RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE ClTY OF WOODINVILLE, WASHINGTON, ESTABLISHING A FIXED ASSET POLICY.

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1 RESOLUTION NO. 279 A RESOLUTION OF THE CITY COUNCIL OF THE ClTY OF WOODINVILLE, WASHINGTON, ESTABLISHING A FIXED ASSET POLICY. WHEREAS, the City Council authorizes the purchase of fixed assets through the budget process, and WHEREAS, the City Council recognizes the importance of identifying and accounting for capital items purchased and donated, and WHEREAS, the City Council believes it is tin the best interests of the City to have a policy in place to give guidance for the monitoring of assets; NOW, THEREFORE, THE ClTY COUNCIL OF THE ClTY OF WOODINVILLE, WASHINGTON, DOES RESOLVE AS FOLLOWS: 1. To adopt the policies included as Attachment A. ADOPTED BY THE ClTY COUNCIL OF THE ClTY OF WOODINVILLE THIS 18'~ DAY OF OCTOBER ATTESTIAUTHENTICATED: City Clerk

2 Attachment A City of Woodinville Fixed Assets Policy I Statutory Authority The State of Washington, through its Office of the State Auditor, requires a reporting and accounting system for local governments. (RCW ) II Purpose The purpose of a fixed asset policy and inventory system is to provide stewardship over the City s resources through control and accountability of its fixed assets. III Policy It is the policy of the City to maintain accountability over all tangible fixed assets acquired by the City through purchase, donation, capital lease, and construction having a life exceeding one year with a cost of $5,000 or more. Assets include land, improvements, buildings, equipment, improvements that add to the existing useful life of the asset, and capital leases. The straight line method of depreciation will be used for depreciable assets. The Finance Director shall maintain the asset records, which will be verified by a physical inventory at least once a year. Fixed assets will be valued at cost including all ancillary charges necessary to place the asset in its intended location and condition for use. Donations will be valued at fair market value or estimated cost. Small and attractive assets are those that are partially at risk or vulnerable to loss and cost less than $5,000. These items shall be tracked due to their sensitivity to theft and carried on the property records of the City of Woodinville. (i.e. radios, cell phones, power tools, small tools, fax machines, cameras, etc ). Equipment with a cost of $5,000 or more will be identified in a separate schedule as part of the annual budget. Equipment purchases with a cost of $5,000 not shown in the schedule of capital equipment will be approved by the Council prior to purchase. Capital equipment will be replaced at the end of the asset s life by the Equipment Rental Fund or Equipment Replacement Fund.

3 IV Identifying and Recording Capital Assets The Finance Department and the departments purchasing the capital equipment shall ensure that all capital equipment purchases, including small and attractive assets, will be properly identified. The Finance Director shall be responsible for instituting procedures for identifying and recording capital assets. Disposition of (Surplus) Assets The disposal of City assets shall follow the guidelines adopted by the City Council for the disposition of City assets. The Finance Director shall institute procedures for the disposition of capital assets, including small and attractive assets, that are consistent with the policies adopted by Council. The procedures shall include the reporting of asset transfers and the modification of assets. Lost or Stolen Property When an item in the fixed asset system has disappeared and all efforts have failed to recover it, the controlling department shall notify the Finance Director, City Manager, Police Department and Council. V Procedures for Physical Inventory The Finance Director will establish procedures for the physical inventory of all assets covered by this policy. A physical inventory will be conducted annually by all departments of all assets under their control to verify the existence and condition of all items. At least every three years, an inventory will be performed by an outside agency. VI Separate Accountability The transfer and/or disposition of property shall comply with the provisions of RCW No department or fund shall benefit financially by an appropriation made another, including the unexpended balances or proceeds from the sale of property.

4 City of Woodinville Fixed Assets Procedures I Authority The City Council, by adoption of Resolution No. 279, authorizes the establishment of procedures for accounting for fixed assets. II Purpose The procedures are to ensure that the assets of the City are accounted for in an orderly and professional manner. III Policy It is the policy of the City to maintain accountability over all tangible fixed assets acquired through purchase, donation, capital lease, and construction; having a life exceeding one year with a cost of $5,000 or more. Assets include land, improvements, buildings, equipment, improvements that add to the existing useful life of the asset, and capital leases. The straight line method of depreciation will be used for depreciable assets. Donations will be valued at fair market value or estimated cost. Small and attractive assets are those that are partially at risk or vulnerable to loss and cost less than $5,000. These items shall be tracked due to their sensitivity to theft and carried on the property records of the City of Woodinville. (i.e. radios, cell phones, power tools, small tools, fax machines, cameras, etc ). IV Procedures for Identifying and Recording Capital Assets 1. New Acquisitions When equipment is received, the controlling department will prepare an Asset Information Form (see attached), submit it with the invoice, and forward it to the Finance Department. The Finance Department. will review the information on the form and enter the information into a capital asset database. A unique identification tag number may be assigned and affixed to the asset if appropriate or feasible. Assets that have a unique serial number, license number, or other clearly identified unique number may not require an asset tag. 2. Small & Attractive assets For small & attractive assets (<$5,000), each department shall maintain an inventory list via a common database accessible to all departments. Each department will be responsible for identifying and inventorying its small and attractive assets. The policies for how often they are inventoried and how to record transfers and deletions are the

5 same as for all capital assets. The Finance Department may recommend certain items be considered a small and attractive asset. 3. Disposition of (Surplus) Assets The disposal of City assets shall follow the guidelines adopted in a Council-adopted resolution. An Asset Information Form shall be filled out and forwarded to the Finance Department. Any property declared by the City Council to be surplus to the needs of the City will be disposed of by a method approved by the City Manager including, but not limited to, an auction, sealed bids, or a method reasonably calculated to achieve the highest possible return to the City. 4. Transfers This type of adjustment records intra City transfers of assets as well as changes of information relating to the assets. Surplus assets will remain in storage until it is determined that the asset is to be transferred to another department, sold, or disposed. An Asset Information form must be filled out and routed to Finance. 5. Modifications Larger assets such as major pieces of equipment and buildings are often modified to increase their usefulness. Modifications may include partial additions or deletions, major repairs, or component replacement. Any modification that changes the value or life of the asset will be will be described and forwarded tot eh Finance Department for inclusion in the fixed asset database. 6. Lost or Stolen Property When an item in the capital asset database or a small and attractive asset has disappeared and all efforts have failed to recover it, the controlling department shall notify the Finance Director using the Missing Property Report form. Ninety days after notification, if the item hasn t been found, the dept will send an Asset Information Form to Finance to remove the asset from the asset database. Copies of the report will be sent to the City Manager, Police Dept and Council. V Procedures for Physical Inventory All departments will conduct an annual physical inventory of all assets under their control to verify the existence and condition of all items. Each dept will assign a fixed asset custodian who will be responsible for annual inventories of assets and the overall management of the department s fixed assets.

6 Forms will be provided by the Finance Department for the annual inventory. Each department will notify the Finance Department of any additions, deletions, transfer, modification, or leases of property. Incorrect information should be marked and correct information or additional information should be noted on the listing. Once the inventory has been completed, the inventory listing shall be returned to the Finance Dept with the dept head signature. This certifies that the inventory was taken and the listing is correct as noted. At least every three years, an inventory will be performed by an outside agency.

7 City of Woodinville Asset Information Form Department: Date: Asset General Information: Capital Outlay Asset (Equal or greater than $5,000): ٱ Small & Attractive Asset: ٱ Description: Model No: Serial No: Invoice Date: By Controlling Dept: PO#: Vendor: Amount: Depreciation # yrs: Expenditure Acct: Status of Asset: New/Used Donation Other Federal Grant Intra-City Transfer of Asset: Transfer to: Transfer from: Asset Tag #: Check #: Check Date: Surplus of Asset(s): Auction/Bid: Disposed of: Sold To: Trade/Donated Value: Value: Value: Value: Equipment Replacement: Replaces: Tag#: Lost or Stolen: Stolen Missing Dept Director Date Finance Director Date City Manager Date *Finance Director s and City Manager s signature are not required for recording of small/attractive assets. All signatures are required for all transfers, surplus, replacements, lost or stolen assets.

8 Date: From: City of Woodinville Missing Property Report Subject: Report of suspected loss/theft of City property 1. The following City personal property is reported as lost/stolen from this department: a. Inventory Number: b. Description: c. Cost or Value: d. Date and time discovered missing: e. Person reporting missing item: f. Last known location of item: g. Were police notified of suspected theft? Yes/No h. Name of employee item assigned to: (if applicable) i. Describe circumstances of loss/theft: 2. It is understood that this equipment will remain on the City inventory for 90 days following the date of this report. If, after this period the equipment is not found or recovered, an Asset Information Form shall be submitted removing the asset from inventory. Additional Comments: Dept Director Finance Director cc: Police Dept City Manager Council