Res 1989-033 - Laserfiche WebLink

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8 Fixed assets can be inventoried periodically to ensure that they are properly controlled. . Responsibility for custody and effective use of fixed assets can be clearly established. . Information regarding sources of supply, prices, and useful lives will be readily available. If information regarding maintenance costs is also included in the subsidiary ledgers, ratios of cumulative mainte- nance costs to original costs can be developed. 8 Records will be readily available to substantiate the amount of grants used to finance expenditures for fixed assets. Furthermore, the determi- nation of costs for building or equipment use is faell! tated. The latter is important to obtain reimbursement for use of buildings and equipment in federal and state aid programs. . Information is readily available both to determine insurance needs and to substantiate losses recoverable from insurance. . Information is available for the preparation of a Statement of General Fixed Assets. Once initial current records are established, the City will want to concur- rently implement the kinds of controls and procedures that would enable it to maintain control over the fixed assets. These procedures should include: . Control over the proper input into the records for all fixed asset additions, sales, abandonments, and transfers. . Periodic reconciliation of detail ledgers to the general ledger. 8 Periodic inventory of fixed assets by location. 8 Verification that any asset traded in for a new acquisition is properly removed from the records. ACCOmtTIBG STAFF In recent years the City's Financial Department's accounting staff has experienced significant turnover. Staff continuity and quality are the most demanding challenges facing any municipal department. However, due to the City's expanding financial activity, e.g., the recent acquisition of the Electric Utility and increased particlpat ion in state and federal grants, such continuity and quality is increasingly important in the Finance Depart- ment. The City should consider the hiring of a person in the accounting department who is experienced in governmental accounting and accounting for grant activi- ties. This would help eliminate the problems that are being experienced in accounting for the grant activities. The hiring of a qualified person to oversee these activities would increase control over accounting for grant activities, as well as free other persoIUlel to perform tasks that they are better qualified to handle. Moreover, it would help assure that the City does not overspend or underspend grant budgeted funds. 3