Asset Management Documentation of Internal Controls: Department of Administrative Services and SmART Agencies

Overview

The agency finance division monitors all agency equipment and controllable property throughout its lifecycle using the Core-CT Asset Management module and in accordance with the State Property Control Manual as described in this Documentation of Internal Controls.

Capitalization Thresholds

In accordance with the State Property Control Manual, personal property acquired prior to July 1, 2015, will have a capitalization threshold of $1,000, and personal property acquired on or after July 1, 2015, will have a capitalization threshold of $5,000. For audit purposes, the Department of Administrative Services (“DAS”), for itself and SmART Agencies, has deemed the following as its standard controllable property that is personal property that is portable and theft-prone having a value less than the capitalization threshold that is deemed “controllable-property.”

 

• Audio Visual Equipment

  • Handheld Cameras

  • Computer Equipment and Accessories (personal computers, laptops, servers, tablets, computer peripherals)

  • Power equipment with a value of $1,000 or more (snow blowers, lawnmowers, portable generators)
    
     

Controllable Property Exclusions:

1. Capital Equipment: Any tangible standalone item, along with its connected components, that is over the capitalized threshold as stated by the Office of the State Comptroller is recorded as capital equipment in the CORE Asset Module and reported to the Comptroller’s annually after physical inventory. This supersedes any controllable property standards described above.

    

2. Non-Controllable Property: Non-controllable items are not recorded in the CORE Asset Module, nor bar-coded with a tag to account for annual physical inventory. However, they may be tagged with “Property of DAS”, “Property of BITS,” or other appropriate state agency identifier label in order to show ownership. A non-controllable asset is any standalone item under the capitalized threshold as stated by the Office of the State Comptroller, has a useful life of at least one year, but is a type deemed non-trackable by the reporting agency.

Some examples include, but are not limited to:

1. Desktop or tabletop scanners, printers, or fax machines
2. Telephones (cellular phones smart and flip, desktop phones, air cards, etc.)
3. Computer monitors and keyboards/input devices
4. Computer component backup supplies and stock
5. Furniture (tables, chairs, desks, file cabinets, bookcases, etc.)
6. Miscellaneous office equipment (Calculators, shredders, time stamps, etc.)
7. Appliances (microwave ovens, refrigerators, air conditioners)

Agency Asset Processors: DAS has assigned at least one employee for each of the following five Asset Roles. These assignments follow all required segregation of duties requirements as outlined in CORE-CT guidelines.  

• Asset Processor – Responsible for maintaining the asset records in the Asset Management Module.

• FIN Asset Processor - Responsible for maintaining the asset’s financial information in Core-CT, adjusting financial data on assets, and submitting asset disposal requests.

• Agency Asset Approver - Responsible for approving eligible asset management transactions.

• Asset Physical Inventory Processor - Responsible for performing the physical inventory process which includes preparing the necessary files in the asset management module.

• Agency Asset Physical Inventory Scanner – Responsible for visiting each location where assets may be and using a handheld scanner to record and update information on the assets.

Tagging

• Agency Capitalized Equipment is tagged with asset tags with a blue background and 9 numbers issued sequentially beginning with 000000001.  The number of characters in a tag has increased from 9 to 12.  DAS reserves the right to change the appearance of the tag as we see fit.

• Agency Controllable property is tagged in the same manner as Capitalized Equipment using the same series of tags.

• BITS Capitalized and Controllable items are tagged with a White background, and the tag unique indicator starts with BIT followed by the Agency three letter Acronym, followed by 4 digits, example BITSDE0001.  DAS reserves the right to change the appearance and the numbering method of the tag as they see fit.

The DAS Business Office or its Vendor will place the appropriate tag on the equipment in a visible and uniform location whenever possible.

Tracking Equipment

The agency uses the following forms to track an asset.

• For transfers, The State-Wide CO-58 or CO-64 is used as applicable.

• For Surplus/Disposal – A Request for Item Disposal excel form is used for Surplus/Disposal of an Asset. Please note that the quantity and Unit fields on the form can only be used for non-tagged surplus items. If the item is tagged and is considered a controllable or fixed asset, each item must be listed separately.

Annual Physical Inventories

Each year, by June 30^th, DAS conducts an annual agency-wide physical inventory with the assistance of personnel from internal departments, including BITS IT, DAS and its SmArt Agencies. The Agency Asset Physical Inventory Processor uses Core-CT AM to create a unique PO ID and notes the Interface ID that is generated.

1. A Physical as well as an Electronic Inventories will be completed to capture as many assets as possible.  DAS will use various software such as Crowdstrike to capture its assets and inventory them once they are active in the software.  Assets that are not active in the Software Data base or not connected to a network will be inventoried manually in their physical location.

2. Any identified discrepancies are investigated, reconciled, and documented by the Agency Physical Inventory Processor with assistance from Agency Asset Processor and Agency Financial Asset Processor for any required updates needed as outlined below. Reports of the outcome and any recommendations/forms based on the findings of the physical inventory will be sent to the Finance Director. Please Note: Any changes i.e. additions, deletions, and transfers to the inventory must be updated immediately.

1. Items found that are not listed will have a property record established by researching, compiling paperwork and entering into the system.

   1. Items reported on the agency inventory report and are found located elsewhere will require a transfer document to be completed, to record the change of location.

   2. Asset or Inventory items found to be obsolete or no longer needed by the agency will be surplused and removed from the property record utilizing proper Surplusing/disposal guidelines.

   3. For any missing inventory, a CO-853 form will need to be filled out. This form will be submitted immediately to OSC – Central Accounts Payable / osc.co-853@ct.gov . Please note: All State Agency losses are required to be reported as soon as they happen and should not wait until the annual review. The CO-853 form is to be used for any loss of state property i.e. theft, vandalism, fire/water, etc., regardless of when loss occurred and should be utilized throughout the year to report as losses are discovered.

Asset Management/Inventory Report

The Asset Management/Inventory Report (CO-59) is prepared annually by DAS Business Office.  The CO-59 report, along with any supporting documentation, is submitted to the Office of the State Comptroller and filed in the agency’s finance division.

Those SmArt Agencies that currently own any vehicles will complete an CO-648B. If this changes or the policy regarding what is reported on the CO-648B changes, the agency will follow the reporting requirements that are outlined as required.

[1] Workers Compensation Commission, Teacher Retirement Board, Office of Governmental Accountability, Office of the Healthcare Advocate, Lieutenant Governor’s Office, Governor’s Office, Paid Family & Medical Leave Insurance Authority, Economic & Community Development, Department of Insurance, Department of Housing, Department of Banking, Department of Consumer Protection, Department of Agriculture, Connecticut State Library, Office of Early Childhood, State Department of Education