Okaloosa County BOCC — November 3, 2015 — Request approval to remove items from the fixed asset list. — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: November 3, 2015 TO: Honorable Chairman and Members of the Board FROM: Zan Fedorak SUBJECT: Request approval to remove items from the fixed asset list. DEPARTMENT: Purchasing BCC DISTRICT: All STATEMENT OF ISSUE: Request Board approval to remove items from the fixed asset list. BACKGROUND & ANALYSIS: The Purchasing Division is responsible per Section 3 of the Tangible Personal Property Inventory & Accountability Manual (Property Manual) to conduct a physical inventory of fixed assets on an annual basis. Fixed assets are defined as any item of a non-consumable nature, the value of which is $1,000 or more. The County-wide inventory currently consists of 7566 items with a value of $79,081,352.50. Individual departments are responsible for knowing the location of each of the assets under their authority. During the physical inventory, Purchasing staff is accompanied by a representative from each department to assist with locating the assets. Any item that cannot be located must be reported and documented. There are some situations where items have been recycled, traded, scraped, sold at auction or went through the normal disposal process but due to an administrative error or omission, documentation was not completed. These items are noted as shortages and are eligible to be removed from the fixed asset list. During the latest inventory there were some items that were unaccounted for and documentation could not be located, but there was no indication of theft or fraud. In these instances, staff elected to request a police report to ensure transparency. Based on the information provided to the Sheriff’s Department it was determined that no investigation was necessary and the cases were closed. Only one investigation was conducted and it involved a front end loader which was stolen from the Fairchild Road pit in 2013. The Sheriff’s investigation has returned no information regarding the loader, therefore it has been closed and this item can be removed from the fixed asset list. The Purchasing Division and department staff have made a concerted effort during this review to improve processes and procedures to ensure absolute transparency and accountability. This effort included training to increase the awareness on fixed asset processes and procedures. The attached list is a combination of all the items discussed above and is management’s effort to purge the fixed asset inventory of all items which should be removed. Staff requests Board approval to remove all fixed assets included on the attached spreadsheet from the fixed asset list. OPTIONS: Approve/Deny removal of items from the fixed asset list. (List of items attached.) RECOMMENDATION: Staff recommends approval to remove items from the fixed asset list. (List of items attached.) RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator