BOARD MEETING DATE: July 9, 2004
AGENDA NO. 15

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 2003, the biennial Districtwide fixed asset inventory was conducted. This action is to approve removal of unlocated fixed assets and to declare as surplus the equipment and computer software determined to be obsolete or broken and not worth repairing.

COMMITTEE:

Administrative, June 18, 2004, Recommended for Approval

RECOMMENDED ACTIONS:

1. Authorize the removal of the equipment identified on Attachment A from AQMD's fixed asset inventory.
    
2. Declare the items on Attachment B as surplus and authorize removal of these items 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 2003, 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 provide better safeguards for assets.

Attachment A is a list of unlocated fixed assets, sorted by location, comprised of missing items as determined from the August through December 2003 inventory. Attachment B is a list of obsolete or non-repairable equipment and computer software that has already been replaced as required. AQMD Administrative Policies and Procedures No. 20 provides that obsolete and non-repairable 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 Attachment A and B appears below:
 

Proposal

Staff recommends that the unlocated items on Attachment A be removed from AQMD's total equipment inventory of $21,346,097. Based on original cost, the items for which removal is recommended represent approximately 0.1% of total equipment inventory.

The fixed assets appearing on Attachment B represent obsolete or non-repairable equipment and computer softwares which have been replaced as part of AQMD's replenishment program and are no longer of use to the AQMD. Staff is recommending that the assets on Attachment B, as in the past, be surplused through the surplus process and disposed of either through auction, or donation to nonprofit and charitable organizations.

Resource Impacts

The proposed action will have no impact on the General Fund, but the General Fixed Assets Account Group will be reduced by $2,560,408.

Attachment

1. Unlocated Fixed Assets from 2003 Inventory
2. Obsolete or Non-repairable Fixed Assets

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