Capital (Fixed) Asset Management Policies and Procedures

Contents

• Introduction
• Reference Sources
• Policies and Procedures

Introduction

The State Auditor's Office has specific requirements for local governments that follow GAAP (Generally Accepted Accounting Principles) in Part 3, Chapter 7 of the BARS Manual. In addition, that section of the BARS Manual points out that there are federal requirements for all governments that receive federal assistance. In addition, counties must conduct an inventory of all capitalized assets annually. RCW 36.32.210

Entities that account on a cash basis do not have to book their assets in their general ledger, so there is no information in the "Cash Basis" BARS Manual for them. However, they have a responsibility to tag and track their assets so they know assets what they own and where they are located and whether they have enough insurance. Parts of chapter 7 of the GAAP BARS Manual and the policies below can provide guidance to them also.

Reference Sources

• Accounting for Capital Assets, by Stephen J. Gauthier. (Government Finance Officers Association: Chicago, 2008). Library Loan Request Form
• Capital Asset Management For Cash Basis Governments, () (2011) C. Phillip Parks, CPA, Assistant Audit Manager, Local Government Support Team. Washington Finance Officers Association, 2011 Annual Conference
• "Capital Asset Class Code List and Useful Life Schedule," Chapter 30.50.10, Schedule A, State Administrative and Accounting Manual, Office of Financial Management State of Washington.
• Part 3, Chapter 7 ()"Capital Assets and Internal Service Fund," Budgeting, Accounting and Reporting System (BARS) Manual, Washington State Auditor's Office
• "Ensuring Control over Noncapitalized Items,"(2005) (CAAFR). ()Government Finance Officers Association (GFOA) Best Practice
• "Establishing Appropriate Capitalization Thresholds for Capital Assets," ()(1997, 2001, and 2006). Government Finance Officers Association (GFOA) Best Practice
• "Establishing the Estimated Useful Lives of Capital Assets," ()(2002 and 2007) (CAAFR). Government Finance Officers Association (GFOA) Best Practice
• "The Need for Periodic Inventories of Tangible Capital Assets, ()(1997, 2001, and 2006) (CAAFR). Government Finance Officers Association (GFOA) Best Practice
• RCW 36.32.210 - Requires each county board of commissioners to file a capital asset inventory with the county auditor on the first Monday in March each year.

Policies and Procedures

• Bellingham Capital and Attractive (Theft Sensitive) Assets () March 23, 2010
• Colville
  • Small and Attractive Items Policy and Procedures() January 20, 2001
  • Fixed Assets Policy and Procedures() May 23, 2000
• Kennewick Fixed Asset Policy and Procedures () January 2002
• Kirkland
  • Asset Policy and Procedure () March 17, 2006
  • Asset Disposition Form()
• Leavenworth Small and Attractive Assets Policy and Procedures() March 2, 2010
• Marysville Fixed Asset Capitalization Procedure() 2009
• Mukilteo Amended Capital Assets Policies and Procedures() October 2009
• Mukilteo Water and Wastewater District Capital Assets Policy() July 2009
• Tumwater Operating Policies - Assets() August 2011
• Whatcom County Asset Management Policy()