DATE: June 4, 2024
TO: Board of Supervisors
SUBMITTED BY: Susan L. Holt, Director, Department of Behavioral Health
SUBJECT: Department of Behavioral Health Budget Transfer
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Clerk of the Board to execute Budget Transfer No. 18 transferring FY 2023-24 appropriations in the amount of $40,596 from Account 7295 (Professional & Specialized Services) to Account 8300 (Equipment) within the Department of Behavioral Health Organization 5630, for the purchase of six copiers.
REPORT
There is no increase in Net County Cost associated with the recommended action, which will allow the Department of Behavioral Health to replace equipment that has been determined inefficient and inadequate to meet current operational needs and is at high risk of failure due to exceeding its useful life. The recommended budget transfer will allow for a transfer of funds for the purchase of capital asset equipment, with no increase in Net County Cost.
ALTERNATIVE ACTION(S):
There is no viable alternative action. If the recommended action is not approved, the Department will not have the ability to record the purchased equipment in the Asset Management Software, which is necessary to meet current operational needs.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Approval of the recommended action will transfer $40,596 in budgeted appropriations from account 7295 (Professional & Specialized Services) to account 8300 (Equipment).
DISCUSSION:
In October 2023, the Department evaluated current equipment and determined that several copiers were at high risk of failure during FY 2023-24 due to exceeding their recommended useful life. The copiers are utilized throughout the Department to scan, print, and copy Health Insurance Portability and Accountability Act (HIPAA) and Personal Identifying Information (PII) documents. The recommended replacement schedule included the purchase of six (6) Kyocera TA 5054ci copiers with a base price below the equipment capitalization threshold; however, MD 400 requires that equipment with a total value of greater than $5,000, including ancillary costs, shall be capitalized. With the addition of dual scan multi-feed sensors, dual paper drawers, card authentication kits, and memory cards, the total cost of placement is $6,766 each, totaling $40,596.
In November 2023, the Department worked with contracted vendor California Business Machines to purchase 33 copiers that had reached their maximum useful life. The base price of each copier was less than the capitalization threshold, so the Department processed the invoice to purchase the copiers, as well as optional add-on equipment, which is standard within the Department. When adding equipment to the new Asset Management System, six (6) copiers were flagged as exceeding the equipment capitalization threshold and not having program numbers. Auditor-Controller/Treasurer-Tax Collector advised the Department that we would need to bring an agenda item to the Board to request the approval of a budget transfer to be able to assign a program number to each of the copiers.
With your Board’s approval of the recommended action, the Department will have available appropriations in the required capital assets account to fund the purchase of six copiers required to efficiently administer behavioral health programs.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Budget Transfer #18
CAO ANALYST:
Ron Alexander