(A) Be it ordained that accounting controls be designed and implemented to provide reasonable assurances that:
(1) Capital expenditures made by the city, its various departments and utilities be in accordance with management’s authorization as documented in the minutes.
(2) Transactions of the utilities be recorded as necessary to permit preparation of financial statements in conformity with generally accepted principles.
(3). Adequate detail records be maintained to assure accountability for city and utility owned assets.
(4) Access to assets be permitted in accordance with management’s authorization.
(5) The recorded accountability for assets be compared with the existing assets at least every two years and appropriate action be taken with respect to any differences.
(B) Asset transfers and dispositions.
(1) Property should not be transferred, turned in for auction, or disposed of without approval of the department head. A vehicle/equipment out-processing checklist should be sent to the Clerk
Treasurer’s office in all cases. This form is a dual purpose form for transfer (defined as any movement of an asset by virtue of change in location, either by account, department, building, floor, or room) or retirement (disposal) of property.
(2) The main points to be remembered when using this form are:
(a) Always provide sufficient detail to properly identify the asset and, most importantly, include the asset’s identification number;
(b) Be accurate and do not overlook any of the required entries;
(c) Write legibly;
(d) Complete each column for every asset listed on the form;
(e) Enter information on the correct rows depending on whether an asset is being transferred or deleted;
(f) Have Department Head sign the form; and
(g) Return the form to the Clerk-Treasurer’s office.
(3) If an asset is stolen, the Department Head should immediately notify the Police Department and Clerk Treasurer.
(C) Periodic inventories. A physical inventory of all capital assets (any item over $5,000) will be conducted in each department on or about December 31st of each calendar year. Department Heads will be accountable for the capital asset inventory charged to their respective departments by verifying a list of their capital assets at year-end.
(D) Responsibilities of Clerk Treasurer’s office. It is the responsibility of the Department Heads to act as, or designate a steward for each asset covered by this policy. The steward will become the focal point for questions regarding the availability, condition and usage of the asset, as well as the contact person during the physical inventory process.
(1) The steward shall record the receipt of the asset, examine the asset to make sure that no damage was incurred during shipment and make sure that the asset was received in working order.
(2) The steward is also responsible for arranging for the necessary preventative maintenance and any needed repairs to keep the asset in working condition. It is necessary to have a responsible person available for questions that arise during a physical inventory or when someone wants to borrow the asset. The steward ensures that the asset is used for the purpose for which it was acquired and that there is no personal or unauthorized use. In addition, the steward should report any property damage or theft.
(Ord. 2017-2, passed 2-8-2017)