Fixed Asset - Inventory

To assure adherence to health department regulations and adequate internal control, this policy instructs staff on how to track, inventory, and dispose of tangible fixed asset items, furniture, consumable medical goods, and other consumable goods. 

The Health Department will tag, track and maintain inventory on all tangible fixed assets having a life of over two years and costing more than $10,000 and/or would have a ready street market value (i.e. IT equipment: computers, laptops, tablets, printers and copiers). 

Consumable inventories will be kept at levels to assure staff do not run out of goods but also do not create storage issues. 

Health Department employees are responsible for protecting and properly using all fixed assets and shall notify the Director of Administration and Accounting in case of loss, misuse or theft. A physical inventory shall be conducted annually prior to the fiscal year closing deadline. Assets determined to no longer be needed and/or have no value shall be declared as surplus and disposed of per applicable regulations/statutes. 

• Because the Health Department uses the modified cash basis of accounting per State regulations, fixed assets are not carried in the accounting system on the balance sheet, but are accounted for as expense items in the fiscal year of purchase in accordance with purchasing policies. 

• Receiving of fixed assets may occur at any location. The employee who receives the fixed asset shall notify Purchasing upon delivery and forward the goods receipt accordingly. 

• Assets, as described above, will be tagged by Purchasing with a Health Department property sticker that contains a bar-coded serial # within five (5) business days of receipt. To the extent possible, all tags shall be uniformly placed on similar types of fixed assets in a visible location. Additionally, Purchasing will maintain a database that tracks the following (among other things):

  • • • Site where asset is located

      • Employee receiving asset

      • Serial number

      • Item type

      • Cost Center

      • Purchase Order #

      • Vendor

      • Date acquired

      • Cost

      • Health Department  Property Tag #

      • Agency providing asset/funding (if applicable)

      • Disposal date/notes (if/when applicable)

• Director of Administration and Accounting will verify fixed assets are entered into inventory database (from fixed asset approved purchase orders) on regular basis.

• Consumable Goods such as office and custodial supplies will be maintained by designated staff at each site.

• Medical supplies will be maintained by Clinical Services staff.

Employees shall notify Purchasing when an asset is being moved from one location to another prior to the transfer. Purchasing shall update the database accordingly. 

Director of Administration and Accounting will inventory fixed assets and furniture at least annually, by tracking against established inventory database. Inventory database will be updated as necessary. 

When an asset is no longer needed/has no value, the Building Coordinator shall notify the Buildings and Accounting Administrator BEFORE it is removed from the site. Methods of disposition will follow requirements outlined in 902 KAR 8:170. The inventory database will be updated with the date of disposal, agency transferred/sold/returned to (if applicable), and compensation received (if any). 

The employee shall follow the following steps when a loss or theft occurs:

1. Notify the Deputy Director of Health and/or the Buildings and Accounting Administrator immediately of the loss or theft and follow further instructions as provided. 

2. Notify the police and file a report if instructed to by the Deputy Director of Health and/or the Buildings and Accounting Administrator. Forward a copy of the police report to Purchasing for database updating. The report will then be forwarded on to the Deputy Director of Health for insurance files.