Current through Register Vol. XLI, No. 50, December 13, 2024
Section 99-6-23 - Surplus23.1. Coordinator: Procurement Director or designee shall be responsible for maintaining the agency's assets and to notify and train employees within the division on the procedures regarding the care and proper disposition of all division-owned assets. 23.2. Responsibility: Procurement Director is responsible for all assets under division jurisdiction, regardless of its state (removable or fixed), origin, or acquisition cost. Assets are maintained from date of purchase to date of retirement, this includes keeping equipment secure, entering assets into the Fixed Asset System, conducting physical inventories, submitting annual certification, retiring assets properly, etc. 23.3. Reportable Assets: Any personal assets, excluding expendable commodities as defined in the Non-Reportable Assets section, that has an original acquisition cost of $1,000 or more and a useful life of one year or longer must be entered into the Fixed Asset Module and will be referred to herein as "Reportable Assets". The division may enter assets that do not meet the definition of Reportable Assets into the Fixed Asset Module, but are not required to do so. 23.3.a. Any asset entered into the Fixed Asset Module will be treated as Reportable Assets for procedural purchases whether or not the property meets the definition of Reportable Assets. 23.4. Exceptions: The division must enter the following commodities into the Fixed Asset Module and will be considered Reportable Assets even if not within the definition of Reportable Assets above: 23.4.a. Firearms regardless of the cost. Please ensure all serial numbers are entered correctly. 23.4.b. All computers (including laptops and central processing units [CPU]) with an acquisition cost of $500 or more. 23.4.c. The acquisition cost of assets shall be determined as the actual cost of that asset as evident by invoices or purchase orders. The agency can also determine acquisition cost by a reasonable method of estimation provided that no invoice or purchase order records exist. The agency will thoroughly document the estimation method used, and the documentation related to the estimate will be maintained in the appropriate file for audit purposes. 23.4.d. Assets should be inventoried on a 'per item' basis. Individual items making one working component are to be inventoried as one asset. However, should the asset be purchased for the purpose of enhancing or upgrading the item, the cost of the upgrade can be entered into the Module as betterment. 23.5. Assets Replaced Under an Exchange Warranty: A purchaser that desires to have a Reportable Asset replaced under an exchange warranty program with the vendor or manufacturer must perform the following actions to ensure proper reporting of the exchange. 23.5.a. The purchaser must complete the exchange by returning the Reportable Asset in question to the vendor or manufacturer and receiving the replacement. 23.5.b. Then the purchaser must submit a Fixed Asset Modification to the Procurement Director for approval. 23.5.c. Modification data must, at a minimum, be a request to change the serial number associated with the old Reportable Asset to the serial number of the new replacement Asset. The purchasers Fixed Asset Modification submission shall also include verification and back-up documentation proving that the original Reportable Asset was returned and replaced by another asset. 23.6. Group Purchases/Unit Cost: Group purchases of assets shall not be recorded in aggregate. Individual assets shall be recorded in the Fixed Asset Module only if an individual asset has a unit acquisition cost of $1,000 or more and has a useful life of one year or more. Each unit shall bear a separate numbered inventory tag and be entered into the Fixed Asset Module as individual assets. 23.7. Donations: Donated assets acquired as a gift from an individual or organization are to be tagged and included in the Fixed Assets Module if the donation or gift is valued at $1,000 or more and has a useful life of one year or longer. Donated assets are valued at fair market value on the date the gift is given. 23.8. Non-Reportable Assets: Non-Reportable Assets are defined as either assets that are valued at less than $1,000 or have a useful life of less than one year, or assets expendable in nature. Non-Reportable Assets are not required to be entered into the Fixed Assets Module. Examples of Non-Reportable Assets include calculators, small lawn mowers, etc. Examples of Non-Reportable Assets that are expendable in nature include gravel, paper products, groceries, grass seed, etc. 23.9. Computer Software/Modular Furniture: Computer software is an intangible asset and considered Non-Reportable. Modular furniture when purchased as separate pieces normally does not cost more than $1,000 per piece. It is recommended that modular furniture not be placed into the Fixed Asset Module. 23.10. Identification Tags: All Reportable Assets must have a numbered identification tag affixed to the asset. Tags are to be placed on all Reportable Assets in such a manner that it can be easily seen and read. (DPS #'s) 23.11. Added Property: When a purchaser acquires Reportable Assets the Procurement Director should enter the assets into the Fixed Asset Module and provide the purchaser a DPS number to label the assets as soon as the vendor's invoice has been paid.23.12. Corrections: The division may make corrections to data entered erroneously into the Fixed Asset Module by completing a Fixed Asset Modification. 23.13. Property/Equipment Transfer: The transfer of assets between the division and other state agencies requires approval by the Director or his/her designee unless mandated by executive order or legislative action. 23.14. Cannibalization of Equipment: Cannibalization of equipment is authorized when in the best interest of the division and is a cost effective solution in maintaining or repairing division owned assets. Authorization may be granted by a supervisor exercising authority over said asset. Any questions regarding cannibalization should be forwarded to the Procurement Director. Cannibalization, as used herein, refers to taking parts from one or more assets to maintain or repair another asset. 23.15. Physical Inventory: The division shall take a physical inventory once every three years, and shall have completed such physical inventory by June 30th of the relevant year. The physical inventory shall include Reportable Assets under the division's jurisdiction.