Inventory (Fixed Assets)

INVENTORY (FIXED ASSETS)

Dated 9/1/06

Policy: The Property Manager is responsible for maintaining the Community’s fixed assets. A complete and updated “Furnishing and Equipment Inventory” is to be kept on site detailing fixed assets belonging to the company.

Property Inventory K1.2

When to Complete the Inventory K1.7

Adding/Deleting Property from the Inventory K1.9

INVENTORY (FIXED ASSETS)

Property Inventory

Policy: To maintain and regularly update a complete inventory of the property’s fixed assets.

Effective date: November 1, 2005

Procedure: The inventory is to include fixed asset items belonging to the Company. Fixed assets are those valuable material objects that are stable fixtures of the Community i.e. computers, office and pool furniture, maintenance shop equipment etc.

Not to be included are consumable supplies, i.e. those used up during the normal course of daily business (office or cleaning supplies), or inexpensive office tools (staplers, scissors etc.).

To assist you in determining what should be on inventory, further examples follow. If there are items you are still not sure about ask advice of your Regional Manager.

Fax Machines / Copiers/Computer Waste Baskets

Clubhouse Audio & Visual Equipment Company pictures/plaques

Model / Clubhouse Artwork & Diskette Boxes & Software

Accessories & Furniture Breakroom contents

Large silk plants & arrangements Pot Plants

Telephones (if owned) Notice Boards

Key Machines Wall Clocks

Pool Cleaning Equipment Office Supplies

Vacuum Pumps

Carpet Cleaners

Sewer Machines

The current format for this inventory is split into categories; it lists some standard assets and then allows room for additional items (example follows). If it is necessary for a Community to add other categories, it is recommended that the same format be used.

It is in our best interest to include as much information on each item as possible, i.e. serial & model numbers, date purchased, original price, condition etc. When reviews are done, condition should be updated.

FURNISHING AND EQUIPMENT INVENTORY

COMMUNITY: DATE:

I. OFFICE

PURCHASE

QUANTITY DATE(S) SERIAL OR CONTROL NO.

Desk

Desk Chair

Adding Machine

Typewriter

Typewriter Table

Calculator

Filing Cabinet

Computer

Printer

Supply Cabinet

Clock

Lamps

II. FURNITURE

PURCHASE

QUANTITY DATE(S) SERIAL OR CONTROL NO.

Sofa

Chair

End Table

Coffee Table

Credenza

Rugs

Lamp (Table)

Lamp (Floor)

Television

VCR

Stereo

Piano

III. MODEL

PURCHASE

QUANTITY DATE(S) SERIAL OR CONTROL NO.

Sofa

Chair

End Table

Coffee Table

Credenza

Rugs

Lamp (Table)

Lamp (Floor)

Television

VCR

Stereo

Piano

Bed

Nightstand

Dresser

Drapes

Dining Table

IV. MISCELLANEOUS OFFICE

PURCHASE

QUANTITY DATE(S) SERIAL OR CONTROL NO.

Conditioner

Refrigerator

Coffee Maker

Key Cabinet

Vacuum Cleaner

V. AIR CONDITIONING

PURCHASE

QUANTITY DATE(S) SERIAL OR CONTROL NO.

Vacuum Pump

Torch Set

Gauge Set

Halide Leak Detector

Electronic Leak Detector

Flaring Tool

Freon Recovery System

Freon Recycle System

Compressor ( ton)

Evaporator Coil ( ton)

Condenser Unit ( ton)

VI. POOL EQUIPMENT

PURCHASE

QUANTITY DATE(S) SERIAL OR CONTROL NO.

Umbrella Tables

Umbrellas

Chairs for Tables

Picnic Tables

Barbecue Grills

Lounge Chairs

Trash Receptacles

Chairs

Safety Equipment

VII. LAWN & LANDSCAPING

PURCHASE

QUANTITY DATE(S) SERIAL OR CONTROL NO.

Lawn Trimmer

Hedge Trimmer

Walk Edger

Pruning Shears

Grass Clippers

Scythe

Weed Cycles

Pick

Ground Cycle

Flat Shovel

Axe

Pitch Fork

Garden Rake

Digger Rake

Leaf Rake

Sledge Hammer

Post Hole Digger

Tamper (size)

Digging Iron

Lawn Sprinkler

Lawn Soaker

Hose Nozzle

Garden Hose

Push Reel Mower

Wheel Barrow

Seeder

Sprayer

INVENTORY (FIXED ASSETS)

When to Complete the Inventory

Policy: To outline the various times fixed asset inventory should be taken

Effective date: November 1, 2005

Procedure: There are four occasions when inventory completion is required:

· Initial Takeover of a Community.

· Change of Property Manager.

· Annual Review.

· Suspected or Confirmed Theft or Vandalism.

Within the first 30 days of taking over a Community, a complete fixed assets inventory is to be made.

Ideally, an inventory review should occur with both outgoing Property Manager and incoming Property Manager. Any discrepancies should be forwarded to the Regional Manager so that they can be resolved immediately. If a "handover" review cannot be achieved, the Property Manager assuming responsibility should complete an inventory check within 14 days of arrival. Any discrepancies should be forwarded to the Regional Manager in writing.

The Property Manager is to make a full review of the Community Inventory within 12 months of the last review. They are to make any necessary comments and then sign and date that they carried out the "Annual Review".

Whenever there is a suspected or confirmed incident of theft or vandalism relating to fixed assets, the Property Manager is to complete a review of the relevant parts of the inventory, make the necessary comments and sign and date that an extra review was carried out. Information contained in the inventory can be helpful in subsequent investigations and insurance cases.

INVENTORY (FIXED ASSETS)

Adding/Deleting Property from the Inventory

Policy: Consistently update the inventory log for any additions or deletions.

Effective date: November 1, 2005

Procedure: As items are purchased/acquired or removed from the Community, the Property Manager is to update the inventory.

ADDING ITEMS

At the time of purchase or acquisition, an entry is to be made at the appropriate part of the inventory, giving all relevant information.

DELETING ITEMS

During normal operation, items on this inventory may be discarded because:

§ they are replaced with new

§ they are beyond reasonable repair

§ they become redundant

§ of theft or vandalism.

At the time the item is discarded, make the appropriate change in the inventory. Where there are multiple numbers of the discarded item, reduce the number held and note how many were discarded, why and the date it occurred. When the item is discarded in entirety, draw a line through the item and again note the reason it was discarded and the date.

All items deleted from the inventory are to be initialed by the Property Manager and the Regional Manager upon their next visit.

When an inventory schedule has been completed or updated a copy should be sent to your financial analyst at corporate.

9/1/06 Mgmt K1.1

Inventory (Fixed Assets)