Category: Finance
Policy No.: F-1
Subject: Small and Attractive Assets Policy
Date Issued:
Staff Contact:
Last Updated:
The following policies and procedures document a small and attractive system designed to ensure controls over items that might not be noticed immediately after their disappearance. The intent of this policy is to obtain accountability over items that do not meet the criteria of a fixed asset and would NOT be noticed immediately upon disappearance or replacement.
Purpose
A small and attractive items system gathers information allowing investigation of items missing that would otherwise not be noticed. The system should provide adequate stewardship over its resources through control and accountability.
It is the policy of the City to maintain accountability over all tangible items that may have the likelihood of disappearing without being noticed.
A small and attractive item is an item that is priced/valued over $250 and under $5,000 and has a life expectancy of more than one year. This item also is not likely to be missed immediately upon disappearance and could be replaced without suspicion during voucher audits. Examples include, but are not limited to radios, cameras, computers, laptops, mobile public works power equipment, items not permanently affixed to a building or vehicle, artwork, award pieces, etc. This would not include more permanent fixtures such as desks, tables and shelving and specifically excludes small tools and minor equipment in the public works shop such as shovels, hand tools, supplies etc.
Finance will prepare a list at least annually of the small and attractive items for distribution and review. The department heads or their designee will need to review, update, delete, and add new items to the list, sign, date and return the list to Finance within 30 days of distribution. This review will typically occur in January of each year.
If an item is to be deleted the Department Head will complete an Asset Disposition Form (see exhibit A[1]), note the reason and/or means of disposal, value, sign and forward to City Manager for surplus review/approval. A copy of the signed asset disposition form will be forwarded to finance.
The Small & Attractive Asset list will contain the serial number, model, or other identifying information and location. Whenever feasible, each piece of property will be engraved or marked with the City's name otherwise a City tag will be affixed to the asset. Such markings will be removed or obliterated only when the item is sold, scrapped, or disposed of.
The City may acquire property via purchase, construction, donation, or lease. Regardless of how it is acquired, when the property is received the department purchasing the item should notify Finance (provide asset information including location) and keep a list for annually updating in the list/database.
Items previously acquired will eventually be disposed of and need to be deleted from the department's list. Deletion may be required due to a sale of the asset, scrapping, disappearance (lost/stolen), or involuntary conversion (fire, flood, etc). An Asset Disposition Form[1] will have to be completed, signed, and forwarded to Finance.
The department head controlling the item will determine when an asset is to be removed from the list. Per City of Kenmore municipal code section 3.55.015 “The city manager or designee, may declare an item of personal property or similarly-described group of items with a value of $10,000 or less surplus”. The surplus approval section of the Asset Disposition form must be signed by City Manager.
Documentation/report of the actual disposition will be forwarded to Finance for review and verification.
Items disappearing mysteriously may require additional reports to the police department, City Manager, and insurance company. Deletions brought about as a result of natural disasters would require reporting to the insurance provider for an eventual reimbursement claim.
Occasional transfers of property between department, individuals within a department or funds will occur. The original controlling department fund is accountable for all items and for initiating a notice of transfer.
Interdepartmental transfers involving a proprietary fund (i.e. Surface Water Management Fund) need to have a transfer of money. The sale price will be fair market value.
Interdepartmental transfers or intergovernmental (i.e. City to County or State) do not require the City to declare the item surplus or to do a public notice.
All transfers must comply with Chapter 3.55 KMC, if applicable.
Whenever an item has disappeared and all efforts have failed to recover it, the controlling department fund shall notify the City Clerk via Memo, who will give a copy to the City Manager, file a police report and report to the insurance if necessary. Finance will update the database accordingly.
The City will notify SAO of all losses in accordance with State law (RCW 43.09.185)
Assets are sometimes donated to the city and should be added to the list of small and attractive assets if valued under $5,000. If the donation is cash to be used in conjunction with the construction of a specific asset, the donation is reported as revenue (contribution/ donation from private sources) in governmental funds.
The sale and disposal of all City assets regardless of purchase price are identified through various procedures in the Kenmore Municipal Code Chapter 3.55 and shall be disposed of per this code.