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Home My WebLink About19- Finance 3 CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Barbara Pachon, Subject: Authorization for the Finance Director of Finance Department to Destroy Fixed Asset Records From 12/93 and prior. Dept: Finance Date: December 4, 2000 Synopsis of Previous Council action: Resolution 94-299 approved 10/3/94 Resolution 96-78 approved 4/1/96 Resolution 97-257 approved 9/2/97 Resolution 2000-287 approved 9/18/00 Recommended motion: Adopt Resolution Signature Contact person: Barbara Pachon.Director of Finance Phone : ext. 5242 Supporting data attached: Yes Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct.No.) (Acct.Description) Finance: Council Notes: 06o Agenda Item No. STAFF REPORT SUBJECT Resolution authorizing the Finance Department to destroy fixed asset records prior to December of 1993. BACKGROUND The Finance Department routinely requests authorization to destroy certain records after retaining them for seven years. At the September 18th Council Meeting, Council authorized the destruction of a number of items proposed for destruction with the exception of records pertaining to fixed assets. (Further clarification regarding the nature of the fixed asset records was requested by Council). The attached "Exhibit A" details all of the items that were presented to the Mayor and Council for proposed destruction. As was explained in the Finance Department's 9/20/00 follow-up memo to the September 18th Council meeting (copy attached), destruction of the fixed asset records is still recommended. The fixed asset files specified in Exhibit "A" are only computer-generated listings of additions and deletions made to the City's fixed assets database during the year. The City's fixed assets records, maintained by the Finance Department for auditing and insurance purposes, are a perpetual computer database that is updated each year during the annual audit. The reports generated and filed are the Finance Department's working papers used to establish the final numbers for the City's annual financial statements. Each year, the database and reports are audited and certified by the City's independent auditors and used to prepare the official summarized financial statements. The City of San Bernardino's definition of a fixed asset is any item with a unit cost of$500 or more (not including tax or shipping) and a useful life of three years or more. Most items in the database between the range of$500 to $25,000 are furniture or small equipment items. Items over $25,000 (usually vehicles and large equipment items) are required to go to Council for approval before being purchased and information regarding these items is part of the official Council meeting records retained by the City Clerk's Office. Section 34090 of the California Government Code states that"Unless otherwise provided by law, with the approval of the legislative body by resolution and the written consent of the city attorney, the head of a city department may destroy any city record, document, instrument, book or paper, under his charge without making a copy thereof, after the same is no longer required." Prior to the September 18th Council meeting, the destruction of these types of records (7 years or older) has routinely been approved by the Mayor and Council. Since the files in question are older than seven years, have been audited, have not been required for use by the Finance Department, and have been approved for destruction by the City Attorney's Office, it is still the Finance Department's recommendation that these files be approved for destruction FINANCIAL IMPACT No additional cost to the City at this time. Once Council approval to destroy the listed records is obtained, Purchasing will obtain estimates from qualified firms to destroy and certify destruction of the records. RECOMMENDATION Adopt Resolution. City of San Bernardino-Finance Department Records to be Destroyed (approved by M&CC 9/181007) Accounting(12/93 OR PRIOR) Cancelled Checks Cash Receipts Cash Reconciliation CFD 995 Records Closed Work Order Records Completed Construction Projects Work Folders Deferred Comp Records Q1, DELETED FRAM LIST PERM&C 9/1 /M Fixed Fixed Assets 5 Invoices—Paid Records Invoices—(duplicate) Journal Vouchers Labor Distribution Reports Miscellaneous Cash Receipts Quarterly Tax Returns Work Orders—Closed Records Accounts Pa able(12/93 OR PRIOR) Accounts Payable Files A-Z Accounts Payable Registers Miscellaneous (12/93 OR PRIOR) Central Stores Issues Closed Work Order Projects Council Agendas Copies Department Correspondence Grant Work Folders Grants Insurance Open Enrollment Forms Insurance Enrollment worksheets Insurance Forms Insurance Benefit Payments Low Income Program Applications Mobile Home Refund Utility Tax Program Paramedic Membership Paramedic Renewals Utility Tax Revenue Files 1 of 2 E aI City of San Bernardino-Finance Department Records to be Destroyed (app roved by M CC 9,/181 Payroll (12/93 OR PRIOR) Payroll Finals Payroll Misc. Changes Payroll Misc. Records Payroll Misc. Reports Payroll Timesheets PERS Insurance Reports PERS Circular Letters (duplicates) PERS Misc. Files PERS Records W-2 Info Reports (duplicate) Purchasing(12/93 OR PRIOR) BID F90-11 Formal Bids Inventory Records Purchasing Correspondence Purchase Orders Quotes Request For Quotes Stores Issue Reports Surplus Records Vendor Activity Reports Warehouse Issues 2 of 2 INTEROFFICE MEMORANDUM CITY OF SAN BERNARDINO FINANCE DEPARTMENT TO: Fred Wilson, City Administrator FROM: Barbara Pachon, Director of Finance SUBJECT: Follow-up to September 18, 2000 Council Meeting (Item#13-Destruction of Finance Department Records) DATE: September 20, 2000 CC: During the September 18, 2000 Council meeting, questions were raised regarding the destruction of Finance Department records (agenda item #13). Specifically, the destruction of records pertaining to fixed assets was questioned. Per the motion made on the Council floor, records pertaining to fixed assets were removed from the destruction list. The purpose of this memo is to clarify both the content of the records in question and the reason for requesting their destruction. The fixed asset files specified in the September 18th staff report are only computer-generated listings of additions and deletions made to the City's fixed assets database during the year. The City's fixed assets records, maintained by the Finance Department for auditing and insurance purposes, are a perpetual computer database that is updated each year during the annual audit. The reports generated and filed are the Finance Department's working papers used to establish the final numbers for the City's annual financial statements. Each year, the database and reports are audited and certified by the City's independent auditors and used to prepare the official summarized financial statements. The City of San Bernardino's definition of a fixed asset is any item with a unit cost of$500 or more (not including tax or shipping) and a useful life of three years or more. Most items in the database between the range of$500 to $25,000 are furniture or small equipment items. Items over $25,000 (usually vehicles and large equipment items) are required to go to Council for approval before being purchased and information regarding these items is part of the official Council meeting records retained by the City Clerk's Office. Prior to the September 18th Council meeting, the destruction of these types of records (7 years or older) has routinely been approved by the Mayor and Council. Since the files in question are older than seven years, have been audited, have not been required for use by the Finance Department, and have been approved for destruction by the City Attorney's Office, it is still the Finance Department's recommendation that these files be approved for destruction. Please do not hesitate to contact either me or the City Administrator if you have any additional questions. PIV7 RESOLUTION NO. � 1 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE DESTRUCTION 3 OF FIXED ASSET RECORDS BY THE DIRECTOR OF FINANCE. 4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF 5 THE CITY OF SAN BERNARDINO AS FOLLOWS: 6 SECTION 1. The Mayor and Common Council of the City of San 7 Bernardino do hereby approve the destruction by the Finance Department of 8 computer generated records of additions and deletions to the City's fixed asset 9 database from December of 1993 and prior. 10 11 SECTION 2. It is hereby found and determined that the records are no 12 longer needed, and that they may be destroyed pursuant to Government Code 13 Section 34090, upon written consent of the City Attorney. 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 i RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF 1 THE CITY OF SAN BERNARDINO APPROVING THE DESTRUCTION 2 OF FIXED ASSET RECORDS BY THE DIRECTOR OF FINANCE. 3 I HEREBY CERTIFY that the foregoing resolution was duly adopted by 4 r the Mayor and Common Council of the City of San Bernardino at a J 6 meeting thereof, held on the_day of , 2000, by the following vote to 7 wit: 8 COUNCIL MEMBERS AYES NAYS ABSTAIN ABSENT 9 ESTRADA _ 10 11 LIEN 12 MC GINNIS 13 SCHNETZ 14 SUAREZ 15 ANDERSON 16 17 MC CAMMACK 18 Rachel G. Clark, City Clerk 19 20 The foregoing resolution is hereby approved this_day of , 2000. 21 Judith Valles, Mayor 22 City of San Bernardino 23 Approved as to form and legal content: 24 JAMES F. PENMAN 25 City Attorney 26 By: 27 28 2