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Home My WebLink About105-94 - Res. Superseded Res. 26-86 Adopts Physical Inventory Policies & Procedures RESOLUTION NO. I E,5-94 SUPERSEDES RESOLUTION NO. 26-86 WHEREAS, RC W 36.32.210 requires the County Commissioners to inventory all county personal property annually. WHEREAS, the duty of the County Commissioners is to make certain that public property is adequately protected, managed and maintained. WHEREAS, the State Auditors have made recommendations to the County to enhance their PHYSICAL INVENTORY POLICIES AND PROCEDURES, to improve the inventory control of county owned property. NOW, THEREFORE, BE IT RESOLVED, that the Board of Mason County Commissioners adopt the attached PHYSICAL INVENTORY POLICIES AND PROCEDURES (Attachment A which is hereby incorporated as part of this resolution), and establish the dollar value for County Physical Inventory as any purchase over $500.00, The PHYSICAL INVENTORY POLICIES AND PROCEDURES sha77 be part of the County's Fixed Asset Management System. The County Physical Inventory wi77 be administered by the Mason County Auditor 's Office. Dated this 4th day of October, 1994. BOARD OF COUNTY COMMISSIONERS MASON COWTY, WASHINGTON k 1W L/Qlf— M. L Faughender, Cnhpriper Wi lliam 0, Hunter, Commissioner Laura E. Porter, Commissioner A Tl� Rgbhe6ca S. Rogers, C7erk of the Board P7 J]'i i�O VtD A,�,j, TO FORM: Vvh Deputy Prosecuting Attorney Michae7 C7ift c: Clerk of the Board Accounting(2) Treasurer Director of Administrative Services A MASON COUNTY PHYSICAL INVENTORY POLICY AND PROCEDURES SEPTEMBER 27, 1994 ALLAN T. BROTCHE, COUNTY AUDITOR �� COUNTY � / 788/�HT�0� D�/ 7�� 00M [///��iL ��L�/W�/ F��l�/ �� PROCEDURES ` � PURPOSE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE I _ FUNDAMENTALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE / CAPITAL OUTLAY PURCHASES. . . . ' . ' . . . . . . . . . . , . ' . . ' ' ' . . . . 'R4GE 2 SURPLUS ITEMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 3 YEAR END PHYSICAL DVNEV7%lRy REPORTING. . . . . . . . . . . . . . . . .R466E 4 AUDI73IY9HYSlCAL VERIFICATION. . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 4 PHYSICAL DVkEN7O9y FORM. . . . . . . . . . . . . . . . . . . . . . . . , . . . . . .PAkGE 5 INSTRUCTIONS: HOW TO FILL OUT THE 8Yy3I(AL INVENTORY FORM. . . , . . . . .FAGE 6 APPENDIX A, . . . . . , . . , . . , . . . . . . . , . . . . , . . . . . , . . . . . . . . . . . .FA8E 9 APPENDIX B. . . . . . . . . . . . . . . . . , . . . ' . . . . . . . . . . . . . . . . . . . . . .fAGE /D SIGNATURE PAGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PAGE 12 ' MASON COUNTY PHYSICAL NOTORY POLICY 6 PROCEDURES PURPOSE As per RCW 36.32.210, and Resolution #94-_, 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 persona 7 property intended for use, by Mason County for a time period of more than one year. These policies will help provide accountability and management control of Mason County's Physical Inventory. FUNDAMENTALS Any items purchased costing over $500.00 and intended for use for a period of longer than one year will be considered PHYSICAL INVENTORY of Mason County. A 77 items will be added to the purchasing department's PHYSICAL INVENTORY LISTING. Any small and attractive items at high risk of loss, but under the $500.00 value may be added to a Department's Physical Inventory at the discretion of the Elected Official/Department Head, The Auditor's Officewi77 be the designated centralized location for all Physical Inventory records, (except for the records maintained by the County Road Engineer's Office per RCW 36.32.210 part 2). It will be the responsibility of the Auditor 's Office to fulfill the Commissioner's obligations per the RCW 36.32.213. Each department head/elected official shall be responsible for the reporting of their department 's Physical Inventory to the Auditor's Office. Each department headlelected official has four .primary responsibilities for their department 's Physical Inventory: 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 headle7ected 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 A77 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 OUTLAY 61 Land 62 Buildings and Structures 63 Other Improvements 64 Machinery and Equipment (For further information see BARS Manual Volume I., Part 1, Chapter 8, Page 20.) Any Lease Transaction that meets one of the following criteria and is over the County Physical Inventory value of $50,0.00, shall be considered a "capitalized lease" and included as part of the Physical Inventory under the above policy: 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 75% or more of the estimated economic life 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 FORK will be kept on file in the Auditor 's Office. A copy should be kept on file in the department, The Audi for 's Office wi 11 ass ign a un ique Tag Number to each i tem 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 Serial# or Model . 2 MASON COUNTY PHYSICAL INVENTORY POLICY AND PROCEDURE SURPLUS ITEMS When a physical inventory item is no longer needed by a department it is considered surplus. A copy of the PHYSICAL INVENTORY FORM must be returned to the Auditor's Office with Section II completed. The completion of Section II of the PHYSICAL INVENTORY FORM and submission to the Auditor Is 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 heads/elected 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 va lue.) The "new" PHYSICAL INVENTORY FORM will be submitted to the Auditor's Office and attached to the or ig i na 7 and f i led. A copy of the PHYSICAL INVENTORY FORM shou 7d be kept on fi 7e in the "new" department. The TRANSFER 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 wi77 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. 3 MASON COUNTY PHYSICAL INVENTORY POLICY AND PROCEDURES YEAR END PHYSICAL INVENTORY REPORTING At the end of each fiscal year, the Auditor's Office wi77 send out to each department their PHYSICAL INVENTORY LISTING. It is the responsibility of the department head/elected official to submit to the Auditor's Office a verified PHYSICAL INVENTORY LISTING. The department head/elected official may have their department's custodian take the physical inventory. The custodian should verify the custody of each item and note any additions, deletions, or corrections. The verified PHYSICAL INVENTORY LISTING is due to the Auditor's Office February 1st. Per RCW 36.32.210, the Auditor wi77 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 wi77 post the PHYSICAL INVENTORY LISTING for public inspection, By February 1st the Treasurer's Office wi77 provide to the Auditor's Office a list of all property acquired through tax foreclosures. The Treasurer's Office wi77 also provide a list of property sold at the Tax Title Sales during the year. AUDITS/PHYSICAL 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 wi77 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, spec i a 7 emphasis wi 11 be p laced on the proper use of TAG NUMBERS. 4 MASON COUNTY PHYSICAL INVENTORY FORM MASON COUNTY PHYSICAL INVENTORY FORN SECTION I TA G NO, (To be assigned by Auditor's Office.) DEPARTMENT: ITEM CODE: ITEM DESCRIPTION: LEGAL DESCRIPTION; SERIAL #: MODEL #: BRAND: COMPETITIVE BID: Yes No HEARING DATE: PURCHASE DATE(MoiDayfYr) : WARRANT #: VALUE/PURCHASE PRICE(Including Sales Tax) : SOURCE OF FUNDS(%FEDERAL IF GRANT SOURCE) : TITLE HOLDER(IF GRANT SOURCE) CONDITION: LOCH TION: Custodian Signature SECTION II Fill out only if applicable! REASON FOR SURPLUS: SURPLUS DATE; SURPLUS SALE AMOUNT: TRANSFER DATE: DEPT TRANSFERRED TO: Custodian Signature SECTION III AUDIT DATE: AUDIT CONDITION: Auditor's Office Signature 5 MASON COUNTY PHYSICAL INVENTORY POLICY AND PROCEDURES INSTRUCTIONS: HOW TO FILL OUT THE PHYSICAL INVENTORY FORN SECTION I 1. The TAG NUMBER will be assigned by the Auditor's Office, 2. The DEPARTMENT is the department with custody of the item. 3. The ITEM 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. 6. 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 BRAND 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 WARRANT NUMBER is assigned by the Auditor's Office when payment is issued for the item. 6 MASON COUNTY PHYSICAL INVENTORY POLICY A PROCEDURES INSTRUCTIONS: HOW TO FILL OUT THE PHYSICAL INVENTORY FORN SECTION I (continued) 13. The VALUE/PURCHASE PRICE is the cost of the item including shipping, installation, and sales tax. If an item is transferred from one department to another, the VALUE/PURCHASE 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 (GAAP). 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 (i.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 FUNDS 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 HOLDER will be defined in the terms of the grant agreement. 16. 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 individual 's 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 11 1. Section II 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. 3. The SURPLUS DATE is the month, day, and year that the item is moved from the custody of that department. 4. The SURPLUS SALE AMOUNT will be provided by the Treasurer's Office after each Sale of Surplus County Property. 7 MASON COUNTY PHYSICAL INVENTORY POLICY AN PROCEDURES INSTRUCTIONS: HOW TO FILL OUT THE PHYSICAL INVENTORY FOR SECTION II (continued) 5. The TRANSFER DATE wi I 1 need to be provided, month, day, and year; i f the i tem is transferred to another department rather than sold at a surplus sale. 6. The DEPARTMENT TRANSFERRED TO 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 II information. SECTION III 1. This Section will be filled out by the Auditor 's Office. 2. The AUDIT DATE wi I1 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 respons ib 1 e person for the Auditor's Office must sign to verify the Section III information. MASON COUNTY PHYSICAL INVENTORY APPENDIXES MASON COUNTY PHYSICAL INVENTORY POLICY AND PROCEDURES APPENDIX DEPARTMENT ACCOUNT NUMBER AND PHYSICAL INVENTORY ABBREVIATION: 100 COOPERATIVE EXTENSION EO 200 ASSESSOR AS 300 AUDITOR AU 400 BOARD OF EQUALIZATION BE •500 CENTRAL SERVICE ADMINISTRATION CA 510 CENTRAL SERVICES MAINTENANCE SS 600 CIVIL SERVICE CS 766 CLERK CL 800 COMMISSIONERS CO 810 CLERK OF THE BOARD CB 1000 DISTRICT COURT DC 1200 EMERGENCY SERVICES ES 1465 GHCF GH 1410 GENERAL SERVICES GS 1461 PARKS PK 1470 PLANNING PL 1490 FIRE MARSHALL FM 1710 PROBATION SERVICES DP 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 CENTER CC 12800 COUNTY ROADIPUBLIC WORKS PW 13900 PERSONAL HEALTH HN 14000 HEALTH ADMINISTRATION HA 14200 LAW LIBRARY LL 14250 MEMORIAL HALL MH 15050 WATER QUALITY GRANT WQ 15060 ENVIRONMENTAL HEALTH EH 16000 COMBINED SEWER & WATER SW 16200 LANDFILL LF 16400 EQUIPMENT RENTAL & REVOLVING ER 64700 RSVP RS LAND XX BUILDINGS YY IMPROVEMENTS ZZ 9 MASON COUNTY PHYSICAL INVENTORY POLICY AND PROCEDURES APPENDIX PHYSICAL INVENTORY CODE; 0 DESKS & TABLES 00 DESK 01 RETURN UNIT 02 CREDENZA 03 CONFERENCE TABLE 04 FOLDING TABLE 05 COMPUTER TABLE 06 SPECIALIZED WORK TABLE 07 MACHINE STAND/TABLE 08 OTHER TABLES/STANDS 1 CHAIRS/FURNITURE 10 EXECUTIVE CHAIR 11 SIDE ARM CHAIR 12 SIDE CHAIR 13 SECRETARY CHAIR 14 STOOL 15 BOOKSHELF/ORGANIZERS 16 COUCH 17 CLOTHES RACK 18 CHAIR MAT 19 OTHER FURNI TURF 2 FILING CABINETSJSAFES 20 FILING CABINETS 21 LATERAL FILES 22 DATA FORMS FILES 23 CARD FILES 24 SAFE 25 OTHER FILING CABINETS/SAFES 10 MASON COUNTY PHYSI CAL,,INVENTORY POLICY AN PROCEDURE APPENDIX PHYSICAL INVENTORY CODE: 3 ELECTRONIC OFFICE EQUIPMENT _ 30 TYPEWRITER 31 WORD PROCESSOR 32 CALCULATOR/ADDING MACHINE 33 RECORDING EQUIPMENT 34 LAMPS 35 CLOCK/TIME PIECE 36 COPIERS/MIMEOGRAPH 37 FAX MACHINES 38 OTHER ELECTRONIC EQUIPMENT 4 COMPUTERS 40 COMPUTER HARDWARE 41 PRINTER 42 SOFTWARE 43 OTHER COMPUTER EQUIPMENT S DEMONSTRATION EQUIPMENT 50 CAMERA 51 OVERHEAD PROJECTOR 52 SLIDE PROJECTOR 53 MOVIE PROJECTOR 54 VIDEO RECORDER/CAMCORDER 55 TELEVISION 56 PUBLIC ADDRESS/SOUND EQUIPMENT 57 DEMONSTRATION BOARDS 58 PODIUM 59 OTHER DEMONSTRATION EQUIPMENT 6 APPLIANCES 60 AIR CLEANER/AIR CONDITIONER 61 REFRIGERA TOR 62 MICROWAVE OVEN 63 STOVE/RANGE. 64 OTHER APPLIANCES 7 MISCELLANEOUS EQUIPMENT 70 MISCELLANEOUS EQUIPMENT 8 LAND, BUILDINGS AND IMPROVEMENTS 80 LAND 81 BUILDINGS 11 MASON COUNTY PHYSICAL INVENTORY SI NA TURF PACE MASON COUNTY PHYSICAL INVENTORY POLICY AND PROCEDURES As the Elected Officials of Mason County, we hereby agree to the attached Physical Inventory Policies. Darr 1 C1 velan ssess r A I 1 an T. che, Auditor Pat Swartos, Clerk Lar'y._.._J. King, str7 �t Cou Judge Gary P. urles Pros .�MtRobhep erd, Sheriff ^flames B, wye-r I, superior Court Judge r Toni Sheldon, Sup rior Court Judge 1 Dorene Rae, Treasure s M. L. Faughend . ai. erson W unter, ommissioner Laura E. Porte a-imssioner 12