DATE: June 18, 2019
TO: Board of Supervisors
SUBMITTED BY: Delfino E. Neira, Director
Department of Social Services
SUBJECT: Department of Social Services Budget Transfer
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Clerk of the Board to Execute Budget Transfer No. 21 transferring FY 2018-19 appropriations within the Department of Social Services Organization 56107001, from account 7296 (Data Processing Services) to account 8300 (Equipment) in the amount of $216,930.
REPORT
Approval of the recommended action will allow the Department of Social Services to transfer audio visual (A/V) equipment costs to the appropriate capital asset object level account, with no increase in Net County Cost. This item is countywide.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. If the recommended action is not approved, the Department will not have sufficient appropriations in the capital asset account to appropriately categorize the A/V equipment as capital assets.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Approval of the recommended action will transfer $216,930 in budgeted appropriations from account 7296 (Data Processing Services) to account 8300 (Equipment). In FY 2018-19, the Department acquired 26 A/V equipment that exceeded the $5000 threshold for capital assets. Per Management Directive 410, all assets that exceed the $5000 threshold must be capitalized.
DISCUSSION:
On February 26, 2019, your Board approved Budget Resolution No. 19-071 authorizing an increase in appropriations for the Department to procure A/V equipment. The item included estimated costs of $674,812, which were provided by the Department’s consultant. Since that time, the Department has released a bid request to the eight A/V vendors listed in Internal Service Department (ISD) Agreement #A-18-710. The Department selected the vendor EIDIM Group, Inc. to provide the equipment as their bid response best met the Department’s needs. This bid contained items that were over the $5,000 threshold for capital asset equipment; therefore, the approval of the budget transfer is necessary for the Department to correctly reclassify the items as capital assets.
REFERENCE MATERIAL:
BAI #54, February 26, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Budget Transfer
CAO ANALYST:
Ronald Alexander