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STATE /LOCAL FINANCE OFFICER REQUIREMENT. Kentucky County Treasurer’s Fundamentals Course. Fixed Asset Documentation and Procedures. April 23, 2015. http://www.kactfo.com. Slide 1 of 12. Kentucky County Treasurer’s Fundamentals Course. Fixed Asset Documentation and Procedures.
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STATE /LOCAL FINANCE OFFICER REQUIREMENT Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures April 23, 2015 http://www.kactfo.com Slide 1 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Adequate fixed asset records provide the information necessary to: • Report the cost or other basis of valuation April 23, 2015 http://www.kactfo.com Slide 2 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Adequate fixed asset records provide the information necessary to: • Determine the accuracy of insurance coverage April 23, 2015 http://www.kactfo.com Slide 3 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Adequate fixed asset records provide the information necessary to: • Maintain control of county property April 23, 2015 http://www.kactfo.com Slide 4 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Adequate fixed asset records provide the information necessary to: • Long range planning for property replacement April 23, 2015 http://www.kactfo.com Slide 5 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Capitalization Policy • The policy is to capitalize assets when the useful life is greater than one (1) year and the acquisition cost meets the capitalization threshold. • Purchased or constructed capital assets and infrastructure are reported at acquisition or construction cost or estimated historical cost. April 23, 2015 http://www.kactfo.com Slide 6 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Capitalization Policy • Capital assets and infrastructure are capitalized and depreciated as outline in the capitalization threshold table for the Fiscal Court. • Establish The Capital Assets Threshold Table which should include; Type of Asset (Land, Buildings, Construction in Progress, Machinery/Equip, etc.) a dollar amount for Track and Inventory, and a threshold amount to Capitalize and Depreciate. April 23, 2015 http://www.kactfo.com Slide 7 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Capitalization Policy • An asset will be depreciated on the straight-line basis over its estimated useful life. • Establish The Capital Assets Useful Life Table which should include; Type of Asset and a Useful Life (expressed in years). April 23, 2015 http://www.kactfo.com Slide 8 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Capitalization Policy • Establish the Capital Assets Salvage Table which should include; Type of Asset and a Salvage Application (expressed in % or No Salvage) • Establish a Method to Determine Historical Costs for Buildings and Infrastructure. April 23, 2015 http://www.kactfo.com Slide 9 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Maintenance of records for general fixed assets which fall into any of the following three categories is a requirement of the Uniform System of Accounts for Kentucky counties. • Real Estate April 23, 2015 http://www.kactfo.com Slide 10 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Maintenance of records for general fixed assets which fall into any of the following three categories is a requirement of the Uniform System of Accounts for Kentucky counties. • Motor vehicles(including road equipment) April 23, 2015 http://www.kactfo.com Slide 11 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • Fixed assets are those items purchased that have a useful life of greater than one year and a significant value as determined by the Fiscal Court. • Examples include vehicles, buildings, land, equipment, furnishings, and other items. • Maintenance of records for general fixed assets which fall into any of the following three categories is a requirement of the Uniform System of Accounts for Kentucky counties. • Valuation in excess of the amount determined by the Fiscal Court April 23, 2015 http://www.kactfo.com Slide 12 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • A physical inventory of property and equipment will have to be made to establish the records. The Fiscal Court designates the individual responsible for creating and maintaining inventory records. • Procedures: Record • The fixed asset record must identify the asset, its cost or other basis of valuation, date acquired, fund charged, location, and other information. April 23, 2015 http://www.kactfo.com Slide 13 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • A physical inventory of property and equipment will have to be made to establish the records. The Fiscal Court designates the individual responsible for creating and maintaining inventory records. • Procedures: Inventory • An annual inventory of fixed assets must be conducted and compared to the fixed assets records. A master inventory list should be prepared. April 23, 2015 http://www.kactfo.com Slide 14 of 12
Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures • A physical inventory of property and equipment will have to be made to establish the records. The Fiscal Court designates the individual responsible for creating and maintaining inventory records. • Procedures: Updating • A fixed asset record should be prepared for each acquisition. The total of the capital outlay accounts for the year should be compared to the total general fixed asset additions. The deletions to general fixed assets (disposal information) should be documented. April 23, 2015 http://www.kactfo.com Slide 15 of 12
This is to certify that, on this day, Thursday, April 23, 2015 FIRST LAST Has successfully completed the Kentucky County Treasurer’s Fundamentals Course Fixed Asset Documentation and Procedures Tammy Robertson K.A.C.T.F.O. President http://www.kactfo.com