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ITEM: AUTHORIZATION OF DISPOSITION OF SURPLUS TANGIBLE PERSONAL PROPERTY
REQUEST: Authorization to approve FY 2016 disposition of surplus tangible personal property and removal of non-capitalized assets in preparation for upcoming annual audit for the year ending September 30, 2016.
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EXPLANATION: Wellington conducts an annual inventory as part of the preparation for the yearly audit. The following is a summary of twenty-three (23) surplus items of tangible personal property (TPP) or fixed assets meeting disposition criteria per the Village’s Purchasing and Procurement Policy Chapter 13, Section D, Exhibit A attached. The initial total purchase cost of these items was $489,779.50 with an accumulated total depreciation of $436,474.28, resulting in a current value of $53,305.22.
Seven (7) assets (technical and heavy equipment) will be sold through GovDeals, the Village’s approved public auction vendor. Sixteen (16) assets (computer equipment) will be recycled, utilizing a state certified recycling vendor.
|
METHOD OF DISPOSAL |
|
|
By Selling |
By Recycling |
Total Surplus |
|
Acquisition Cost of Items to be Disposed |
$103,253.26 |
$386,526.24 |
$489,779.50 |
|
Accumulated Depreciation |
$69,670.07 |
$366,804.21 |
$436,474.28 |
|
Total Net Value |
$33,583.19 |
$19,722.03 |
$53,305.22 |
In addition, the Village’s capital existing asset listing was reviewed and fully depreciated assets that are considered not capitalizable were identified. This review resulted in the removal of four (4) items with a cost of $3,987,227.53, Exhibit B attached. These assets have been fully depreciated and the book value for these assets is $0, so there is no fiscal impact to the fund financial statements.
Surplus TPP or fixed assets are identified annually as part of a Village-wide departmental inventory and condition assessment. A master list of these fixed assets, verified by OFMB, is categorized as no longer useful or to be exchanged for a new purchase/replacement.
Staff requests authorization to approve the FY 2016 disposition of surplus tangible personal property and removal of non-capitalized assets as part of our preparation for the annual audit.
BUDGET AMENDMENT REQUIRED: NO
PUBLIC HEARING: NO QUASI-JUDICIAL:
FIRST READING: SECOND READING:
LEGAL SUFFICIENCY: YES
FISCAL IMPACT: Revenues are anticipated as a result of surplus tangible personal property sold. Proceeds are posted as miscellaneous revenue. The review leading to these recommendations is part of our preparation for the annual audit.
WELLINGTON FUNDAMENTAL: Responsive Government
RECOMMENDATION: Authorization to approve FY 2016 disposition of surplus tangible personal property and removal of non-capitalized assets in preparation for upcoming annual audit for the year ending September 30, 2016.