Financial Reporting Section: 5 Revision Date: 5/22/2018 Fixed Assets Procedural Bulletin # 4 Purpose To establish guidelines for maintaining an inventory of fixed assets and disposing of such assets. Policy Statement Each grant funded entity shall establish and maintain an inventory system for all fixed assets, which includes: Equipment with an original cost or market value of $500.00 or more Weapons Land and building improvements Buildings The list may contain any additional items the entity feels is important to track Each entity shall establish, maintain, and periodically review records to ensure the proper accounting of all assets. An internal audit of all fixed assets should be done at minimum bi-annually by the entity. Definitions FIXED ASSET: Any item falling within either of the following categories: Any equipment, land, building, or land and building improvements purchased or obtained in any manner for Community Correction’s use that has an original cost of Five Hundred Dollars ($500.00) or more (excluding building construction that is in progress) and has an estimated life of more than one (1) year. Weapons (tracked regardless of cost). *Note: The funding source does not determine if an item is a fixed asset. The funding source could be grant money, project income money, or items donated to the grant funded entity. EQUIPMENT: Any item that was purchased by the grant funded entity through any funding method, items transferred from another entity, or items donated from the public for the entity’s use. AUDIT: An official examination or inspection used to verify the accuracy of the entity’s Fixed Asset Inventory. PHYSICAL COUNT: The process of counting the actual amount of assets on hand you can physically see and/or touch.
Financial Reporting Section: 5 Revision Date: 5/22/2018 Fixed Assets Procedural Bulletin # 4 Purpose To establish guidelines for maintaining an inventory of fixed assets and disposing of such assets. Policy Statement Each grant funded entity shall establish and maintain an inventory system for all fixed assets, which includes: Equipment with an original cost or market value of $500.00 or more Weapons Land and building improvements Buildings The list may contain any additional items the entity feels is important to track Each entity shall establish, maintain, and periodically review records to ensure the proper accounting of all assets. An internal audit of all fixed assets should be done at minimum bi-annually by the entity. Definitions FIXED ASSET: Any item falling within either of the following categories: Any equipment, land, building, or land and building improvements purchased or obtained in any manner for Community Correction’s use that has an original cost of Five Hundred Dollars ($500.00) or more (excluding building construction that is in progress) and has an estimated life of more than one (1) year. Weapons (tracked regardless of cost). *Note: The funding source does not determine if an item is a fixed asset. The funding source could be grant money, project income money, or items donated to the grant funded entity. EQUIPMENT: Any item that was purchased by the grant funded entity through any funding method, items transferred from another entity, or items donated from the public for the entity’s use. AUDIT: An official examination or inspection used to verify the accuracy of the entity’s Fixed Asset Inventory. PHYSICAL COUNT: The process of counting the actual amount of assets on hand you can physically see and/or touch.
Section%205-4%20Fixed%20Assets.docx