FIXED ASSET INVENTORY POLICY POLICY It is the policy of Linn County to have a comprehensive fixed asset inventory system. The Linn County Auditor and Financial Director shall be responsible for developing, implementing and maintaining the fixed asset inventory. SCOPE All property of Linn County which is non-consumable, has a value exceeding the threshold per fixed asset classification defined below, and a life expectancy of more than one year, shall be included in the fixed asset inventory. CLASSIFICATION/ THRESHOLD Fixed assets shall be classified in one of the five major groups of land, buildings, improvements other than buildings, machinery and equipment and construction in progress. An asset will not be reported in the General Fixed Asset Account Group (GFAAG) unless the value of the asset is equal to or exceeds the following thresholds by classification: Classification Th; 1 Land any land retained for County use Buildings* $ 5,000 Improvements other than buildings 50,000 Machinery and Equipment 1,000 construction in progress any construction amount incurred during a fiscal year meeting the above thresholds ‘Improvements to buildings will only be capitalized if deemed a major improvement or addition.VALUATION Fixed assets purchased with governmental fund expenditures should be recorded at historical cost and reported in the GFAAG. The amount in GFAAG should equal the purchase price or construction costs plus other costs necessary to place the asset into its intended use. Trade-ins* new asset is reported at its fair market value (cash plus trade-in allowance) per generally accepted accounting principles; the value reported in the governmental fund purchasing the asset will use the ‘net* method; in the “net" method, value equals the cash paid. Gifts assets given to the County will be reported in GFAAG at fair market value (an amount determined mutually by the seller and purchaser) . *Inveices for trade-ins should indicate the purchase price and trade-in amount allowed. PHYSICAL INVENTORY Physical inventories will be taken periodically by staff of the Linn County Auditor and/or Financial Director to provide support for the value of general fixed assets reported in the financial statements. PURPOSE The purpose of this policy is: A. To comply with Governmental Accounting, Auditing and Financial Reporting (GAAFR) . B To have an inventory of Linn County property for the purpose of better management of County assets. To have inventory data available in the event of fire or other natural disaster. Board Approval: May 23, 1989 Revised: April 5, 1994Subject: Revision | Effective | Procedure No. Date No. FIXED ASSET - Acquisition 0 71-89 zi ‘Approved by: Page Linn County of Board of Supervisors Loft Responsibility Action Frequency Department Wead) Designee Fixed Asset Account Clerk Deputy ~ A/P Account| Clerk I He the time of acquisition a determination| As needed is made regarding inclusion of an asset on| the fixed asset inventory: (a) Acquisiton cost mst be $100 or more per item - acquisition cost includes those costs necessary to place asset into intended use. (i.e. freight costs, set-up expenses) (b) Useful Life of the asset mst exceed one year Claim for invoice payment must be submitted to Auditor's office and coded in| the 600 object series Tag Asset Completed Data Update Sheet must be submitted along with claim, before claim is processed. Follow procedures for FIXED ASSET - Data Update Sheet (Fé~2) Action Step 1 and 2 Reviews claim end Data Update Sheet for accuracy and completeness (a) Inaccurate and/or incomplete inform ation will be recurned to department (b) Accurate and completed claim submitted! to Deputy~4/P Account Clerk 1; Data update sheet input into computer Follow procedure for ACCOUNTS PAYABLE ~ Computer Input (AP~3) As needed As needed As needed Weekly WeeklySubject: Revision | Effective | Procedure No. Date No. FIXED ASSET - Data Update Sheet 0 J-1-89 BALD “Approved by? Page Linn County of Board of Supervisors 1 of 2 Responsibility Action Frequency Department Head/ T. Form should include the following: Be needed Designee (a). @). (ods (@. (ee (). (. ch) @. Q). (ke). a). (a). (a). Co). ). (qs (x). (ss). From ~ Department nane : Type — Indicate action taken ~ for deletion skip to Action step 1(£) Fund ID# ~ Last two digits of fund number New Asset IDf - Eight numbers, first two being organization nunber Old Ascet ID! for traded or transferred asset Organization ~ Two digit organization number Description ~ Description of asset (example: Radio, An-Fu); for deletion skip to Action step 2 Site Code ~ Site where organization is located (See FA Site & Bldg. Schedule) Bldg. and/or Roowf - Identifies building, on particular site (See FA Site & Bldg. Schedule); Room nuther (optional) Division ~ First three numbers after organization nuuber within asset number (exceptions permitted per prior approval of Fixed Asset Account Clerk) Acq. Date ~ Date asset is received in department Model ID ~ Model number of asset (optional) Acq. Type — N= New, U= Used, LP = Lease Purchase, G = Gift Serial IDf ~ Serial number of asset (optional) ‘Acqs Cost ~ Total cost to put asset into! service Quanity Acq. ~ prefilled Grant - Name of the grant, if applicable| Maintenance Contract ID? - Contract number given for asset; copy of contract with the asset number should be attached Lease Purchase Contract ID - Lease number for asset; copy of the contract with the asset nuaber should be attached|Subject: Revision | Bifective | Procedure No. Date No. FINED ASSET - Data Update Sheet 0 7-31-89 FA-2 Approved by? Page ‘inn County of, Board of Supervisors 2 of 2 Responsibility Action Frequency Ti). Vendor Nane - Vendor from whom asset was acquired (iu). GAAPR Category - 1 = Land, 2 = Building 3 = Inpr-Non building, 4 = Mach/Equip. (office equip., furniture, etc.), 5 = Construction in progress (v). Designate type of deletion 2. Completed Data Update Sheet submitted to | As needed Fixed Asset Account Clerk Fixed Asset Account |3- Input Date Update Sheet As needed Clerk 4, Filed by department As neededabject Revision | Effective | Procedure No. Date No. FIXED ASSET ~ Retirement/Reissuance 7-1-89 FA-3 ‘Approved byt Page Linn County of Board of Supervisors Loft Responsibility Action Frequency Departwent Head T. A fixed asset of no usable value to a Bs weeded Designee departnent may be transferred to General Services for redistribution to another department Contact General Services for fixed asset | As needed pickup Complete Data Update Sheet for retirement | As needed = Follow procedures for FIXED ASSET ~ Date Update Sheet (FA-2) action steps 1(a) through 1(c) and 1(e) through 1(g) . Submit completed Data Update Sheet to As needed Fixed Asset Account Clerk General Services |S. Contact Fixed Asset Account Clerk to As needed verify receipt of Data Update Sheet for retirement Fixed Asset Account |6. Distribute listing of available fixed Quarterly or clerk assets retired to department heads upon request Department Head/ 7. Contact General Services to request As needed Designee reissuance of retired fixed asset General Services 8. Notify Fixed Asset Account Clerk of fixed | As needed asset reissuance Department Head/ 9. Complete Data Update Sheet ~ Contact Fixed| As needed Designee Asset Account Clerk for proper completion Follow procedures for FIXED ASSET - Data Update Sheet (FA-2)Subject: FIXED ASSET - Transfer Revision | Effective No. Date 0 Jn1-89 Procedure No. “Band Fpproved by: Page Linn County of Board of Supervisors Lof 2 Responsibility Action Frequency Departwent Head T, Goupletion of @ Data Update Sheet is Designee required to transfer one Asset ID Number to a new Asset ID Number when: (a). Transfer of asset per FIXED ASSET ~ | As needed Retirement/Reissuance (FA~3) (b). Transfer to another department As needed (ec), Transfer within a department when As needed asset number identifies department, function, location, etc. that changes| 2. For transfer to another department: (a). Department transferring asset informs| As needed Fixed Asset Account Clerk of transfer (b). Department transferring asset renoves| As needed old tag number (ec). Department receiving transferred As needed asset assigns nex asset ID# and tags asset (4). Department receiving transferred As needed asset completes Data Update Sheets See FIXED ASSET ~ Data Update Sheet (Fé-2) Action steps 1(a) through 1(4) and Action step 2 Fixed Asset Account (e)+ Inputs Data Update Sheet; See FIXED | As needed Clerk ASSET ~ Data Update Sheet (FA~2) Action steps 3 and 4 (2). Contacts and follows up on department| As needed receiving asset if, after a reasonable time, the Fixed Asset Account Clerk has not received completed Data Update SheetSubjects Revision | Effective | Procedure No. Date Noe FIXED ASSET - Transfer 9 7-1-9 Fant Approved by: Page Linn County of Board of Supervisors 2 of 2 Responsibility Action Frequency Departuent Heady [3. Yor transfer within a department: Designee (a). Remove old tag nunber affix new tag | As needed number (b). Complete Date Update Sheet; See As needed FIXED ASSBT - Data Update Sheet (FAr2)3 Action steps 1(a) through 1G) and Action step 2 Fixed Asset Account (c). Input Data Update Sheet; See FIXED As needed Clerk ASSET ~ Data Update Sheet; Action steps 3 and 4Subject? Revision | Effective | Procedure No. Date No. FIXED ASSET - Deletion o 7-1-89 FA-5 Approved by? Page Linn County of Board of Supervisors Lof 2 Responsibility Action Frequency lA Fixed acet will be deleted when one of the following conditions occurs: (1). Trade-in (2). Theft/casualty loss (3). Obsolesence Department Head/ —|(1) Trade-in Designee (a) Complete Data Update Sheet ~ Follow As needed procedures for FIXED ASSET ~ Data Update Sheet (FA-2); Action steps 1(a) through 1g) (b) Complete claim forn for purchase of new | As needed asset (c) Submit Data Update Sheets and claim to | As needed Fixed Asset Account Clerk for processing Fixed Asset Account | (d) Follow procedures for FIXED ASSET — As needed clerk Acquisiton (FA-1). Value of new asset equals fair market value (cash plus trade-in allovance) Department Head/ _|(2) Theft/Casualty Lose Designee (a) Send meno to Fixed Asset Account Clerk [| As needed detailing theft or casualty loss (») Complete Data Update Sheet ~ Follow As needed procedures for FIXED ASSET - Data Update| Sheet (FA~2)Subjects Revision | Effective | Procedure Now Date No. FIXED ASSET - Deletion 0 7-1-89 PAWS ‘Approved by: Page Linn County of Board of Supervisors 2 of 2 Responsibility Action Frequency Department Head G) Obsolesence Designee (a) Contact General Services Director As needed regarding disposition of fixed asset General Services (>) Determines if fixed asset is of value As needed Director to county (c) If asset is of value: (4) Assumes control of asset As needed (44) Instructs Department Head/Designated| As needed employee to retire asset. Follow procedures for FIXED ASSET ~ Retire~' nent/Reissuance (FA~3) (@ Tf asset is of no value: (4) Assumes control of asset As needed (4) Instructs Department Head/Designee | As needed to delete asset. Follow procedures for FIXED ASSET - Data Update Sheet (FA-2) (444) Disposes asset. Follow procedures As needed for FIXED ASSET ~ Disposal (FA~6) (iv) Notifies Fixed Asset Account Clerk | As needed of fixed aeset deletionSubjects Revision | Effective | Procedure No. Date No. FIXED ASSET ~ Disposal 0 7-1-89 FA~6 ‘pproved Bi Page Linn County of Boatd of Supervisors Loft Responsibility Action Frequency Departaent Head T, Wake disposal assets available to general | As needed Designee public by auction/sealed bid (a). General Services submit to Fixed Aseet Account Clerk final asset disposition General Services |2. Make disposal asset available for As needed Director landfill (2). General Services submit to Fixed Asset Accomt Clerk final asset disposition 3. If practicle, remove and destroy tag As needed nonber 4. Request periodically FIXED ASSET Update from Fixed Asset Account Clerk Fixed Asset Account |5. Input Data Update Sheet As needed clerk 6. File Data Update Sheet by department As neededSubject? Revision | Effective | Procedure No. Date No. FIXED ASSET - Physical Inventory 0 721-89 FAW? ‘Approved by: Page ‘Linn County of Board of Supervisors Loft Responsibility Action Frequency Raditor/Fixed Asset (1. Will conduct @ physical inventory by Periodically Account Clerk county department 2. Contact department head to schedule Prior to physical inventory Inventory 3. Will randomly sample departmental assets | Periodically per fixed asset listing and locate actual asset 4. Will randomly select actual departmental | Periodically assets and locate on fixed asset listing 5. Discuss preliminary findings with depart- ment head Departaent Head 6. Respond in writing to findings of Auditor/| 4s needed Fixed Asset Account Clerk JAuditor/Fixed Asset |7. Report findings and department head’s Upon audit ‘Account Clerk response to Board of Supervisors; completion copies to department head, finance director, and budget director 8. Perform follow-up physteal inventory As required 9. Perform Action steps 1 through 8 above if | As required requested by Linn County’s external auditors