HomeMy WebLinkAbout07-96 - Res. Amends Res. Nos. 105-94 and 26-86 Appendix A of the Physical Inventory Policy and Procedures RESOLUTION NO, ®96
AMENDS RESOLUTION NO, 105®94 AND 2 ®S6
A RESOLUTION TO INCLUDE THE HUMAN RESOURCES DEPARTMENT IN APPENDIX A OF THE MASON
COUNTY AUDITOR'S OFFICE PHYSICAL INVENTORYIFIXED ASSET POLICY AND PROCEDURES,
WHEREAS, RCW 36.32.210 requires the County Commissioners to inventory a77 county
personal property annually,
WHEREAS, RESOLUTION 104-94 established the capitalization value of fixed assets
as $1000.00.
WHEREAS, RESOLUTION 105-94 adopted the PHYSICAL INVENTORY POLICIES AND PROCEDURES
to establish accountability and management control over Mason County's inventory
and fixed assets.
WHEREAS, a department of Human Resources was created within Mason County,
THEREFORE, HE IT RESOLVED, that the Board of Mason County Commissioners
amend Appendix A of the PHYSICAL INVENTORY POLICIES AND PROCEDURES to include a
Line for the Human Resources Department, The amended PHYSICAL INVENTORY POLICIES
AND PROCEDURES are hereby incorporated as part of this resolution.
Dated this 9th day of January, 1996
BOARD OF COUNTY COMMISSIONERS
MASON COUNTY; WASHINGTON
a ..
-_
Mary ' a , Cha i rper,41
.J ..
i l l iam O. Hunte , or missioner
� r
L. Faughende Commissioner
A TESL;
eb a S. Rogers, Clerlc f the Hoard
PP VE Ar TO FORM:
Michael C l i ft, Chief D. Prosecutor
ca Clerk of the Board
Accounting(2)
Treasurer
Director of Administrative Services
Human Resources Department
MASON COUNTY AUDITOR"S OFFICE
PHYSICAL INVENTORY
FIXED ASSET
POLICY AND PROCEDURES
SEPTEMBER 27, 1994
ALLAN T. BROTCHE, COUNTY AUDITOR
MASON COUNTY
PHYSICAL INVENTORY POLICY AND PROCEDURES
PURPOSE
As per RCW 36.32.210, and Resolution #94-105, these policies and procedures are
written to facilitate accounting and reporting requirements of all Mason County
Physical Inventory, as mandated by the Governmental Accounting Standards Board
and the Washington State Auditor 's Office through the BARS Manual, These
policies and procedures will include all real and personal property intended for
use, by Mason ,Caunty for a time period of more than one year. These policies
will help provide accountability and management control of Mason County's
Physical Inventory.
FUNDANWALS
Any items purchased costing over S500-00 and intended for use for a period of
longer than one year wi 7 1 be considered RHYSICAL LIVVENTOPY of Mason County. All
itams will be added to the purchasing department 's RHYSICAL INVENTORY LISTING.
Any small and attractivP items at high risk of 7ossi but under the $500.00 vahrA
may be added to a Department 's Pa y ir-7 Inventory at the discretion of the
Elected Off icia7l-nepartment Head.
The Auditor Is Office wi 77 be the designated centralized location for all Physical
inventory records, (except for the records maintained b.11 the County Road
Fnnin,z&zr15 Offirp per ROW 36.32.210 part 2). It Will be the responsibility of
th'eiu itorls Off'7fi-e to fulfill th'e Commissioner 's obligations per the RCW
36;32.213.
Each department h8adle7etted official shall be raQnnncih7,n fir the reporting of
their department 's Physical Inventory to the Auditor's Office- Each department
headlelected official has four primary responsi i1i*imz * 0
for their HAPAr-m-ntls
Physical inventorl-
1) To ensure physical custody and protection of the equipment.
2) To ensure the equipment is properly insured, with adequate records
to prove losses.
3) To ensure the equipment is properly maintained and repaired,
4) To plan for any future equipment needs of the department.
The department head/elected official may designate an employee within their
department to function as the custodian, The custodian will be responsible for
the tracking of changes in Physical Inventory for that department, and reporting
these changes to the Auditor 's Office.
MASON COUNTY
PHYSICAL INVENTORY POLICY AN PROCEDURES
CAPITAL OUTLAY PURCHASES
All Physical Inventory purchases (more than $500.00) should be coded on your
departmental voucher to BARS object code 60, your department 's budgeted capital
outlay. Purchases include but are not limited to., land, buildings, machinery,
equipment, furniture, tools, and appliances
60 CAPITAL QUTLAY
61 Land
62 Buildings and Structures
63 Other Improvements
64 Machinery and Equipment
(For further information see BARS Manual Volume 1, Part 1,
Chapter 8, Page 20. )
Any Lease Transaction that meets -Qne of the following criteria and is over the
County Physical Inventory value of $500.00, shall be considered a "capitalized
lease" and included as part of the Physical Inventory under the above po7icy:
1) The lease transfers ownership of the property to the lessee by the end
of the lease term.
2) The lease contains a bargain purchase option,
3) The lease term is equal to IS or more of the estimated economic 7ife
of the leased property.
4) The present value of the minimum lease payments at the inception of
the lease, excluding executory costs, equals at least 90% of the fair
value of the leased property.
Expenditures made for interest while constructing a capital asset, is part of the
historical cost for that Inventory Item, The interest cost should be capitalized
and recorded as part of the cost of the Inventory Item, through the Physical
Inventory System.
It is the custodian 's responsibility to notify the Auditor 's Office of all
Physical Inventory purchases on the PHYSICAL INVENTORY FORM (see page 6 of this
document). The PHYSICAL INVENTORY FORM must be completed and returned to the
Auditor's Office with the voucher for payment. The original PHYSICAL INVENTORY
FORM will be kept on file in the Auditor 's Office. A copy should be kept on file
in the department.
The Auditor's Office Sri 11 assign a unique Tag Number to each item purchased. The
Auditor's Office will issue to the department a PHYSICAL INVENTORY TAG.
The "TAG" will be placed on the purchased item by that department 's custodian,
in a visible place, The standard location is in the front of the item, or in the
same area as the Seria7# or Model#.
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MASON COUNTY
PHYSICAL INOTORY POLICY AN PROCEDURES
SURPLUS I TENS
When a physical inventory item is no longer needed by a department it is
considered
-dered surplus. A copy of the PHYSICAL INVENTORY FORK must be returned to
the Auditor's Office With Section 11 completed, The completion of Section 11 of
the PHYSICAL INVENTORY FORM and submission to the Auditor's Office terminates
that department 's custody of the item.
The surplus item may then be acquired by another department, The Auditor's
Office will notify all department headsle7ected officials of any items that are
available as surplus. If another department wants to transfer the surplus item
to their PHYSICAL INVENTORY LISTING they will notify the Auditor's Office in
writing, The Auditor 's Office will then send the "new" department a copy of the
previous department's PHYSICAL INVENTORY FORM for that item.
Upon gaining custody of the surplus item, the "new" department will complete
their own PHYSICAL INVENTORY FORM, The PHYSICAL INVENTORY TAG NUMBER assigned
by the Auditor's Office must remain the same! The value will remain the same
also, unless the "new" department is a proprietary fund. (Proprietary funds
transfer assets at the lower of either cost or market value.) The "new" PHYSICAL
INVENTORY FORM will be submitted to the Auditor 's Office and attached to the
original and filed. A copy of the PHYSICAL INVENTORY FORM shou Id be kept on file
in the "new" department, The TR.4NSFER DATE and TRANSFER DEPARTMENT on the
original form will be filled in by the Auditor's Office.
If an inventory item is stolen or destroyed by accident, a copy of the property
insurance claim needs to be turned into the Auditor's Office,
If an inventory item is used for trade-in, the purchase invoice showing the
trade-in allowance needs to be turned into the Auditor's Office.
Any inventory item in physical custody of the County that has been added to
surplus, but not transferred to another department's PHYSICAL INVENTORY LISTING
will be sold at the next County Surplus Sale. A list of surplus items to be sold
will be provided by the Auditor's Office to the County Treasurer.
After the County Surplus Sale, a list of the items sold and amounts will be given
to the Auditor's Office by the Treasurer's Office, The Auditor's Office will
then update the sale information of the item on the PHYSICAL INVENTORY FORM, and
remove those items from the COUNTY PHYSICAL INVENTORY LISTING.
NOTE: Any physical inventory item that was purchased with grant money cannot be
_added to surplus without approval of the granting agency. The department must
request disposition instructions.
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MASON COUNTY
PHYSICAL INVENTORY POLICY AND PROCEDURES
YEAR END PHYSICAL INVENTORY REPORTING
At the end of each fiscal year, the Auditor's Office will send out to each
department their PHYSICAL INVENTORY LISTING. It is the responsibility of the
department headle7ected official to submit to the Auditor's Off-ice a verified
PHYSICAL INVENTORY LISTING. The department headlelected official may have their
department 's custodian take the physical inventory. The custodian should verify
the custody of each item and note any additions, d8letions, or corrections.
The verified PHYSICAL INVENTORY LISTING is due to the Auditor's Office by
February . Per RC W 36,32.210, the Auditor will provide a complete PHYSICAL
INVENTORY LISTING of all county property to be validated by the County
Commissioners on the first Monday of March. The Auditor will post the PHYSICAL
INVENTORY LISTING for public inspection.
By February 1st the Treasurer's Office will provide to the Auditor's Office a
list of all property acquired through tax foreclosures, The Treasurer 's Office
will also provide a list of property sold at the Tax Title Sales during the year.
AUDITSIPHYSICAL VERIFICATION
The Internal Auditor will audit and physically verify the inventory and fixed
assets of each department on an "as necessary" basis. The purpose of these
audits will be to validate the accuracy of the PHYSICAL INVENTORY SYSTEM,
The PHYSICAL INVENTORY TAG NUMBERS are vital to the validity of the PHYSICAL
INVENTORY SYSTEM, During audits, special emphasis will be placed on the proper
use of TAG NUMBER, ,
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MASON COUNTY
PHYSICAL INVENTORY FORM
MASON COUNTY
PHYSICAL INVENTORY FORM
STEItC/!T��Am�t(�i�i I
TA67 NO. (To b@ assigned by Auditor°s Office. )
DEPARTMENT. _ITEM CODE:
ITEM DESCRIPTION:
LEGAL DESCRIPTION:
SERIAL #e MODEL #e
BRAND
COMPETITIVE DID; Yes No HEARING DATE,
PURCHASE DATE(Mo11)ay,-VI) m WARRANT #n
VP�9ciG.6i§JE PU�SCSC7C7' pSE `1Z.16.✓€:(Zncluding Sales Tax)
SOURCE(ri CC+ p�4pd�F Cg'�ND (%FEDERAL Z.F GRANT SOURCE
T1. !L4.. HOLDS (ZF GRANT SOURCE)
CONDITION: LOCATION - � - --- -
Custodian Signature
SECTION II
Fill out only if applicable!
REASON FOR SURPLUS:
SURPLUS DATE., SURPLUS SALE AMOUNT:
TRANSFER DATE: DEPT TRANSFERRED TO:
Custodian Signature
SECTIQN III
AUDIT DATE, AUDIT CONDITION:
Auditor's Office Signature
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MASON COUNTY
PHYSICAL INVENTORY POLICY AND PROCEDURES
INSTRUCTIONSe- HOW TO FILL OUT THE PHYSICAL INVENTORY FORM
SECTION I
1. The TAG NUMBER will be assigned by the Auditor 's Office.
11 The DEPARTMENT is the department with custody of the item.
The IT CODE is 4 characters starting with the departmental abbreviation
from ,appendix A (2 characters) and ending with the fixed asset code from
Appendix B (2 characters).
4. The ITEM DESCRIPTION should give physical traits of the item,
5. The LEGAL DESCRIPTION should give Parcel Numbers for property.
64 The SERIAL NUMBER is designated by the manufacturer and is marked on the
item.
7. The MODEL NUMBER is the manufacturer 's Model number and usually on the item
or listed on the invoice.
8 The BAAND is also the .manufacturer 's and marked on the item or listed on the
invoice.
9 The COMPETITIVE BID should be marked "yes" there was one, or "no" there was
not. Please refer to Mason County Code Chapter 3.48 for requirements on
competitive bids.
10, The HEARING DATE is the date of the Public Hearing that the County
Commissioners award the bid.
11. The PURCHASE DATE is the date on the invoice as designated by the seller.
This field must include month,, day, and year.
12. The WARRANTNUMBER is assigned by the Auditor 's Office when payment is issued
for the item.
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MASON COUNTY
PHYSICAL INVENTORY POLICY AND PROCEDURES
INSTRUCTIONS11 HON TO FILL OUT THE PHYSICAL INVENTORY FOIN
SECT ION I fg-gootinued)
13 The VALUEIPURCHASE PRICE is the cost of the item including shipping,
installation, and sales tax. if an item is transferred front one
department to another, the VALUEIPURCHASE PRICE remains the original cost
of the item-, unless it is transferred to a proprietary fund. The
proprietary fund acquires the item at lower of cost or Fair Market Value
(GA A P). When an item is acquired by donation the VALUE/PURCHASE PRICE
should be listed at its Fair Market Value at the date of the donation.
14: The SOURCE OF FUNDS should be listed li,e. Current Expense Fund). If the
SOURCE OF FUNDS is a grant, you Must specify which one, and the Fund the
grant revenue is deposited in. Per "Common Grants Management Rule";, if
the SOURCE OF F114NDS is a federal grant you must specify the percentage
that was from federal funds vs. matching funds.
15. The TITLE HOLDER need only be filled in if the item was purchased by grant
funding, The TITLE 14OLDER will be defined in the terms of the grant
agreement.
16p The CONDITION refers to whether it is new, used, damaged etc, at the time 'Of
acquisition
17. The LOCATION is Lot Number for land and buildings, the building number or
floor for stationary equipment, or the individuals workstation for
portable equipment. Please let the Auditor 's Office know whenever an
inventory item changes location.
18. The responsible person for that department must sign to verify the Section
I information.
SECTION_L!
1. Section 11 only needs to be filled out when the item is no longer needed by
the custodial department.
2. The REASON FOR SURPLUS is the reason the department no longer needs the item.
S. The SURPLUS DATE is the month, day, and year that the item. -is moved from the
custody of that department.
4, The SURPLUS SALE AHOUNT wi 77 be provided by the Treasurer Is Office after, each
Sale of Surplus County Property.
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MASON COUNTY
PHYSICAL INVENTORY POLICY ANO PROCEDURES
INSTRUCTIONS.- HOW TO FILL OUT THE PHYSICAL INVENTORY FORM
SECTION 11 {continued)
5, The TRANSFER VAT E wi 7 7 need to be provided, month, day, and year,, if the item
is transferred to another department rather than sold at a surplus sale.
6, The DEPARTMENT TRANSFER-RED W is the new custodial department if the item is
transferred rather than sold at a surplus sale,
7, The responsible person for that department must sign to verify the Section
11 information-
SECTION III
1, This Section will be filled out by the Auditor 's Office,
2, The AUDIT OATS will be the date that the ,Auditor 's Office physically verifies
the PHYSICAL INVENTORY of a department.
3. The AUDIT CONDITION is the actual state that the item is in at the time of
physical verification.
4. The responsible person for the Auditor's Office must sign to verify the
Section III information.
MASON COUNTY
PHYSICAL INVENTORY
APPENDIXES
M.A.SON COUNTY
PH Y SI CA L I NOTORY POLICY AND PROCEDURES
APPENDIX A
DEPARTMENT ACCOUNT NUMBER AV PHYSICAL INVENTORY ABBREVIATION.,
100 COOPERATIVE EXTENSION EO
200 ASSESSOR AS
300 AUDITOR AU
4490 BOARD OF EOUALIZATION BE
500 CENTRAL SERVICE ADMINISTRATION CA
510 CENTRAL SERVICES MAINTENANCE ss
520 HUMAN RESOURCES RR
600 CIVIL SERVICE CS
700 CLERK CL
800 COMMISSIONERS CO
810 CLERK OF THE BOARD CB`
1000 DISTRICT COURT DC
1200 EMERGENCY SERVICES ES
1405 GHCF GH
1410 GENERAL SERVICES OS
1461 PARKS PK
1470 PLANNING PL
1490 FIRE MARSHA4,4 FM
1710 PROBATION SERVICES UP
1720 JUVENILE SERVICES GRANT JU
1800 PROSECUTOR PA
1810 CORONER CR
1820 CHILD SUPPORT CH
2000 SHERIFF so
2500 SUPERIOR COURT Sc
2600 TREASURER TR
12500 COUNTY FAIR CF
12600 CONVENTION (ENTER cc
12800 COUNTY ROADIPUBLIC WORKS Pw
13900 PERSONAL HEALTH HN
14000 HEALTH ADMINISTRATION HA
14200 LAW LIBRARY L L
14250 MEMORIAL. HALL RH
15050 WATER QUALITY GRANT wo
15060 ENVIRONMENTAL HEALTH ER
16000 COMBINED SEWER & WATER SW
16200 LANDFILL LF
16400 EQUIPMENT RENTAL & REVOLVING ER
64700 RSVP RS
LAND ,fix
BUILDINGS Vim'
IMPROVF WENTS
MASON COUNTY
PHYSICAL INVENTORY POLICY AND PROCEDURES
APPENDIX B
PHYSICAL INVENTORY CODE.,
a DESKS & TABLES
00 DESK
ol RETURN UNIT
02 CREDENZA
03 CONFERENCE TABLE
04 FOLDING TABLE
05 COMPUTER TABLE
06 SPECIALIZED WORK TABLE
07 MACHINE STANAITABLE
08 OTHER TABLESISTANDS
I- CHAIR SIFURNI TO)ZE
10 EXECUTIVE CHAIR
III SIDE ARM CHAIR
12 SIDE CHAIR
13 SECRETARY CHAIR
14 STOOL
15 BOOKSHELF/ORGANIZERS
16 COUCH
17 CLOTHES RACK
18 CHAIR MAT
19 OTHER FURNITURE
2 FILIN6 CAOINETSISAFES
20 FILING CABINETS
21 LATERAL FILES
22 DATA FORMS FILES
23 CARD FILES
24 SAFE
25 OTHER FILING CABINETSISAFES
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-MASON COUNTY
L XEDRES SKA' INVENTORIf POLICY AND PRL
APPEND T" n
PHYSICAL INVEN'IrORY CODE,
3 ELECTRONIC OFFICE EQUIPMENT
30 TYPEWRITER
31 WORD PROCESS OP
32 CALCULATORIADDING 4CHINE
33 RECORDING EQUIPMENT
34 LAMPS
35 CLOCK/TIME PIECE
36 COPI ER(MIMEOGRAPH
37 F4X 94CHINES
38 OTHER ELECTRONIC EQUIPMENT
4 COMPUTERS
40 COMPUTER HARDWARE
41 PRINTER
42 SOFTWARE
43 OT14ER COMPUTER EQUIPMENT
5 DEMONSTRATION EQUIPMENT
56 CAMERA
51 OVERHEAD PROjECTOR
52 SLIDE PROJECTOP
53 MOVIE PROjECTOR
54 VIDEO RECORDER/CAMCORDER
55 TELEVISION
56 PUBLIC ADDRES51SOUND EQUIPMENT
57 D-EMON$TRATION BOARDS
58 PODIUM
59 OTHER DEMONSTRATION EQUIPMENT
6 APPLIANCES
60 AIR CLEANER/AIR CONDITIONER
61 REFRIGERATOR
62 MICROWAV E OVEN
63 STOVEIRANG 3E
64 OTHER APPLIANCES
7 MISCELLANEOUS EQUIPMENT
70 MISCELLANEOUS EQUIPMENT
8 LAND, BUILDINGS AND IMPROVEMENTS
80 LAND
81 BUILDINGS
MASON COUNTY
PHYSICAL INVENTORY POLICY AND PROCEDURE
As the Elected Of
ficials of Mason County, we hereby agreehe attar
hed
Physical Inventory Policies,
� � L
Darr 1 C1 ve1an /Asssessgr
A 11 an T. che, Aud 7 to
Pat Swartos, Clerlk i
Larry J, King, strict Cou t Judge
Gary P. ur 1 e5 , Pros
-V LIQ nk ;
Rob �Oep erd, Sheriff
ames B. r I, uperior Court Judge
Toni Sheldon, Sup r7or Court Judge
DoreennAe Rae, Treasure
M. L. Faughenderr., ai . erson
f � fYV P
Wi-11-i-am-0 -_._-Hunter, ommissioner
Laura E. Par e�Gamm7�s�oner
12
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