Policy: 215
Fixed Asset System
Procedure:
The agency shall maintain a ledger of all capitalized fixed assets to include date of purchase, purchase price, location of asset, depreciation expense, life of asset and source of funds. The agency will also maintain a ledger for minor office equipment purchases.
The fixed asset system shall be in accordance with generally accepted accounting principles (GAAP).
Equipment or furniture that costs more than $1,500 will be depreciated as a capital expense. Equipment/furniture that costs $1,500 or less will be considered minor equipment and will not be depreciated.
All capitalized equipment/furniture at the time of purchase will be flagged by the Financial Specialist in charge of Accounts Payable. A copy of the bill of sale will be sent to maintenance. The item will then be assigned an inventory number by maintenance and tagged appropriately. This number and item information will be entered on the inventory ledger and will be used to trace equipment as movement occurs. When equipment is discarded or sold it will be reported to Maintenance by the appropriate area. The item will then be removed from the ledger.
In addition, a separate ledger will be kept for computers and office equipment that cost $1,500 or less. These items will be tagged using the same procedure as described above.
Equipment/furniture targeted for sale will be first offered to employees of the agency at a price set by finance. If the set price is not met, the equipment will then be offered to the general public through the thrift shop operation.
The sale of vehicles will be handled by auctioning off to the general public by sealed bid. Vehicles targeted for sale will be advertised in the Florence Morning News and local newspapers to cover the entire Pee Dee Area. Alternatively the agency may use auction web sites on the internet designed for this purpose. Employees of the agency, except for maintenance and finance are eligible to submit bids. All sales are final and vehicles are sold "as is". Any amendments to the bid process must be approved by the Executive Director with notification given to the general public and staff. All documents related to the sale of vehicles will be kept on file in Maintenance for seven (7) years, to include copies of ads, bids, bill of sale, title documents and any other correspondence related to the sale.
The equipment/furniture capitalized ledger will be updated at least quarterly by maintenance/finance. The minor equipment ledger that lists computers, printers, etc will also be updated at least quarterly by maintenance/finance.