Section 60 (2) (a) of the Broadcasting Act requires that the assets of the Corporation be safeguarded and controlled. As Canada’s public broadcaster, we are accountable to our stakeholders and as such we must have adequate controls and procedures in place to safeguard assets with vigilance, due diligence and prudence. This policy is intended to reinforce the safeguarding and effective and efficient management of corporate assets.
Senior Management is responsible for establishing the controls and procedures pertaining to the acquisition, construction, custody, amortization, write-off and disposal of capital and non-capital assets. Finance and Administration is responsible for ensuring that corporate assets are accurately recorded and controlled and the day-to-day management of such assets is delegated to individual managers throughout the Corporation.
All employees who use the Corporation’s assets and/or have access to Corporation-paid services, whether on or off CBC/Radio-Canada premises, must use them in a responsible manner with due regard to their protection from theft, loss or damage. Corporation assets/paid services must be used primarily for CBC/Radio-Canada business.
To effectively manage assets, all capital assets shall be recorded and managed in SAP. Managers will give special attention to "attractive" non-capital assets – low value assets (LVA) and assets and/or services paid by the Corporation which employees use and/or have access to, off CBC/Radio-Canada premises. The specific responsibilities of management are outlined in the Procedures and Guidelines annexed to this policy. This section also provides guidelines regarding acceptable use of CBC/Radio-Canada assets and CBC/Radio-Canada paid services so as to ensure productivity, accountability and uniformity throughout the Corporation.
Assets with costs sufficiently significant to warrant being recorded as capital assets and which are expected to provide future benefit to the Corporation, will be amortized over the expected useful life of the asset. The capitalization limit, which is currently set at $5,000, is determined by Senior Management.
Assets purchased outside the capital process with values which fall below the capitalization limit, are deemed to be non-capital assets, and will be charged 100% to operations in the year of acquisition. Such assets can be tracked and managed in SAP under Class 3100 with no dollar values attached.
Projects relating to improvements to leased properties will be charged to either capital or operating in accordance with Corporate Policy 2.3.14 – Improvements To Leased Properties and the guidelines in Appendix B of this policy. Any assets included in these projects, which are over the capitalization limits and if legally removable for use elsewhere, are to be capitalized as separate individual assets and amortized in accordance with the rates indicated in Appendix A.
VALUATION OF ASSETS
Based on reasonableness and materiality, the cost of direct materials and direct labour plus miscellaneous costs directly attributable to the construction or development activity will be included in the laid down cost if such costs can be easily identified with the individual asset.
Managers may want to track and manage certain stand-alone attractive assets, whose individual cost fall below the capital level ($5,000), form an integral part of the capital project and have been funded through the capital vote. The cost of such assets can be allocated/added to the cost of other assets in the project, or such assets can be identified separately in SAP for control and management purposes, even though the individual cost may fall below the capitalization limit. Such assets will be tracked in SAP under the appropriate Class and amortized in accordance with Appendix A (and not 100% in the first year). Class 3100 is not to be used to track and manage such assets.
Capital assets will be amortized in accordance with the rates established by Senior Management (as per Appendix A). The rates will take into account the expected useful life of the asset, the major components which make up the asset, industry standards and CICA guidelines.
INVENTORY AND VERIFICATION OF ASSETS
It will be the responsibility of individual managers to verify and confirm the existence, transfer, write-off and/or disposal of assets under their responsibility in accordance with the guidelines set by Senior Management.
The senior Finance and Administration Officer in each area/location will ensure that individual managers have access to and are aware of the policies and procedures and will also provide assistance, guidance and advice to managers pertaining to the control and management of assets.
- This policy was updated December 2009
- This policy was updated July 2009
- This policy was updated March 2008.
- This policy was updated December 2005.
- This policy was updated October 2005.
- This policy was updated January 2005.
- This policy was updated June 2004.
- This was originally Corporate Finance and Administration Policy 203.05 - Assets
- 2.3.8 - Delegation of Financial Authorities
- 2.3.12 - General Reporting and Accounting Guidelines
- 2.3.13 - Gifts, Donations and Other Contributions
- 2.3.14 - Improvements To Leased Properties
- 2.3.21 - Revenue Recording and Reporting
- 2.9.3 - Delegation of Signing Authority
- 2.11.3 - Lease of Space Where CBC/Radio Canada is the Tenant
- 2.11.4 - Lease of Space Where CBC/Radio Canada is the Landlord
All questions pertaining to the interpretation or application of this policy should be referred to the Director, Policy and Internal Control.
DEPARTMENT RESPONSIBLE TO UPDATE THIS WEBPAGE