HomeMy WebLinkAboutDocumentation_Regular_Tab 08_06/13/2013 VILLAGE CLERK'S OFFICE
AGENDA ITEM TRANSMITTAL FORM
Meeting Date: Meeting Type: Regular Ordinance #:
06-13-2013 Consent Agenda: Yes Resolution #: 15-13
Originating Department: Finance
AGENDA ITEM TITLE: (Wording form the SUBJECT line of your staff report)
Authorizing the write-off of fully depreciated capital assets purchase between FY1986 and FY2001 as
described in Exhibit "A"
BUDGET / FINANCIALJMPACT:
Account #: None Amount of this item
N/A
Current Budgeted Amount Available: Amount Remaining after item:
N/A N/A
Budget Transfer Required: No Appropriate Fund Balance: No
EXECUTIVE SUMMARY OF MAJOR ISSUES: (This is a snap shot description of the agenda it�m)
Authorize the write-off of capital assets no longer in the possession of the Village that have been fully
depreciated. This write-off will have no effect on the financial statements or fund balance/net assets of
the Village.
APPROVALS: SIGNATURE:
Department Head �' '' ��
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Finance Director
Reviewed for Financial Syfficiency ❑ �/�%
No Financial Impact Q ��
Attorney: (for legal sufficiency) �
Village Manager:
Submit for Council Discussion: � ; = - " � _'��' -�---�.
Approve Item: ❑
Deny Item: �
SPECIAL INSTRUCTIONS FOR CLERK: (if you wish to have agreements signed, be sure to include the
number of copies you want signed and place "Sign Here" sticker on them)
Form Amended:
RESOLUTION NO 15-13
A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF
TEQUESTA, FLORIDA, AUTHORIZING THE WRITE-OFF OF FULLY
DEPRECIATED CAPITAL ASSETS PURCHASED BETWEEN 1986 AND
2001 AS DESCRIBED IN EXHIBIT "A" THAT ARE NO LONGER IN THE
POSSESSION OF THE VILLAGE AND DIRECTING THE VILLAGE
MANAGER TO PROCEED ON BEHALF OF THE VILLAGE PROVIDING
FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE; AND FOR
OTHER PURPOSES:
WHEREAS, the Village of Tequesta, Florida, has capital assets on its books
that have exceeded their useful lives and are fully depreciated; and
WHEREAS, The Village staff performed due diligenc� in attempting to locate
and identify these assets and have determined that these assets are no longer in the
possession of the Village; and
WHEREAS, these assets were purchase between FY1986 and FY2001, and
WHEREAS, the Village finds that writing off these assets will allow the Village
to updafie the capital assets inventory to more accurately reflect existing assets;
WHEREAS, the write-off of these capital assets will have no effect on the
financial statements or fund balance/net assets as they have been fully depreciated;
and
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE
VILLAGE 4F TEQUESTA, PALIIA BEACH COUNTY, FLORIDA, AS FOLLOWS:
Section 1:The Village Council of the Village of Tequesta, Florida, hereby
authorize the write-off of fully depreciated capital assets described in Exhibit "A" in a
manner consistent with the Village's adopted procedures.
Section 2:All resolutions or parts of resolutions in conflict herewith shall be
and hereby are repealed.
Section 3: This Resolution shall take effect immediately upon passage.
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FINANCE DEPARTMENT
DATE: MAY 15, 2013
TO: MICHAEL COUZZO, VILLAGE MANAGER
FROM: JOANN FORSYTHE, FINANCE DIRECTOR
RE: WRITE-OFF OF CAPITAL ASSETS
Background:
The Village purchased its current computer softwaxe, FundBalance, in FY2000 and transactions prior to that
period are inaccessible. Additionally, the Village does not have records of individual capital assets purchased by
governmental funds prior to FY2001 in the Capital Asset software module. In FY2003, when GASB34
required governmental funds to recognize depreciation on its government wide financial statements, finance
was able to calculate depreciation by recreating assets purchased, by category, by year, using information from
prior year's Comprehensive Annual Financial Reports (CAFR). Although this was adequate for financial
statement purposes, it did not solve the issue of identifying individual assets for inventory purposes.
Curre T n dv
The Village has capital assets on its books that were purchased between 1986 through 2001 that are
identified (in total) by category, rather than individual asset (i.e. buildings, IOTB, machinery and
equipment, etc.) In an effort to identify individual items, mark their locarion and tag all capital assets for
inventory purposes, finance sent out an inventory list of all identified capital assets and asked each
department to add any assets that were not on the list. It became apparent during the performance of the
capital assets physical inventory that many of the assets purchased during the period 1986-2001 were not
accounted for individually, and appear to no longer be in the possession of the Village. Tatiana Racanati,
Sr. Acct., performed a thorough seaxch for these assets including; verifying with departments that items
were not simply moved to other departments, performuig a walkthrough of Village Departrnents and
reviewing the listing of items identified on curtent insurance policies.
Re uest
Finance is requesting approval to write-off all capital assets that cannot be identified or located, that were
purchased between 1986 through 2001 and have exceeded their useful lives and are fully depreciated. We
have attached "Exhibit A" showing the amount of the original cost of the items (in total) and the year in
which they were purchased. This will allow finance to clean-up capital assets in the CA module so that the
physical inventory is more reflective of existing assets.
Financial Statement Im�act
The write-off of these capital assets will have no effect on the financial statements or fund balance/net
assets as the capital assets have been fully depreciated.
Exhibit A
Resolution #15-13
Village of Tequesta
Request to Write off Fixed Assets
List of Items-Summary
Description (Model/Brand) Purchase Approx.Age DEPT
Amount of Item
Fund 001
1 Machinery & Equipment 1994 295,490.68 19 years Public Safety
2 Machinery & Equipment 1995 167,511.00 18 years Public Safety
3 Machinery & Equipment 1996 109,977.00 17 years Public Safety
4 Machinery & Equipment 1997 187,895.00 16 years Public Safety
5 Machinery & Equipment 1998 99,888.00 15 years Public Safety
6 Machinery & Equipment 1999 151,870.00 14 years Public Safety
7 Machinery & Equipment 1999 12,947.00 14 years Public Safety
8 Machinery & Equipment 2000 134,622.00 13 years Public Safety
1 Machinery & Equipment 2001 169,499.00 12 years Public Safety
10 Furn., Fixt.& Equip 1999 18,862.00 14 years Bldg & Zonig
11 Improvement other than bldgs 79,146.00 27 years Gen.Gov, Pub.Works, Leisure
12 Improvement other than bldgs 44,176.00 26 years Gen.Gov, Pub.Works, Leisure
Total 1,471,883.68
Fund 401
13 Computers 2001 67,211.69 12 years Distribution
14 Furn., Fixt.& Equip 1997 206,726.88 16 years Distribution
Total 273,938.57
Fund 403
15 Computers - 2000 5,063.00 13 years Stormwater
16 Furn., Fixt.& Equip 2000 4,825.00 13 years Stormwater
Total 9,888.00
Date: 4/26/2013