HomeMy WebLinkAboutMHIDDEI-407 Purchase or Lease of Assets1
FRANKLIN/FULTON COUNTY
MENTAL HEALTH/INTELLECTUAL & DEVELOPMENTAL
DISABILITIES/EARLY INTERVENTION
425 Franklin Farm Lane
Chambersburg, PA 17202
(717) 264-5387
MH/IDD/EI PROCEDURE STATEMENT
PROCEDURE SUBJECT: Purchase or Lease of Assets
PROCEDURE NUMBER: MHIDDEI-407
Effective Date: January 1, 2004
Date Revised: January 4, 2023
Reference: Title 55 – Human Services. Chapter 4300, County Mental Health and Intellectual
Disability Fiscal Manual (revised 2016)
PURPOSE:
This procedure sets forth standard practices for Providers to use when purchasing, leasing and
tracking assets. Assets are categorized as minor and major based on the type and threshold
amount.
DEFINITIONS:
Minor Assets – Purchase price between $500 and $4,999. This includes items such as fixed or
moveable equipment and vehicles.
Minor Assets (Buildings & Improvements) – Purchase price between $500 and $49,999.
Major Assets – Fixed or moveable equipment purchases $5,000 and above.
Major Assets (Building & Improvements) – Purchase price $50,000 and above.
PROCEDURE:
General Requirements
1. Provider must follow County Code bidding procedure for assets purchased in excess of
$22,500. Board approval is required.
2. Provider requests for purchases of minor and major assets must be accompanied by a
minimum of three (3) quotes. Written documentation must be provided if three (3) quotes
cannot be obtained. Quotes $4,000 through $ 12,199.99 require Director of Procurement
approval. Quotes $12,200 and above require Board approval.
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3. Purchases or leases with related parties must be disclosed and approved by the
Administrator prior to entering into an agreement.
4. Assets must be used for a minimum of five (5) years; if minimum requirements are not
met, a pro-rated refund to the County will be required.
5. Provider is not permitted to charge the County for depreciation expense on assets
purchased with County funds.
6. Provider will maintain title to assets purchased.
7. Provider must maintain the Provider Asset Tracking Form (Exhibit – B).
8. Provider is responsible for insurance, maintenance, and inspection of all assets as
required. Associated costs should be included in the program section of the budget
packet.
9. Assets purchased/leased with County funds are to be used for the sole purpose(s) under
the contract. The asset is not to be used for personal use or any other non-program use.
For assets purchased with a combination of County funding and other sources, the
Provider is to maintain adequate documentation of use and allocation.
10. Provider may not sell, transfer or donate any purchased asset without prior written
approval. Should this occur, the Provider is responsible to reimburse the County for the
current value of the asset at the time of disposition.
Purchase and/or Lease of Asset
1. The Provider Purchase/Lease Request Form (Exhibit A) must be completed and include
the following supporting documents:
a. Cost Benefit of Purchase vs. Lease analysis
b. Minimum of three (3) quotes/bids, or a market appraisal completed by an
independent, licensed appraiser for three (3) similar properties for property
purchases
c. Auction purchase price fair market value documentation
Tracking of Assets
1. Provider must provide an itemized list of all assets to include the following information,
if applicable (Exhibit – B):
a. Item Description and Serial Number
b. Property Address
c. Acquisition or Lease Date
d. Purchase or Lease Price
e. Disposal Type (Sold or Scrapped)
f. Disposal Cost
g. Disposal Date
2. The Provider Asset Tracking Form is due annually on or before August 15th.
ATTACHMENT:
Exhibit – A: Provider Purchase/Lease Request Form
Exhibit – B: Provider Asset Tracking Form
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Exhibit – A
Provider Purchase/Lease Request Form
Provider: _____________________________________________________________________
Program: _____________________________________________________________________
Name and Title: _______________________________________________________________
Contact Phone Number: _________________________________
E-mail Address: ________________________________________
Date: ________________________ Fiscal Year: ________________________
Description (to include intended use): _______________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Is this purchase/lease a replacement or addition to the assets funded through this contract?
____ Replacement ___ Addition
Is item included in the current budget packet? ____ Yes ___ No
Approximate Purchase Date or Start of Lease Agreement: ___________________________
Vendor Quote/Bid Information (include copy of quote/bid):
Vendor #1: ___________________________ Quote/Bid: ________________________
Vendor #2: ___________________________ Quote/Bid: ________________________
Vendor #3: ___________________________ Quote/Bid: ________________________
Recommended Action by Provider (Note - Fiscal regulations require the lowest quote/bid
be accepted unless Provider can show just cause):
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Action taken by MH/IDD/EI:
_____________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Program Specialist Approval: ___________________________________________________
Date: ________________________________________________________________________
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Exhibit – B
Provider Asset Tracking Form
Provider Name: ______________________________
Program Item Description
Serial
Number Property Address
Acquisition
or Lease
Date
Purchase or
Lease Price
Disposal
Type Disposal Cost
Disposal
Date