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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. 2 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 3 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: ________________________________________________________________________ 4 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