Financial Directive

Asset Management

PURPOSE

  • To ensure appropriate management and safeguarding of movable assets and to set out specific procedures for certain asset and commodity classes

APPLICATION

  • Applies to Correctional Service of Canada (CSC) staff responsible for and/or involved in the management of tangible 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

RESPONSIBILITIES

  1. The National Comptroller will ensure:
    1. a physical verification of assets is conducted at minimum once annually
    2. assets are used for their intended purpose and are safeguarded
    3. institutions, sites, or operational units appoint an Asset Coordinator to oversee their asset management activities
    4. the regional year-end certifications of assets are reviewed and approved on a national level.
  2. Regional Comptrollers will:
    1. ensure that institutions, sites, or operational units appoint an Asset Coordinator to oversee their asset management activities
    2. ensure that a regional physical verification of assets is conducted within the prescribed timelines
    3. sign off and report the results of the year-end certification on assets to the Director, Financial Accountability and Reports, within the prescribed timelines
    4. ensure that the appropriate documentation of the work done to support the certification signature is retained
    5. act as chairperson of the Asset Survey Board and Disposal Review Board.
  3. The Director General, Security Branch, will:
    1. oversee the completion of Threat and Risk Assessments for all CSC facilities, including warehouses, and storage, when necessary
    2. provide support to departmental investigations into losses or theft of assets
    3. interface with other government agencies for security of controlled assets.
    4. develop policies and provide advice and guidance for the safeguard of protected and classified assets
    5. provide advice and guidance for the safeguard of valuable assets.
  4. National Headquarters (NHQ) Financial Accountability and Reports Directorate will:
    1. ensure that all capital assets are accurately recorded in the Public Accounts through their accurate recording in the Integrated Financial and Materiel Management System (IFMMS)
    2. support the asset management function by validating capital asset classification and amortization periods
    3. review findings and the Certification of Inventory Count to confirm that the physical inventory is without material error
    4. verify if any receipts, issues, or transfers were completed during the stocktaking.
  5. Regional Headquarters/site Finance will:
    1. selectively observe the physical verification activity, verify compliance with cut-off dates, and co-sign the Certification of Inventory Count document
    2. conduct random verifications/test counts of assets
    3. participate as a member of the Asset Review Boards, as appropriate.
  6. The Director, Contracting and Materiel Services, will:
    1. act as the departmental functional authority responsible for all matters pertaining to assets governed by this directive
    2. ensure central agencies policies and directives are communicated to employees
    3. initiate and support the annual physical asset verification process and recommend sampling methodologies to test verification results
    4. make recommendations for improvements to the asset and inventory management processes and procedures
    5. oversee the National Manager, Materiel Services
    6. participate as a member of the Asset Review Boards, as appropriate.
  7. The National Manager, Materiel Services, will:
    1. provide guidance and oversight for asset management and physical verifications
    2. oversee the National Materiel Services group within the NHQ Contracting and Materiel Services Directorate, including the National Supply Depot
    3. work closely with Asset Coordinators to validate and verify asset acquisition data
    4. ensure that the Asset Coordinator’s role at NHQ is performed.
  8. Regional Managers, Contracting and Materiel Services, will:
    1. oversee a regional governance structure made up of three Asset Review Boards
    2. provide regional subject-matter expertise and liaise with the Director, Contracting and Materiel Services, or National Manager, Materiel Services, for all matters dealing with asset and inventory management
    3. 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
    4. monitor policy compliance within their region.
  9. Regional Asset Coordinators will:
    1. complete the mandatory asset management training for Asset Coordinators outlined in the Training section of this directive
    2. 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 IFMMS
    3. save all applicable asset forms electronically in the information management folders established by NHQ Contracting and Materiel Services on the departmental shared drive (with restricted access)
    4. oversee periodic and annual verifications of assets within their area of responsibility
    5. advise budget managers on matters dealing with assets, inventories, and verifications
    6. disseminate information and provide guidance to Site Asset Coordinators, as needed
    7. participate as members of the Asset Review Boards, as appropriate.
  10. Site Asset Coordinators will:
    1. complete the mandatory asset management training for Asset Coordinators outlined in the Training section of this directive
    2. 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 IFMMS
    3. save all applicable asset forms electronically in the information management folders established by NHQ Contracting and Materiel Services on the departmental shared drive (with restricted access)
    4. oversee periodic and annual verifications of assets within their area of responsibility
    5. consult with the Regional Asset Coordinator for any asset, inventory, and verification questions and/or issues.
  11. Budget managers will:
    1. consult the appropriate Offices of Primary Interest (OPI) when planning acquisitions
    2. plan and justify acquisitions as part of life cycle management, pursuant to Annex E
    3. be accountable for sound stewardship of public funds entrusted to them and be responsible for analyzing the risks of not implementing appropriate controls
    4. ensure that all applicable assets, including those purchased by an acquisition card under their delegated authority, are properly recorded in IFMMS or other applicable asset management systems
    5. submit a completed Asset Recording and Transaction form (CSC/SCC 0958) and supporting documentation to the Asset Coordinator for new assets or changes to assets within the prescribed time frame [within one business day of receiving a new asset and within five business days when there is a change to an asset’s information (e.g. location, financial coding, custodian, etc.)]
    6. ensure that assets assigned to their staff are properly protected and safeguarded
    7. ensure that assets loaned to staff (for the purpose of completing CSC business requirements) or consultants (for the purpose of fulfilling a CSC contractual obligation) are returned upon request, completion of requirements, or end date of contract
    8. report any loss, damage, or suspected theft of assets, and provide any relevant information about circumstances leading up to the loss or damage, to the appropriate authorities and Asset Review Board, as soon as possible
    9. contact the Disposal Review Board to dispose of all surplus assets (disposals must be done pursuant to Annex D)
    10. actively participate in periodic and annual verifications of assets.
  12. Custodians will:
    1. be responsible and accountable for assets used by them while employed at CSC
    2. ensure that appropriate storage, warehouse space, or facility is available for assets not in use
    3. ensure that inventories and assets are protected and reasonable measures are taken to safeguard investments
    4. report any changes of the asset’s physical location, loss or damage in a timely manner and provide any relevant information about circumstances leading up to the loss or damage to the budget manager and the appropriate authorities
    5. ensure, if applicable, a signed Authority for Removal of Materiel from Premises form (CSC/SCC 1026) and Loan of Crown Assets to Employees form (CSC/SCC 1216) are kept on file to record all activities related to the removal of any item, asset, or materiel from any premises
    6. notify the Regional or Site Asset Coordinator 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 form (CSC/SCC 0816).
  13. Stock takers will:
    1. complete asset counts and reconciliations, as required
    2. produce reports, as required.

GOVERNANCE

  1. CSC will promote value for money and sound stewardship in the management of assets. This will be achieved through:
    1. strategic and integrated decision-making and management processes to optimize the use of assets
    2. a risk-based and complexity-based approach to these processes, systems, capacity, resourcing, oversight, and reporting to promote the attainment of program outcomes
    3. a life cycle management approach reflecting direct and indirect costs of assets to ensure affordability, cost effectiveness, and performance
    4. consideration of asset performance and utilization in retention and disposal decisions in support of program delivery
    5. delegations of authority based on need, capacity, and an effective regime of accountabilities and responsibilities
    6. efficient and effective business process management and accurate and reliable information for managing performance and assigning costs.
  2. This directive applies to all assets and inventories managed by CSC, specifically:
    1. 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
    2. attractive items, as defined in the Attractive Items section of this directive and the CMS INST 2015 019 Attractive Items Guidelines
    3. all departmental inventories.
  3. 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.
  4. CORCAN will follow the policies and procedures outlined in this directive, unless specific CORCAN Governing Principles are in existence.

Asset Review Boards

  1. CSC is required to provide a control and oversight regime to monitor adherence to asset management policy and its associated procedures, and have appropriate accountability and decision-making structures in place.
  2. Asset Review Boards provide decisions and recommendations regarding asset record adjustments and disposals. Only delegated authorities can provide approvals pursuant to the Financial Signing Authorities Delegation Instrument.
  3. The following three review boards oversee asset management.
    1. 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.
    2. 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.
    3. The Disposal Review Board reviews and approves any proposed disposal of assets, as outlined in Annex D.

Asset Classes

  1. Asset classes and their dedicated OPIs:
    1. information technology hardware, and audio and  visual equipment (other than security) – the Chief Information Officer
    2. fleet vehicles – the Director General, Technical Services and Facilities Branch
    3. land and buildings – the Director General, Technical Services and Facilities Branch
    4. audio and video security surveillance equipment – tthe Director General, Security Branch, and the Director General, Technical Services and Facilities Branch
    5. consumables, including food services – the Director General, Technical Services and Facilities Branch
    6. health related equipment – the Director General, Health Services Branch.
    7. weapons and firearms – the Director General, Security Branch
    8. other video equipment (not related to departmental security) – the Chief Information Officer
    9. personal protective assets (excludes uniforms or general use clothing) - the Director General, Security Branch (or the regional representative).
  2. For their respective asset class, each OPI will:
    1. when applicable, ensure that investment planning for acquisitions is assured and that sustainable development strategies are in place
    2. implement an appropriate control mechanism to plan for, identify, and manage these assets in IFMMS or other applicable asset management systems
    3. for specific assets (e.g. real property, fleet, firearms, etc.), designate a position to manage and record those assets in IFMMS or other applicable asset management systems
    4. when required, work closely with Regional and Site Asset Coordinators who manage and record assets in IFMMS or other applicable asset management systems on behalf of OPIs and ensure the proper paperwork is provided to support the asset record
    5. clearly establish, articulate, and communicate a risk-based asset verification and inventory control strategy to be applied consistently across CSC
    6. actively participate in periodic and annual verifications of assets and certify departmental holdings, upon request
    7. request disposal for applicable assets through the appropriate Disposal Review Board and applicable programs (e.g. Computers for Schools Program) and report to senior management annually on disposal strategies
    8. follow established disposal practices for assets outside the mandate of the Disposal Review Board (e.g. real property and firearms).

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. Refer to the CMS-INST-2015-019 Attractive Items Guidelines for detailed guidance for determining what assets are attractive items and procedures.
  3. Attractive items will be recorded using the Asset Recording and Transaction form (CSC/SCC 0958). 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 form (CSC/SCC 0958) to record the adjustment.
  4. Attractive items are referred to as "Expensed Assets" in IFMMS (Fixed Asset Module).
  5. CSC will record in its IFMMS certain specific asset categories classified as attractive items, irrespective of price. These asset categories are:
    1. all weapons, firearms, and specific security equipment as outlined in the CMS-INST-2015-019 Attractive Items Guidelines
    2. all personal protective assets not meant for public use
    3. all automated external defibrillators
    4. all video surveillance equipment.

LIFE CYCLE MANAGEMENT

  1. Materiel management strategies must always consider the full life-cycle costs and benefits of the alternatives for meeting program requirements.
  2. Using life-cycle costing techniques, CSC can evaluate the total costs to the Crown of owning or leasing an asset before it is acquired. This evaluation is accomplished by considering such factors as the current value of the costs of future operation, maintenance, and disposal, in addition to initial and ongoing capital costs.
  3. By adopting this approach to the management of materiel, CSC can ensure that materiel management and asset management decisions are financially prudent and represent the best value to the Crown.
  4. The identification and disposal of surplus materiel is a critical part of the life cycle management of assets.
  5. For detailed information and strategies regarding life cycle management, including how to treat transfers, loans, and recording of assets refer to Annex E.

ASSET VERIFICATIONS

  1. CSC is supportive of the use of various stocktaking approaches and methodologies.
  2. Verifications are conducted periodically and annually, based on risk analysis.
  3. 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.
  4. Different types of stocktaking:
    1. 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.
    2. 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).
    3. Random (sampling) – This methodology, depending on the nature of the assets (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 verification will be required to be undertaken.
    4. 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.
    5. 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

  1. Periodic asset verifications can be conducted at any time when budget managers perceive a need to reconcile their own assets’ records and/or if the departmental functional authority sees a need to do so.
  2. Verification findings will:
    1. confirm accuracy of records
    2. identify new assets found
    3. report missing, lost or stolen assets.
  3. 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.
  4. Once the verification is complete and all corrective measures have been taken, data updates to IFMMS are required.
  5. 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

  1. The departmental functional authority will initiate the annual verification of assets recorded in IFMMS 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.
  2. The different stocktaking methodologies approved for the annual asset verification are:
    1. wall-to-wall verification
    2. random (sampling) verification
    3. hybrid verification.
  3. 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 CMS INST 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

  1. There are two types of inventories at CSC:
    1. those that are publicly funded, where CSC is the owner
    2. those that are created using non-public funds, thereby managed outside the direct control of CSC (e.g. inmate canteens).
  2. Although CSC is not accountable for non-publicly funded inventories or stock, it will maintain complete and accurate records of all inventories.

Inventory Classes

  1. Inventory classes and their dedicated OPIs:
    1. 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.
    2. Commissary canteen items – Assistant Warden, Management Services: 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.
    3. Consumable materiel – Assistant Warden, Management Services: 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.
    4. Custodial items held by stores – Assistant Warden, Management Services: 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.
    5. 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.
    6. 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.
    7. 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.
    8. Institutional linen, supplies and related items – Assistant Warden, Management Services: 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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

  1. A limited group of inventory is not to be counted in order to:
    1. remove low value (and high volume consumption) inventory items from the inventory list
    2. reduce work load during year-end inventory counts
    3. reduce administration time without impacting the financial or costing information required for decision making.
  2. 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.
  3. 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.
  4. When unsure if the inventory item should be counted, the appropriate OPI and/or Asset Coordinator are to be consulted.

TRAINING

  1. Budget managers and custodians are recommended to complete the Asset Management Overview for Budget Managers and Custodians (AM1) eLearning Module.
  2. Asset Coordinators, Materiel Management staff and others required to create and update asset records in IFMMS must successfully complete:
    1. the mandatory Asset Management for Asset Coordinators and Materiel Management Staff (AM2) eLearning Module
    2. IFMMS Fixed Asset Module user quiz.

CONSEQUENCES

  1. Corrective actions are required to address non-compliance with this directive. Corrective actions can include additional training, changes to procedures and systems, cancellation or modification of system access, suspension or removal of delegated authority, disciplinary action, and other measures as appropriate.

Assistant Commissioner,
Corporate Services

Original Signed by:
Liette Dumas-Sluyter

ANNEX A - CROSS-REFERENCES AND DEFINITIONS

CROSS-REFERENCES

    FD FOps-DIR-2014-333 – Accounting for Capital Assets
    CMS-INST-2015-019 Attractive Items Guidelines
    CSC’s Security Equipment Manual
    CSC’s Financial Signing Authorities Delegation Instrument

DEFINITIONS

Acquisition: a transaction that adds materiel property to CSC’s asset records, including by means of a donation, sponsorship or lease.

Asset performance: a performance measure that addresses the cost of operating and sustaining an asset relative to established standards or targets.

Asset record: a record that is created in a CSC asset management system that tracks an asset’s details (e.g. value, amortization, location, custodian, status, category, etc.). This record is also used when reconciling physical assets to CSC’s asset holdings.

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 asset 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.

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, for proceeds, 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 IFMMS or other applicable asset management systems.

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).

Personal protective assets: personal protective equipment used by employees for specific job functions. For the purpose of this Directive, these assets are within the categories of Protective Equipment or Personal Protective Equipment in the CSC Security Equipment Manual (e.g. body armour, safety equipment, and Emergency Response Team equipment).

Reconcile: comparing two sets of data to ensure that they are accurate and are in agreement (e.g. verifying that each asset identified during a physical asset verification is correctly listed in IFMMS).

Tangible assets: assets having physical substance, including moveable and non-moveable assets (e.g. land, equipment, buildings, infrastructure, informatics software, etc.).

Video security surveillance equipment : assets, both mobile and fixed, used in security surveillance (e.g. closed-circuit televisions, Emergency Response Team cameras, etc.). For the purpose of this Directive, low value hand held cameras (valued less than $1,000) are not included in this category.

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: the process by which an asset is removed from the departmental inventory and is not sold for proceeds or traded in (unlike a write-down). A write-off is normally undertaken when an 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 permanent impairment due to theft, fire, accident, destruction, act of nature, or obsolescence that renders the asset out of service. 

ANNEX B - ASSET REVIEW BOARD

MANDATE

  1. The Asset Review Board (ARB) provides an independent assessment of all losses of assets and other proposed asset record adjustments valued less than $25,000.
  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 asset record 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

  1. 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 asset record adjustments of less than $10,000 as outlined in CSC’s Financial Signing Authorities Delegation Instrument, Column 35 – Write-Off of Assets.
  2. The site Chief, Finance, will be the Chairperson of the ARB.
  3. Members may include:
    1. Site Chief, Materiel Management (or equivalent position)
    2. Finance Officers
    3. Asset Coordinator.

REQUIREMENTS

  1. The ARB will recommend the write-off of anything less than $10,000 to the budget manager.
  2. 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.
  3. Decisions must be forwarded to NHQ Financial Accountability and Reports Directorate for reporting requirements.

METHOD OF OPERATION

  1. 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.
  2. If and when required, the Regional Chief, Financial Services, or designate, will act as advisor to the ARB and provide support and/or interpretations of financial policies.
  3. Secretariat services will be provided to the ARB by the site Chief, Materiel Management.
  4. In addition to ad hoc meetings to review asset losses and other proposed asset record 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.
  5. 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).
  6. On occasion, the ARB may be asked by the Asset Survey Board to provide rationale for decisions or to further investigate a particular situation.
  7. 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

  1. To initiate a review by the ARB of a loss or other proposed asset record adjustment, the following documentation must be submitted to the ARB:
    1. a completed Asset Recording and Transaction form (CSC/SCC 0958) from the Asset Coordinator providing sufficient details to clearly identify the assets requiring consideration by the ARB
    2. 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)
    3. for other proposed asset record adjustments, a justification for the requested change (this information can be provided by the institution or the Asset Coordinator and/or budget manager).
  2. The site Chief, Materiel Management, or the Asset Coordinator will verify the information and provide a recommendation to the Chairperson.
  3. The Chairperson will ensure that reasonable prudence and probity are exercised.
  4. When the ARB has arrived at a decision and/or recommendation regarding the asset adjustment, the approved Asset Recording and Transaction form (CSC/SCC 0958) will be returned to the budget manager and a copy will be retained in the national folder.
  5. The ARB may recommend further investigation by the budget manager to locate assets prior to approval.
  6. Special procedures apply to the specific commodities identified below:
    1. 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. Loss of controlled assets must be immediately reported and an investigation must be convened by Security.
    2. 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.
    3. 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.

ANNEX C - ASSET SURVEY BOARD

MANDATE

  1. The Asset Survey Board (ASB) provides an independent assessment of all losses of assets and other proposed asset record adjustments valued at $25,000 and greater, and outside the mandate of 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 asset record 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

  1. Members will make decisions on behalf of the region they represent and must have the necessary delegated authorities to approve any losses or asset record adjustments up to $100,000, in accordance with CSC’s Financial Signing Authorities Delegation Instrument, Column 35 – Write-Off of Assets.
  2. The Regional Comptroller will be the Chairperson of the ASB.
  3. The Regional Manager, Contracting and Materiel Services, must be a member of the ASB.
  4. Other members may include:
    • Site Chief, Materiel Management (or equivalent position)
    • Regional Warehouse Supervisor (or equivalent position)
    • Asset Coordinator.

REQUIREMENTS

  1. 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.
  2. 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.
  3. All decisions must be forwarded to NHQ Financial Accountability and Reports Directorate for reporting requirements.

METHOD OF OPERATION

  1. 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.
  2. 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.
  3. Secretariat services will be provided to the ASB by the Regional Manager, Contracting and Materiel Services.
  4. In addition to ad hoc meetings to review asset losses and other proposed asset record 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.
  5. 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).
  6. 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.
  7. 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

  1. To initiate a review by the ASB of a loss or other proposed asset record adjustment, the following documentation must be submitted to the ASB:
    1. a completed Asset Recording and Transaction form (CSC/SCC 0958) from the Asset Coordinator, signed by the Asset Review Board, providing sufficient details to clearly identify the assets requiring consideration by the ASB
    2. 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)
    3. for other proposed asset record 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).
  2. The Regional Manager, Contracting and Materiel Services, will verify the information and provide a recommendation to the Chairperson.
  3. The Chairperson will ensure that reasonable prudence and probity are exercised.
  4. When the ASB has arrived at a decision and/or recommendation regarding the asset adjustment, the approved Asset Recording and Transaction form (CSC/SCC 0958) will be returned to the Asset Review Board and a copy will be retained in the national ASB information management folder.
  5. At any time, the ASB may recommend further investigation by the budget manager to locate assets prior to approval.
  6. Special procedures apply to the specific commodities identified below:
    1. 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 support with respect to the final ASB decision. Loss of controlled assets must be immediately reported and an investigation must be convened by Security.
    2. 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.
    3. 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.
    4. All approval of real property write-offs will be in accordance with CSC’s Financial Signing Authorities Delegation Instrument, Column 33 – Real Property – Disposals and Write-Off.

ANNEX D - DISPOSAL REVIEW BOARD

MANDATE

  1. The Disposal Review Board (DRB) is responsible for reviewing, challenging and approving 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. 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.
  3. A request for disposal must be completed for all assets with an individual replacement value exceeding $100. Assets with an individual replacement value less than $100 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

  1. Members will make decisions on behalf of the region they represent and will have the necessary delegated authorities to approve or, in the case of institutions, recommend to the budget manager any disposals.
  2. Approval of disposals will be in accordance with CSC’s Financial Signing Authorities Delegation Instrument, Column 32 – Disposal of Assets – Other than Real Property and Cash.
  3. The Regional Comptroller will be the Chairperson, with the exception of NHQ where it is the Director, Contracting and Materiel Services.
  4. Members must include:
    • Finance Officer(s)
    • Materiel Management staff.
  5. Other members may include:
    • Regional Manager, Contracting and Materiel Services
    • Regional Warehouse Supervisor (or equivalent position)
    • Site Chief, Materiel Management
    • Asset Coordinator.

METHOD OF OPERATION

  1. 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.
  2. The Director, Contracting and Materiel Services, will act as the policy advisor to the Board and provide support and/or interpretations of policies.
  3. Secretariat services will be provided to the DRB by a representative from Contracting and Materiel Services.
  4. The DRB will only meet when a proposal for disposal action has been received.
  5. 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).
  6. 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

  1. To initiate a review by the DRB, the following documentation must be available to the DRB: completed Asset Recording and Transaction form (CSC/SCC 0958), 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.
  2. The site Chief, Materiel Management, or the Asset Coordinator will verify the information and provide a recommendation to the Chairperson.
  3. The Chairperson will ensure that reasonable prudence and probity are exercised.
  4. When the DRB has arrived at a decision and/or recommendation, copies of the approved Asset Recording and Transaction form (CSC/SCC 0958), 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).
  5. Whenever feasible, the DRB will interact closely with CSC’s warehouse operation to secure the assets and coordinate the logistics.
  6. 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.
  7. For the disposal of surplus assets by way of donations and for assets of a controlled nature, special procedures apply:
    1. the DRB will consider proposals for cost-minimizing donations and review those that require the approval of the Minister
    2. controlled goods (e.g. sensitive military equipment) subject to the International Traffic in Arms Regulations are not to be disposed of by traditional means; their disposal will be managed by the Director General, Security Branch
    3. NHQ Support Services shall provide final approval.
  8. For the disposal of firearms, special procedures apply:
    1. the disposal of firearms must be in accordance with CD 570 – Security Equipment, the Firearms Act, the Public Agents Firearms Regulations, and a Memorandum of Understanding between CSC and the Royal Canadian Mounted Police (RCMP)
    2. firearms disposal practices are managed by the RCMP on behalf of CSC.
  9. For the disposal of vehicles, special procedures apply:
    1. the disposal of vehicles must be in accordance with ISD 335 – Fleet Management
    2. the Disposal Review Board (Cover Sheet) (CSC/SCC 0577) and Request for Disposal and Return Voucher (CSC/SCC 0578) must be provided to NHQ Support Services
    3. DRB members will review proposed fleet vehicle disposals and make recommendations to NHQ Support Services
    4. NHQ Support Services shall provide final approval for disposals and for resales to other government departments.
  10. For the disposal of real property, special procedures apply:
    1. all real property disposal transactions require the approval in principle of the Director General, Technical Services and Facilities
    2. approval of real property disposals will be in accordance with CSC’s Financial Signing Authorities Delegation Instrument, Column 33 – Real Property – Disposals and Write-Off.

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 decision-making or planning processes, they are required to address the following::
    1. 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
    2. 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
    3. budget allocation: by seeking or dedicating the necessary financial resources to support the planned asset acquisitions
    4. 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 the FD 350-3 – Contracting and the 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

  1. All acquisitions will be carried out according to the responsibilities and procedures set out in the FD 350-3 – Contracting and the FD 350-4 – Acquisition Cards.
  2. Assets can be acquired through:
    1. acquisition card
    2. purchase order/contract
    3. transfer.
  3. Regardless of the method used to acquire the asset, if the purchase is for an attractive item as defined in the Attractive Items section of this directive, or if the item has an acquisition value of over $1,000 (excluding taxes), the budget manager will retain the following information and documents:
    1. item description
    2. serial number (when available)
    3. receiving documentation (packing slip, signed invoice and/or payment voucher, etc.)
    4. Asset Recording and Transaction (CSC/SCC 0958) .
  4. 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 IFMMS. 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.
  5. 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 IFMMS.

RECORDING OF ASSETS

  1. Treasury Board requires departments to retain both quantitative and qualitative information on asset management effectiveness.
  2. Accurate information on all capital assets and applicable attractive items must be recorded in IFMMS. Since IFMMS is the sole official departmental record for capital assets, it is essential that all information within the different asset modules reconcile.
  3. 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 IFMMS. If required, NHQ Financial Accountability and Reports Directorate will advise the Asset Coordinator of any modifications that are required to be made in IFMMS.
  4. Assets and attractive items will be recorded using the Asset Recording and Transaction form (CSC/SCC 0958). 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 form (CSC/SCC 0958) to record the adjustment.
  5. 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 IFMMS, unless they have a unit value of $10,000 or greater.
  6. 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 IFMMS unless they meet the definition of an attractive item provided in the Attractive Items section of this directive and the CMS-INST-2015-019 Attractive Items Guidelines. 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

  1. 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 form (CSC/SCC 1026) to record the removal of the asset from premises.
  2. 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.
  3. Loans of information technology hardware will be coordinated through the local representative of the Chief Information Officer
  4. Loans to a person other than a CSC employee must be recorded using the Loan of Equipment Agreement (CSC/SCC 1217) and, if applicable, the Loan of Equipment Agreement (Continuation) (CSC/SCC 1217-1). Both parties will sign and retain a copy of the completed form(s) for their records
  5. Personal use of a CSC vehicle (loan) is not permitted pursuant to ISD 335 – Fleet Management.

LOSS OR THEFT

  1. 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.
  2. The NHQ or Regional Departmental Security representatives or the site Security Office may be called upon to investigate the events leading up to the loss or theft.

DAMAGE

  1. In the event of damage to an asset, which decreases the asset’s value, the budget manager will prepare the necessary documentation for consideration by the appropriate Asset Review Board, as outlined in Annex B and Annex C.
  2. Damage to an asset is unplanned in nature and can be caused by fire, accident, riot, act of nature, etc.

DISPOSAL

  1. Budget managers should request disposal of assets quickly and effectively as soon as they are considered surplus to the program or operation. Surplus assets are not to be kept just in case they can be used in the future.
  2. CSC will dispose of all surplus assets (excluding assets with an individual replacement value less than $100) in accordance with established government processes and in a manner that will stand the test of public scrutiny.
  3. 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.
  4. All applicable disposals will be coordinated through the Disposal Review Board (DRB) pursuant to Annex D. The DRB will consider the optimal method for disposal. The options available to the DRB are:
    1. disposal for proceeds through Crown Assets Distribution Centre
    2. cost-minimizing disposal options available to CSC (recycling, destruction, scrap, or salvage)
    3. donations
    4. disposal through provincial government agreements
    5. transfers
    6. trade-ins.
  5. 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 information on all hard drives are destroyed in accordance with paragraph 28 of CD 564-2 – Departmental Physical Security.
  6. 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.
  7. The disposal or destruction of all surplus weapons and ammunition will be coordinated by the Director General, Security Branch, who will work with the RCMP to effect disposals.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. Vehicles that no longer meet CSC operational needs are to be considered for reassignment to another site or department before disposal. NHQ Support Services will provide final approval for disposals and transfers. Procedures for the disposal of vehicles are outlined in ISD 335 – Fleet Management.

For more information

To learn about upcoming or ongoing consultations on proposed federal regulations, visit the Canada Gazette and Consulting with Canadians websites.