DATE: November 7, 2023
TO: Board of Supervisors
SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Officer
SUBJECT: Reclassification of Expenses Determined to be Capital Assets
RECOMMENDED ACTION(S):
TITLE
Approve reclassification of FY 2022-23 Internal Services Department - Information Technology Org 8905, Facility Services Org 8935, and Security Org 8970 expenditures determined to be Capital Assets as identified on Exhibits A, B, and C pursuant to County Administrative Office Management Directive 400 - Property and Equipment.
REPORT
Approval of the recommended action will allow the Internal Services Department (ISD) - Information Technology (IT), Facility Services, and Security divisions to properly account for expenditures incurred in FY 2022-23. The expenses are related to renovation projects and other equipment purchases which should have been accounted for as capital assets per County Administrative Office Management Directive 400 (CAO MD 400), section 412.1. Approval of the recommended action will allow for the resulting capital expenditures listed on Exhibits A, B and C to be added to the County's Asset Management System (AMS). This item is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the identified capital asset expenditures incurred in FY 2022-23 would not be capitalized and depreciated over their useful life, which is inconsistent with proper accounting procedures and CAO MD 400, section 412.1.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Approval of the recommended action would reclassify $1,836,262 in capital asset expenditures incurred for ISD - IT Org 8905 ($170,206), Facility Services Org 8935 ($1,658,216), and Security Org 8970 ($7,840) in FY 2022-23. Additionally, approval will allow ISD to add the reclassified expenditures into the AMS to track depreciation of the capital expenditures and appropriately record the ass...
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