The Big Picture
Pursuant to state law, all agencies, including the Department of Social and Health Services (DSHS), must comply with the accounting system and procedures established by the Office of Financial Management (OFM) in order to ensure that the state’s assets are properly accounted for.
OFM’s system and procedures for capital asset management are contained in Chapter 30 of its State Accounting and Administrative Manual (SAAM). This system is intended to “1) to provide control and accountability over capital assets, and 2) to gather and maintain information needed for the preparation of financial statements.”
SAAM 30.40.30 requires all agencies to maintain a capital asset inventory system. OFM-OCIO has provided DSHS with written approval of DSHS’s use of Tracks as its capital asset inventory system.
DSHS adopted Administrative Policy (AP) No. 14.07 to ensure compliance with the SAAM policies. AP No. 14.07 distributes responsibilities among a wide-range of individuals within DSHS. These responsibilities are discussed further in the “Individual Responsibilities” subsection.
What are Inventorial Assets?
SAAM 30.40.10 requires the following categories of assets to be inventoried by agencies:
- Capital assets,
- Small and attractive assets, and
- Various collections.
What are Capital Assets?
SAAM 30.10.15 defines capital assets as “tangible or intangible assets held and used in state operations, which have a service life of more than one year and meet the state’s capitalization policy.” This definition includes assets such as land, infrastructure, improvements to land, buildings, leasehold improvements, vehicles, furnishings, equipment, collections, etc.
What are Small and Attractive Assets?
SAAM 30.40.20 defines “small and attractive” assets as “those assets that are particularly at risk or vulnerable to loss.” DSHS lists its small and attractive assets on the DSHS “When to Tag” List.
Responsibility for Asset Management
Within DSHS, responsibility for asset management is divided between three units within the Services and Enterprise Support Administration (SESA): the Central Purchasing Unit (CPU), Capital Facilities Management (CFM), and the DSHS Surplus Warehouse.
The Central Purchasing Unit is charged with managing DSHS’s vehicles, furnishings, equipment, and other capital assets. The Surplus Warehouse handles the disposition of surplus and excess fixed assets. These Asset Management Procedures (Procedures) are the cornerstone for DSHS’s compliance with SAAM prerogatives with regards to the assets overseen by CPU. AP No. 14.07 requires DSHS divisions to comply with these Procedures.
Capital Facilities Management is charged with providing management over DSHS’s land, infrastructure, improvements to land, buildings, and leasehold equipment. Any questions you have with regards to these types of assets should be directed to CFM.
Individual Responsibilities
Please review Administrative Policy 14.07 for the individual responsibilities of the following people with regards to capital asset management:
- Division Directors or their Designees,
- DSHS local managers and institutional superintendents or their designees,
- Asset Management Coordinators
- Asset Management Representatives
- Services and Enterprise Support Administration, Central Purchasing Unit, and
- Office of Accounting Services.