22. WARRANTIES AND MAINTENANCE CONTRACTS
In order to insure economy of operation it is important to have controls over the purchasing of new equipment and the proper maintenance of existing equipment to provide for their maximum useful live. This can only be accomplished through the application of good housekeeping rules such as turning off equipment when not in use, using covers, and providing for regular inspections and service through an annual service contract or service call.
Personnel responsible for acceptance, operation, or maintenance of equipment must make maximum use of the manufacturer's warranty. Warranty coverage is provided for most types of equipment. Specific information on warranty provisions and the manufacturer's responsibility is usually furnished with equipment. Warranty provisions are highly variable and should be read with care.
Supervisors must maintain accurate records of all equipment purchased in order to assist the Business Office in keeping an accurate inventory of all fixed assets, and to assist district auditors in locating equipment listed in the inventory. This information should include serial numbers, fixed asset tag numbers, model numbers, date of purchase, period of warranty, and items or services included in the warranty. Serial numbers, model numbers, and inventory number assignments must be maintained for any equipment purchased through Special Revenue funding. Controls must be established to prevent payment for repairs of services to any equipment during period when warranties are in effect.
Maintenance or service contracts should be negotiated when it is considered economically feasible. Contracts should never be negotiated on equipment due for replacement. Maintaining records of service on equipment may assist in the determining that equipment should be retired or replaced.