Bureau of Fleet Management and Federal Property Assistance (bureau)

Transcription

1 DEPARTMENT OF MANAGEMENT SERVICES ADMINISTRATIVE PROCEDURE TITLE: Live Auction Fleet Disposition and Cash Receipts EFFECTIVE: July 1, 2016 REVISED: PROCEDURE NUMBER FLEET MANAGEMENT FMP2 PURPOSE The purpose of this section is to set forth standardized procedures and guidelines for the disposition of state-owned mobile equipment (see definitions, page 8) and the subsequent receipt of proceeds. This includes approval, auction and accountability after auction, pursuant to Florida Statutes and Administrative Rules. SCOPE These procedures are applicable to all state-owned mobile equipment placed under control of the Department of Management Services (DMS) for the purpose of disposition. This policy is also relevant to all personnel responsible for disposal, accountability and control of state-owned mobile equipment. AUTHORITY Chapter , Powers and Duties of Division, Florida Statutes (F.S.) Chapter 326, F.S. Chapter 60B-3, Disposal of Aircraft, Motor Vehicles and Watercraft, Florida Administrative Code (F.A.C.) Federal Aviation Regulations Part 47, Aircraft Registration RESPONSIBLE OFFICE Bureau of Fleet Management and Federal Property Assistance (bureau) DISTRIBUTION The following individuals should be notified of this policy Method of notification All state agency fleet managers distribution list DMS Fleet Management website Bureau of Fleet Management employees Staff meeting DMS Fleet Management website DMS Executive Leadership Executive Leadership meetings Page 1 of 9

2 I. Procedures for the Disposition of Motor Vehicles, Mobile Equipment, and Non- Specialty Watercraft by Public Auction A. Prior to Auction Live auctions are held monthly and are conducted by an auction contractor (AC). 1. All agencies are required to submit an MP-6401 form to the bureau requesting authority to dispose of motor vehicles, mobile equipment, aircraft and watercraft. The original title, if applicable, must also be submitted to the bureau. For equipment not requiring a title (e.g., trailers, aircraft, miscellaneous equipment), a bill of sale is required. 2. The MP-6401 form will be entered into the bureau s disposal database, and the bureau s property administrator (PA) will grant or deny disposition authority. The PA determines the method of disposal. The bureau s operations review specialist will review and approve final determination. 3. If an agency is approved for disposition, the PA will notify the requesting agency that the item(s) will be scheduled for disposition within 90 days. For items sold via online auction, agencies maintain control of the item until it is sold in place and picked up by the contract towing company for delivery to the online auction site or until the agency delivers the item to the online auction site designated by DMS. 4. For items requiring delivery utilizing the contract towing company, the PA will issue a move order to the agency and to the contract towing company. The purpose of the move order is to schedule the item for transport from the item s physical location to the auction site. 5. Items that are not economically prudent to transport will be auctioned in place, and it will become the responsibility of the owning agency to coordinate the sale through the online auction administrator (OAA). 6. The OAA maintains a master list of all state-owned mobile equipment to be sold at online auctions. B. Sales to Political Subdivisions Prior to the online auction, political subdivisions are provided an opportunity to purchase the items taken to the auction site at a predetermined price. The PA is responsible for conducting sales to political subdivisions. 1. Political subdivisions may review and purchase items prior to vehicles being listed online. 2. Prices are determined by calculating an average disposal price for each item. This price is based on disposal sale prices from the previous sale of similar items. 3. Political subdivision buyers are not required to pay for the items they purchase prior to pick-up; however, they must submit a purchase order to the AC prior to accepting the item. Payment for the items are made directly to the AC. Page 2 of 9

3 C) Sales by Live Public Auction Motor vehicles not sold to political subdivisions by close of business on the scheduled date are placed in the live public auction (currently conducted on the second Saturday of the month). The AC is responsible for conducting the auction. With few exceptions, all items brought to the live public auction are sold, even if they are sold for scrap. Only on rare occasions is a minimum price placed on an item; therefore, sales of items at the live public auction go to the highest bidder. 1. If the buyer fails to pay the full amount, the sale is cancelled and the item is held over until the next scheduled auction. 2. The AC is responsible for posting all closing bids electronically at the time of sale. 3. A preliminary bid tabulation of all electronic postings of items sold is prepared by the AC. The listing includes the amount for each item and its asset number, description and lot number. 4. From this list, a customer consignment statement (CCS) is produced and provided to the PA via a secure online file storage system. The CCS lists by state agency all items currently positioned for sale and lists the asset number, gross sale price and item number. 5. The CCS is used by the PA to verify that the descriptions, property numbers, selling prices and vehicle ID numbers are accurately recorded. 6. The PA totals the amount of gross sales for the state from the CCS to obtain general sales information. The CCS is also used by the PA as a reference to provide status information to the agencies prior to receiving the final sales report from the AC. 7. The AC electronically transmits to the state, via ACH transfer, the state s gross proceeds due from the auction, excluding uncollected funds from sales to political subdivisions, funds which are transferred at a later date. 8. A final sales report is formulated by the AC and is submitted to the PA via a secure online file storage system. A hard copy of the final sales report, a copy of the public auction ACH transfer and a copy of the ACH transfer resulting from the subsequent collection of funds from political subdivisions are also sent to the PA by mail. 9. The PA uses the final sales report to remove sold items from the disposal system and the Florida Equipment Electronic Tracking (FLEET) system. 10. The final sales report includes the following information: a) Summary sheet for each state agency sending items to the auction, with detailed listings of the sold agency equipment, including the following: asset numbers, buyer identities, descriptions, gross selling prices, item numbers, net amount due to the state agency and selling expenses incurred and deducted by the AC and DMS. Page 3 of 9

4 b) Overall details for each state-owned item sold at public auction, including the agency owner, asset number, buyer identity, description, gross selling price, item number and vehicle ID number. c) A list of items sold to political subdivisions by agency, including the asset number, buyer, gross sales price and vehicle ID number. d) A buyer list organized by buyer identity sequence. e) A list of item sales by agency that were cancelled because the buyer failed to pay for the equipment, including asset numbers, item numbers and lot numbers. Sale amounts are deducted from the gross sales proceeds. f) A copy of expense receipts supporting charges incurred and invoiced by the AC. g) Overall auction summary totals, including commissions invoiced by the AC, expenses deducted by DMS, gross proceeds from the public auction, gross proceeds from sales to political subdivisions and the net proceeds due to the state. 11. Commissions and expenses invoiced and deducted from gross proceeds shown on the report include the following: a) The AC s commissions on each item sold, as specified in the governing contract. b) The AC s selling expenses, listed by vehicle, incurred for removing decals or state markings from vehicles or watercraft, providing vehicle keys and completing small repairs authorized by the PA. c) DMS administrative fee of 3 percent for each item sold. II. Procedures for the Subsequent Receipt of Proceeds from Public Auction A) Live Auction Reviews and Calculations Live auction proceeds due to the state are submitted to the Department of Financial Services for deposit to DMS via ACH transfer by the AC. A copy of the wire transaction and sales reports are submitted electronically through a secure online file storage system and by hard copy to the PA. 1. The PA performs the following reviews and calculations to ensure that the sales report is accurate and that the correct amount of funds has been remitted: a) Compares gross sales listed on the sales report to the totals from the CCS obtained by the PA on the department s secure online file storage system. Any differences are investigated and reconciled. Differences may include deductions for sales that were cancelled because the buyer did not pay for the item by the due date. Page 4 of 9

5 b) Reviews supporting documentation and invoices to ensure that the AC s commissions, other itemized expenses and DMS expenses are accurate and complete. c) Recalculates the gross proceeds due to the state from the AC and compares the amount due with the amount received by wire transfer. Differences are investigated and reconciled. The only difference should be amounts remaining uncollected from political subdivisions. Amounts remaining due as a result of uncollected proceeds from political subdivision sales are maintained by the PA. d) Gives auction book to the bureau s operations review specialist or operations services manager for reconciliation. The bureau staff member retrieves the data and video from the auction off the secure online file storage system and compares the video to printed auction results. B) Payment to the Towing Company 1. Towing charges applicable to each vehicle along with the invoice number supporting the charges, are submitted by the towing company. The towing company is also required to upload via a secure online file storage system a complete set of invoices supporting each charge to the PA. 2. To verify the correct amount has been charged according to state contract, the PA compares each towing invoice entered on the report by the towing company to the supporting documentation, checking for correct property, invoice and vehicle ID numbers. 3. Towing invoices are then turned over to the bureau s operations review specialist or operations services manager for further verification of vehicle property numbers, vehicle ID numbers and vehicles recorded in the move orders. Also, the bureau s operations review specialist or operations services manager verifies that move orders have been signed by a state employee, the tow truck driver and the AC. 4. If the reviewer notes no differences, the updated report is used to prepare a request for payment to the towing company. A memorandum is sent to the bureau chief certifying the accuracy of the towing charges. 5. After approval by the bureau chief, the request for payment to the towing company is submitted to the Disbursement Section in the Bureau of Financial Management Services. Bureau staff provides signatures confirming that the above procedures have been followed and accomplished. D) Payment to the Agencies 1. Using the detailed list of vehicles sold provided on the sales report, the PA updates the master list of vehicles to indicate those that were sold at auction and those that remain, if any. 2. From the completed sales report, the PA determines the total amount due to each agency. The agencies are paid for the amounts due from vehicles sold to political subdivisions, even if the amounts remain uncollected from the AC. Page 5 of 9

6 3. A listing of payments due to each agency, with appropriate FLAIR codes to identify the payment, is sent to the Disbursement Section in the Bureau of Financial Management Services with a request to pay the agencies. The listing includes the following: a) Agency name b) 29-digit SAMAS account code c) Six-digit benefiting object code d) Sale date e) Amount to be transferred 4. A copy of the agency portion of the report is sent to each agency for review. The agency is able to determine the disposition of all agency vehicles that were taken to auction, the gross sales provided and the calculation of the net amount due. Explanations for vehicles taken to auction that did not sell, if any, are also provided. E) Reconciliation A copy of the move order list is provided to the Reconciliation Section in the Bureau of Financial Management Services prior to the auction. 1. The PA provides the reconciliation section with an electronic copy of the completed sales report, including summary and detail information to support the amounts not received because of uncollected proceeds from political subdivisions. 2. The Reconciliation Section reconciles items taken to auction from the master list with the list of items sold and computes a gross sales amount for the equipment sold. Total gross proceeds from the master list are compared to gross sales listed on the sales report. In addition, the summary prepared by the PA is reconciled and used as support for the funds received from the AC. 3. Subsequent receipts of outstanding amounts resulting from sales to political subdivisions are wired to the state by the AC via ACH transfer. A copy of the transfer is sent to the PA. 4. The PA compares the amount of the wire transfer with the amount outstanding to ensure that outstanding amounts have been received accurately and completely. A complete sales report is maintained on file by the PA. III. Procedures for the Disposition of Specialty Watercraft and the Subsequent Receipt of Proceeds 1. Specialty watercraft over 32 feet is provided to the bureau for disposal. These sales are accomplished through a specialty broker. 2. The broker submits gross proceeds from the sale via electronic funds transfer (EFT) to the state. 3. After receipt of the EFT and supporting sales information, the PA reviews the broker s documentation and recalculates for accuracy. Page 6 of 9

7 4. DMS administrative fees and other related expenses incurred are deducted from the amount submitted by the broker. Amounts due to the owning agency are recalculated. The agency is provided with this reconciliation sheet, a description of the sales amounts and associated expenses. 5. A request for payment to the agency is then sent to the Disbursement Section in the Bureau of Financial Management Services. IV. Procedures for the Disposition of Aircraft and the Subsequent Receipt of Proceeds Surplus aircraft are sold through sealed bids or best determined method. All advertising must occur at least one month prior to the date of bid opening. 1. Sealed bids are sent to the PA and are accompanied with a cashier s check or money order from the bidder for 10 percent of the bid price. 2. The PA signs the return receipt for the bid and date stamps the bid envelope. The unopened bid envelope is forwarded to the bureau s operations review specialist or operations services manager, who stores the sealed bid in a locked safe until the specified date of the bid opening. 3. Each person present at the bid opening signs a sign-in sheet that is kept on file with the bid package. Also kept on file is a list of bidders and bid amounts. 4. Present at the bid opening are the PA, a bureau staff member, any bidder representatives and representatives from the agencies disposing of the aircraft who desire to attend. Sealed bids are opened by the PA on the specified date, and the aircraft is sold to the highest bidder; however, agency representatives may reject the bids if they believe the bid prices are too low. 5. Once a sale has been made to the highest bidder, the PA returns the 10 percent bidder checks to the unsuccessful bidders and requests a certified return receipt. The unsuccessful bidders are provided with notice of sale to the highest bidder and the amount of the highest bid. 6. The 10 percent bidder check from the highest bidder is returned to the bureau s operations review specialist or operations services manager and is retained in a locked safe until receipt of the remaining amount of the bid. 7. The PA contacts the highest bidder and arranges for submission of the check for the remaining 90 percent of the sale. The winning bidder has five business days to submit the additional cashier check. Once the check is received, the PA verifies the amount and forwards it to a aureau staff member for processing of transmittal forms and delivery to the Bureau of Financial Management Services. 8. The transmittal form provides the Revenue Section with information about the purpose of the checks and the organization code in which to deposit the proceeds. The bid package includes the following: a) Both checks Page 7 of 9

8 b) Copy of the bid announcement c) Copy of the winning bid d) Transmittal form 9. The transmittal form is signed by the bureau staff member and also by the individual receiving the checks in the Revenue Section of the Bureau of Financial Management Services, indicating receipt of the checks. 10. The PA deducts DMS expenses from the selling price for the aircraft, calculates the amount due to the agency and sends a request to the Bureau of Financial Management Services Disbursement Section to pay the appropriate agency. 11. The agency selling the aircraft is provided a copy of the disbursement calculation. RESPONSIBILITIES Individual or group Property administrator Bureau Chief of Fleet Management DEFINITONS Responsibilities Researches current policy to determine whether a new policy, policy revision or policy rescission is required. Creates and amends policy in draft and submits to the Director of Administration via the Bureau Chief of Fleet Management. Ensures that policy content is accurate. Develops and maintains procedures and forms to ensure efficient and successful implementation of policy. Monitors policy compliance and elevates concerns, as appropriate. Performs periodic review of policies and recommends policy modifications. Reviews and approves policy and forwards to the Director of Administration and Budget Word/Term AC CCS DMS Bureau PA MP-6401 Mobile equipment Political subdivisions Definition Auction contractor Customer consignment statement Department of Management Services Bureau of Fleet Management Property administrator Request for Disposal of Mobile Equipment form Mobile equipment as used in this section means any equipment purchased or seized by the state that moves under its own power or that is towed either on land, water or air Florida city and county governments, colleges and other state agencies FORMS MP-6401 Request for Disposal of Mobile Equipment Page 8 of 9

9 MP-6401B Request for Disposal of Equipment Without Commercial Value Page 9 of 9