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File #: 21-0970    Version: 1 Name: Reclassification of Expenses Determined to be Capital Expenditures and Budget Resolution Amendment
Type: Agenda Item Status: Approved
File created: 9/16/2021 In control: Internal Services
On agenda: 11/2/2021 Final action: 11/2/2021
Enactment date: Enactment #: Resolution No. 21-313
Title: 1. Approve reclassification of FY 2020-21 Internal Services Department - Facility Services Org 8935 and Information Technology Services Org 8905 expenditures determined to be Capital Assets as identified on Exhibits A and B, pursuant to County Administrative Office Management Directive 400 - Property and Equipment. 2. Adopt Budget Resolution increasing FY 2021-22 appropriations and estimated revenues for Org 8908 in the amount of $4,579,349 to account for the purchase of property located at 333 W. Pontiac Way, Clovis, CA 93612 (4/5 vote).
Attachments: 1. Agenda Item, 2. Exhibit A - IT Services Org 8905, 3. Exhibit B - Facility Services Org 8935, 4. Resolution No. 21-313
DATE: November 2, 2021

TO: Board of Supervisors

SUBMITTED BY: Robert W. Bash, Director of Internal Services/Chief Information Services

SUBJECT: Reclassification of Expenses Determined to be Capital Expenditures and Budget Resolution Amendment

RECOMMENDED ACTION(S):
TITLE
1. Approve reclassification of FY 2020-21 Internal Services Department - Facility Services Org 8935 and Information Technology Services Org 8905 expenditures determined to be Capital Assets as identified on Exhibits A and B, pursuant to County Administrative Office Management Directive 400 - Property and Equipment.
2. Adopt Budget Resolution increasing FY 2021-22 appropriations and estimated revenues for Org 8908 in the amount of $4,579,349 to account for the purchase of property located at 333 W. Pontiac Way, Clovis, CA 93612 (4/5 vote).
REPORT
Approval of the first recommended action will allow the Internal Services Department (ISD) Facility Services and Information Technology (IT) Services Divisions to properly account for expenditures incurred in FY 2020-21. The expenses are related to renovation projects 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 first recommended action will allow for the resulting capital expenditures listed on Exhibits A and B to be added to the County's Asset Management System (AMS). Approval of the second recommended action will allow for the appropriate treatment of expenditure incurred in FY 2021-22 for the purchase of property located at 333 W. Pontiac Way, Clovis, California, 93612 to be accounted for as a capital asset and be added to the County's AMS. This item is countywide.

ALTERNATIVE ACTION(S):

Should your Board not approve the recommended actions, the identified capital asset expenditures incurred in FY 2020-21 would not be capitalized and depreciated over their useful life, which is inconsistent with proper accounting procedures and CAO M...

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