BOARD MEETING DATE: March 5, 2010
AGENDA NO. 18

PROPOSAL:

Remove Various Fixed Assets from AQMD Inventory

SYNOPSIS:

AQMD Administrative Policies and Procedures No. 20 requires a biennial Districtwide fixed asset inventory, an annual Science and Technology Advancement inventory, and the disposal of fixed assets declared surplus. In 2009, the biennial Districtwide fixed asset inventory was conducted. This action is to approve removal of surplus equipment, computer software, motor vehicles determined to be obsolete or broken and not worth repairing and fixed assets not located from AQMD’s records.

COMMITTEE:

Administrative, February 12, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

Declare the items on Attachments A-1 and A-2 as surplus and authorize removal of these items and those identified as missing in Attachment A-3 from the fixed assets inventory. 
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD Administrative Policies and Procedures No. 20 established procedures for the approval, purchasing, tagging, physical inventory, and disposal of fixed assets. This policy requires an annual inventory of the fixed assets in Science and Technology Advancement, Monitoring and Analysis (M&A) section and a biennial inventory of all other organizational units.

During August through December 2009, each organizational unit at the AQMD conducted a biennial physical inventory of its equipment. These inventories were observed by Finance staff. Following the conclusion of the inventory, additional efforts were made to locate assets which were missing and where appropriate, controls were reviewed with the organizational unit in an effort to further enhance asset tracking.

Attachments A-1 and A-2 list the obsolete or non-repairable equipment, computer software, and motor vehicles that have already been replaced as required. Attachment

A-3 is a list of unlocated fixed assets, sorted by organizational unit as determined from the August through December 2009 inventory. AQMD Administrative Policies and Procedures No. 20 provides that obsolete, non-repairable and missing fixed assets are to be approved by the Board for write-off and deletion from AQMD fixed assets records.

A summary of the information in Attachments A-1, A-2, and A-3 appear below:

Proposal

The fixed assets appearing on Attachments A-1 and A-2 represent obsolete or non-repairable equipment, computer software and motor vehicles which have been replaced as part of AQMD's replenishment program and are no longer of use to the AQMD. Because of the age of the assets, the current value of the missing assets on Attachment A-3 is materially less than the recorded value. Staff is recommending that the assets on Attachments A-1 and A-2, as in the past, be surplused through the surplus process and properly disposed of. Staff is also recommending that the unlocated items on Attachment A-3 be removed from the AQMD’s total fixed assets inventory of $42,226.87. 

Resource Impacts

The proposed action will have no impact on the General Fund, but the General Fixed Assets Account Group will be reduced by $1,605,414.46.

Attachments (EXE, 59k)

A-1 Obsolete or Non-repairable Motor Vehicles

A-2 Obsolete or Non-repairable Equipment and Computer Software

A-3 Missing Fixed Assets for 2009 Physical Inventory