To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Capital Asset Retirements and Removal from County Inventory
☒Recommendation of the County Administrator ☒ Recommendation of Board Committee
RECOMMENDATIONS:
AUTHORIZE the removal from accountability and the retroactive retirement of hospital capital assets totaling $6,810,499, which are no longer in service due to one or more of the following: the assets are obsolete; have reached the end of their useful life; are nonfunctional or not economically repairable; and/or have been replaced through approved capital projects, as recommended by Hospital Administration and approved by the Medical Services Joint Conference Committee on May 26, 2026.
FISCAL IMPACT:
The 333 assets proposed for retirement have a total original value of $6,810,499, with a remaining net book value of $214,749 after $6,595,750 in accumulated depreciation. Retiring these assets will streamline inventory management and improve the accuracy of the County’s equipment records. This action has no cash impact; any remaining net book value will be written off in the Hospital Enterprise Fund in accordance with applicable accounting standards.
BACKGROUND:
The Hospital maintains capital equipment to support patient care and regulatory compliance. A recent reconciliation identified assets that were disposed of in prior periods but remain on record. As these assets are no longer in use and recovery is not practical, Hospital Administration recommends their removal from accountability and the County’s equipment report. A detailed listing of the assets is provided in the attached report.
CONSEQUENCE OF NEGATIVE ACTION:
If the Board does not approve the discharge, disposed assets will remain on the County’s equipment report, overstating capital assets and compromising the accuracy of financial reporting. This will also increase audit risk due to misalignment between physical inventory and accounting records.