HomeMy Public PortalAbout2520.1 - Business and Financial Services - Procurement & Contracts - Capital AssetsPolicies and Procedures Manual Page 1
Office of Business and Financial Services
Procurement and Contracts Division Section 2520.1
2520.1 SUBJECT: CAPITAL ASSETS
:1 OBJECTIVE:
To establish policies, guidelines and procedures for the inventory, depreciation, disposal
and maintenance of all property and assets owned or leased by the City of Orlando. This
policy is designed for use by City of Orlando departments and agencies to promote
understanding of the City’s Capital Asset Accounting System and to assist them in
preparing the capital asset accounting documents utilized by Asset Management system.
Periodically, this policy will be reviewed and revised as changes in policies, accounting
standards or laws may require. Revisions to this policy will be distributed to ensure
proper accounting of capital assets.
:2 AUTHORITY:
This procedure amended by City Council December 9, 2019, Item A-3.
:3 DIRECTION:
The Chief Procurement Officer (CPO), as an appointed official, serves at the pleasure of
and receives direction from the Mayor through the Chief Financial Officer.
:4 FUNCTIONS:
A. General
1. It is the policy of the City of Orlando that a capital asset accounting system be
established, implemented and maintained which will provide:
a) Policies governing capital asset accounting;
b) Guidelines for the accountability and financial and physical control of all
City assets; and
c) Consistent and uniform procedures and transactions for accounting of
capital asset throughout City departments and agencies.
This system will contain physical controls and procedures that hold department
heads responsible for land, buildings and specific equipment and machinery
located in their departments and an annual inventory of same, indicating gain or
loss of inventory items.
Capital asset reporting will be done consistent with the requirements of
Statement 34 issued by the Governmental Accounting Standards Board and the
annual value of such assets will be included in the Comprehensive Annual
Financial Report (CAFR) prepared by the Controller of the City of Orlando.
2. An effective system of accounting for City property serves the public's best
interest and provides City management with information which is of value for
budgetary and other purposes. Inventory control will provide the following:
a) A current perpetual inventory of City property.
b) Responsibility for the security and accountability of City property.
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Procurement and Contracts Division Section 2520.1
c) Accurate information for accounting and auditing purposes.
d) Continuous identification of each item under inventory.
e) The quantity and value of the inventory at any given period.
B. Definitions
1. Accountability Officer – Director, Division Manager, Office Manager, or other
unit head having custody of property.
2. Asset Custodian – Person whom Accountability Officers designate as their
agents for internal responsibility for custody of property and liaison with the
Asset Management Office. Designation of Asset Custodian is assigned in
Workday for each fixed asset cost center.
3. Asset Management – Office responsible for the accountability/control, transfer,
and disposal of the City’s Capital Assets.
4. Asset Verification Form – A copy of the record and City asset number which is
sent from Asset Management to the receiving Asset Custodian. It is used as
verification of property being received and tagged by the receiving Department
and held in Asset Management’s Program files.
5. Capital or Fixed Asset – Any item of tangible personal property owned by the
City or a using agency of the City that has an original value of $5,000 or more;
is a complete entity within itself (as distinguished from components); and has a
life expectancy of one year or more. Also, certain tangible personal property
with an original value less than $5,000 is also defined as an Asset as detailed in
Procurement and Contracts Division Directive. The term shall not include real
property, intangibles, or consumables. The decision of accountability and
whether an item of personal property is a capital asset shall be made by the
Property Control Officer. Items less than $5,000 in value will be defined and
treated as Locally Controlled Assets, unless otherwise determined and
designated as a capital asset for property accountability purposes by the Chief
Procurement Officer.
Capital Assets will be categorized into several major classes. These classes
provide the structure for the capital asset accounts and define processing
requirements for the different types of assets.
Major asset classes include:
a) Land and land improvements
b) Buildings and building improvements
c) Machinery and equipment, including
(1) Vehicles
(2) Off-road equipment
(3) Office equipment
(4) Computer equipment (in most cases hardware only)
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Procurement and Contracts Division Section 2520.1
(5) Furniture and fixtures
(6) Software
d) Infrastructure
e) Construction in progress
f) Capital leases
g) Artwork
Additions, major renewals and replacements that increase the useful lives of the
assets are capitalized.
6. City – City of Orlando, including City Council, any department, commission,
board, division, office, committee, institution, authority, agency or other
establishment or official of the City government.
7. City Property (Property) – All tangible personal property owned by the City or
a using agency, including both Capital Assets and locally controlled assets.
8. Designee – Duly authorized representative of a person holding another position.
9. Disposal – Approved removal from the inventory record of property resulting
from sale, trade-in, donation, destruction, cannibalization, or permanent
unserviceability.
10. Excess Supplies – Supplies having remaining useful life, but which are no longer
required by the using agency in possession of said supplies.
11. Fixed Asset Acquisition – Act of entering data of newly acquired fixed assets
into in the Fixed Asset System's Master records, including accounting and
descriptive information.
12. Inventory Control – Continuing procedure for maintaining an adequate record
of the existence, location and responsibility for each Capital Asset.
13. Locally Controlled Asset – Means an asset that is not capitalized or inventoried
by Asset Management and which is the responsibility of the Department
Director or Division Manager to properly track and inventory.
14. Property Control Officer – The City's Chief Procurement Officer or designee(s).
15. Surplus Property – Property no longer having any use to the City. This includes
obsolete supplies, scrap materials, and non-expendable items that have
completed their useful life cycle.
16. Transfer – Approved and permanent change in accountability for property from
one Accountable Officer to another.
17. Using Agency – Department, division, commission, board, committee,
institution, authority, or other establishment or official of the City which utilizes
any supplies, services, or any other item procured under Chapter 7 of the City
Code.
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Procurement and Contracts Division Section 2520.1
C. Vehicular Accountability
The accountability for motorized and accessory equipment is vested in the Fleet
Management Division. The record keeping procedures for such vehicular and
accessory equipment shall be the responsibility of the Fleet Manager. Physical
accountability is a responsibility of the Asset Management Program.
D. Roles and Responsibilities
Property accountability responsibility is vested as follows:
1. Chief Procurement Officer
The Chief Procurement Officer is responsible for the management,
administration and supervision of the Procurement and Contracts Division,
which Division is responsible for the inventory, management, and control of
City property, as defined above. The Chief Procurement Officer shall have the
authority to designate any item or type of item, which would otherwise be a
locally controlled asset based upon its value being less than $5,000, a trackable
item subject to all the inventory management, tracking, and other requirements
of this Policy applicable to capital assets when the Chief Procurement Officer
deems it appropriate in the best interest of the City for the protection of City
property.
2. Property Control Officer
The Property Control Officer is responsible for the accountability of Capital
Assets and for the implementation of approved inventory control procedures to
reflect the acquisition and disposal of Capital Assets.
3. Asset Management Supervisor
An Asset Management Supervisor performs the detailed inventory control
procedures under the direction of the Chief Procurement Officer.
4. Department Director and Division Manager
A Department Director and Division Manager, as applicable, shall:
a) Ensure that the procedures outlined herein are followed within their
respective operations on a continuing basis.
b) Establish such intra-departmental procedures as may be deemed necessary
to avoid loss or misappropriation of City property. The Department Director
or Division Manager will be accountable for the control and tracking of all
locally controlled assets assigned to their department or division.
c) As the accountable officer, be directly responsible for property assigned to
their programs(s) and shall ensure that:
(1) All Fixed Asset transfers are properly completed;
(2) All new Fixed Assets are properly added to inventory; and
(3) Assets not in use are properly disposed of through the Asset
Management Office and removed from Fixed Asset inventories.
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d) Ensure that employees understand and comply with City policies and
procedures which prohibit employees from using City property for any
work outside the scope of their employment with the City, except as may
be specifically approved in advance and in writing by the Department
Director or Division Manager.
5. Program Managers
A Program Manager is responsible for that property assigned to their units.
6. Capital Asset Accountant
The Controller’s Office is an integral part of the comprehensive capital asset
management system established by the City. The Controller will designate a
Capital Asset Accountant to act as the central coordinator over all accounting
activities of the general ledger. Duties include:
a) Maintain the General Capital Asset Account (GCAA) and bear
responsibility for the accuracy of the data contained in it.
b) Act as a collection point for all capital asset subsidiary reports.
c) Maintain the Construction Work in Process account within the GCAA and
reconcile data with the Fixed Asset Manager on a periodic basis.
d) Calculate depreciation on Capital Assets recorded in the GCAA.
e) Conduct audits as necessary to guarantee the integrity of information
contained in the GCAA and compliance with City policies and procedures
regarding capital assets.
f) Include information on the City’s Capital Assets in the Comprehensive
Annual Financial Report
E. Acquisition of Capital Assets
1. Purchase Order
a) The Procurement and Contracts Division (Procurement) will issue a
Purchase Order for acquisitions of all capital assets. A Capital Item Request
form will be submitted with the requisition to determine if the requested
item is a replacement or new capital asset.
b) Asset Management will monitor open purchase orders and process all
received capital assets. Asset Management will create Master records for
each asset that meet the capital asset requirements. In addition, assets that
do not meet these requirements but are consider sensitive and pilferable
will be treated in the same manner. Vehicles and Artwork will also be
recorded and tag regardless of unit cost. Highly pilferable equipment such
as desktops, laptops, notebooks and tablets will also require the same
treatment.
c) Information entered by Asset Management will include, but will not be
limited to, the following information: (i) asset number, (ii) accounting class
and program, (iii) major equipment class, (iv) location, (v) manufacturer,
(vi) model, (vii) year, (viii) make and (ix) serial number.
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2. Acquisitions Other Than Purchase Order
When any program obtains Capital Assets as a result of a project, it is the
responsibility of the using agency overseeing the project to ensure adequate
records are kept of all capital asset items acquired. The record(s) should include
quantity, description, serial numbers, acquisition date and cost. These records
should be part of a project file. Upon completion of the project, the overseeing
using agency should forward the records to Asset Management. Capital asset
items which have been acquired that were not part of a project (i.e., power
tools, radios, personal computers, software) must be reported in writing to
Asset Management by the receiving program. This also applies to capital asset
items donated to the City. Asset Management will manually enter the asset into
the Program’s inventory.
3. Asset Management Numbers
a) All property tag numbers are assigned by Asset Management.
b) Asset Management reviews the Trackable Asset Receipt Report and assigns
City Asset Numbers to each qualifying asset in the received status.
c) After all appropriate information has been entered by Asset Management;
an Asset Verification Form is created.
NOTE: The Fleet Management Division is responsible for assigning
information to "M"(motor vehicles) Class equipment.
d) Asset Management will forward the new Asset Verification Form and Asset
Tag Decal to the receiving program’s Asset Custodian. The Asset
Custodian will be responsible for physically tagging the capital asset with
the city property asset tag and signing the form. The Asset Custodian
returns the completed Asset Verification Form to Asset Management.
e) If the Asset Management Number has not been affixed to the capital asset
in accordance with this procedure, the Asset Management Supervisor or
designee will ensure that the Asset Control Number is physically affixed
(by means of a bar coded label), marked or engraved on the item to which
assigned.
f) Asset Management will complete the master record with information
provided by the Asset Custodian.
g) Any request for recording and tagging assets that does not meet the
requirements will be subject to Asset Management and CPO approval.
4. Identification of Property
a) Method of Marking
(1) Each capital item shall be marked with an identifying number and the
name of the governmental unit in a permanent manner. Examples of
permanent type markings include, but are not limited to: (i) bar code
labels, (ii) metal tags, (iii) steel dies, (iv) branding irons, (v) paint or
stencils, (vi) electric pencils, (vii) india or indelible ink, and (viii)
decalcomania stamps.
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(2) The type and marking used for identification depends on the class of
property. Metal tags and metal decalcomania stamps should not be
used to mark property such as automobiles, trucks, draglines or
bulldozers. Painting the identification number on this type of property
is more appropriate and permanent.
(3) On a case by case basis, certain equipment belonging to the Police
Department will not be tagged due to security reasons. In such cases,
the Police Department will be responsible for coding these items with
their own marking system to identify such items with the registered
City asset numbers.
(4) Artwork shall not be tagged if such tagging will deface or devalue the
artwork itself. The artwork will be assigned a City asset number and
identified by its description or title.
(5) Additionally, because of the nature or usage of some fixed assets, it
can be difficult to tag the assets. In such cases, the Asset Management
Supervisor will decide which of these assets will not be tagged and the
proper registration system for such items.
b) Location of Tags
(1) Identification tags should be uniformly located on similar types of
property.
5. Class of Property
Equipment which forms a part of the building services system and 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 “Capital Asset” subject to these rules. Equipment which serves in
a standby capacity that is not installed in a building but is intended to be installed
in a building on an intermittent basis as a replacement unit for the purpose
of maintenance shall not be included within the definition of a capital asset for
purposes of this policy. Equipment which falls in this category shall be
accounted for by the Asset Custodian through the implementation of a local
inventory control system which shall be separate from the system described
within this policy. All other Capital Assets, as defined in Section 4B.,
Definitions, 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 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.
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b) Property Under Group Control
Property consisting 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, each item must be accounted for
under unit control. Each unit must be identified as prescribed in
Identification of Property above.
6. Inventory of Property Currently on Hand
It shall be the responsibility of Asset Management to inventory all Capital Assets
and other property subject to inventory control as provided herein which are
located in the areas being inventoried. Accountable Officers shall make
available the services of the Asset Custodian to assist in the inventory, as
required, and to physically locate all property which is subject to inventory
control. Asset Management will furnish each Asset Custodian a Fixed Asset
Management Report of all items currently on hand.
Asset Management shall annotate all capital item(s) found on a physical
inventory that do not appear on the Asset Master Listing. Asset Management
will process those capital assets not currently on record, ensuring that they are
listed and a City Asset Number is assigned.
During the physical inventory of a Department, should any Capital Asset(s) be
found that are not assigned to the inventoried Department, Asset Management
will investigate and if appropriate, initiate a transfer to correctly assign the
asset(s) to its proper Program’s inventory file.
Property that does not meet the capital asset requirements will be treated as
Locally Controlled Assets. The Asset Custodian will conduct the annual
inventory for all these assets. Results will be recorded and presented during the
capital asset inventory conducted by Asset Management annually. Sensitive and
pilferable assets will be treated in the same manner as Capital Assets for
inventory purposes.
The following Assets are subject to Annual Inventory by Asset Management:
a) Capital Asset
b) Vehicles
c) Artwork
d) Desktops
e) Laptops
f) Notebooks
g) Tablets
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F. Classification and Valuation Policy
1. Land
Land acquired and intended for public use by the City of Orlando will be
capitalized. The amount to be capitalized will be the actual cost at the time of
acquisition. Actual cost shall include purchase price and any fees for services
related thereto, e.g. commissions, surveying fees, appraisal and
negotiationfees, professional fees of engineers, attorneys, appraisers and
financial advisors, damage payments, title preparation costs, site preparation
costs and costs to demolish unwanted structures (less salvage).
For donated land, the fair market value of the land as of the date of acquisition
will be capitalized. The fair market value will be determined by the Real Estate
Section of the Finance Department. Easements, rights-of-way or dedicated
roadways will not be included in the Land Account.
2. Buildings
Buildings are defined as structures to house equipment and supplies, or to
provide services and governmental functions. A building with an original cost
equal to or greater than $250,000 will be capitalized in the Building Account.
Capitalized costs of a building purchased by the City will include purchase
price, professional fees of appraisers and attorneys, and any related costs
necessary to put the building into its intended state of operation, e.g.
environmental remediation such as asbestos removal. Capitalized original cost
on a constructed building will include the cost of constructing the asset,
architects' and engineers' fees, permits, insurance, and other administrative costs,
such as clerical work and appraisals. Land acquisition costs are not included as
part of the building costs. In addition to the costs outlined above, the following
expense items should be included in the original cost of the asset if they are not
included in the primary construction contract or work order:
a) Built-in casework, walk-in coolers and freezers, built-in shelving, etc.
b) Bleachers and fixed gymnasium equipment.
c) Graphics and directories.
d) Bathroom accessories.
e) Carpets (other than moveable rugs).
f) Compressed air systems, plumbing systems, sprinkler systems, heating,
venting and air conditioning systems which are fixed to the structure.
g) Emergency generator systems for building support.
h) Built-in public address systems, etc.
i) Demolition of an existing structure.
If a building is acquired for a specific use by the City other than by a City-
sponsored contract or direct purchase i.e. donated, it will be recorded at its fair
market value as of the day of acquisition, plus ancillary charges, if any.
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3. Machinery and Equipment
These are fixed or movable assets which are to be used for operations.
Machinery and equipment with a useful life in excess of two years and an
original unit cost of $5,000 or more will be capitalized and included in the Capital
Asset Accounting System. Examples of machinery and equipment are vehicles,
off road equipment, office equipment, major pieces of office furniture,
business machines, communications equipment, maintenance equipment,
computer equipment and upgrades, etc.
Machinery and equipment assets are valued at actual or estimated cost, including
ancillary charges. Ancillary costs considered in determining the value of these
assets include transportation charges, installation costs and extended warranty
contracts or any other normal or necessary costs required to place the asset in
its intended location and condition for use.
An exception to the capitalization policy is made for equipment acquired with
grant funds. Grant equipment which would, by definition, be capitalized
equipment but which was acquired with Federal and State grants requiring the
ownership remain with the granting agency will not be recorded in the
equipment account.
4. Infrastructure
Infrastructure assets are long-lived capital assets that normally are stationary and
can be preserved for a significantly longer period than other capital assets.
Examples of infrastructure include roads, bridges, tunnels, sidewalks, lighting
systems, and drainage, water and sewer systems. Various City authorities have
responsibility to account for certain of the City’s infrastructure assets.
5. Construction Work-In-Progress
This category is used to account for amounts expended on an uncompleted
building or other capital construction project. Costs accumulated from an asset
during construction will be recorded in the Construction Work in Progress
(CWIP) Account in the GCAAG. This is a subsidiary account which
accumulates construction costs until that project is completed. Once the
construction is completed, related costs are transferred from the CWIP account
to the applicable capital asset building account. When construction work is
performed by outside parties under contract, many of the above costs are
included as part of the payment made to the related contractor. Site preparation
costs associated with construction works in progress are accounted for in any
one of the following manners:
a) Costs are capitalized as part of the initial cost of the land or buildings;
b) Costs are recorded as removal cost, i.e. expensed, if a building previously
in operation by the City is being retired; or
c) If site preparation costs involve the demolition of an existing structure,
then those costs are considered part of the value of the new structure.
However, if no new structure is to be erected, then these costs are to be
expensed.
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Procurement and Contracts Division Section 2520.1
6. Leases
In accordance with GASB Statement 87, Leases (effective October 1, 2020),
leases entered into by the City for the right to use another entity’s non-financial
asset for a term greater than 12 months, with no transfer of ownership or
termination options, are considered long-term leases, and the City would report
the lease as an asset with a corresponding lease liability. An expense would be
amortized over the lease term to use up the lease asset, and periodic interest
expense would be reported on the lease liability.
Short-Term Lease transactions that are 12 months or less are treated as expenses.
7. Artwork
All Artwork acquired by the City through purchase or donation will be
capitalized and treated as a non-depreciable capital asset.
G. Inventory Control
1. Physical Inventories
Physical Inventories shall be conducted by Asset Management. Such
inventories will be in coordination and with the assistance of the appropriate
Accountable Officer or designated custodian. Fixed Asset Inventory listings
shall be certified by the Accountability Officer and the Asset Management
representative upon completion of the inventory. Inventories shall fall into one
of the following categories:
a) Initial – the initial inventory to establish the property accountability record
of a department, office, division or unit.
b) Special – an inventory initiated at the request of the Accountable Officer,
change of Accountability Officer, or by direction of the Mayor or the
City Council.
c) Annual – an inventory taken once during each fiscal year of each
department, office, division, or unit.
The Property Control Officer may waive the requirement for the annual
inventory providing a new or special inventory has been conducted during the
fiscal year.
The inventory will be an actual physical verification of each capital asset. The
physical inventory data will be screened against the current Fixed Asset Data
within the inventory program. If there are no discrepancies, the inventory report
will be signed by the Asset Custodian and Asset Management representative.
2. Discrepancies
Any discrepancies will be noted on an Asset Management Discrepancy Report
and sent to the department custodian and division manager. This report will be
utilized by the Asset Custodian to locate the discrepancies and to inform
the Asset Management Supervisor of the findings. When the missing items re-
inventory has been completed, the Department must notify Asset
Management of the findings. Assets that are not located during this re-inventory
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must be reported to Asset Management. Asset Management will initiate the
Relief of Accountability form and forward to the Asset Custodian. After
thorough investigation for the missing items, a completed Relief of
Accountability form is signed by the Asset Custodian, Division Manager and
Department Director.
3. Non-Recorded Property
If a Capital Asset is found during a physical inventory that is not on the record,
action shall be taken to list such property on the property accountability record.
H. Transfer of Capital Assets
1. Transfer between Accountable Asset Custodians
When it is necessary or desirable to transfer Capital Assets between programs,
the following procedure shall be followed:
a) The Accountable Asset Custodian transferring property shall initiate the
transfer process by initiating an asset transfer event in the management
system. The appropriate manager shall review and make a decision to
approve or disapprove the transfer.
b) The Receiving Asset Custodian and the appropriate manager shall approve
the transfer event upon receiving the asset under their custody.
2. Internal Transfer
When an Accountability Officer finds it necessary to permanently relocate fixed
assets from one location to another within the same program, the Accountable
Officer will transfer the asset(s) in the same manner as described in the transfer
between Programs, except the Accountability Officer will transfer and accept
the Asset as changing the locations only.
I. Disposal of Property
Property may become available for disposal or cannibalization for various reasons,
i.e., unserviceable, uneconomical to repair, or excess to City needs. The Chief
Procurement Officer is authorized by Chapter 7 of the City Code to sell, trade, or
otherwise dispose of surplus supplies and property belonging to the City. Any
disposal of surplus property shall be in accordance with applicable provisions of
the City Code and policies and procedures, including but not limited to Policy and
Procedure 2520.2, Disposal of Surplus Property. Procedures for disposal and
cannibalization are as follows:
1. Scrap Metals – The disposition of accumulated scrap metals shall be in
accordance with Policy and Procedure 2520.2.
2. Other Surplus Property – When the Accountability Officer determines that
an item of property is no longer needed, including but not limited to reasons that
the property (i) has been replaced, (ii) is unserviceable or uneconomically
repairable, or (iii) is otherwise excess, he or she shall turn-in the asset and
initiate transfer to Asset Management Office. The Asset Management
Supervisor will approve the transfer once the property is in custody. The surplus
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property typically will be disposed of through the Third Party Logistic (3PL)
provider designated by the City. The Asset Management Coordinators will
initiate disposal event in the system once the final disposition of the asset has
been received from the 3PL. The Asset Management Supervisor and the
Property Control Officer will review and approve the disposal event. The
Capital Asset Accountant will also review and disposed the asset from the
property book.
In the best interest of the City, the Property Control Officer may request that
property be made available to the Asset Management Program for disposition
or held for reissue to other departments either on a temporary or permanent
basis.
3. Motor Vehicles Disposal – All Motor Vehicles that are decommissioned by
Fleet Management will be transferred to Asset Management for disposal. All
vehicle titles and keys will be provided to Asset Management Supervisor for
further disposition. Vehicles that are fit for re-sale typically will be auctioned
through the 3PL contracted by the City. Vehicles with salvaged title will also be
sold through auction. OPD seized vehicle disposal will have the same procedure
except that the titles and keys will be release by OPD Fleet Management via the
City Attorney Office. All titles will be sign by the CPO, acting as the seller for
the City. The Asset Management Supervisor will coordinate the Auction and
will release the vehicle after upon receipt of payment.
4. Requests for Excess or Confiscated Property – All requests for excess or
confiscated property having a value of $5,000 or more for the purpose of
reissue or donation must be accompanied by a specific justification statement.
Since acquisition of such items (from excess/confiscated property or from the
Budget procedures) may impact the City's budget process. Each request for use
of excess property along with the justification statement must be forwarded to
the Asset Management Supervisor for review and for a final determination by
the CPO or designee.
J. Stolen, Lost, Damaged, or Destroyed Property
Stolen, lost, damaged or destroyed property will be immediately reported to the
appropriate Supervisor, Division Manager, Department Director, and Asset
Custodian. The Asset Custodian will ensure that the Orlando Police Department is
immediately notified of all incidents involving theft or vandalism. A police report
must be filed for these occurrences.
In cases where capital equipment has been stolen, lost, damaged or destroyed
(excluding cases were assets were damaged or destroyed as a result of ordinary
wear and tear), the following additional procedure will be initiated.
Investigation Process
1. The Department Director or Division Manager shall appoint a disinterested
staff member to investigate the circumstances surrounding each loss of or
damage to capital equipment. The process shall be initiated within five (5)
working days of the incident so that the investigation can be completed while
those persons involved are available and the facts are clear.
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2. The results of the investigation will be furnished to the Division Manager
within five (5) working days with a recommendation as to whether employee(s)
should be found negligent and subject to disciplinary action. The Division
Manager will determine the appropriate action and forward a recommendation
to the Department Director for approval.
3. Request for Relief of Accountability of City Property Form shall be completed
by the Division Manager and signed by the Department Director. In addition to
containing facts pertinent to the items lost/stolen/damaged/destroyed, the form
should include a statement that the responsible officials have reviewed
procedures surrounding the incident and indicate what steps have been taken to
prevent the incident from reoccurring. A copy of the investigation results, police
report, and other pertinent documentation will be attached to the request form
with a recommendation concerning the deletion of the item from the Capital
Inventory Record.
4. The Department Director, if approving the Division Manager’s
recommendation, will forward the Request for Relief of Accountability of City
Property Form to the approval authority based on depending upon the dollar
value of the item.
5. Asset Management shall document and formally report to the Chief
Procurement Officer and the responsible appointed office when an operating
program refuses to sign an annual inventory report.
K. Depreciation Policy
Depreciation is used to reflect the economic loss in the value of an asset. The City
will use the straight-line method of depreciation which is the historical cost of an
asset divided over the estimated useful life of the asset. The following useful life
for each category of Capital Asset is defined as follows:
1. Buildings: 4-50 Years
2. Improvements Other Than Buildings: 7-25 Years
3. Equipment: 3-20 Years
4. Software: 3-10 Years
5. Vehicles: 3-15 Years
6. Stormwater and Wastewater Lines and Pump Stations: 10-50 Years
7. Other Infrastructure: 10-50 Years
8. Artwork: Non-depreciable
L. Removal of Assets from City Inventory
The authority to approve deletion of a stolen, lost, damaged or destroyed asset from
the City's inventory (excluding an asset damaged or destroyed as a result of ordinary
wear and tear which can be deleted by the Chief Procurement Officer), is hereby
established as follows based on the current value:
Policies and Procedures Manual Page 15
Office of Business and Financial Services
Procurement and Contracts Division Section 2520.1
$5,000 - $100,000 – Chief Procurement Officer
Greater than $100,000 – Operations Committee and City Council
The authority of the foregoing cannot be delegated. Upon receipt of an approved
deletion request, the Asset Management Supervisor shall take the appropriate action
to delete the asset(s).
M. Annual Report
An annual report will be prepared by the Asset Management Supervisor summarizing
write-offs for lost and stolen assets during the fiscal year and the departments
in which the losses occurred
:5 FORMS:
As referenced herein.
:6 COMMITTEE RESPONSIBILITIES:
None.
:7 REFERENCE:
This procedure amended by City Council October 21, 1985, Item 16, A-ll; amended
September 12, 1988, Item 18A-21; amended June 5, 1989, Item 17A-3; amended
January 22, 1990, Item 12A-26; amended October 5, 1992, Item 4GGG; amended July
26, 1993, Item 5-SS; amended May 16, 1994, Item GGG, amended January 22, 1996,
item 6 Z; amended November 18, 1996, Item Z; amended February 23, 1998, Item 8-JJ;
amended April 17, 2000, Item 3-D; amended September 15, 2003; policy section #
changed from 191.4, April 2004; policy section # changed from 1000.4 and amended
September 6, 2017, Item A-1; amended December 9, 2019, Item A-3.
:8 EFFECTIVE DATE:
This procedure is effective December 9, 2019.