South Coast Air Quality Management District

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Remove Various Fixed Assets from AQMD Inventory

SYNOPSIS: 

AQMD Policy and Procedure No. 20 requires a biennial Districtwide fixed asset inventory and annual Monitoring and Analysis inventory. In 1999, the biennial Districtwide fixed asset inventory was conducted. This action is to approve removal of unlocated fixed assets from AQMD’s records.

COMMITTEE: 

Administrative, June 9, 2000, Recommended for Approval

RECOMMENDED ACTION:

Authorize removal of equipment identified on Attachment A from AQMD’s fixed asset inventory.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

AQMD Administrative Policy and Procedure No. 20 establishes procedures for the approval, purchasing, tagging, physical inventory, and disposal of fixed asset equipment. This policy requires an annual inventory of the Monitoring and Analysis (M&A) office and a biennial inventory of all other organizational units. In accordance with this policy, staff has previously requested the Board’s approval to remove equipment which had been reported missing from the inventory of assets. The last request to remove missing items was approved on June 12, 1998 and represented the results of the 1997 biennial Districtwide inventory and the 1996 M&A annual inventory.

During August through December 1999, 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 this 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 provide better safeguards for assets. The most common items reported missing were computer-related equipment and hardware.

Attachment A is a list of unlocated fixed assets comprised of missing items as determined from the August through December 1999 inventory. AQMD Administrative Policies and Procedures No. 20 provides that missing fixed assets are to be approved by the Board for write off and deletion from the AQMD fixed assets records.

A summary of the information in Attachments A appears below:

	Original Cost	Current  Estimated Value
Attachment A
Missing Fixed Assets From 1999 Physical Inventory	$62,564.84	$1,120

Proposal

Because of the age of the assets, the current value of these missing assets is materially less than the recorded value. Staff recommends that the unlocated items on Attachment A be removed from the AQMD’s total fixed assets inventory of $19,061,688. Based on the original cost the items for which removal is recommended represent approximately 0.3% of total equipment inventory. Staff will also strengthen its policy regarding portable computers, requiring that portable computers be inventoried every six-months and that individuals assigned a portable computer be more responsible in safeguarding this equipment.

Resource Impacts

The proposed action will have no impact on the General Fund, but the General Fixed Assets Account Group will be reduced by $62,564.84

Attachment

A. Missing Fixed Assets from 1999 Physical Inventory

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