DATE: October 22, 2024
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of Internal Services/Chief Information Officer
SUBJECT: Reclassification of Expenses Determined to be Capital Assets
RECOMMENDED ACTION(S):
TITLE
Approve reclassification of FY 2023-24 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
There is no additional Net County Cost associated with the recommended action, which will allow the Internal Services Department (ISD) - Information Technology (IT), Facility Services, and Security divisions to properly account for expenditures incurred in FY 2023-24. 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 2023-24 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 $3,723,415 in capital asset expenditures incurred in FY 2023-24 for ISD - IT Org 8905 ($499,392), Facility Services Org 8935 ($3,216,678), and Security Org 8970 ($7,345). Additionally, approval will allow ISD to add the reclassified expenditures into the Coun...
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