Letterhead - OSC

MEMORANDUM NO. 2017-09

June 13, 2017

TO THE HEADS OF ALL STATE AGENCIES

Attention:    Agency Heads, Chief Fiscal Officers and Business Managers
Subject:    Annual Inventory Report of all Real and Personal Property

I. AUTHORITY
Section 4-36 of the Connecticut General Statutes states: “Each state agency shall establish and keep an inventory account in the form prescribed by the Comptroller, and shall, annually, on or before October first, transmit to the Comptroller a detailed inventory, as of June thirtieth, of all of the following property owned by the state and in the custody of such agency: (1) real property, and (2) personal property having a value of one thousand dollars or more. For audit purposes, each state agency shall establish and keep a list of personal property having a value of less than one thousand dollars and defined as ‘controllable property’ in the property control manual published by the Comptroller.”

The Office of the State Comptroller Memorandum 2015-05 revised the capitalization threshold for personal property as follows:

Personal property acquired prior to July 1, 2015 will have a capitalization threshold of one thousand dollars and effective July 1, 2015 the capitalization threshold for personal property is five thousand dollars.

II. DUE DATE
As prescribed by the statute, agencies must transmit this report to the State Comptroller on or before October 1, 2017.

III. REPORTING REQUIREMENTS
Refer to the State Comptroller’s Property Control Manual, Chapter 10 and Appendix B. The required reporting forms are listed below:

- CO-59 Asset Management/Inventory Report/GAAP Reporting Form (Rev. 3/2016)
- CO-648B Summary Motor Vehicle Report (Rev. 4/2009)
- Property Control Questionnaire

A. CO-59 ASSET MANAGEMENT/INVENTORY REPORT/
GAAP REPORTING FORM

All Executive Branch agencies must use the Core-CT Asset Management module to complete the information requested on the CO-59. Agencies using the Inventory module or a separate inventory system are required to report their stores and supplies inventory on the CO-59.

Agencies not using the Core-CT Asset Management module are still required to report their assets on the CO-59 form using their asset management systems.

Executive Branch agencies are expected to use the Asset Management and Inventory queries below to complete the CO-59 form for fiscal year 2017. If the values recorded on the CO-59 do not reconcile with Core-CT, the agency must provide a written explanation of the discrepancy in an attachment.

Asset Management Queries
CT_CORE_FIN_AM_COST_POS
Select this query to calculate the positive cost of assets for a range of accounting dates for the CO-59 report.

CT_CORE_FIN_AM_CO59_POS_DETAIL
Select this query for detail information to support the above query.

CT_CORE_FIN_AM_COST_NEG
Select this query to calculate the negative cost of assets for a range of accounting dates for the CO-59 report.

CT_CORE_FIN_AM_CO59_NEG_DETAIL
Select this query for detail information to support the above query.

Asset Management Report
AMAS2000-Cost Activity Detail Report
Select this report to assist with the physical inventory reconciliation. Agencies must process all fiscal year 2017 changes by close of business on July 11, 2017. The Core-CT navigation path for this report is Asset Management > Financial Reports > Cost and Depreciation > Cost Activity. The final report cannot be run until after July 11, 2017. The link to the job aid on running this and other Asset On-Line Reports is http://www.core-ct.state.ct.us/reports/docs/amas2000.doc 

Inventory Queries for those agencies that use the Core-CT Inventory Module (Optional)
CT_CORE_FIN_IN_CO_59_RCV
Select this query to calculate the items in Inventory for a range of transaction dates for the CO-59 report.

CT_CORE_FIN_IN_CO_59_DEP
Select this query to calculate the depletions of items in Inventory for a range of
transaction dates for the CO-59 report.

Complete the CO-59 form as directed below.

Cost (Value) Data Section

The ending property balances from the previous year’s (2016) CO-59 column 6 need to be recorded as this fiscal year’s beginning balances in "Last Year's Balance" column 3.

Record all property additions for the fiscal year in the "Additions" column 4 at the property's original cost if purchased or fair market value if donated or transferred. Additions should include transfers from the State and Federal Property Distribution Center.

Record all property deletions for the fiscal year in the "Deletions" column 5 at the original cost or value of the property when it was placed on the property listing. Deletions should include property scrapped, lost, and transferred to the State and Federal Property Distribution Center.

Any real property sold, transferred or demolished should be reflected in the "Deletions" column. The deletion amount should reflect the original acquisition cost if purchased or the fair market value if acquired by donation.

The "Current Balance" column 6 is the cost or value column for all property held by the agency at fiscal yearend. Last year's balance plus any additions, less any deletions must equal this column.

Current Value Section

The "Present Value This Year" column 7 for the Personal Property Section should reflect the appraised value or book value for the fine art category.

B. CO-648B SUMMARY MOTOR VEHICLE REPORT
Complete the CO-648B form by indicating the total number of motor vehicles owned by the agency for each category. The form is available at http://www.osc.ct.gov/agencies/forms/index.html.  The Department of Administrative Services will report all Fleet vehicles. All other agencies will report agency-owned motor vehicles.

C. PROPERTY CONTROL QUESTIONNAIRE
Complete the Property Control Questionnaire with the name, address, telephone number and e-mail address of the person responsible for property control. The Comptroller’s Administrative Services Division would also like to know if assistance is required with the Core-CT Asset Management module or the Core-CT Inventory module. Please email the form to osc.assets@ct.gov.

D. LISTING OF STATE OWNED LAND
For the Legislative Branch, Judicial Branch and Higher Education agencies that are out of scope for the Asset Management module in Core-CT, the listing of State owned land will be sent electronically to each applicable agency. Please confirm the information to the Administrative Services Division by October 1, 2017, in conjunction with the filing of the CO-59 Report. All new acreage should be added to the electronic file and highlighted. Any acreage that was sold or transferred should be highlighted on the electronic file as well. Return the electronic file to osc.assets@ct.gov

IV. GENERAL INFORMATION
All agencies are required to conduct an annual physical inventory of their assets and stores and supplies inventory. All Executive branch agencies must reconcile and process their physical inventories in Core-CT by noon on July 11, 2017 so that the information will be included in fiscal year 2017 Financial Reports and Statements. In preparation for this annual inventory of assets, agencies using the Core-CT Asset Module should create all new scan scopes, extracts and occurrences.

To assist agencies with processing a physical inventory in Core-CT, there are Physical Inventory Job Aids. These job aids are located on the Core-CT website on the Asset Management Job Aids page under the Core-CT Financials Asset Management User Support page (http://www.core-ct.state.ct.us/financials/asset/Default.htm)  and the Inventory Job Aids page under the Core-CT Financials Inventory User Support page (http://www.core-ct.state.ct.us/financials/inventory/Default.htm). 

New for Fiscal Year 2017
Submit the completed CO-59, CO-648B, and Property Control Questionnaire via email to osc.assets@ct.gov. The originals must be kept on file at each agency and made available for audit.

V. QUESTIONS
Questions regarding the completion of the CO-59, property control questionnaire or CO-648B should be directed to osc.assets@ct.gov.  All forms should be printed from the Comptroller's Forms page under the State Agency Resources tab on the Comptroller's website at http://www.osc.ct.gov  or by selecting the form link on page one of this memorandum.

KEVIN LEMBO
STATE COMPTROLLER

KL:ED

Attachment: Property Control Questionnaire

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