Resolution No. 2019-31R • CITY OF CLERMONT
CSR NT RESOLUTION NO. 2019-31R
Choro of Champion
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CLERMONT, LAKE COUNTY, FLORIDA AMENDING THE PROPERTY
CONTROL POLICY FOR THE CITY OF CLERMONT; REPEALING
ALL PRIOR RESOLUTIONS IN CONFLICT HEREWITH; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Clermont deems it advisable and in the best
interest of the City, to amend the Property Control Policy;
NOW, THEREFORE, BE IT RESOLVED, that the City of Clermont Property Control
Policy is hereby amended as follows:
SECTION 1.
The City Council does hereby adopt the City of Clermont Property Control Policy as set forth in
Attachment A, attached hereto and incorporated herein. The City Council of the City of
Clermont may amend the Property Control Policy by Resolution when deemed necessary and in
the best interest of the City of Clermont.
SECTION 2.
Any resolution previously adopted by the City Council and in conflict herewith is hereby
repealed to the extent of the conflict.
SECTION 3.
This Resolution shall take effect immediately upon its adoption.
1
. CITY OF CLERMONT
d RESOLUTION NO. 2019-31R
Cho. DONE AND RESOLVED by the City Council of the City of Clermont, Lake County,
Florida this 12th day of November, 2019.
CITY OF CLERMONT
I
ig.,,dii,
• __
Gail L. Ash, ayor
ATTEST:
jeci
/L:4744— 1
Tracy Ackroyd Howe, City Clerk
Approved as • form and legality:
dillip
1
Daniel F. Mantzaris, City Attorney
Property Control Policy
CLERON1
Choice of Champions'
City of Clermont, Florida
Table of Contents
A. Purpose 3
B. Scope 3
C. Responsibilities 3
D. Physical Inventory 3
E. Lost & Stolen Property 4
F. Property Identification 4
G. Property Control System 5
H. Property Acquisition 5
1. Cost of Property 6
2. Property Donations 6
3. Creating A New Property From Parts 6
I. Property Transfers 7
J. Property Disposition 7
K. Authority 7
I
2
Rev. 11/12/19
A. Purpose
The purpose of this Policy is to establish procedural guidelines for the management
control and continuing accountability of City owned tangible and intangible personal
property. This policy will provide information on how to account for its acquisition,
safeguarding and final disposition in accordance with Chapter 274.02, Florida Statutes
and the Florida Administrative Code Rules 691-73.
B. Scope
This policy applies to all City owned tangible and intangible personal property with a value
or cost of $1,000 or more, and a projected useful life of one (1) year or more. Tangible
personal property includes furniture, equipment, computers, printers, and vehicles.
Intangible personal property includes software.
C. Responsibilities
The City's Purchasing Department is responsible for the establishment and maintenance
of the property control system. Department Directors are the official custodians of
property items assigned to their departments and as a result are primarily responsible for
the use, care, and safeguarding of property items assigned to their departments.
Department Directors shall assign a designated Property Custodian for their department
for the supervision, control and accountability of city owned property. Inventory must be
taken on an annual basis and whenever there is a change of Property Custodian or
designee. Departments are responsible for the establishment and maintenance of control
systems to account for tangible personal property not covered by this Policy.
D. Physical Inventory
The annual physical inventory will be performed by the City's Purchasing Department
Property Coordinator with assistance from each department Property Custodian or
designee. The Purchasing Department will provide an inventory list of all property items
to each department with a scheduled time for completion. The list will include the property
control number, property description, date acquired, class and sub-class, physical
location, property tag number, serial number (if applicable), and department name. The
Property Custodian or designee will verify the property listing with assistance from
qualified individuals from each department. Each item listed will be marked either YES if
found or NO if not found. If the item is not found an explanation must be provided in
writing by the department Property Custodian or designee. Changes are noted for items
transferred to another department. The transfer will be confirmed by the Purchasing
Department Property Coordinator physically inspecting the property in its new location.
3
Rev. 11/12/19
The Purchasing Department Property Coordinator will perform a physical inventory of
twenty percent (20%) of each department inventory each year during a five (5) year
period. In the event that several items cannot be located, the Purchasing Department
Property Coordinator may determine to inventory all department items. Upon completion
of the physical inventory, the Purchasing Department Property Coordinator will compare
information noted to the property control system. Noted differences will be researched
and corrected as appropriate.
Any property item found while conducting the physical inventory, which meets the
property value threshold noted in Section B that is not included in the property control
system, will be added to the City's inventory. A Property Acquisition Form must be
completed and submitted to the Purchasing Department. After appropriate research to
establish the ownership of the item, it will be added to the City's property records, if
appropriate.
E. Lost & Stolen Property
Any property that is included in the inventory list and not located during the physical
inventory process must be promptly reported to the Property Custodian. Department's
Property Custodian must promptly report all lost or stolen property to the Clermont Police
Department and the Purchasing Department. The Property Custodian must provide a
copy of the police report along with the Property Disposal Form to the Purchasing
Department. The Purchasing Department will submit a list of all reported missing items
to the City Manager for review before obtaining approval from the City Council. Upon
approval by the City Council, the property will be removed from the property control
system.
F. Property Identification
All property as described in Section B. will be permanently marked by the Purchasing
Department Property Coordinator with property tags to show ownership by the City and
the tag number assigned to the property item. Once the Property Acquisition Form has
been reviewed by the Finance Department and received by the Purchasing Department,
the Purchasing Department Property Coordinator will schedule an appointment with the
Department Property Custodian to tag the asset.
Any property item whose value or utility would be significantly impaired by the attachment
of a property tag, or it is not feasible or practical to attach a property tag, is exempt from
the requirement for physical marking. In such instances, the property tag will be kept on
file by the Purchasing Department.
Property tags should be plainly visible and easily accessible. Tags should be placed on
the front of equipment, which normally is not moved, such as computers and printers. On
4
Rev. 11/12/19
items that are regularly moved, such as generators and mowers, the tag should be placed
as close to the serial number as possible or where it is least likely to come off from wear
and tear.
The property control number assigned by the Purchasing Department remains the same
and follows the life of the asset until disposal. These property tags will be removed only
when the item is approved as surplus by the City Council and disposed of by the
Purchasing Department. Should the property tag be removed or defaced, the Property
Custodian must notify the Purchasing Department in order to issue a replacement tag
and update the property control system.
G. Property Control System
The property control system shall include a control account showing the total cost or value
of all property as described in Section B. and a separate property record for each property
item.
Each property record shall, as applicable, include the following information:
a. Property control number
b. Description of the item or items
c. Physical location
d. Department/division
e. Name, Make or Manufacturer
f. Year and/or Model
g. Manufacturer's serial number(s), if any, and if an automobile, vehicle identification
number (VIN)
h. Date Acquired
i. Cost
j. Depreciation information
k. Funding source
I. Disposal date
Depreciation may be recorded to meet financial reporting requirements relating to
depreciation accounting. However, depreciation must not be recorded on the individual
property records in such a manner as to reduce the recorded acquisition cost.
H. Property Acquisition
A Property Acquisition Form must be completed by the Property Custodian at the time of
acquisition and submitted by email to propertycontrolclermontfl.orq. A purchase order
and invoice must be attached to the form. It is the combined responsibility of the
requisitioning department and Finance Department to ensure that the invoice/purchase
5
Rev. 11/12/19
order is charged to the correct general ledger account code for all property items. Each
property acquisition form will be reviewed by the Finance Department before submitting
it to Purchasing for entry in the property control system.
The acquisition of new fixed assets must be recorded and entered into the property control
system by the Purchasing Department with assistance of the Finance Department. New
acquisitions must contain the following information in the Property Acquisition Form:
• Contact person information;
• Property location;
• Employee assigned the property to;
• Property information to include:
o Company purchased from;
o Purchase order number;
o Year/ make/model/manufacturer/brand;
o Serial number;
o City vehicle number;
o Total cost of property;
o Date received;
o Department account code;
o Comprehensive description of the property;
o Property alternate key (land).
The Purchasing Department will collect and verify the information before entering it in the
Property Control System.
1. Cost of Property
The cost recorded in the property control system is the total cost of placing the item
in service (i.e., invoice price plus freight and installation charges less discounts). A
trade-in value is not deducted from the cost of an item.
2. Property Donations
Property donated to the City is recorded in the property control system at its fair
market value at the date of donation. A letter from the donor that includes a
description of the property and its value is recommended.
3. Creating A New Property From Parts
Property created by assembling parts of several old items into a new one is
considered cannibalizing and will be recorded in the property control system if its
cumulative value is over $1 ,000 as described in Section B. The new formed property
will also be recorded if it qualifies as an improvement to an existing property item.
6
Rev. 11/12/19
Any cannibalized property should be disposed of through the property disposal
procedures noted in Section J.
I. Property Transfers
Property may be transferred between departments; therefore transferring ownership.
However, property cannot be transferred from one department to another once the
property has been declared surplus. The transferring Property Custodian is responsible
for the completion of the Property Transfer Form and approval before the transfer takes
place. The completed transfer form must be submitted to the Purchasing Department by
email to: propertycontrol(a�clermontfl.orq. Once the property item has been physically
transferred, the transfer will be recorded in the property control system by the Purchasing
Department Property Coordinator.
A Property Transfer Form must also be completed when a property item is relocated
within the same department (e.g. transfer from one division to another within the same
department).
J. Property Disposition
All City-owned tangible personal property (including property not described in Section B.)
that no longer serves the needs of the City (e.g. broken, in need of repair, or no longer
needed) may be removed from inventory records by declaring them as surplus. This
includes lost and found property by the Police Department after a ninety (90) day period.
A Property Disposal form must be completed and sent to the Purchasing Department by
email to: propertvcontrolCa7clermontfl.orcl.
All surplus property must be approved by the City Council with the exception of lost and
found property by the Police Department. Once approved by the City Council, the
Purchasing Director will have the authority to sell by auction or advertised bid, trade,
donate to another governmental entity, destroy, or dispose of property declared surplus.
Once the property item has been disposed of by the Purchasing Department, it will be
recorded in the property control system and the form submitted to the Finance
Department. Afterwards, the property item will be retired from the property control
system.
K. Authority
Approved and adopted by the Clermont City Council by Resolution Number 2019-
31R on November 12, 2019.
7
Rev. 11/12/19