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City adopts $5,000 threshold inventory and asset-management policy to address audit findings
Summary
Commissioners approved a combined capital and inventory policy establishing a $5,000 threshold for tracked assets, clarifying insurance coverage and creating quarterly inventory updates to help close prior audit findings.
The commission adopted a combined inventory and capital-asset policy that sets $5,000 as the threshold for assets that must appear on the city’s formal inventory and depreciation schedules. Staff said the policy was developed with input from the New Mexico Municipal League and the city’s insurer and was designed to address an audit finding related to an incomplete depreciation schedule.
Staff outlined three parts of the policy: (1) items $5,000 and above added to the depreciation schedule; (2) insurance and ensuring assets are on the insurer’s list; and (3) a tracking process for items under $5,000 to limit loss. When asked whether the insurance pays replacement cost, staff said the city’s insurance pays the actual cash value of items and emphasized that items not on the insurance list receive no payment. "The only the only way But the depreciation just states how basic," a staff speaker said when explaining valuation, and a staff finance overview clarified the policy’s checks and balances.
Commissioners moved and seconded approval of the policy and the measure passed. Staff said quarterly inventory updates and a process tied to purchase orders will help keep records current and reduce the risk of recurring audit findings.
Provenance: Topic introduced at SEG 668 and last discussed at SEG 941.
