. Any adjustments over $100,000 require the approval of the National Comptroller. A copy of the
report and recommendations is to be sent to the relevant senior managers in the region and the
National Comptroller.
12. All decisions must be forwarded to NHQ Financial Accountability and Reports Directorate for
reporting requirements.
METHOD OF OPERATION
13. In instances where the Chairperson may be perceived as having a conflict of interest with respect
to a request presented to the ASB, another regional member will be asked to assume the role of
Chairperson.
14. If and when required, the Director, Contracting and Materiel Services, or designate, will act as the
policy advisor to the ASB and provide support and/or interpretations of policies.
15. Secretariat services will be provided to the ASB by the Regional Manager, Contracting and Materiel
Services.
16. In addition to ad hoc meetings to review asset losses and other proposed inventory adjustments as
they arise, members of the ASB will meet at least once a year to review and discuss asset
management trends in their region and to consider the results of annual verifications.
17. The ASB will ensure that all decisions are formally recorded and documented. Approved forms will
be saved in the national ASB information management folder established by NHQ Contracting and
Materiel Services on the departmental shared drive (with restricted access).
18. On occasion, the ASB may be asked by NHQ Contracting and Materiel Services to provide rationale
for decisions or to further investigate a particular situation.
19. The ASB members will ensure that when decisions are made, any required adjustments to the
financial and asset databases are made as soon as possible.
REPORTING PROCESS
20. To initiate a review by the ASB of a loss or other proposed inventory adjustment, the following
documentation must be submitted to the ASB:
a. a completed Asset Recording and Transaction (CSC/SCC 0958) form from the Asset Coordinator,
signed by the Asset Review Board, providing sufficient details to clearly identify the assets
requiring consideration by the ASB
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b. in the case of asset losses, a detailed narrative of events that resulted in the loss (this
information can be provided by the Asset Review Board or the Asset Coordinator and/or budget
manager by memorandum or email to the Chairperson of the ASB)
c. for other proposed inventory adjustments, a justification for the requested change (this
information can be provided by the Asset Review Board or the Asset Coordinator and/or budget
manager by memorandum or email to the Chairperson of the ASB).
21. The Regional Manager, Contracting and Materiel Services, will verify the information and provide a
recommendation to the Chairperson.
22. The Chairperson will ensure that reasonable prudence and probity are exercised.
23. When the ASB has arrived at a decision and/or recommendation regarding the asset adjustment,
the approved Asset Recording and Transaction (CSC/SCC 0958) form will be returned to the Asset
Review Board and a copy will be retained in the national ASB information management folder.
24. At any time, the ASB may recommend further investigation by the budget manager to locate assets
prior to approval.
25. Special procedures apply to the specific commodities identified below:
a. For any loss or theft of controlled assets (weapons and/or personal protective articles), no
approval shall be granted unless the ASB has consulted with the Director General, Security
Branch, about the situation and received his/her support with respect to the final ASB decision.
b. For any theft or write-off of fleet vehicles, no approval shall be granted unless the ASB has
consulted with NHQ Support Services and received their support with respect to the final ASB
decision.
c. For any reported loss or theft of information technology assets, the Chief Information Officer
will be formally advised and requested to adjust the Information Management/Information
Technology System database to reflect the changes to the departmental holdings.
26. The ASB will review the annual verifications co-signed by the Senior Financial Officers and Chiefs,
Materiel Management.
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ANNEX D
DISPOSAL REVIEW BOARD
MANDATE
1. The Disposal Review Board (DRB) is responsible for reviewing and challenging proposed disposal
strategies and ensuring that departmental policies regarding disposal are respected. The DRB also
oversees and manages the Computers for School Program on behalf of CSC.
2. Each Regional Headquarters has the authority to centralize DRBs at the regional level or to delegate
the approval authorities to sites.
3. In accordance with CSC’s Financial Signing Authorities Delegation Instrument, regions cannot
delegate authority to their sites for disposal of real property or for donations requiring the
Minister’s approval. Authority for these disposals is restricted to the positions identified in the
Financial Signing Authorities Delegation Instrument.
4. Only assets with an individual replacement value exceeding $100 are required to complete a
request for disposal. For assets with an individual replacement value less than $100, they are to be
disposed off as if they were scrap. Safe and secure disposal of the product is still required,
depending on the nature of the asset.
MEMBERSHIP
5. Members will make decisions on behalf of the site they represent and will have the necessary
delegated authorities to approve or, in the case of institutions, recommend to the budget manager
any disposals.
6. Approval of disposals will be in accordance with CSC’s Financial Signing Authorities Delegation
Instrument, Column 29 – Disposal of Assets – Other than Real Property and Cash.
Centralized DRBs
7. The Regional Comptroller will be the Chairperson, with the exception of NHQ where it is the
Director, Contracting and Materiel Services.
8. Members may include:

Regional Manager, Contracting and Materiel Services

Regional Warehouse Supervisor.
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Decentralized DRBs
9. The site Chief, Finance, will be the Chairperson.
10. Members will include:

site Chief, Materiel Management

Asset Coordinator.
METHOD OF OPERATION
11. In instances where the Chairperson may be perceived as having a conflict of interest with respect
to a request presented to the DRB, another regional member will be asked to assume the role of
Chairperson.
12. For site DRBs, the Regional Chief, Financial Services, or designate, will act as the policy advisor to
the Board and provide support and/or interpretations of policies. In the case of centralized DRBs,
excluding NHQ, the Director, Contracting and Materiel Services, will act as the reference and policy
advisor.
13. Secretariat services will be provided to the DRB by a representative from Contracting and Materiel
Services.
14. The DRB will only meet when a proposal for disposal action has been received.
15. The DRB will ensure that all decisions are formally recorded and documented. Approved forms will
be saved in the national DRB information management folder established by NHQ Contracting and
Materiel Services on the departmental shared drive (with restricted access).
16. On occasion, site DRBs may be asked by the Regional Comptroller to provide rationale for decisions
or to further investigate a particular situation.
17. The DRB members will ensure that when decisions are made, any required adjustments to the
financial and asset databases are made in a timely fashion.
REPORTING PROCESS
18. To initiate a review by the DRB, the following documentation must be available to the DRB:
completed Asset Recording and Transaction (CSC/SCC 0958) form, Disposal Review Board (Cover
Sheet) (CSC/SCC 0577), and Request for Disposal and Return Voucher (CSC/SCC 0578) providing
sufficient details to clearly identify the assets requiring consideration by the DRB.
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19. The site Chief, Materiel Management, or the Asset Coordinator will verify the information and
provide a recommendation to the Chairperson.
20. The Chairperson will ensure that reasonable prudence and probity are exercised.
21. When the DRB has arrived at a decision and/or recommendation, copies of the approved Asset
Recording and Transaction (CSC/SCC 0958) form, Disposal Review Board (Cover Sheet)
(CSC/SCC 0577), and Request for Disposal and Return Voucher (CSC/SCC 0578) will be returned to
the budget manager, one copy will be retained in the national DRB information management folder
and one copy will be forwarded to the Regional Comptroller. The original approved form will be
sent to the appropriate disposal entity either in hardcopy or electronically (e.g. Crown Assets
Distribution Centre or Computers for Schools Program).
22. Whenever feasible, the DRB will interact closely with CSC’s warehouse operation to secure the
assets and coordinate the logistics.
23. For general asset disposal, which includes disposal-for-proceeds, information technology assets
destined for the Computers for Schools Program and cost-minimizing disposals, the DRB will review
and support the recommended disposition.
24. For the disposal of surplus assets by way of donations and for assets of a controlled nature, special
procedures apply:
a. the DRB will consider proposals for cost-minimizing donations and review those that require
the approval of the Minister
b. the DRB will review proposals for the disposal of weapons and other personal protective assets
and make recommendations for the consideration of NHQ Support Services and the Director
General, Security Branch
c. DRB members will review proposed fleet vehicle disposals and make recommendations to NHQ
Support Services
d. NHQ Support Services shall provide final approval.
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ANNEX E
LIFE CYCLE MANAGEMENT
INVESTMENT PLANNING AND NEEDS ASSESSMENT
1. The Departmental Investment Plan sets clear expectations with respect to the acquisition of assets
and related services. OPIs, identified in the Asset Classes section of this directive, and budget
managers are responsible for planning and justifying their acquisitions. As part of the decisionmaking or planning processes, they are required to address the following:
a. direction setting: includes strategic priority setting using inputs from key departmental profiles
such as corporate and functional risks, environmental scans, security, and contingency plans
challenging asset needs and replacement strategies
b. investment requirements: by using key departmental corporate and operational information
and data to validate the actual requirements for proposed acquisitions and challenging the
planned investments against established criteria
c. budget allocation: by seeking or dedicating the necessary financial resources to support the
planned asset acquisitions
d. execution: by developing acquisition and work plans and by monitoring the acquisitions.
2. Environmental factors will be investigated during the planning stage and taken into account during
the decision-making process, pursuant to FD 350-3 – Contracting and CMS-INST-2014-001 – Green
Procurement Instructions.
3. During the planning phase, the OPIs and budget managers will ensure Asset Coordinators or
Warehouse Managers are informed of the planned acquisitions and that they are in a position to
receive and record assets on their behalf.
ACQUISITION
4. All acquisitions will be carried out according to the responsibilities and procedures set out in
FD 350-3 – Contracting and FD 350-4 – Acquisition Cards.
5. Assets can be acquired through:
a. acquisition card
b. purchase order/contract
c. transfer.
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6. Regardless of the method used to acquire the asset, if the purchase is for an attractive item as
defined in Annex F, or if the item has an acquisition value of over $1,000 (excluding taxes), the
budget manager will retain the following information and documents:
a. item description
b. serial number (when available)
c. receiving documentation (packing slip, signed invoice and/or payment voucher, etc.)
d. Asset Recording and Transaction (CSC/SCC 0958) form.
7. If an asset is acquired through a transfer from within CSC, the recipient within CSC must obtain the
asset data identified in paragraph 6 of this annex and ensure that the Asset Coordinator is informed
of the transfer and provided with copies of the documentation. The request is then submitted to
the appropriate Asset Review Board for decision. Once the decision is received, the Asset
Coordinator must ensure the asset information is promptly updated in the Integrated Financial and
Materiel Management System. NHQ Financial Accountability and Reports Directorate must be
informed of the transfer and provided with copies of the documentation so that a verification is
completed to ensure accurate data has been recorded.
8. If a capital asset is acquired through an interdepartmental transfer, the departments involved need
to consult with each other and with the Receiver General to coordinate the written exchange of
information, identify the amounts involved, determine the government-wide coding used and
establish the accounting period for processing the required departmental accounting entries. A
request must be submitted to the appropriate Asset Review Board for decision. The recipient
within CSC must obtain the asset data identified in paragraph 6 of this annex and ensure that the
NHQ Financial Accountability and Reports Directorate and the Asset Coordinator are informed of
the transfer and are provided with copies of the documentation so that accurate data can be
recorded in the Integrated Financial and Materiel Management System.
RECORDING OF ASSETS
9. Treasury Board requires departments to retain both quantitative and qualitative information on
asset effectiveness.
10. Accurate information on all capital assets and attractive items must be recorded in the Integrated
Financial and Materiel Management System. Since the Integrated Financial and Materiel
Management System is the sole official departmental record, it is essential that all information
within the different asset modules reconcile.
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11. The Asset Coordinator, along with the Regional Warehouse Supervisor or budget manager, is
responsible for ensuring that required asset information is captured and entered in the Integrated
Financial and Materiel Management System. If required, NHQ Financial Accountability and Reports
Directorate will advise the Asset Coordinator of any modifications that are required to be made in
the Integrated Financial and Materiel Management System.
12. Assets and attractive items will be recorded using the Asset Recording and Transaction
(CSC/SCC 0958) form. All changes to the status of an asset (e.g. loss, theft, loan, transfer, or
disposal) will require an update using the same Asset Recording and Transaction (CSC/SCC 0958)
form to record the adjustment.
13. Exceptions include, but are not limited to, security electronic spare part inventories, computers,
and office furniture and furnishings. These items do not need to be captured in the Integrated
Financial and Materiel Management System, unless they have a unit value of $10,000 or greater.
14. When assets are purchased in bulk (e.g. desktops, laptops, printers, projectors, etc.) and the total
combined price of the assets exceed $10,000 but each individual asset has a unit price under
$10,000, these are not considered capital assets. They are not to be entered into the Integrated
Financial and Materiel Management System unless they meet the definition of an attractive item as
defined in Annex F. These items will be tracked by the OPI (e.g. laptops will be tracked in the IT
Management System). Refer to the Financial Directive FOps-DIR-2014-333 – Accounting for Capital
Assets for more information regarding bulk assets and the Decision Tree for determining the status
of an asset and funding requirements.
LOANS
15. Any loan of a CSC asset to an employee must be authorized by the employee’s budget manager.
The budget manager will sign the Authority for Removal of Material from Premises (CSC/SCC 1026)
form to record the removal of the asset from premises.
16. Temporary loans of less than 30 calendar days are not required to be recorded. Email authorization
from the budget manager to the employee must be kept on file to protect parties in case of loss,
theft or damage.
17. Loans of information technology hardware will be coordinated through the local representative of
the Chief Information Officer.
18. Loans to a person other than a CSC employee must be recorded using the Loan of Equipment
Agreement (CSC/SCC 1217) form and, if applicable, the Loan of Equipment Agreement
(Continuation) (CSC/SCC 1217-1) form. Both parties will sign and retain a copy of the completed
form(s) for their records.
19. Personal use of a CSC vehicle (loan) is not permitted pursuant to ISD 335 – Fleet Management.
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LOSS OR THEFT
20. In the event of loss or theft of an asset, the budget manager will prepare the necessary
documentation for consideration by the appropriate Asset Review Board, as outlined in Annex B
and Annex C.
21. The regional or site Security office may be called upon to investigate the events leading up to the
loss or theft.
DISPOSAL
22. CSC will dispose of surplus assets in accordance with established government processes and in a
manner that will stand the test of public scrutiny.
23. Dormant assets are costly to CSC, therefore budget managers will dispose of assets quickly and
effectively as soon as they are considered surplus to the program or operation.
24. All disposals will be coordinated through the Disposal Review Board (DRB). The DRB will consider
the optimal method for disposal. The options available to the DRB are:
a. disposal for proceeds through Crown Assets Distribution Centre
b. cost-minimizing disposal options available to CSC (recycling, destruction, scrap, or salvage)
c. donations
d. disposal through provincial government agreements
e. transfers
f. trade-ins.
25. For functional surplus information technology and peripherals, disposals will be coordinated by
NHQ or Regional Information Technology. Assets will be donated through the Computers for
Schools Program. The responsible OPI will ensure that all hard drives are cleansed using Royal
Canadian Mounted Police approved software before the assets are donated.
26. For all surplus lands and buildings, disposals will be coordinated by NHQ Technical Services and
Facilities Branch who will seek the support of the Canada Lands Company.
27. The disposal or destruction of all surplus weapons and ammunition will be coordinated by the
Director General, Security Branch, who will work with the Royal Canadian Mounted Police to effect
disposals.
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28. Where possible, CSC will make surplus assets available gratuitously, at book value or at fair market
value, to other federal departments or agencies before disposal.
29. In the case of staff change or transfer, any adaptive or ergonomic assets specifically acquired for an
employee may be transferred at no cost to the new unit or department.
30. Donations of surplus assets will comply with CSC’s current Financial Signing Authorities Delegation
Instrument. Only delegated positions are authorized to approve donations. A cost-minimizing
disposal through a donation to recognized charitable organizations in Canada is permitted as long
as other options have been considered first. In the event of a donation, all costs associated with the
donation (e.g. transportation costs) will be charged to the recipient’s account. CSC must seek legal
guidance for donations to ensure that the Crown’s liabilities and further obligations have been
discharged.
31. If a surplus non-information technology asset has a trade-in value, the budget manager may
propose donation as a disposal mechanism. CSC Contracting and Materiel Services or Public Works
and Government Services Canada contracting offices would negotiate the terms of the trade-in.
32. Disposal of hazardous waste requires serious consideration. Several federal, provincial and
municipal codes govern such disposals. The departmental functional authority or regional
representative must be consulted on all matters of hazardous waste disposals.
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ANNEX F
ATTRACTIVE ITEMS
1. Attractive items are items with a unit price of more than $1,000 and less than $10,000 (excluding
taxes) that are commonly used in their present or slightly modified form. Normally, they can be
transported by hand, subject to misappropriation and easily converted to personal use. Since they
are particularly subject to loss, fraud or theft, a record must be set up for control purposes.
2. Attractive items will be recorded using the Asset Recording and Transaction (CSC/SCC 0958) form.
All changes to the status of an asset (e.g. loss, theft, loan, transfer, or disposal) will require an
update using the same Asset Recording and Transaction (CSC/SCC 0958) form to record the
adjustment.
3. Attractive items are referred to as "Expensed Assets" in the Integrated Financial and Materiel
Management System (Fixed Asset Module).
4. CSC will record in its Integrated Financial and Materiel Management System certain specific asset
categories classified as attractive items, irrespective of price. These asset categories are:
a. all weapons, firearms, and security equipment as per CD 570 – Security Equipment and listed in
the CSC Security Equipment Manual (excludes disposable items such as ammunition)
b. all personal protective assets not meant for public use
c. all televisions and other video equipment.
5. Budget managers will consult with the following OPIs when considering acquisitions of assets that
could be included in the above-mentioned asset categories:
a. weapons and firearms: the OPI is NHQ Correctional Operations and Programs and consultation
is required
b. personal protective assets (excludes uniforms or general use clothing): the OPI is NHQ
Correctional Operations and Programs (or the regional representative) who will determine if
the proposed acquisition falls within the "personal protective asset" category
c. televisions, and other video equipment (not related to departmental security): the OPI is the
Chief Information Officer.
6. Budget managers may consult with their Asset Coordinator at any time when planning asset
acquisitions regardless of asset value or category.
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