Share |

Purchasing and Contracts  

Title 19 | Chapter 11 | Subchapter 2

TITLE 19 - PUBLIC FINANCE

CHAPTER 11 - PURCHASING AND CONTRACTS

19-11-217. Powers and duties of State Procurement Director.

(a) The State Procurement Director shall serve as the principal procurement officer of the state. (b)(1) Except as otherwise provided in this subchapter and upon the approval of the Director of the Department of Finance and Administration, the State Procurement Director shall have the authority and responsibility to promulgate regulations consistent with this subchapter.

(2) In addition, consistent with the provisions of this subchapter, the State Procurement Director may adopt rules governing the internal procedures of the Office of State Procurement.

(c) Except as otherwise specifically provided in this subchapter, the State Procurement Director, within the limitations of this subchapter and the rules and regulations promulgated under authority of this subchapter:

(1) Shall procure or supervise the procurement of all commodities and services for each state agency not having an agency procurement official and, when requested to do so by such an official, procure commodities and services not otherwise under state contract;

(2)(A) Shall develop and implement a plan for all state agencies acquiring vehicles that will reduce the overall annual petroleum consumption of those state agencies by at least ten percent (10%) by January 1, 2009, through measures that include:

(i) The use of alternative fuels, as defined by 42 U.S.C. § 13211, as it existed on January 1, 2005;

(ii) The acquisition of vehicles with higher fuel economy, such as a hybrid vehicle operating on electricity and gasoline or diesel or bio-diesel fuel; and

(iii) The substitution of cars for light trucks.

(B)(i) By January 30 of each year, the Director of State Procurement shall submit to the Legislative Council his or her report evaluating the progress of the plan toward achieving the goal set in subdivision (c)(2)(A) of this section.

(ii) The report shall include: (a) The number and type of alternative fueled vehicles, as defined by 42 U.S.C. § 13211, as it existed on January 1, 2005, procured;

(b) The total number of alternative fueled vehicles used by each state agency; (c) The difference between the cost of the purchase, maintenance, and operation of alternative fueled vehicles and comparable conventionally fueled motor vehicles, as defined by 42 U.S.C. § 13211, as it existed on January 1, 2005; (d) An evaluation of the plan's success; and (e) Suggestions for modifying the plan;

(3) Shall manage and establish internal procedures for the office;

(4) Shall sell, trade, or otherwise dispose of surplus commodities belonging to the state;

(5) May establish and maintain programs for the inspection, testing, and acceptance of commodities and services;

(6) Shall establish and manage a list of vendors desiring written notice of invitations for bid;

(7) May establish, by regulation, a fee for receiving a written or electronic notice of invitations for bid; and

(8) Shall ensure compliance with this subchapter and implementing regulations by reviewing and monitoring procurements conducted by any designee, department, agency, or official delegated authority under this subchapter.

History. Acts 1979, No. 482, § 15; A.S.A. 1947, § 14-243; Acts 1991, No. 1018, § 2; 2001, No. 1237, § 9; 2005, No. 2322, § 1.

R1-19-11-217 Vendor Maintenance

Each vendor that is paid through AASIS is required to have a Vendor Master Record. The Vendor Master Record is used to store a variety of information on each of the State’s vendors. One of the primary uses of the Vendor Master Record is to track payments for the processing of Internal Revenue Service Form 1099 and its related reporting.

All disbursements should generally utilize previously established vendor master record numbers which is linked to the vendor’s master record. However, a "one time" vendor may be utilized when the vendor is expected to only be paid once, or the vendor is expected to be paid on a very infrequent basis.

The Department of Finance and Administration-Office of State Procurement Vendor Maintenance Policy can be accessed at: http://www.dfa.arkansas.gov/offices/procurement/Pages/default.aspx Instructions for determining if a vendor has established a Vendor Master Record are in the Vendor Database Tutorial which can be accessed at: http://www.dfa.arkansas.gov/offices/procurement/Pages/default.aspx.

R2-19-11-217 Internal Revenue Service Form 1099-Miscellaneous (1099-MISC) Reporting

It is the policy of the State of Arkansas to adhere to the Internal Revenue Code guidelines for 1099-MISC reporting contained in Internal Revenue Service (IRS) Publication 1220 as revised each calendar year. http://www.irs.gov/pub/irs-pdf/i1099.pdf 1099-MISC forms are produced to satisfy Sections 6041 through 6050N of the Internal Revenue Code, which requires states and state agencies to file informational returns on reportable payment types of non-wage compensation paid to reportable payees.

IRS Form W-9 is the foundation for meeting the 1099 reporting requirements of the IRS. A Form W-9 must be provided to the Office of State Procurement (OSP) for all statewide vendor numbers requested as outlined in the OSP policies and procedures located at: http://www.dfa.arkansas.gov/offices/procurement/Pages/forms.aspx The vendor master record designates each vendor’s tax status based on the information provided on the W-9. The tax code is automatically populated on each payment transaction based on the tax status identified on the vendor master record. The tax code can be changed by the agency on any transaction when necessary for proper 1099 reporting. It is the agency’s responsibility to ensure the accuracy of the tax code on each payment transaction.

Agencies classified as "user" or "service bureau" in AASIS which are included within the Statewide Federal Tax Identification Number (TIN) are responsible for providing accurate information for 1099-MISC reportable vendors and vendor payments to the Department of Finance and Administration-Office of Accounting (DFA-OA). Any payments of penalties and interest arising from inaccurate information provided by the agency will be charged back to the individual agency by a fund transfer initiated by the DFA-OA. The DFA-OA’ s sole responsibility is the consolidation of all payment information provided by State agencies to the vendor’s payee tax identification number and the resulting printing, mailing and reporting of the 1099-MISC forms.

An updated informational 1099 package will be available on the web site when the final rules are made available by the IRS for the upcoming calendar year. http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx Additional detailed information regarding vendors/vendor payments may be found on the AASIS web site. http://www.dfa.arkansas.gov/offices/informationServices/aasis/Pages/default.aspx Agencies classified as "user" or "service bureau" in AASIS that operate independent programs with their own tax identification number are responsible for all tasks necessary to report the 1099-MISC forms. Payments made by warrant from these programs must use "one-time" vendor numbers to avoid duplication in the statewide reporting of 1099s performed by DFA-OA.

Agencies classified as "reporting" in AASIS cannot use the Statewide Federal TIN and are responsible for creating and reporting IRS Form 1099-MISC under their own assigned Tax Identification Number. Reporting agencies may use statewide vendor numbers, but these payments and vendors will automatically be excluded from the statewide reporting of 1099s.

19-11-238. Multiyear contracts.

(a) Specified Period. Unless otherwise provided by law, a contract for commodities or services may be entered into for periods of not more than seven (7) years if funds for the first fiscal year of the contemplated contract are available at the time of contracting. Payment and performance obligations for succeeding fiscal years shall be subject to the availability and appropriation of funds therefor. (b) Determination Prior to Use. Prior to the utilization of a multi-year contract, it shall be determined in writing that:

(1) Estimated requirements cover the period of the contract and are reasonably firm and continuing; and

(2) Such a contract will serve the best interests of the state by encouraging effective competition or otherwise promoting economies in state procurement; and

(3) In the event of termination for any reason, the contract provides for cessation of services and/or surrender by the state of the commodities and repayment to the state of any accrued equity.

(c) Termination Due to Unavailability of Funds in Succeeding Years. Original terms of such multiyear contracts shall terminate on the last day of the current biennium, and any renewals by the state based upon continuing appropriation shall not exceed the next succeeding biennium. When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent year of a multi-year contract, the contract for such subsequent year shall be terminated and the contractor may be reimbursed for the reasonable value of any nonrecurring costs incurred but not amortized in the price of the commodities or services delivered under the contract. The cost of termination may be paid from:

(1) Appropriations currently available for performance of the contract;

(2) Appropriations currently available for procurement of similar commodities or services and not otherwise obligated; or

(3) Appropriations made specifically for the payment of such termination costs.

History. Acts 1979, No. 482, § 43; A.S.A. 1947, § 14-267; Acts 1995, No. 317, § 5; 1995, No. 340, § 5; 1995, No. 912, § 1.

R1-19-11-238 Leases of Tangible Personal Property (Equipment)

Provisions for leasing of equipment by state agencies are contained in ACA §19-11-238. Agencies should review lease contracts before signing and ensure that they are not committing their agencies to make lease payments beyond the end of a biennial period. The contract should include language to allow termination of the lease in the event sufficient appropriations or funding does not exist to fulfill the obligation. Contractual questions concerning leasing equipment should be directed to the Department of Finance and Administration-Office of State Procurement. Accounting questions should be directed to the Department of Finance and Administration-Office of Accounting.

PLEASE NOTE: ACA §22-8-102 covers leasing and renting of state vehicles by state agencies. Procedures governing the lease of motor vehicles are located on the DFA-OSP web site at: http://www.dfa.arkansas.gov/travel/Pages/groundTransporation.aspx Lease Type Determination

A lease agreement that meets one or more of the following four criteria is a capital lease:

The lease transfers ownership of the property to the lessee by the end of the lease term.

The lease contains a bargain purchase option. A bargain purchase option exists when the lessee can either buy the property at a minimal amount or renew the lease at very low rental payments relative to market rates.

The lease term is equal to 75% or more of the life of the leased asset. (For example, the lease term is six years and the estimated remaining useful life is eight years). The life of a used leased asset will be calculated using 75% of the suggested useful life in the State’s capital assets policy.

The present value of rental and other minimum lease payments equals or exceeds 90% of the fair value amount of the leased asset (for example, the present value of the rental and other minimum lease payments equals $9,000, and the fair value is $10,000). Instructions on how to calculate the present value of minimum lease payments follow the example below. The fair value is the amount at which the asset could have been purchased.

The last two criteria are not applicable when the beginning of the lease term falls within the

last 25% of the total estimated remaining useful life of the leased property.

The lease is accounted for as an operating lease if it does not meet the State’s capitalization threshold or does not meet the criteria of a capital lease.

Accounting for Leases

Accounting for an operating lease consists of recording rental payments as a normal operating expenditure/expense on a monthly basis. Each agency will be required to provide the amount of operating lease payments for the year, as well as future operating lease payments annually for inclusion in the Comprehensive Annual Financial Report (CAFR).

Capital Leases are Accounted for as Follows:

An Outline Agreement is created in the Arkansas Administrative Statewide Information System (AASIS) at the inception of the lease. Office of State Procurement personnel create the Outline Agreement for leases of $25,000 or more, and agency procurement personnel create the Outline Agreement for leases less than $25,000. The material numbers for principal (10119371) and interest (10119370) must be used in the outline agreement.

The agency personnel responsible for asset management creates an asset master record in AASIS using transaction AS01, "Create Asset Master Record," and selects the appropriate NBR (non-budget relevant) asset class. On the allocation tab, select the class code for Capital Lease 000000. This class code allows the State to collect capital lease information on a statewide level.

If the lease agreement transfers ownership of the asset to the lessee (criterion 1) or contains a bargain purchase option (criterion 2), the leased asset is depreciated over the recommended useful life of the class code the asset would have been assigned to if the asset had been purchased. If the lease does not transfer ownership or does not contain a bargain purchase option, then the asset is depreciated over the term of the lease.

To record the acquisition value of the asset, perform transaction ABSO, Miscellaneous Transactions. Enter the non-budget relevant asset class. The document date will be the capitalization date of the asset. The transaction type will be 100. Enter the quantity. Credit Other Financing Sources (6990004200). The text field can be used to record information about the lease. Use document type "aa." The leased asset should not be booked at more than its fair-market value; therefore, use the lower of (1) the present value of the minimum lease payments (excluding executory costs) or (2) the fair market value of the leased asset at the inception of the lease. The asset should be booked in the fund code from which the lease payments will be made.

To record the liability, use transaction FB50, G/L Acct Pstg: Single Screen Trans. into Fund 7006101, which has been set up to carry all long-term liabilities for the State with each agency having its own cost center within the fund. Use document type "sa." Debit Other Financing Sources (6990004200). Credit Non-Current Capital Leases (222005000).

Capital Lease Payments are Budgeted under Capital Outlay (Commitment Item 11)

For financial statement purposes, accounts 5120012100, CI11 Interest Expense Capital Lease, and 5120012200, CI11 Principal Expense Capital Lease, are used to record the capital lease payments. The lease payments are recorded as expenditures of the fund from which the lease payments are made. An amortization schedule must be prepared to distinguish the principal and interest portion of the lease payments.

User agencies must utilize the purchase order system for all lease payments. The purchase order can cover an entire year’s worth of payments so as to reserve budget and enter the remaining year’s payments faster. The year you enter the purchase order into the system is the year your budget will be encumbered.

A single lease may be for several pieces of equipment with the payments apportioned to more than one cost center. An amortization schedule showing the principal and interest portion applicable to each cost center may be required.

Purchase orders for capital lease payments should reference the outline agreement number, the "our reference" number and the "your reference" number. Use material numbers 10119371 and 10119370 to access the proper principal and interest expense accounts.

Year-End Reporting for the CAFR

As part of the year-end closing process, each agency will be required to provide the asset acquisition values and accumulated depreciation at year end as well as principal and interest amounts due in subsequent years for inclusion in the CAFR.

Year-end Closing Entries

Two closing entries must be made to properly classify capital lease payments for CAFR purposes.

The first entry is made in period "15" of Fund 7006101 in your agency’s cost center to reclassify the principal portion of capital lease payments

 

DR CR

2220005000 Non-current Capital Lease Payable

$ XX

 

5120001200 Accrued Debt Service Principal

  $ XX

(To reclassify capital lease principal payments to reduce the liability)

 

The second entry is made in period "15" of Fund 7006101 in your agency’s cost center to reclassify the current portion of the lease payable

 

DR CR

2220005000 Non-current Capital Lease Payable

$ XX

 

2114001000 Capital Lease Payable - Current

  $ XX

(To reclassify the current portion of the capital lease payable)

 

 

See Section R2-19-4-506 for further discussion of year-end closing procedures including year-end closing entries.

Definitions:

Executory Costs

Usually insurance, maintenance and taxes paid in connection with the leased property. If the lessor pays these "ownership-type costs," a portion of each lease payment that represents executory costs should be excluded in computing the present value of the minimum lease payments because it does not represent payment on or reduction of the obligation. If the portion of the minimum lease payments that represents executory costs is not determinable from the provisions of the lease, an estimate of such amount must be made. Many lease agreements, however, specify that executory costs be paid to the appropriate third parties directly by the lessee; in these cases, the rental payment can be used without adjustment in the present value computation.

Lessee’s Incremental Borrowing Rate

The rate of interest that the lessee would have had to pay at the inception of the lease to borrow the funds, or similar terms, to purchase the leased property. It is the policy of the State of Arkansas to use the prime rate for an agency’s incremental borrowing rate.

Summarized Capital Lease Procedures

Capital Lease Determination

 Apply the four capital lease criteria.

 If any one of the four capital lease criterion is met, it is a capital lease; otherwise, it is an operating lease.

Recording the Capital Lease

Transaction AS01 – Creates asset master record.

Transaction ABSO – Record the asset in the fund from which the lease payments will be made

Transaction FB50 ENTER GL ACCOUNT DOCUMENT - Record the liability in Fund 7006101 in your agency’s cost center

Recording the Lease Payments

Create an amortization schedule to allocate principal and interest portions of each lease payment.

Create a purchase order.

PLEASE NOTE: The same purchase order can be used for a year’s worth of lease payments.

Year-End Reporting

Provide asset acquisition values and accumulated depreciation at year end as well as principal and interest amounts due in subsequent years for inclusion in the CAFR.

Year-End Closing Entries

Reclassify principal expense as a reduction of the liability in Period "15" in Fund 7006101 in your agency’s cost center.

Reclassify the current portion of the liability from the non-current portion in Period "15" in Fund 7006101 in your agency’s cost center.

 19-11-243. Proceeds from surplus commodities.

 The State Procurement Director shall promulgate regulations for the allocation of proceeds from the sale, lease, or disposal of surplus commodities, to the extent practicable, to the using agency which had possession of the commodity.

History. Acts 1979, No. 482, § 56; A.S.A. 1947, § 14-275.2; 2001, No. 1237, § 33 

 R1-19-11-243 Marketing and Redistribution

PLEASE NOTE: Also see ACA§ 19-4-1503.

Purpose

The Marketing and Redistribution Section (M&R) is a section of the Department of Finance and Administration-Office of State Procurement (DFA-OSP). The Section is responsible for the proper disposal and sale of equipment, property and other tangibles that are determined to be surplus to the needs of the various state agencies. The Department of Finance and Administration-Office of Accounting (DFA-OA) is responsible for transfer of equipment, property and other tangibles where no moneys are involved (such as inter-agency transfers). Equipment is offered for sale by the competitive bid method on site as well as an on-line auction site at www.arstatesurplus.com.

Authority (ACA 19-11-242)

The State Procurement Director shall promulgate regulations governing: The sale, lease or disposal of surplus equipment by public auction, competitive sealed bidding or other appropriate method designated by regulation, and no employee of DFA, or member of their immediate family shall be entitled to purchase any such equipment and transfer of excess equipment within the State.

Regulations

The State Procurement Director is authorized by ACA 19-11-243 to adopt regulations regarding the allocation of proceeds from the sale, lease, or disposal of property and other tangibles. The regulations may be found on the DFA-OSP web site at:  http://www.dfa.arkansas.gov/offices/procurement/Pages/default.aspx

 

Proceeds From Sale

Proceeds from the sale, transfer or rental of property by the State Procurement Director (M&R) shall be accounted for as follows:

The purchasers, transferees and lessees of property available shall transmit to the OSP the agreed sale price, service charge or rental fee.

The OSP shall deposit the full amount of proceeds received in the State Treasury in the manner as provided by law.

Proceeds from the sale or transfer of property deposited in the State Treasury shall be classified as non-revenue receipts and be credited to the Property Sale Holding Fund therein created on the books of the Treasurer of State as a trust fund. (ACA§25-8-106) 

Funds deposited in the Property Sale Holding Fund may be expended only by the selling or transferring agency under procedures established by the Chief Fiscal Officer of the State and appropriations provided by the General Assembly. (ACA 19-11-255)

Funds deposited in the Property Sale Holding Fund from the sale of property purchased from agency cash funds may be refunded to the agency cash fund from which the original expenditure was made by the issuance of a warrant under procedures established by the Chief Fiscal Officer of the State and the Auditor of the State to be payable from appropriations provided by the General Assembly for disposition of the proceeds. (ACA 25-8-106)

INSURANCE PROCEEDS

Personal Property Other Than Vehicles

The proceeds received from an insurance policy for loss of personal property due to fire, storm or other causes (excluding stolen property) owned by an agency must be processed through M&R. This is done through the use of a Certificate of Property Disposal (CPD). The agency must keep a copy of the completed CPD for an audit trail.

Pursuant to ACA 19-11-243 and R1:19-11-243 (B), a standard fee of 25% will be assessed for administrative, property and record maintenance unless other arrangements are approved by the Marketing and Redistribution Manager.

When insurance proceeds are received for the reimbursement of a loss of personal property, the proceeds should be deposited into the Treasury using the agency’s normal process for recording cash receipts. The proceeds should be recorded as Insurance Settlement/Restitution in GL 6092000000. If the asset is to be replaced, the agency should request an increase in appropriation from DFA-OA-FM for the purchase of the replacement.

If in the current year an agency has been reimbursed for the loss and the property has been replaced, the increase in appropriation is accomplished with a refund to expenditure by the DFA-OA. The agency must provide proof of the deposit and a copy of the invoice that replaced the property in order to have the appropriation restored. If the agency is reimbursed for a prior year loss, the agency should request an increase in appropriation from DFA-OA-FM. The agency must provide proof of the deposit and a copy of the invoice that replaced the property in order to have the appropriation restored.

Refer to P1-19-4-2004 for sample journal entries to record insurance proceeds/restitution.

Refer to R2-19-7-2004 for guidance related to lost/stolen property.

Vehicles

The insurance claim and moneys must be processed through M&R when damage occurs that results in a total loss of the vehicle. Once an agency loses a vehicle they cannot replace it until they receive the insurance proceeds. The moneys cannot be given to the agency until M&R has deposited the insurance proceeds into the MMV fund. This is done monthly when M&R processes the "Letters of Transmittal." M&R sends a report to DFA-OA, requesting funds and appropriation to be transferred. A "special" letter of transmittal for insurance proceeds on totaled vehicles only can be done by M&R. Doing a "special" letter of transmittal for totaled vehicles helps the agency replace the vehicle quicker.

PLEASE NOTE: In those cases where proceeds are received on the loss of a vehicle purchased with "agency" funds, the funds are first deposited to the MMV Fund, and then a refund to the paying agency (that purchased the vehicle) would be reimbursed by the MMV Fund.

Real Property

When insurance proceeds are received for the reimbursement of a loss of real property (for example, buildings or infrastructure), the proceeds should be deposited into the Treasury using the agency’s normal process for recording cash receipts. The proceeds should be recorded as Insurance Settlement/Restitution in GL 6092000000. Prior to retiring the related asset the agency should contact M&R to obtain a Certificate of Property Disposal. When a loss has occurred on any real property, the agency must provide the details about the loss to the agency’s assigned CAFR liaison. The liaison will then assist in determining the effect on the state-wide financial statements.

Allocation of Proceeds From Sale or Disposal of Surplus Equipment

Using agency – The allocation of proceeds from the sale, lease or disposal of surplus equipment, less appropriate fees, will be made and deposited monthly to the using agency which had possession of the equipment.

Fee schedule – The OSP will develop a fee schedule to defray the costs of the equipment management program. The fee schedule will set forth various charges for services rendered.

Proceeds from the sale of property may be used by the using agency only to purchase items from the Sub-classifications of M&O, Commitment items 02 and 11 (Operating Expense and Capital Outlay). Commitment items 09 Conference Fees and Travel, 10 Professional Fees and Services and 12 Data Processing may not be paid for with M&R Proceeds.

Disbursement of Revenues

Funds generated from the sale of agency surplus computer and electronic equipment to state employees, public schools or by other sales shall be allocated as follows:

If the sale of surplus computer or electronic equipment is made within the agency- Sixty percent (60%) of the proceeds shall be returned to the owning agency; Fifteen percent (15%) of the proceeds shall be deposited with M&R; Twenty-five (25%) of the proceeds shall be deposited in the Computer and Electronic Recycling Fund established by ACA 25-34-108. 

If the sale of surplus computer or electronic equipment is outside the agency and conducted by M&R- Fifty percent (50%) of the proceeds shall be returned to the owning agency; Twenty-five percent (25%) of the proceeds shall be deposited with M&R; Twenty-five percent (25%) of the proceeds shall be deposited in the Computer and Electronic Recycling Fund established by ACA 25-34-108.

Procedure For Revenue Disbursement

Agencies that establish a policy for selling surplus computer and electronic equipment to either their employees or to Arkansas Public Schools will use the following procedure for revenue disbursement:

The agency will create a customer receipt for the sales price and calculate sales tax. Record the receipt in the cash journal as a customer payment.

Request a fund transfer through DFA-OA from the receipting agency’s fund to: M&R, cost center 383333, Fund MPH0000 – 15 % of the sales price. Arkansas Department of Environmental Quality, cost center 451346, Fund MER0100 – 25% of the sales price.

The sales tax will be paid when DFA-OA does their (owning agency’s) monthly billing for Sales & Use Tax.

Sales Made Through M&R on Behalf of the Agency

M&R will create a customer receipt to record sales price and sales tax.

Record the receipt as a customer payment in the cash journal. Request fund transfer through DFA-OA from: M&R, cost center 383333, Fund MPH0000 to the agency’s fund and cost center – 50% of the sales price. Arkansas Department of Environmental Quality, cost center 451346, Fund MER0100 – 25% of the sales price.

The sales tax due will be included in the DFA monthly report of Sales & Use Tax. To record all revenue from sale of surplus property except for equipment sold through M&R on behalf of the agencies, the agency will debit their cash account and credit account number 4048003000, Sale of Surplus Property, in their proper fund using their cost center.

An Agency Purchases an Item at M&R

M&R records the sale in AASIS and issues an invoice. The invoice is sent to the agency’s accounts payable section and is paid like any other vendor invoice. The general ledger code used will depend on what item is purchased, ex. office supplies, equipment, etc.

An Agency Sends Items to M&R for Sale

M&R will keep records of what items belongs to each agency. When an item is sold, M&R records the sales and notes the original state agency.

At the end of the month, M&R totals all sales by each state agency, deducts M&R’s fees and arrives at the amount to be returned to the agency. Two lists are complied, one for Treasury Funds and the other for cash funds and emailed to DFA for processing. The Treasury fund  list is processed by DFA-OA with funds and appropriation being returned to the agencies. The cash fund list is processed by the DFA-Office of Administrative Services with warrants being returned to the agencies.

M&R prepares a memo stating the total amount of their monthly fees, and this amount is transferred from their holding fund to their operating fund.

Surplus Disposal Form (SDF)

M&R requires a "Surplus Disposal" Form (SDF) to be completed to schedule the pickup and delivery of state surplus items. This is a web-based form that is accessible by all state agencies and institutions of higher education at http://www.arkansas.gov/eforms/index.php.

After being completed on-line by the agency, the SDF is submitted electronically to M&R. The SDF will be reviewed, and the agency will be notified either by e-mail or telephone of the date and time scheduled for delivery or pickup..

Two copies of the SDF form must accompany the surplus item. One copy will be signed by a representative of M&R and kept on file by the agency, and one will be kept on file by M&R. This signed document verifies that M&R has made property pick up.

Procedure Description

This web-based form allows a state agency to create a list of items to be disposed of per M&R instructions. Using this form, an agency may request one of the following actions: delivery, pickup or request a move. Upon completion, this form automatically notifies M&R of the agency's request. Each agency person accessing and completing the SDF must have prior authorization through M&R.

Upon receipt of the completed SDF, the agency asset manager must complete transaction ABAVN (Scrapping) to delete the asset from the agency’s fixed asset inventory. Transaction ABAVN must be done in the same month the SDF is received from M&R.

Transaction AS02, "Change Asset Master Record," must be completed to change the status of the asset from "on hand" to "transferred to M&R".

The above-mentioned transactions will only be completed if the status of the asset on the completed SDF is marked "REC" for received. Assets marked with "DNR," did not receive, should not be deleted from the agency’s inventory. Assets must be removed within the month the SDF is received. The agency must keep a copy of the completed SDF for an audit trail.