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  Consent-General Government   #   14.    
Board of Supervisors Financial Services  
Meeting Date: 08/01/2017  
Brief Title:    County Fixed Asset Inventory - Deletion of Property from Records
From: Howard Newens, Chief Financial Officer, Department of Financial Services
Staff Contact: Chad Rinde, Accounting Manager, Department of Financial Services, x8050

Subject
Approve deletion of requested property from the County's Property Records for fiscal year ended June 30, 2017. (No general fund impact) (Newens)
Recommended Action
Approve deletion of requested property from the County's Property Records for the fiscal year ended June 30, 2017.
Strategic Plan Goal(s)
Operational Excellence
 
Reason for Recommended Action/Background
The County's fixed asset system provides a tool for controlling property acquisition, deletion, and transfers of equipment, structures and improvements as required by Section 24051 of the Government Code. Per County Policy, the Auditor/Controller (presently the Chief Financial Officer) is required to prepare and provide departments a print out of their existing capital asset inventory to be certified and returned to the Auditor/Controller by June 30 of the same fiscal year. The County uses a $5,000 threshold for accounting for equipment and software capital assets for accounting purposes. Department heads have additional responsibility for assets under the $5,000 threshold under the "Accountability for Non-Capitalizable Assets" policy.

Fixed asset records for the County as of March 31, 2017 were provided to Department heads to complete and certify their records and were requested to be returned by end of June 2017. Upon receiving the certifications, there were various requests for deletion from the property records; however the policy allows for two ways to affect the property records: (1) property was surplussed and sold by the County Purchasing Agent who provides documentation to the Auditor/Controller, or (2) letter to the Board of Supervisors for review and approval for deletion from formal records. 

The items in Attachment A are requested for deletion from the fixed asset records due to the Department not being able to locate or not having sufficient details to identify the asset during the inventory process.

The majority of the amount requested for deletion off is furniture associated with the Bauer Building that was capitalized back in 2006 and 2007. This includes some furniture that is the responsibility of Health and Human Services Agency (HHSA) and some that was the responsibility of Community Services but was never formally transitioned to HHSA when the Environmental Health Division left the building. The amount capitalized associated with tag of 114-174 (Bauer Furniture) was $327,510 and has $16,216 in book value not yet depreciated. A property detail specifying the individual item making up this asset could not be located. However since July 2003 only individual assets over $5,000 should be capitalized and it is assumed the individual items don't meet this threshold. As there wasn't an individual detail, the departments requested deletion of the items from the record.

The remaining items requested for deletion are fully depreciated and have been submitted for deletion by the respective department heads.
Collaborations (including Board advisory groups and external partner agencies)
The Department of Financial Services collaborated with department heads throughout the County and various financial officers and fiscal staff in order to complete the inventory.

Fiscal Information
Potential fiscal impact (see notes in explanation section below)
Fiscal Impact of this Expenditure
Total cost of recommended action $0
Amount budgeted for expenditure
Additional expenditure authority needed $0
On-going commitment (annual cost)
Source of Funds for this Expenditure
General Fund $0
Further explanation as needed
The fiscal impact of the discharge of assets that are unaccounted for in the fixed asset inventory is that those assets may not have been sold through the Purchasing division and the loss of potential proceeds from a surplus sale. The proceeds of asset sales generally accrue to the general fund unless a restricted funding source requires other accounting treatment. Due to the nature of the assets requested for discharge of accountability, the fiscal impact is anticipated to be immaterial. 
Attachments
Att. A. Items requested for Deletion

Form Review
Inbox Reviewed By Date
County Counsel Hope Welton 07/21/2017 01:52 PM
Form Started By: Chad Rinde Started On: 07/18/2017 05:54 PM
Final Approval Date: 07/21/2017
Level double AA conformance,
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