GUIDELINES

Asset Management

Policy Bulletin 151

POLICY OBJECTIVES

1. To provide direction to ensure that:

1. the physical assets of the Correctional Service of Canada (CSC) are safeguarded;
2. the Service manages physical assets effectively;
3. managers are aware of the responsibility for the security of materiel purchased or produced by or for them and of the security of the equipment in their possession; and
4. the Service achieves the best possible match of assets with program delivery strategies.

AUTHORITIES

2. Treasury Board Materiel Management Policy;
Treasury Board Manual, Comptrollership, Chapter 4-10 - Policy on Accounting for Inventories;
Commissioner's Directive 350 - Materiel and Supply Management Services.

CROSS-REFERENCES

3. Commissioner's Directive 335 - Fleet Vehicles;
Standard Operating Practices 670 - Security Equipment;
CSC Financial Signing Authorities, Schedule 26 - Procurement;
Financial Administration Act (FAA);
Public Accounts Instructions Manual, Receiver General for Canada, Letter of Representation;
CSC Standards of Professional Conduct;
CSC Code of Discipline.

REQUIREMENTS

4. The Service must ensure that all assets are accounted for and managed in such a manner as to effect appropriate asset utilization in accordance with central agency policies. Corcan will account for and manage its own assets. CSC must also ensure:

1. that all consumable inventories are controlled, so that public funds are used efficiently in the replenishment and maintenance of inventories, as well as in the issue of those stocked items;
2. that adequate storage and/or warehousing space is made available, and that this activity is effectively carried out and controlled in accordance with normal warehousing or storage practices;
3. that the disposal of the Service's materiel resources, identified as surplus to requirement, is carried out in accordance with the central agencies policies and is co-ordinated through the establishment of a Disposal Review Board;
4. that an administrative inquiry be held to review and document on the loss of inventories and/or assets less than $1,000;
5. that an Asset Review Board be convened to investigate and report on the loss of inventories and/or assets greater than $1,000 and less than $25,000;
6. that an Asset Survey Board be convened to investigate and report on the loss of inventories and/or assets greater than $25,000;
7. that the disposal value or burden be considered as part of each disposal action; and
8. that physical counts of assets are undertaken annually at a minimum.

RESPONSIBILITIES

Custodian

5. A custodian (possessor of the asset) is responsible and accountable for equipment, furniture and materiel used by him or her while employed in the Service. Therefore, custodians must be able at all times to account for all assets acquired by them, or on their behalf, and which have not been disposed of in accordance with surplus Crown assets policies.

6. A custodian must ensure that all assets and attractive items purchased with the acquisition card are recorded in the Service's asset management system.

7. Custodians shall be responsible and accountable for notifying the operational unit Asset Management Co-ordinator of any change in their assets' physical location or of new, transferred, damaged, or lost assets except when the Information Management technician is responsible for the activity. The Information Management tracking system for computers is not to be used for the identification of the location of capital and attractive items.

8. Form CSC 1026, entitled "Authority for Removal of Materiel from Premises", is available to record all activities related to the removal of any item, asset or materiel from any premises.

9. The loan of a laptop shall require the authorization of the operational unit Asset Management Co-ordinator or that of another designated authorized staff member who has been delegated this authority. A copy of all such authorized forms shall be provided to the operational unit Asset Management Co-ordinator.

10. The loan out of an asset (other than a laptop) to an employee to carry on work outside of his or her normal work environment (i.e., at home) shall require the prior authorization of the respective operational unit sector head, Assistant Warden, or Area Manager. The authorization will include the business rationale and the expected return date. Form CSC 1216, entitled "Loan of Crown Assets to Employees", is to be completed and forwarded to the operational unit Asset Management Co-ordinator.

11. The loan of an asset to someone other than an employee (e.g. chaplains on contract) can be accomplished by having both parties complete form CSC 1217, entitled "Loan of Equipment Agreement". A copy of the signed agreement will be provided to the operational unit Asset Management Co-ordinator.

12. The CSC Standards of Professional Conduct is to be used as a guiding principle in the application of this policy. The CSC Code of Discipline is applicable to any employee who has been found to wilfully abuse or disregard this policy.

Operational Unit

13. Every operational unit or complex shall identify an Asset Management Co-ordinator.

14. The Institutional Head, the appropriate responsibility centre head or Comptroller at National Headquarters will ensure the appropriate action be taken to investigate discrepancies of assets. These actions include an administrative inquiry, an Asset Review Board or an Asset Survey Board as outlined herein.

15. The responsibility centre head shall ensure that a physical inventory of assets is conducted annually.

16. The senior Finance and Materiel Management officers at each operational unit will prepare and co-sign the Certification of Inventory Count and forward it to the Regional Comptroller, with a copy of the inventory report to the regional head of Materiel Management.

Materiel Management

17. Materiel Management officers have the primary responsibility of ensuring that there are adequate administrative procedures in place to safeguard physical assets against loss, theft, and misuse. They ensure that the asset details are recorded in the asset management system in use in the Service. These officers are also responsible for planning, directing and ensuring that the physical counts are taken. If they are not the asset inventory holder, they may also participate in the stocktaking exercise.

18. Annex A, entitled "Materiel Description" shall be used to conduct the physical inventory of CSC assets.

19. Annex B contains the National List of Attractive Items approved on an as and when required basis by the regional heads of Materiel Management.

20. The officials in charge of activities such as Correctional Programs, Food Services and Health Services must ensure that the physical counts of materiel assets are conducted by their staff in their respective areas as follows:

1. canteen items and controlled narcotic drugs (prescribed) as per regional practices;
2. non controlled (non prescribed) narcotic drugs as per regional practices; and
3. food on a monthly basis.

21. The officials in charge of other activities requiring the use of assets listed in Annex A must ensure that the physical counts of their materiel assets are conducted on an annual basis.

22. Materiel Management officers must ensure that the physical counts of materiel assets are conducted for all other assets, including those in Annex B, on an annual basis.

23. Exceptions are security electronic spare part inventories, computer software costing less than $10,000 and office furniture and furnishings. These items do not need to be captured in our asset management system.

24. All transfers, either internal or external, or any short term removal from the premises (such as loan out or removal of assets for repairs), shall be reported to and approved by the operational unit Asset Management Co-ordinator or a designated authorized staff member.

25. Custodians shall notify the operational unit Asset Management Co-ordinator of any asset relocation transaction that they are undertaking.

26. The designated Asset Management Co-ordinator at each operational unit (or complex) is responsible for:

1. recording and maintaining the location of all capital and attractive items in the asset management system in use in the Service;
2. managing the physical inventory exercise as described herein; and
3. participating as a member of the Asset Review Boards.

27. The physical inventory of assets shall be managed by the Asset Management Co-ordinator as per Annex C, entitled "How to Conduct a Physical Inventory of Assets".

28. The Asset Management Co-ordinator must submit the list of damaged or lost inventories and assets to the Institutional Head or appropriate responsibility centre head for action. A copy of the final report requesting the approval to write off discrepancies shall be sent to the regional heads of Materiel Management and Finance.

29. The regional head of Materiel Management may proceed by way of cost minimizing disposal. He or she shall record all donations, and submit these records to the Regional Comptroller for inspection within 30 days following the donation. This authority shall not be delegated to anyone else.

30. Further details on CSC's application of the policy on the disposal of surplus moveable Crown assets can be found in Annex D of this document.

Finance

31. Finance officers shall ensure that all capital and attractive assets are recorded by Materiel Management in the asset management system in use in the Service.

32. Finance officers shall participate in the planning for the inventory, testing and review of physical counts to ensure independence in the determination of quantities, physical condition, and valuation of inventories accuracy and completeness. They shall also make recommendations for improvement as required.

33. Results of the physical inventory shall be reported, via the Regional Comptroller, to the Comptroller at National Headquarters as an appendix to the Letter of Representation (as per the Public Accounts Instructions).

34. Finance officers shall monitor that all write-offs of lost inventories and missing assets and adjustments of the inventory records are done and completed on a yearly basis.

35. The Regional Comptroller has the final authority to write off missing assets worth more than $10,000. The responsibility centre head has the authority to write off missing assets worth less than $10,000.

Disposal Review Board

36. The Disposal Review Board shall ensure that:

1. materiel identified as surplus is reallocated within the Service, where possible (i.e., refurbished, reused or recycled);
2. surplus materiel is identified as serviceable or unserviceable; and
3. appropriate disposal action are recommended.

37. The Disposal Review Board members shall be comprised as a minimum of officers from Finance and Materiel Management, the individual responsible for the disposed asset (if warranted) and the operational unit Asset Management Co-ordinator.

Asset Review Board

38. An Asset Review Board shall be convened to conduct an investigation for all losses of inventories and/or assets greater than $1,000 and less than $25,000 per occurrence.

39. The Asset Review Board of the operational unit is to retain on file the specifics of the loss encountered and the actions taken to prevent it in the future. The record of activities shall be retained for audit purposes. Identical procedures are applicable for overages. A copy of the investigation report and recommendations are to be sent to the responsibility centre head.

40. The Asset Review Board members shall be comprised of officers from Finance and Materiel Management, and the operational unit Asset Management Co-ordinator who will participate at arms length. The individual responsible for the lost assets may be called as a witness.

41. For losses less than $1,000, an administrative inquiry shall be held to review and document the occurrence at the discretion of the responsibility centre head. Finance and Materiel Management officers shall participate in this investigation. A copy of the investigation and the results shall be provided to both the Chiefs of Finance and Materiel Management of the operational unit. A copy of the report shall be sent for information purposes only to the Regional Comptroller and the regional head of Materiel Management.

42. The Finance and Materiel Management Board members shall review, approve and recommend the write-off of the lost inventories or missing assets and adjustments of the inventory records. A copy of the write-off report shall be sent to the appropriate authority which convened the inquiry as well as to the Regional Comptroller and the regional head of Materiel Management.

Asset Survey Board

43. An Asset Survey Board shall be convened to conduct an investigation and report on the damage and loss of inventories and/or assets greater than $25,000 per occurrence.

44. The Asset Survey Board is to be comprised of the senior Finance and Materiel Management officers of the region and the operational unit Asset Management Co-ordinator. The Board may call upon managers or any other staff member to explain the loss and make recommendations as required to prevent future occurrences.

45. The Finance and Materiel Management Board members shall review, approve and recommend the write-off of the lost inventories, missing assets or overages and adjustments of the inventory records.

46. For all losses greater than $25,000 and less than $100,000 per occurrence, a copy of the report and recommendations is to be sent to the relevant senior managers in the region.

47. For all losses greater than $100,000 per occurrence, a copy of the report and recommendations is to be sent to the relevant senior managers in the region and to the Comptroller at National Headquarters.

FLEET MANAGEMENT

48. Vehicles on the Service's inventories shall be controlled in accordance with Commissioner's Directive 335 on Fleet Vehicles. The Service shall also record these assets in the asset management system in use.

Assistant Commissioner
Corporate Services,
Original signed by
Louise Saint-Laurent

Annex A - MATERIEL DESCRIPTION

Weapons, Firearms and Ammunition

This category includes all guns, rifles, hand weapons, ammunition, munitions and related items listed in the CSC Security Equipment Manual. All firearms shall be recorded in the Service's asset management system.

Narcotics and Drugs

Includes both prescribed and non-prescribed medications.

Attractive Materiel

Consists of an item valued under $1,000 that has a common use in its present or slightly modified form. Normally, it can be transported by hand, subject to misappropriation and easily converted to personal use. Annex B contains the National List of Attractive Items.

The Service shall record all attractive materiel in the asset management system currently in use.

Forms Controlled by Serial Number

Forms which must be secured and controlled by individual serial numbers.

Hazardous Materiel

This category includes any materiel which is flammable, corrosive, oxidizing agent, explosive, toxic or radioactive.

Consumable Materiel

Includes all materiel that is expended or consumed in use, 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: This category 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 effort required to control those items versus the benefits achieved by such a control.

National Depot Items

Includes all items warehoused on a national basis at the depot in Laval, such as clothing, bedding, linen and uniforms.

Vehicles, Construction and Farm Equipment

Includes all motorized vehicles, and may include non-motorized vehicles, designed for use with a motorized vehicle.

Commissary Canteen Items

Includes all approved canteen items purchased by the Service with public funds or by the inmates' canteen for resale to inmates through the canteen operations.

Industry Equipment

Consists of 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 on-going maintenance. They include all industry and vocational shop controllable items.

EDP Equipment

Includes all electronics data processing equipment such as microcomputers, terminals, printers, multiplexers and modems.

Custodial Items Held by Stores

This category includes all items, temporarily stored by Materiel Management, for which activity centre managers are responsible.

Moveable Capital Assets

Consists of any item which has a useful life extending beyond one year, is intended for use on a continuing basis, and is valued over $1,000.

Depreciated Moveable Capital Assets

Any item with a useful life in excess of one year and an acquisition cost of $10,000 or more, excluding GST/HST, will be capitalized and amortized over its useful life.

The Service shall record all capital assets in the asset management system currently in use.

Annex B - NATIONAL LIST OF ATTRACTIVE ITEMS

This list is to be reviewed and approved on an as and when required basis by the regional heads of Materiel Management.

Annex C - HOW TO CONDUCT A PHYSICAL INVENTORY OF ASSETS

PURPOSE

1. This reference document describes the minimum procedures for planning and conducting a physical inventory of all capital assets and attractive items listed in Guidelines 350-1 on Asset Management. It is not meant to be an all encompassing comprehensive "how to" document.

2. Reconciliation of the physical inventory with the asset records at each operational unit in the Correctional Service of Canada (CSC) will allow managers in all regions to certify their asset holdings, and enable the Commissioner to provide the Receiver General and the Auditor General with written representation concerning CSC's recorded asset inventory.

3. The procedures presented here shall be used in all CSC operational units.

PLANNING THE PHYSICAL INVENTORY

4. The regional head of Materiel Management initiates the planning process, in consultation with the Finance officer and Asset Management Co-ordinator for each operational unit involved as well as the Regional Comptroller. The Asset Management Co-ordinator is the staff member located at each operational unit who is responsible for maintaining and updating the asset management system database; this individual is also responsible for conducting the annual physical inventory of assets at the site.

5. Knowing that the physical inventory is required annually, the regional head of Materiel Management, Asset Management Co-ordinators and Finance officers can begin planning the activities accordingly. These procedures may also be applied to conduct a local physical inventory at any time when the manager(s) concerned perceive a need to reconcile their own assets inventory records.

6. Confirming the inventory cut-off date - The last day for receiving assets to be included in the physical inventory may be the year-end date (March 31) or another cut-off date around year end. Asset Management Co-ordinators must ensure that all assets received by the cut-off date and those that may be in transit and were shipped FOB shipping point are recorded in the asset management system. Any other old-year adjustments must be made before producing the asset reports to be used in reconciling the inventories. Assets received after the cut-off date should be recorded in the asset management system only after the reconciliation is complete, and supporting documents (i.e. packing slips) so noted.

7. Selecting the staff who will conduct the physical inventory - The regional heads of Materiel Management and Asset Management Co-ordinators must identify competent individuals to conduct the inventory. It is suggested that teams of at least two are used (one member to identify individual assets, and one to record findings). Agency personnel may be hired for this purpose, except in the case of parole offices or other sites with a limited number of assets. Alternatively, staff members may also conduct the physical inventory. Note that the Asset Management Co-ordinator will manage the physical inventory exercise, but should not participate in conducting the count.

8. Establishing the date(s) for conducting the physical inventory at each site - The regional head of Materiel Management, in consultation with operational unit Asset Management Co-ordinator must assess the time required to conduct the inventory, which will depend on the number of staff available.

9. Notifying all staff concerned in writing or by electronic means - The Asset Management Co-ordinator must be sure to indicate when each area can expect the assigned personnel to conduct the inventory. Staff members will be instructed to have all items on hand for inspection on the day of the inventory. They should also have in their possession their copy of the Authority for Removal of Materiel from Premises (form CSC 1026), for any assets held by them off-site (e.g. a personal computer on loan for CSC related business use at home).

10. Obtaining inventory confirmation stickers (optional) - The Asset Management Co-ordinator may decide to use these stickers, which are usually small colored dots or other easily identified stickers to be affixed to each asset inspected by staff conducting the inventory. Using these stickers will allow them to easily distinguish visually between those assets that have been verified and those that have not yet been counted.

11. Producing the asset reports necessary to conduct the physical inventory - The Asset Management Co-ordinator should produce the reports after inputting all asset inventory transactions up to and including the cut-off date.

CONDUCTING THE PHYSICAL INVENTORY

12. The staff conducting the inventory, or stock takers, shall check all assets in each work area systematically with the applicable employee. They must examine all closets, cupboards, storage units and filing cabinets to locate and identify all assets. The inventory number on the inventory label affixed to each asset must be verified against the asset report.

1. If the asset is where the asset report says it should be, inventory confirmation stickers might be utilized to identify the assets counted (optional).
2. If additional assets are found at the specified location which are not listed on the asset report, the stock takers shall make note of the inventory number (from the inventory label) and the serial number of each item, and provide a full description of the asset (including supplier, date acquired, etc.) and an explanation (from the custodian, the owner of the asset), so that it can be reconciled later. They can also affix a sticker to the asset (optional).
3. If no inventory label is affixed to an asset, the serial number and a full description of the item, with an explanation (from the custodian), will be noted for subsequent inventory identification and adjustment. A sticker can also be affixed to the asset (optional).
4. If an asset is listed on the asset report and cannot be found at the specified location, the stock takers shall indicate on the report that the asset is missing. They will ask the custodian if he or she knows what happened and note his or her response (the item may have been relocated, and will be found elsewhere later).

13. The operational unit Finance officers will selectively observe the physical inventory activity, conduct random verifications or test counts of assets, and review findings to confirm that the physical inventory is accurate. Finance staff will also verify compliance with cut-off date and check if any receipts, issues or transfers were completed during the stocktaking.

14. Stock takers shall verify that all assets in the custodian's possession have been inventoried and viewed. They will note inventoried or other assets which the custodian indicates are located elsewhere (in his or her car, at home, etc.).

15. Stock takers will also note any relevant comments received.

16. Stock takers shall report all findings and provide all written notes and annotated custodian asset reports to the Asset Management Co-ordinator for review and retention. They shall assist with the inventory reconciliation as required. The operational unit Asset Management Co-ordinator must report all discrepancies in writing to his or her supervisor as well as to Finance.

RECONCILIATION OF ASSET INVENTORIES

17. The physical inventory must be reconciled with the asset inventory recorded in the asset management system.

18. Staff conducting the inventory must assist the Asset Management Co-ordinator to confirm that each asset identified during the taking of the physical inventory is correctly listed in the asset management system, and that any missing assets are located or listed for potential write-off.

Assets Designated for Off-Site Use

19. It should be common practice for the Asset Management Co-ordinator to randomly select a representative sample of assets on loan for off-site use, which were not visually checked during the physical inventory. If a copy of a fully completed form CSC 1216, entitled "Loan of Crown Assets to Employees" is not available for a loaned asset, the asset may be inspected at the off-site location and a new form completed and approved by the sector head, Assistant Warden or Area Manager. The loaned asset should be properly recorded in the asset management system. Another option would be to request the custodian of the asset to return it to the work site. A new Loan of Crown Assets to Employees form must be completed for the new term of the agreement and reconfirmed by the applicable sector head, Assistant Warden or Area Manager.

20. If an asset(s) must be viewed off-site, the Asset Management Co-ordinator shall visit the specified off-site location, in accompaniment of the custodian. The Co-ordinator shall report the location and state of repair as well as record the asset(s).

Inventoried Assets Listed on the CSC Asset Inventory Report

21. If the full description of an inventoried asset does not agree with the information recorded in the asset management system, form CSC 958, entitled "Asset Recording and Transaction", must be completed to record the correct information on the asset. This situation may arise particularly for microcomputer equipment when, for example, the custodian has been provided with a new (bigger, better) monitor, and the upgraded equipment was not previously recorded in the asset management system.

22. In most other cases, however, no further action is required to reconcile asset inventories, as the physical inventory agrees with the asset management system inventory record.

Inventoried Assets Not Listed on the CSC Asset Inventory Report

23. For assets which have an inventory label number but were not found in the Custodian Holdings Report, check receiving documentation on hand for assets delivered after the cut-off date. If the asset is identified, verify that the custodian and location are properly recorded on the receiving documentation. No other action is necessary, as these assets will be entered in the asset management system after the inventories are reconciled.

24. For assets which have an inventory label number and were not received after the cut-off date, review the asset management system master listing by inventory number to identify the inventory record (last recorded custodian and location) of the asset. Check the CSC Asset Inventory Report for the location recorded in the system to confirm that the staff who conducted the physical inventory in that area identified the asset as missing. Complete form CSC 958, entitled "Asset Recording and Transaction", to record the transfer and input the new location of the asset in the asset management system.

Missing Assets

25. The custodian and the Asset Management Co-ordinator must try to locate assets listed on a CSC Asset Inventory Report, which cannot be found in the custodian's work area.

26. Prepare a list of these assets and compare them to the assets added to other CSC Asset Inventory Report at the site. Perhaps the asset was relocated without the custodian notifying the Asset Management Co-ordinator. If the asset is found, complete form CSC 958, entitled "Asset Recording and Transaction", to record the transfer and input the correct location of the asset in the asset management system.

27. If the asset cannot be located on site, conduct an investigation. Query the designated custodian to determine if the asset was sent elsewhere (internal or external transfer) or declared surplus (verify surplus records). Take appropriate action to correct the asset management system. A statement shall be requested from the activity centre manager.

28. If the asset cannot be located, make a notation ("missing") in the "Comments" on the asset inventory record, and add the asset to the list of assets to be written-off.

29. The Asset Management Co-ordinator shall complete forms CSC 577, "Disposal Review Board (Cover Sheet)", and CSC 578, "Request for Disposal and Return Voucher", for all missing assets. The Disposal Review Board or the Asset Survey Board will then meet to finalize write-offs before the signing of the Certification of Inventory Count.

Assets with no Inventory Label

30. Assets without an inventory label should be left for the final reconciliation, because it is possible that the label came off or was removed. Once all other assets have been reconciled, compare the description of the asset (including its serial number) with the asset management system master listing and/or the list of assets for write-off, to determine if this asset may be one of the missing assets. If a match is found, note the inventory number, affix a new inventory label to the asset, and complete form CSC 958, entitled "Asset Recording and Transaction", to input the correct information (current custodian, location, etc.) in the asset management system.

31. If the asset cannot be identified in the asset management system inventory records, it must be added to the inventory. Obtain as much information as possible from the custodian (i.e., when it was acquired, how, from which supplier, for how much, etc.), and try to locate the acquisition documents to confirm the details, if possible. To add the asset to the asset management system inventory, complete form CSC 958, entitled "Asset Recording and Transaction", and assign an inventory number. Affix the inventory label to the asset and the duplicate label to the Asset Recording and Transaction form. Create a new inventory record in the asset management system to record the asset.

Assets Write-Off

32. The Asset Management Co-ordinator must submit the list of assets for write-off to the Institutional Head or responsibility centre head for action, with a copy to the regional heads of Materiel Management and Finance. The Institutional Head or responsibility centre head will take appropriate action and obtain proper authority from the Asset Review or Survey Board. The Board members will review the situation, conduct an investigation, and recommend remedial action and the write-off of these assets by signing form CSC 577, "Disposal Review Board (Cover Sheet)".

33. The Asset Management Co-ordinator can then eliminate from the asset management system database the missing assets listed on the Board of Survey Report.

CERTIFICATION OF THE ASSET INVENTORY

34. The Asset Management Co-ordinator must certify the asset inventory for the operational unit when:

1. all signed Custodian Holdings Reports are on hand;
2. the physical asset inventory is consistent with the inventory records in the asset management system; and
3. the certification issues listed in the Certification of Inventory Count have been addressed.

35. The senior Finance and Materiel Management officers at each operational unit will prepare and co-sign the Certification of Inventory Count and forward it to the Regional Comptroller, with a copy sent to the regional head of Materiel Management and a copy kept on site file.

36. The Regional Comptroller shall report the results of the physical inventory to the Comptroller at National Headquarters, as per the annual Public Accounts Instructions.

37. Certification should not be delayed because of minor exceptions or variations in the asset inventory. If such a situation exists, consult with the regional heads of Materiel Management and Finance to determine if and how the certification can be qualified (using notes or addenda), to allow the signed certification to be submitted on schedule.

38. When all regions have reported their results, the Service's senior Finance officer (ACCS) shall sign the annual departmental Letter of Representation and submit it to the Commissioner for approval and transmission to the Receiver General and the Auditor General of Canada. A complete Certification of Inventory Count must accompany each institutional/parole/regional and national year-end Letter of Representation.

Annex D - CSC PROCEDURES AND RESPONSIBILITIES ON DISPOSAL OF MOVEABLE CROWN ASSETS

OBJECTIVE

1. To provide CSC direction on the disposal of assets and in particular on the changes made to the disposal process as outlined in the new Treasury Board policy document. Corcan will account for and manage its own assets.

AUTHORITY

2. Materiel Management Treasury Board policy on "Disposal of Surplus Moveable Crown Assets" dated February 2000.

REQUIREMENT

3. To ensure that the disposal of the Service's surplus moveable assets is carried out in accordance with central agency policies.

RESPONSIBILITIES

4. Custodians shall notify the operational unit Asset Management Co-ordinator of all moveable assets which are surplus to their requirements. It is recommended that a review of surplus assets be conducted quarterly and that a report be submitted to the regional head of Materiel Management.

5. The regional head of Materiel Management and/or his delegate at the operational unit are authorized to declare surplus assets to Crown Assets Distribution (CAD) Centres or contractors, to the Computers for School Program, and to those suppliers awarded contracts and identified as the national vehicle-remarketing specialists. They are also authorized to identify and dispose of items deemed to be scrap.

6. For disposal pilot projects such as the one in the Ontario region, the future of the pilots will be determined through discussions with the Regional Disposal Panel.

7. All regional heads of Materiel Management may proceed with the cost minimizing disposal process. They will record all donations, and submit these records to the Regional Comptroller for inspection within 30 days following the donation. This authority shall not be delegated to anyone else.

GRATUITOUS TRANSFERS/DONATIONS

8. There are two types of donations of surplus assets referenced in the new Treasury Board policy.

1. The first type relates to high value assets such as the donation of surplus perimeter fencing material to the local community. In this and in all other similar examples, we will always require our Minister's approval to proceed with such an action.
2. The second type relates to cost minimizing disposal i.e., those where anticipated costs of disposal (including direct handling, transportation and warehousing costs, marketing costs, sales fees and commissions, staff costs, etc.) exceed expected revenues. As an example, it may cost $50 to dispose of an old desk and the anticipated rebate or payment from past history from CAD has been $40. In accordance with the policy, 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, we 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 even ammunition shell casings, etc.

9. If cost minimising disposal is deemed the best practice, assets must be donated to a Crown corporation, another level of government or a charitable organization or non-profit organization, First Nation or school board in Canada. The operational unit and region must ensure that recipients of the donated surplus material are selected in a way that would be perceived by the public to be fair, equitable and transparent. Appropriate records must be kept and will be subject to periodic audit and review. Regions need to establish internal controls to prevent abuse. Each unit or region shall maintain a list of interested and eligible organizations. These lists are to be approved by the regional head of Materiel Management and the Regional Comptroller. The Materiel Manager of the operational unit would prepare and update this list.

10. The operational unit Asset Survey Board shall recommend the business rationale for the cost minimizing disposal action to the regional head of Materiel Management.

11. The regional head of Materiel Management will review the request for cost minimizing disposal and either reject the request or provide approval to proceed.

12. The cost minimizing disposal option is to be used by exception only. Where practical, we are to continue to dispose of low dollar value assets via CAD.

COMPUTERS FOR SCHOOL PROGRAM

13. All personal computers, monitors, keyboards, printers and other associated articles that become surplus to our requirements shall be offered to Industry Canada Computers for School Program (CSP). In the event that the CSP does not want the equipment offered, normal disposal procedures are to be followed.

AGREEMENT WITH THE PROVINCE OF BRITISH COLUMBIA

14. An agreement has been finalized whereby British Columbia will sell the surplus Crown assets in that province. In British Columbia, we will therefore continue to send our surplus assets to the provincial CAD and have the added opportunity to use the disposal processes outlined in the new Treasury Board policy.

REPORTING

15. The following minimum records shall be kept to ensure availability for information, audit and reporting purposes.

• Disposal actions taken
• Type of disposal
• Name of organizations involved

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