Chapter 3.32
PROPERTY AND EQUIPMENT CONTROL SYSTEM
Sections:
3.32.010 Adoption of a property and equipment control system.
3.32.010 Adoption of a property and equipment control system.
In order to establish an efficient procedure for the accountability and control of all tangible property and equipment purchased by the city, or otherwise acquired, or furnished by other agencies, a property and equipment control system is adopted. (Ord. 369 § 1, 1981).
3.32.020 City policy.
It is the policy of the city to maintain accountability of all tangible property and equipment purchased by the city, or otherwise acquired, or furnished by another agency. This accountability shall be maintained by records kept by the city clerk (finance officer) and by the purchasing officer, and the records shall be verified at least once each year by a physical inventory of the property in the city’s possession, and reconciled appropriately. (Ord. 369 § 1, 1981).
3.32.030 General information.
This procedure describes the requirements and procedures for maintaining accountability of all tangible nonexpendable personal property in possession of the city. All items, either owned by the city, or loaned or furnished to it from other sources, having an individual unit value of $100.00 or more and a useful life of one year or more are covered by this procedure. Items which have a useful life of one year or more and have an individual unit value of less than $100.00 shall be grouped by like item, and the groups shall be accounted for in accordance with this procedure. Land, permanent buildings, and structures are excluded from this procedure. (Ord. 369 § 1, 1981).
3.32.040 Definitions.
A. “Acquisition value or individual unit value” means the price of the item paid at the time of purchase by the city, including applicable taxes, freight, and installation costs. Donated items or items otherwise furnished shall have their acquisition value estimated on the basis of the current market replacement value. Individual items acquired as part of a package contract shall also have their acquisition value estimated at the current market replacement value.
B. “Nonexpendable personal property” means any tangible item of property, not including land, permanent buildings, or structures having a useful life of one year or more. This includes any items attached to a permanent structure that can be removed or replaced, and items that have been installed on other nonexpendable property. An example is a radio installed on a vehicle. Both the radio and the vehicle must be identified, and separately. (Ord. 369 § 1, 1981).
3.32.050 Procedure.
The following procedures will be adhered to in the implementation of this program:
A. At the time an item of nonexpendable personal property is received by the city, either through direct purchase, as part of a package contract, donation, or other means, the item shall be assigned a city identification number, and a tag containing this number shall be permanently affixed to the item, in a conspicuous place. An entry shall be made in the city’s property log maintained by the city clerk (finance officer) and an individual property card shall be prepared and maintained on file by the purchasing officer.
B. When the item or group of items is received, but before the item is placed in service, the following actions will be performed:
1. A copy of the contract or purchase order shall be sent to the city clerk (finance officer).
2. A city identification tag bearing that number shall be affixed to the item. The identification number of the item shall be provided to the city clerk (finance officer).
3. The city clerk (finance officer) shall enter the item in the city property log, including all the following information:
a. Description of the item;
b. Manufacturer’s serial number;
c. City identification number;
d. Date of acquisition; this is the date the city took actual possession of the item;
e. Acquisition cost; this is the price paid for the item, including applicable taxes, freight, and any installation costs. If this cost information is not available because the item is not a direct city purchase, the value may be estimated based on current market replacement costs;
f. Grant number; if the item is acquired using funds provided under a federal grant, the grant number shall be entered;
g. Contract or P.O. number, the contract or purchase order under which the item was procured;
h. Ownership; show “city” if procured by the city, or if on loan from another agency, identify agency;
i. Location, the physical location of the item when in use. If the item is a vehicle or portable, show its responsible department;
j. Responsible department, the department responsible for the item, and to which the item is assigned.
4. The purchasing officer shall make up a property card which contains the same information as the property log, for each individual item. The location entry on this card shall be revised each time the item is moved to a new location, and/or the responsible department changes. The acquisition value shown on the property card and on the property log must agree at the time of acquisition.
C. Once a year a complete inventory of all city property shall be conducted. The purpose of this inventory is to assure that all city property is actually in the possession of the city and properly accounted for. The inventory for each city department shall be conducted by a person who is not assigned to the department and who has no connection with the department being inventoried.
D. The inventory shall consist of actually locating each item listed on the property log. The person conducting the inventory shall physically identify the property item by identification number, description, and manufacturer’s serial number. The location and responsible department shall be noted on the inventory sheet. The physical condition of the item shall be noted, utilizing the following abbreviations: (1) N – NEW; (2) G – GOOD; (3) F – FAIR; and (4) B – BAD. This sheet shall then be sent to the city clerk (finance officer) who will verify that the data on the inventory sheet matches the information on the property log. A copy of the inventory shall also be sent to the purchasing officer who will verify the information on the property cards.
E. If any property items are located, which are not tagged, then these items shall be tagged immediately, and the appropriate entries made in the property log, and new property cards prepared.
F. If any items are missing at completion of the inventory, or if an item is lost, stolen, or vandalized at any time, the responsible department head shall immediately notify the city police department to initiate the appropriate investigation. The city clerk (finance officer) and the purchasing officer shall also be notified of the loss, and the action being taken to recover the lost item.
G. If any item of property is disposed of, the city clerk (finance officer) shall be notified and provided the following information for the property log:
1. The disposition of the property, and reason;
2. The date disposed of;
3. Dollar amount of revenue from the disposal action.
H. This same information shall also be provided to the purchasing officer for entry in the appropriate property card. (Ord. 369 § 1, 1981).