 | LOS ANGELES COUNTY DEPARTMENT OF MENTAL HEALTH |
| Policy 903.02 Inventory Control – Non-Capital Asset Equipment |
| PROCEDURES |
The following shall establish the procedure governing the inventory process and controls of non-capital asset equipment.
A. Non-Capital Asset Equipment
Definition
Non-capital asset equipment (formally known as portables) is defined as equipment that can be easily carried or moved, especially by hand. Non-capital asset equipment with a unit cost less than $5,000 will not appear
on the County's Capital Asset Inventory Listing and must be controlled and accounted for separately by the department.
Internal Controls
The following internal controls must be established to maintain adequate control over non-capital asset equipment.
Control of all non-capital asset equipment shall be assigned to a manager or supervisor at each location (who is independent of the purchasing function). The assignment of non-capital asset equipment is vested in the manager or supervisor.
Control of the system of tracking and inventory of non-capital asset equipment must be assigned to the capital assets personnel in each department.
A department-wide list must be maintained identifying the name of the individual responsible for non-capital asset equipment at each location.
If non-capital asset equipment (e.g., a desktop PC, etc.) is permanently assigned to an individual, the person to whom it is assigned must be identified.
If non-capital asset equipment is unassigned and kept to loan out to various employees, the person who controls and issues the non-capital asset equipment must be identified. The person responsible for controlling the non-capital asset equipment must secure it when it is not on loan.
An accurate listing of all non-capital asset equipment assigned to each specific unit/location must be maintained by the assigned manager/supervisor at each location.
A physical inventory of all non-capital asset equipment must be taken at least once each year. The results of the physical inventory must be reconciled with the department's master listing of non-capital asset equipment. Differences must be investigated and resolved, and the inventory must be corrected.
Non-capital asset equipment (formally known as portables) is defined as equipment that can be easily carried or moved, especially by hand. Non-capital asset equipment with a unit cost less than $5,000 will not appear
on the County's Capital Asset Inventory Listing and must be controlled and accounted for separately by the department.
Internal Controls
The following internal controls must be established to maintain adequate control over non-capital asset equipment.
Control of all non-capital asset equipment shall be assigned to a manager or supervisor at each location (who is independent of the purchasing function). The assignment of non-capital asset equipment is vested in the manager or supervisor.
Control of the system of tracking and inventory of non-capital asset equipment must be assigned to the capital assets personnel in each department.
A department-wide list must be maintained identifying the name of the individual responsible for non-capital asset equipment at each location.
If non-capital asset equipment (e.g., a desktop PC, etc.) is permanently assigned to an individual, the person to whom it is assigned must be identified.
If non-capital asset equipment is unassigned and kept to loan out to various employees, the person who controls and issues the non-capital asset equipment must be identified. The person responsible for controlling the non-capital asset equipment must secure it when it is not on loan.
An accurate listing of all non-capital asset equipment assigned to each specific unit/location must be maintained by the assigned manager/supervisor at each location.
A physical inventory of all non-capital asset equipment must be taken at least once each year. The results of the physical inventory must be reconciled with the department's master listing of non-capital asset equipment. Differences must be investigated and resolved, and the inventory must be corrected.
B. Annual Inventory and Supporting Documentation
IT Non-Capital Asset Equipment
Chief Information Office Bureau (CIOB), Inventory Control Unit, shall conduct an annual physical inventory of all IT Non-Capital Asset Equipment which falls within the guidelines stated above and shall ensure that the Departmental Master Equipment List include the following:
Description of Item
Manufacturer serial number (if applicable)
Make/Model
Equipment Tag Number (green tag)
Equipment Location
Fund Organization Code
Non-IT Non-Capital Asset Equipment
Administrative Support Bureau (ASB) shall conduct an annual physical inventory of all Non-IT Non-Capital Asset Equipment which falls within the guidelines stated above and shall ensure that the Departmental Master Equipment List include the following:
Description of Item
Manufacturer serial number (if applicable)
Make/Model
Equipment Tag Number (green tag)
Equipment Location
Fund Organization Code
Items listed but not found, and/or items not listed but found, are investigated appropriately to validate the Departmental Master Equipment List reconciliation process.
Note: A physical inventory of all IT and Non-IT Non-Capital Asset Equipment must be completed at each Division/Facility/Bureau. CIOB is required to submit the completed IT Non-Capital Asset Inventory report to ASB by December 1st. ASB is responsible for aggregating the finalized Departmental Master Equipment List.
Chief Information Office Bureau (CIOB), Inventory Control Unit, shall conduct an annual physical inventory of all IT Non-Capital Asset Equipment which falls within the guidelines stated above and shall ensure that the Departmental Master Equipment List include the following:
Description of Item
Manufacturer serial number (if applicable)
Make/Model
Equipment Tag Number (green tag)
Equipment Location
Fund Organization Code
Non-IT Non-Capital Asset Equipment
Administrative Support Bureau (ASB) shall conduct an annual physical inventory of all Non-IT Non-Capital Asset Equipment which falls within the guidelines stated above and shall ensure that the Departmental Master Equipment List include the following:
Description of Item
Manufacturer serial number (if applicable)
Make/Model
Equipment Tag Number (green tag)
Equipment Location
Fund Organization Code
Items listed but not found, and/or items not listed but found, are investigated appropriately to validate the Departmental Master Equipment List reconciliation process.
Note: A physical inventory of all IT and Non-IT Non-Capital Asset Equipment must be completed at each Division/Facility/Bureau. CIOB is required to submit the completed IT Non-Capital Asset Inventory report to ASB by December 1st. ASB is responsible for aggregating the finalized Departmental Master Equipment List.
C. Maintenance of the Departmental Equipment Master List
1. All discrepancies identified during annual inventories shall be recorded on the Non-Capital Asset Equipment Inventory System, which serves as the official source for reconciliation of the Departmental Master Equipment List.
2. ASB, supported by CIOB, shall be responsible for ensuring discrepancies between the physical inventories and the Departmental Master Equipment List are resolved promptly and that data updates are completed timely and accurately.
3. All records, logs, and other documents shall be retained for review by the Auditor- Controller during regularly scheduled audits or upon request for special reviews in accordance with document retention requirements.
D. Distribution of Digital Master and Secondary Equipment List
1. The Departmental Master Equipment List, containing all IT and non-IT non-capital asset equipment, is maintained by CIOB and ASB respectively. CIOB shall generate secondary printouts for IT non-capital assets by Division/Facility/Bureau fund organization code. ASB shall generate secondary printouts for non-IT non-capital asset equipment by Division/Facility/Bureau fund organization code. CIOB and ASB are required to distribute the secondary printouts to the corresponding Division/Facility/Bureau.
2. The Secondary Equipment Lists (sorted by specific unit code) shall include equipment description, equipment tag number (green tag), manufacturer serial number (if applicable), model, asset location, and workspace number for items assigned to each Facility/Division/Bureau.
3. The Secondary Equipment Lists shall be reviewed by each Division/Facility/Bureau Manager for accuracy and completeness. Discrepancies must be reported to CIOB for IT non-capital assets and ASB for non-IT non-capital assets, within three weeks after the list is distributed.
4. Upon completion of review, the Division/Facility/Bureau Manager shall sign an inventory release form, certifying verified location and responsibility for all non-capital asset equipment assigned to their Division/Facility/Bureau.
5. It becomes the duty of the Division/Facility/Bureau Manager to monitor and safeguard all non-capital asset equipment in their charge. Each manager shall maintain the Secondary Equipment List in a manner consistent with controls established for use by ASB.
2. The Secondary Equipment Lists (sorted by specific unit code) shall include equipment description, equipment tag number (green tag), manufacturer serial number (if applicable), model, asset location, and workspace number for items assigned to each Facility/Division/Bureau.
3. The Secondary Equipment Lists shall be reviewed by each Division/Facility/Bureau Manager for accuracy and completeness. Discrepancies must be reported to CIOB for IT non-capital assets and ASB for non-IT non-capital assets, within three weeks after the list is distributed.
4. Upon completion of review, the Division/Facility/Bureau Manager shall sign an inventory release form, certifying verified location and responsibility for all non-capital asset equipment assigned to their Division/Facility/Bureau.
5. It becomes the duty of the Division/Facility/Bureau Manager to monitor and safeguard all non-capital asset equipment in their charge. Each manager shall maintain the Secondary Equipment List in a manner consistent with controls established for use by ASB.
Control within a Division/Facility/ Bureau includes the following:
a. Accountability for each item is assigned to a single employee, even if the item is used by multiple staff members (e.g., personal computers).
b. All equipment items are secured at the end of each workday at an authorized location that ensures safety and accountability of items.
c. All unassigned non-capital asset equipment must be maintained in a secure controlled area.
d. A "Sign-Out Log" is maintained at each location to control usage of non-capital asset equipment that is not assigned to individuals on a permanent basis.
b. All equipment items are secured at the end of each workday at an authorized location that ensures safety and accountability of items.
c. All unassigned non-capital asset equipment must be maintained in a secure controlled area.
d. A "Sign-Out Log" is maintained at each location to control usage of non-capital asset equipment that is not assigned to individuals on a permanent basis.
Description of the non-capital asset equipment.
Manufacturer's serial number or department property tag number.
Name of user.
Date and time checked out and returned.
Signature of user (both out and in).
Issuers initials (both out and in).
Name of user.
Date and time checked out and returned.
Signature of user (both out and in).
Issuers initials (both out and in).
e. The Division/Facility/Bureau notifies ASB and/or CIOB at least five working days prior to reassigning any non-capital asset equipment within the Division/Facility/Bureau.
f. The Division/Facility/Bureau notifies ASB and/or CIOB within five working days prior to trading or transferring any non-capital asset equipment within the
Division/Facility/Bureau.
g. Upon discovery that an item is missing and/or suspicion of theft is at issue, the steps outlined in Section 6.9.0 of the Los Angeles County Fiscal Manual (November 2022) shall be carried out immediately.
f. The Division/Facility/Bureau notifies ASB and/or CIOB within five working days prior to trading or transferring any non-capital asset equipment within the
Division/Facility/Bureau.
g. Upon discovery that an item is missing and/or suspicion of theft is at issue, the steps outlined in Section 6.9.0 of the Los Angeles County Fiscal Manual (November 2022) shall be carried out immediately.
E. "Loaner'' Items
1. "Loaner'' items refer to equipment purchased for short-term, periodic use at any of the various DMH locations on a daily basis and include equipment such as laptops, cameras, cellphones, etc. The use of such items is controlled centrally by the Division/Facility/Bureau.
2. It is the responsibility of the Division/Facility/Bureau Manager to maintain a Sign-Out Log to record movement and location of "loaner" items at all times. All "loaner'' equipment must be returned the same day unless other arrangements have been made.
2. It is the responsibility of the Division/Facility/Bureau Manager to maintain a Sign-Out Log to record movement and location of "loaner" items at all times. All "loaner'' equipment must be returned the same day unless other arrangements have been made.
F. Missing/Suspected Stolen Items
1. It is the responsibility of the Division/Facility/Bureau Manager to contact ASB Management immediately when items are discovered, missing and/or when there is suspicion of theft.
A written report must be submitted to ASB Management. If applicable, a Report of Equipment Loss form must be submitted.
2. ASB shall also report such incidents discovered at times of annual physical inventory.
3. ASB Management shall ensure that any suspected employee theft they are aware of, or have been made aware of, is promptly reported.
4. The ASB Management shall also ensure an Annual Report of Loss Equipment is filed with the Auditor-Controller and the Board of Supervisors.
5. Employees found to be negligent or directly responsible for equipment loss may be subject to disciplinary action.
A written report must be submitted to ASB Management. If applicable, a Report of Equipment Loss form must be submitted.
2. ASB shall also report such incidents discovered at times of annual physical inventory.
3. ASB Management shall ensure that any suspected employee theft they are aware of, or have been made aware of, is promptly reported.
4. The ASB Management shall also ensure an Annual Report of Loss Equipment is filed with the Auditor-Controller and the Board of Supervisors.
5. Employees found to be negligent or directly responsible for equipment loss may be subject to disciplinary action.
G. Disposition of Salvage Items
1. All items determined to be unserviceable or no longer needed by a Division/Facility/Bureau shall be referred to ASB or CIOB for evaluation for salvage or reassignment to other Division/Facility/Bureau. Upon approval of ASB Management, ASB Asset Management and Reporting Section will arrange for final disposition of item(s).