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HomeMy WebLinkAbout1998 05 11 Informational Item B ICOMMISSION AGENDA I1'EM B CONSENT INFORMATIONAL X PUBLIC HEARING REGULAR IVIay 11th, 1998 Meeting MGR I?J.Iv^ /DEPT~ Authorization " REQUEST: The Finance Department wishes to inform the Commission of the results of the City's Fixed Asset Inventory. PURPOSE: The purpose of this Board item is to inform the Commission of the results of the fixed asset inventory taken February 23 - 27th, 1998. CONSIDERATIONS: None RECOMMENDATIO:~: 1. Acceptance of the inventory results by the City Commission. ATTACHMENTS: 1. Memo to Mayor and Commissioners informing them of the results of the fixed asset inventory taken February 23 - 27th, 1998. COMMISSION ACTION: MEMORANDUM TO: Mayor and City Commissioners THRU: Ron aid McLemore, City Manager FROM: Finance Department RE: Inventory Status DATE: May 4, 1998 Mayor and City Commissioners, In response to the discussion regarding the fixed asset inventory during the Commission meeti][l.g of February 9t\ 1998, an inventory of the City's fixed assets was taken during tbe week of February 23 - 27th, 1998. The inventory results have been calculated and a summary is contained in tbis memo. In the General Fixed Asset Account Group, which accounts for all general City fixed assets, .006 or .6% of the value of the assets listed on the detail were not present during the inventory. This is mainly a result of paperwork error - paperwork for assets which were Ilroperly disposed of were not always received by the Finance Department. However, the major assets not appearing during the inventory were traced and properly reconciled to supporting documents (disposal and auction sheets). In the Proprietary :Fund (i.e. Water and Sewer), .002 or .2% of the net book value of the assets could not be identified during the inventory. Some of the significant items from the Water and Sewer department are improvements at various plants that have since been replaced and various computer equipment. Neither of these rates are materially significant and therefore would not change the presentation of the financial statements. However, the Finance Department feels major improvements need to be made in the area of tracking fixled assets. We are in the process of creating an Access database of the City's fixed assets. Each department will receive a copy of this database and will be responsible jfor keeping track of their own assets. The Accounting Supervisor will recdve a copy of the newly required monthly inventory from each department, and ~lt her discretion she or someone acting on her behalf will do "spot checks" of the records and/or the assets. This will ensure that the department's records agree with the General Ledger. We will also be requesting as part of the 1998-1999 fiscal year budget a bar code scanning system to ensure that fewer mistakes occur during inventory and that the items, when dispmied, are easier to track. In the past, there have been many problems that have led to the difficulty in getting a true picture of the City's fixed assets. There has not always been good response from the departm(~nt level in terms of ensuring that the Finance Department has received the neces~;ary paperwork for disposals and acquisitions. Many times the property cards did~ not get to the Finance Department. Also, some of the paperwork involving dispositions was vague - they either did not contain the property number or a description. Although the Finance Department is aware that an inventory should have been taken each year, the lack of personnel in the department able to conduct the inventory hindered the efforts to ensure that an inventory was taken. In conjunction witll1 this most recent inventory, department personnel have expressed their concern with these problems of the past. By working hand in hand with the Finance Department and the new procedures we are implementing, we are confident that these problems will no longer exist. Although we are nl)t required to take another inventory this year, another inventory is tentatively scheduled for July, 1998. This will aid us in determining that we have properly recorded disposals of all items that will be auctioned in June. In the future, an inventory will be scheduled for July or August of each year. If there are any questions concerning this memo, please contact the Finance Department.