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Program A: Louisiana Property Assistance

Program Authorization: R.S. 39:322-328, 330-332, 361, 361-364

PROGRAM DESCRIPTION

The mission of the Louisiana Property Assistance Program (LPAA) is to provide for the accountability of the state's moveable property inventory through the administration of an automated asset management system; ensure that all state agencies comply with the State Property and Fleet Management Regulations; collect the state's surplus property and redistribute/sell that property to other state agencies, political subdivisions, eligible charitable, religious, and educational organizations, and the general public by means of interagency transfer, direct sales, sealed bid sales, and public auctions.

The goal of the Louisiana Property Assistance Program is to provide dramatic savings of the cost of purchasing new equipment to state agencies and other political subdivisions by redistributing and reselling state surplus property.

The responsibilities of the LPAA include: (a) reviewing certifications of annual physical inventories; (b) auditing all state agencies for compliance with state property and fleet regulations; (c) collecting the state's surplus moveable property and redistributing it to state agencies, eligible organizations, and individuals through public auctions; and (d) tracking statewide vehicle usage, approving purchase of replacement vehicles, and administering a statewide vehicle maintenance contract.

OBJECTIVES AND PERFORMANCE INDICATORS

1. In FY 1998-99, the Louisiana Property Assistance Program will redistribute state surplus property to state agencies at a savings to the agencies of up to 90% of the original cost.

2. In FY 1998-99, the Louisiana Property Assistance Program will redistribute state surplus property to political subdivisions and qualified educational, religious and charitable organizations at a savings of up to 80% of the original cost.

3. In FY 1998-99, the Louisiana Property Assistance Program will redistribute state surplus property that is found not usable by state agencies, political subdivisions or third preference buyers to the general public through public auctions, recovering at least 6% of the original cost.

4. In FY 1998-99, the Louisiana Property Assistance Program will return at least 28% of surplus property sales receipts to state agencies.

5. In FY 1998-99, the Louisiana Property Assistance Program will provide low-cost lease vehicles for state programs that are prohibited from purchasing vehicles, resulting in a savings to the state as compared to the commercial lease rate.

6. In FY 1998-99, the Louisiana Property Assistance Program will assist agencies in maintaining accurate inventory control of the state's moveable property through the administration of the automated asset management system, review the results of annual physical inventories, and provide training for property managers and fleet coordinators through compliance audits, seminars and individual training sessions.

7. In FY 1998-99, the Louisiana Property Assistance Program will review all state fleet vehicle purchases for compliance with state fleet regulations.

RESOURCE ALLOCATION FOR THE PROGRAM

SOURCE OF FUNDING

This program is funded from self-generated revenue derived from commissions earned from the sale of surplus property to other state agencies, political subdivisions and charitable organizations.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

 

DESCRIPTION

 

 

 

 

 

$0

$3,148,677

44

 

ACT 1430 FISCAL YEAR 1997-1998

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$0

$3,148,677

44

 

EXISTING OPERATING BUDGET - December 10, 1997

 

 

 

 

 

$0

($13,335)

0

 

Non-Recurring Adjustment(s) for rentals-third party through the Louisiana Equipment and Acquisition Fund financing program

$0

$91,358

0

 

Equipment/Major Repairs Adjustment(s)

$0

$20,700

0

 

Annualization of 1997 -'98 Merit Pay Adjustment(s)

$0

$20,640

0

 

1998 -'99 Merit Pay Adjustment(s)

$0

($5,659)

0

 

Retirement Rate Adjustment(s)

$0

$231

0

 

Adjustment(s) for Civil Service, Training and Other Statewide Interagency Transfer Activities

$0

($49,098)

0

 

Reductions in various Expenditure Categories; Including Reductions to fully fund Salaries

$0

$5,770

0

 

Risk Management Adjustment(s)

$0

$220

0

 

UPS Fees

$0

$9,309

0

 

Travel expenses for statewide transportation of surplus property, training of audit staff, and training for staff to learn and keep informed of federally mandated Energy Policy Act and Clean Air requirements relating to fleet management

$0

$166,412

0

 

Replacement of automobiles through lease purchase - replacement of twelve (12) vehicles leased to Department of Agriculture and Forestry, State Police, Governor's Office, and Lieutenant Governor's Office with leases ending in Fiscal Year 1998-1999. Louisiana Property Assistance Agency (L.P.A.A.) leases vehicles to agencies that are prohibited from buying vehicles for certain Federally funded programs. The vehicles are leased at a cost that includes no profit margin. L.P.A.A. generates revenue from these transactions by selling the vehicles for residual value after the lease period. L.P.A.A. must maintain cost efficient and recent model lease vehicles to make this service attractive to leasing agencies.

 

 

 

 

 

$0

$3,395,225

44

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

$246,548

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 107.8% of the existing operating budget. It represents 93.9% of the total request ($3,617,706) for this program. The increased funding over existing operating budget is primarily due to providing for vehicle replacements ($166,412) for governmental entities participating in this agency's lease purchase program. Additional funding for replacement and new equipment totaling $91,358 has been provided. All applicable statewide policy adjustments have been applied to this program. The major differences between total request and total recommended are due to certain statewide policy adjustments - not funding inflation costs ($36,526), maintaining a five percent (5%) attrition rate ($55,510), and reducing Other Charges category by $43,612 to fully fund salaries and associated related benefits. The recommended funding level should enable this agency to continue to provide cost effective services in the areas of property procurement, liquidation, and replacement; inventory maintenance; and fleet management to its customer agencies.

PROFESSIONAL SERVICES

$50,000

 

Other Professional Services for auctioneer's fees for sale of surplus property (3.18% of gross auction sales)

 

 

 

$50,000

 

TOTAL PROFESSIONAL SERVICES

OTHER CHARGES

$1,008,283

 

Miscellaneous charges - represents revenues to state agencies and local governments disposing of surplus property purchased with federal or non-general fund monies. This money is shown in L.P.A.A. budget for accounting purposes since L.P.A.A. disposes of the property for them.

 

 

 

$1,008,283

 

TOTAL OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS

$120,000

 

Office equipment and furniture - Louisiana Property Assistance Agency is consolidating its warehouse and office spaces into one central location. The agency will use modular office equipment and create work areas for public auctions.

$69,000

 

Three (3) replacement forklift trucks

$25,000

 

Barcoding machine for surplus property to expedite receiving, sales, and inventory control

$38,000

 

Two (2) replacement pool vehicles used by audit staff for statewide travel

 

 

 

$252,000

 

TOTAL ACQUISITIONS AND MAJOR REPAIRS


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