Scope: The scope of this review will cover fixed, controlled and high-risk asset purchases made from to. REVIEW PROCEDURES

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1 Specific Objectives: The overall objectives are as follows: Bexar County Auditor s Office Page 1 of 5 1. To determine if newly acquired fixed, controlled, or high-risk assets were included in the annual inventory submission. 2. To determine policy compliance related to the disposition of assets. Scope: The scope of this review will cover fixed, controlled and high-risk asset purchases made from to. REVIEW PROCEDURES PRE-FIELDWORK 1. Complete the Pre-Fieldwork Program a. Review and update Permanent File b. Review prior inventory review reports, correspondence related to corrective actions or policy changes, and related information from minutes c. Research the office environment: i. Major changes in administration & personnel since the last audit ii. Changes if any to state law and Purchasing Department policies since last review d. Complete Planning Memo e. Prepare Requested Items List Fixed/Controlled Asset Acquisition The specific objectives for newly acquired items are to: DONE BY W/P Ref. Verify that County departments are notifying the Purchasing Department upon receipt of newly acquired controlled or fixed assets. Determine if Purchasing Department is appropriately updating the inventory records for newly acquired County controlled or fixed assets. Ensure the physical location of the new controlled or fixed asset agrees with the inventory records. AUDIT PROCEDURES DONE BY W/P Ref.

2 Bexar County Auditor s Office Page 2 of 5 FIELDWORK PHASE Gain an understanding: 1. Gain an understanding of the Purchasing Department s Fixed Asset Inventory policies and procedures. 2. Identify key controls utilized by the Purchasing Department to ensure its Fixed Asset Inventory listing is accurate and complete. a. Requisition approvals b. Coding c. Process Fixed Asset personnel becomes aware assets were received 3. Consider testing key controls to determine they are working as designed. Obtain a County Fixed, controlled and high-risk asset expenditures from the financial system. 1. Populate a sample for testing. 2. Stratify population, if necessary to address any identified risks. For each expenditure item in the sample, perform the following procedures: 1. Verify supporting documentation to ensure correct coding. a. See Lawson w/ ImageNow - scanned vendor invoices, etc. 1. Agree newly acquired items to the Fiscal Year XX official list of fixed assets presented to the County Auditor from the Purchasing Agent as of July Determine all necessary data to enter new assets into SAGE (Asset Tracking System) was accurately entered. 3. Ensure the location of the newly acquired item is accurate on official list of fixed assets through inquiry and observation. Fixed/Controlled Assets Disposals The specific objectives for disposals are to: Determine that the Purchasing Department is updating the inventory records for the disposal of County fixed and controlled assets. Verify the supporting documentation for the disposal of a County asset from the inventory. Verify for the sale of a County asset that the County received the monies. Determine that the Purchasing Department is submitting to Commissioners Court the authority to dispose of Count Assets. Determine that the Purchasing Department is receiving and maintaining the Bexar County Missing or Stolen Asset Incident Reports submitted by County Offices.

3 Bexar County Auditor s Office Page 3 of 5 FIELDWORK PHASE Review Fixed Asset Master List as of July 1: 1. Obtain the Fiscal Year XX and Fiscal Year XX official list of fixed assets presented to the County Auditor from the Purchasing Agent as of July Compare the totals to see if there is a difference by categories 3. Obtain the difference for controlled and fixed assets: firearms, vehicles, heavy equipment, road equipment, weapons etc. 4. Prepare a list of the disposed controlled and fixed assets and firearms. Gain an understanding: 1. Gain an understanding of the County s policy and procedures regarding disposed (sold, stolen, lost, donated or salvaged) of assets. 2. Identify and confirm controls utilized by the Purchasing Department to ensure disposed of assets complies with County Policy and applicable laws. For each disposal item selected within the sample, we will perform the following testing depending on how the type of disposal: Sold, Stolen, Donated, or Salvaged For the items identified as Sold: 1. Obtain a copy of the Bexar County Inventory Form. 2. Obtain the supporting documentation for the sale of the asset: a. Commissioners Court ACF and Minutes b. Auction report or sales receipt, c. Sales report or list, d. Deposit warrant, and e. Any other supporting documentation related to the sale of the asset. 3. Verify Commissioners Court approved the disposition of the asset, through the Commissioners Court ACF and Minutes. 4. Verify the County received the funds for the sale of the asset, if disposition type was auction/sale. 5. Verify funds were deposited. For the items identified as Donated: 1. Obtain the following supporting documents for the donated item: a. Bexar County Inventory Form, b. Commissioners Court ACF and Minutes, and a c. Receipt or acceptance letter from the organization/agency receiving the asset. 2. Trace the asset from the Official Fixed Asset List to the Bexar County Inventory form

4 Bexar County Auditor s Office Page 4 of 5 3. Verify Commissioners Court approved the donation through the Commissioners Court ACF and Minutes. 4. Trace the asset from Minutes to the donation document 5. Trace the asset to a receipt or acceptance Letter provided by or signed by the organization or agency receiving the donation. For the items identified as Stolen/Missing items 1. Obtain the following supporting documentation for the stolen/missing item: a. Bexar County Missing or Stolen Asset Incident Report, b. Law Enforcement Report, if applicable, and c. Commissioners Court ACF and Minutes. 2. Trace the asset to the Bexar County Missing or Stolen Asset Incident Report and if applicable the Law Enforcement Agency report. 3. Verify that Commissioners Court was notified regarding stolen/missing items through the Commissioners Court ACF and Minutes. For items identified as Salvage items: 1. Obtain the following supporting documentation for the salvaged item: a. Bexar County Inventory Form, b. Commissioners Court ACF and Minutes, c. Salvage receipt or sales slip, and d. Deposit warrant. 2. Trace the asset to the Bexar County Inventory Form. 3. Verify that Master Inventory list was updated if item was acquired or transferred to another department. 4. Verify Commissioners Court approved the asset to be salvaged through the ACF and Minutes. 5. Validate the asset to the salvage receipt or sales slip. 6. Trace the salvage receipt or sales slip to a deposit warrant. 7. Verify deposited funds. To determine if selected items sold were properly removed from the County Inventory List, perform the following: For items identified on an Auction Report or Sales Report that were not selected for testing above: 1. Create a list of the items. 2. Trace the item to the disposal list. 3. If the item does not appear on the disposal list, determine if the asset is listed on the Bexar County Inventory Master List. 4. Prepare a list of sold items that are still on the Bexar County Inventory Master List.

5 Bexar County Auditor s Office Page 5 of 5 Prepared By: Lead Auditor Date: Approved By: Date: Manager, Internal Audit Services Date: Director, Internal Audit