STATE, TANGIBLE PERSONAL PROPERTY CHAPTER 45-1 RULES OF THE OFFICE OF THE STATE AUDITOR CHAPTER 45-1 STATE-OWNED TANGIBLE PERSONAL PROPERTY 45-1.

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1 STATE, TANGIBLE PERSONAL PROPERTY CHAPTER Preamble. ( F.S.) Definitions. ( F. S.) Property records required. ( F.S.) Content of property record. ( F.S.) Control accounts. ( F.S.) Class of property. ( F.S.) Preamble. - Chapter 273, Florida Statutes, is a law to regulate the acquisition, supervision, accountability, control, transfer, and disposal of all tangible personal property owned by the State. A penalty is provided for any violation thereof (Section , Florida Statutes) Definitions.-As used in this Chapter, the following words are defined: (1) "Custodian" means any elected or appointed State officer, board, commission, or authority, and any other person or agency entitled to lawful custody of property owned by the State. (2) "Custodian's delegate" means a person under the supervision of the custodian, to which person the custodian may delegate the use and immediate control of property and from whom the custodian may require custody receipts. (3) "Fiscal year" means the State's fiscal year established by Sections and (7), Florida Statutes, to begin on the first day of July and to end on the following thirtieth day of June, both dates inclusive, in each and every year; or the fiscal year established by other law applicable to a particular custodian Property records required.-pursuant to Section , Florida Statutes: (1) The word "property" used in this Chapter means fixtures and other tangible personal property of a nonconsumable nature, the value of which is twenty-five ($25) dollars or more, and the normal expected life of which is one year or more. (2) Each item of property which it is practicable to identify by marking shall be marked in the manner required by the State Auditor. (3) Each custodian shall maintain an adequate record of his property, which record RULES OF THE OFFICE OF THE STATE AUDITOR CHAPTER 45-1 STATE-OWNED TANGIBLE PERSONAL PROPERTY Identification of property. ( F.S.) Value or cost. ( F.S.) Disposition. ( F.S.) Initial installation and marking of property. ( F.S.) Physical inventory. ( F.S.) shall contain such information as shall be required by the State Auditor. (4) Each custodian shall take an inventory of his property in the custody of a custodian's delegate whenever there is a change in such custodian's delegate. (5) An inventory of all property shall be taken once each fiscal year, on July 1 or as soon thereafter as shall be practicable. (6) The inventory shall be compared with the property record, and all discrepancies shall be traced and reconciled Content of property record.- (1) In compliance with Section , Florida Statutes, an adequate property record shall contain at least the following information in addition to control accounts therefor: (a) Description (see Rule , below) : 1. Class (for example, desks) and type (for example, typewriter desk). 2. Number of units. 3. Name, make, or manufacturer. 4. Year or model. (b) Identification (see Rule , below) : 1. Manufacturer's serial number, if any, and if automobile, motor or ID number and title certificate number. 2. Number shown on numbered plates or other acceptable identifying marker attached to the property. For property under group control, inclusive numbers may be used. (c) Value or cost of property and date acquired (see Rule , below): 1. The value and the cost will be equal except for surplus property, donations, and similar acquisitions. These items should be recorded at their value at the time of acquisition rather than at the cost to the governmental unit. 2. On current acquisitions, show voucher number, date, cost, and from whom acquired. 3. Show the voucher number, date, and "

2 CHAPTER 45-1 cost, if available, for previous acquisitions. The cost must be shown for all property. If it is not readily available for previous acquisitions, then it must be established by appraisal or some other appropriate basis. 4. The cost figure established shall not be changed, as its principal use is in the control account. 5. Show both unit cost and total cost if items are under group control. (d) Location. (e) Custodian's delegate. (f) Date of physical inventory and condition (good, fair, or poor). This may be noted on the front or back of the record. (g) Disposition (see Rule , below): 1. Show disposition of property sold, traded, junked, or transferred. 2. Give full particulars as to dates, amounts, to whom sold, authority, etc. (h) Any additional information desired by a custodian. (2) The form of an adequate property record is any record book, ledger sheet, or card which provides the above information for each separate piece of property owned by the custodian. The record may be prepared manually in pen and ink, by typewriter, or by accounting machine, but it may not be prepared with a pencil. (3) One record shall be made for each piece or group of property, which shall be filed by location or by custodian's delegate. This is the minimum requirement. A custodian may prepare and keep additional records for each piece of property and file in such manner as to fit his needs. (4) Approval of specific forms is not required. Forms meeting the requirements enumerated herein do not need approval. Forms not meeting these requirements could not be approved. General Authority FS L aw Implemented FS Control accounts.- (1) Control accounts showing the dollar amount invested in property shall be kept as follows: (a) A custodian-wide control account. (b) A control account by each location or by each custodian's delegate. (c) A control account by each class of property showing the total dollar amount invested in each such class. (Property may be classified in accordance with the State Comptroller's capital outlay object classification code or by any other acceptable classification developed to suit the needs of the custodian.) (2) The dollar totals of the control accounts in Nos. (1) (b) and (1) (c) above should equal the dollar total of the custodianwide control account. STATE TANGIBLE PERSONAL PROPERTY 2 (3) A custodian may keep additional control accounts for property to the extent deemed necessary for his particular operation Class of property.- (1) No attempt will be made to develop a uniform classification to serve all custodians. Each custodian should develop a classification suited to his needs. The State Auditor will be glad to assist and cooperate with any custodian in developing a uniform classification for his use. (2) Equipment which forms a part of the building service systems, or which is permanently attached to and becomes a part of the building, may be recorded as "Building" or "Building Additions." Such items are not included within the definition of "Property" subject to these rules. All other property, as defined in Rule , above, owned by the custodian should be included in the property record either under group control or under unit control. (a) Property Under Unit Control-Property that is not a part of a building structure and that is accounted for as a single unit or entity in itself so that it retains its separate identity in the records. All property bearing a motor number or a manufacturer's serial number, and property consisting of less than ten (10) units in the custody of a single custodian's delegate must be accounted for on a unit basis. (b) Property Under Group Control-Property that consists of items that are the same with respect to date acquired, voucher number, cost, function, material, shape, and size, and that do not have a motor or serial number may be accounted for as a group rather than as single pieces. Chairs, desks, and filing cabinets are examples of property that may be recorded under group control. If there are less than ten (10) such units in the custody of a single custodian's delegate, each item must be accounted for under unit control. Each unit must be identified as prescribed in Rule , below Identification of property. (1) Method of Marking (a) Each item of property shall be marked with an identifying number and the name of the custodian in a permanent manner. Some examples of permanent type marking are as follows: 1. Metal tags Steel dies. Branding irons. 4. Paint or stencils. 5. Electric pencils. 6. India or indelible ink.

3 7. Metal decalcomania stamps (permanent type). (b) Decalcomania stamps not of a permanent nature may be used, however, for fragile glassware or other items that cannot be marked by the methods listed above. Large nonpermanent type decalcomania insignia frequently used on automobiles or trucks should be supplemented by one of the approved methods. (c) The type of marking used for identification depends on the class of property. Certainly metal tags and metal decalcomania stamps should not be used to mark property such as automobiles, trucks, draglines, bulldozers, etc. Painting the identification numbers on this type of property is more appropriate and permanent. (2) Location of Marks (a) Identification marks should be uniformly located on similar types of property. (b) The method of uniformly locating the marks on property is prescribed as follows: 1. Desks and tables-front of left leg just below the top. 2. Chairs-back of chair seats. 3. Files, cabinets, lockers, racks, etc. front top, left corner. 4. Rugs-attach on reverse side of a corner. 5. Office machines and accessories, upholstered and decorative furniture, etc.-attach where convenient but so as not to mar the appearance of the item. 6. Automotive, road equipment, etc.-fix where easily visible and yet not subject to obliteration Value or cost.- (1) The cost and value will be identical except for surplus property, donations, and similar acquisitions. The value at the time of acquisition should be used for these items; all direct purchases of other items should be recorded at their cost to the custodian. (2) The cost of an item or group of items under group control, is the purchase price and any delivery or set-up charges connected with making the property ready for use by the custodian. Whenever the transaction involves the trade-in of an item, the trade allowance shall be added to the cash outlay to arrive at the purchase price of the item acquired. (3) It is essential that the cost of each piece of property be recorded; otherwise, the control accounts, which are necessary parts of any adequate property control system, will be of little or no use Disposition.- (1) Upon the disposition of property, the record shall be removed from the active file STATE, TANGIBLE PERSONAL PROPERTY CHAPTER and transferred to the inactive file. At the same time, the control accounts should be adjusted for the property disposed of. Naturally, the dollar amount of property acquired should be credited to the control accounts. (2) Chapter 273, Florida Statutes, does not require that a custodian account for depreciation of property. (3) A custodian, excepting one who must establish rates to be charged individuals (such as an institution) may record depreciation on the property record separate and apart from the required information, but must keep these charges for depreciation out of the control accounts. The control accounts should always show the cost (dollar amount) of the investment in property at any given date. (4) A custodian, who of necessity must establish rates to be charged for his services, should account for depreciation expense in an expense account and provide a reserve therefor. The depreciation expense should not be credited to the control accounts heretofore mentioned, but should be credited to the reserve for depreciation. As a result, the control accounts and the account "Investment in Plant" will always show the cost value of property held at any given date Initial installation and marking of property.- (1) The first steps in the installation of adequate property records are: (a) Take a physical inventory as of a given date; (b) Start recording on the property record from vouchers, all property acquired after the inventory date. The minimum information heretofore prescribed in this regulation should be tabulated for each piece of property inventoried for subsequent posting to the property record. The property should be properly marked. This may be done during the time of the initial inventory or it may be done subsequently during the posting process, depending on the method adopted for the assignment of numbers to the various pieces of property. (2) A uniform procedure for keeping the property records current must be established by each custodian. These procedures will vary between custodians depending on their size and the volume of property to be controlled. Systematic verification and continuous control of property is dependent on appropriate procedures and forms. (3) Any problems relative to the establishment and maintenance of adequate property records should be directed to the State Auditor for consideration. General Authority FS Law Implemented FS

4 CHAPTER Physical inventory.- _ - (1) This is the process of actually ascertaining that a specific item exists and is in the location specified on the property record. It should be a sight verification; not one obtained by letter or telephone. The individual taking the inventory should not be the custodian's delegate charged with-the items to be inventoried. STATE TANGIBLE PERSONAL PROPERTY (2) The initial inventory used for setting up the property record should be taken as of the same date for all property included therein, but future inventories may be taken on a schedule basis throughout the year. The schedule should be so arranged that all property will be inventoried once during each fiscal year.,

5 COUNTY, DISTRICT TANGIBLE PERSONAL PROPERTY CHAPTER Preamble. ( F.S.) Definitions. ( F.S.) Property records required. ( F.S.) Content of property record. ( F.S.) Control accounts. ( F.S.) Class of property. ( F.S.) Preamble. - Chapter 274, Florida Statutes, is a law to regulate the acquisition, supervision, accountability, control, transfer, and disposal of all tangible personal property owned by the governing board, commission or authority of a county or taxing district of the State or the sheriff of the county. A penalty is provided for any violation thereof (Section , Florida Statutes) Definitions.-As used in this Chapter, the following words are defined: (1) "Governmental unit" means the governing board, commission or authority of a county or taxing district of the State or the sheriff of the county. (2) "Custodian" means the person to whom the custody of county or district property has been delegated by the governmental unit. (3) "Fiscal year" means the governmental unit's fiscal year established pursuant to law; otherwise, it means the calendar year Property records required.-pursuant to Section , Florida Statutes: (1) The word "property" used in this section means fixtures and other tangible personal property of a nonconsumable nature, the value of which is twenty-five ($25) dollars or more, and the normal expected life of which is one year or more. (2) Each item of property which it is practicable to identify by marking shall be marked in the manner required by the State Auditor. (3) Each governmental unit shall maintain an adequate record of its property, which record shall contain such information as shall be required by the State Auditor. (4) Each governmental unit shall take an inventory of its property in the custody of a custodian whenever there is a change in such custodian. RULES OF THE OFFICE OF THE STATE AUDITOR CHAPTER 45-2 COUNTY AND DISTRICT TANGIBLE PERSONAL PROPERTY Identification of property. ( F.S.) Value or cost. ( F.S.) Disposition. ( F.S.) Initial installation and marking of property. ( F.S.) Physical inventory. ( F.S.) (5) A complete physical inventory of all property shall be taken annually, and the date inventoried shall be entered on the property record. (6) The inventory shall be compared with the property record, and all discrepancies shall he traced and reconciled Content of property record.- (1) In compliance with Section , Florida Statutes, an adequate property record shall contain at least the following information in addition to control accounts therefor: (a) Description (see Rule , below) : 1. Class (for example, desks) and type (for example, typewriter desk). 2. Number of units. 3. Name, make, or manufacturer. 4. Year or model. (b) Identification (see Rule , below): 1. Manufacturer's serial number, if any, and if automobile, motor or ID number and title certificate number. 2. Number shown on numbered plates or other acceptable identifying marker attached to the property. For property under group control, inclusive numbers may be used. (c) Value or cost of property and date acquired (see Rule , below) : 1. The value and the cost will be equal except for surplus property, donations, and similar acquisitions. These items should be recorded at their value at the time of acquisition rather than at the cost to the governmental unit. 2. On current acquisitions, show voucher number, warrant number, date, cost, and from whom acquired. 3. Show the voucher number, warrant number, date, and cost, if available, for previous acquisitions. The cost must be shown for all property. If it is not readily available for p.revious acquisitions, then it must be estab-

6 CHAPTER 45-2 COUNTY, DISTRICT TANGIBLE PERSONAL PROPERTY lished by appraisal or some other appropriate basis. 4. The cost figure established shall not be changed, as its principal use is in the control account. 5. Show both unit cost and total cost if items are under group control. (d) Location. (e) Custodian. (f) Date of physical inventory and condition (good, fair, or poor). This may be noted on the front or back of the record. (g) Disposition (see Rule , below): 1. Show disposition of property sold, traded, junked, or transferred. 2. Give full particulars as to dates, amounts, to whom sold, authority (minute book reference), etc. (h) Any additional information desired by a governmental unit. (2) The form of an adequate property record is any record book, ledger sheet, or card which provides the above information for each separate piece of property owned by the governmental unit. The record may be prepared manually in pen and ink, by typewriter, or by accounting machine, but it may not be prepared with a pencil. (3) One record shall be made for each piece or group of property, which shall be filed by custodian (the individual to whom responsibility for the property is delegated). This is the minimum requirement. A governmental unit may prepare and keep additional records for each piece of property and file in such manner as to fit its needs. (4) Approval of specific forms is not required. Forms meeting the requirements enumerated herein do not need approval. Forms not meeting these requirements could not be approved Control accounts.- (1) Control accounts showing the dollar amount invested in property shall be kept as follows: (a) A governmental unit-wide control account. (b) A control account by each custodian and a control account for property not assigned to a custodian. (2) The dollar totals of the control accounts in (1) (b) above should equal the dollar total of the governmental unit-wide control account. (3) A governmental unit may keep additional control accounts for property to the extent deemed necessary for its particular operation. For example: a governmental unit-wide control account may be kept showing the dolla r amount invested in each class of property 6 (chairs, desks, typewriters, automotive, etc.) Class of property.- (1) No attempt will be made to develop a uniform classification to serve all governmental units. Each governmental unit should develop a classification suited to its needs. The State Auditor will be glad to assist and cooperate with any governmental unit or units in developing a uniform classification for the use of such unit or units. (2) Equipment which forms a part of the building service systems, or which is permanently attached to and becomes a part of the building, may be recorded as "Building" or "Building Additions." Such items are not included within the definition of "Property" subject to these regulations. All other property, as defined on page 1, owned by the governmental unit should be included in the property record either under group control or under unit control. (a) Property Under Unit Control-Property that is not a part of a building structure and that is accounted for as a single unit or entity in itself so that it retains its separate identity in the records. All property bearing a motor number or a manufacturer's serial number, and property consisting of less than ten (10) units in the custody of a single custodian must be accounted for on a unit basis. (b) Property Under Group Control-Property that consists of items that are the same with respect to function, material, shape, and size, and that do not have a motor or serial number may be accounted for as a group rather than as single pieces. Chairs, desks, and filing cabinets are examples of property that may be recorded under group control. If there are less than ten (10) such units in the custody of a single custodian, each item must be accounted for under unit control. Each unit must be identified as prescribed in Rule , below Identification of property. (1) Method of Marking (a) Each item of property shall be marked with an identifying number and the name of the governmental unit in a permanent manner. Some examples of permanent type marking are as follows: 1. Metal tags. 2. Steel dies. 3. Branding irons. 4. Paint or stencils. 5. Electric pencils. 6. India or indelible ink. 7. Metal decalcomania stamps (permanent type). (b) Decalcomania stamps not of a permanent nature may be used, however, for fragile

7 COUNTY, DISTRICT TANGIBLE PERSONAL PROPERTY CHAPTER 45-2 glassware or other items that cannot be marked by the methods listed above. Large nonpermanent type decalcomania insignia frequently used on automobiles or trucks should be supplemented by one of the approved methods. (c) The type of marking used for identification depends on the class of property. Certainly metal tags and metal decalcomania stamps should not be used to mark property such as automobiles, trucks, draglines, bulldozers, etc. Painting the identification numbers on this type of property is more appropriate and permanent. (2) Location of Marks (a) Identification marks should be uniformly located on similar types of property. (b) The method of uniformly locating the marks on property is prescribed as follows: 1. Desks and tables-front of left leg just below the top. 2. Chairs-back of chair seats. 3. Files, cabinets, lockers, racks, etc. front top, left corner. 4. Rugs-attach on reverse side of a corner. 5. Office machines and accessories, upholstered and decorative furniture, etc.-attach where convenient but so as not to mar the appearance of the item. 6. Automotive, road equipment, etc.-fix where easily visible and yet not subject to obliteration Value or cost.- (1) The cost and value will be identical except for surplus property, donations, and similar acquisitions. The value at the time of acquisition should be used for these items; all direct purchases of other items should be recorded at their cost to the governmental unit. (2) The cost of an item or group of items under group control, is the purchase price and any delivery or set-up charges connected with making the property ready for use by the governmental unit. Whenever the transaction involves the trade-in of an item, the trade allowance shall be added to the cash outlay to arrive at the purchase price of the item acquired. (3) It is essential that the cost of each piece of property be recorded; otherwise, the control accounts, which are necessary parts of any adequate property control system, will be of little or no use Disposition.- (1) Upon the disposition of property, the record shall be removed from the active file and transferred to the inactive file. At the same time, the control accounts should be ad- 7 justed for the property disposed of. Naturally, the dollar amount of property acquired should be credited to the control accounts. (2) Chapter 274, Florida Statutes, does not require that a governmental unit account for depreciation of property. (3) A governmental unit, excepting one which must establish rates to be charged individuals (such as an institution) may record depreciation on the property record separate and apart from the required information, but must keep these charges for depreciation out of the control accounts. The control accounts should always show the cost (dollar amount) of the investment in property at any given date. (4) A governmental unit, which of necessity must establish rates to be charged for its services, should account for depreciation expense in an expense account and provide a reserve therefor. The depreciation expense should not be credited to the control accounts heretofore mentioned, but should be credited to the reserve for depreciation. As a result, the control accounts and the account "Investment in Plant" will always show the cost value of property held at any given date Initial installation and marking of property.- (1) The first steps in the installation of adequate property records are: (a) Take a physical inventory as of a given date; (b) Start recording on the property record from vouchers, all property acquired after the inventory date. The minimum information heretofore prescribed in this regulation should be tabulated for each piece of property inventoried for subsequent posting to the property record. The property should be properly marked. This may be done during the time of the initial inventory or it may be done subsequently during the posting process, depending on the method adopted for the assignment of numbers to the various pieces of property. (2) A uniform procedure for keeping the property records current must be established by each governmental unit. These procedures will vary between governmental units depending on their size and the volume of property to be controlled. Systematic verification and continuous control of property is dependent on appropriate procedures and forms. (3) Any problems relative to the establishment and maintenance of adequate property records should be directed to the State Auditor for consideration Physical inventory.- (1) This is the process of actually as-

8 CHAPTER 45-2 COUNTY, DISTRICT TANGIBLE PERSONAL PROPERTY certaining that a specific item exists and is in the location specified on the property record. It should be a sight verification; not one obtained by letter or telephone. The individual taking the inventory should not be the custodian charged with the items to be inventoried. (2) The initial inventory used for setting up the property record should be taken as of the same date for all property included therein, but future inventories may be taken on a schedule basis throughout the year. The schedule should be so arranged that all property will be inventoried once during each fiscal year.