INTRODUCTION

A fixed asset accounting system is a system of policies, procedures, and methods for recording
and reporting monetary amounts associated with fixed asset transactions. A fixed asset policy is a system
of procedures that address the acquisition, use, control, protection, maintenance and disposal of assets. The
establishment of a capital fixed asset policy and procedure for Hamilton County, Tennessee, was approved
by the Hamilton County Commissioners on April 21, 2004.

ACCOUNTING POLICIES

Accounting policies address the capitalization policy, controllable assets, and classes of property.

A capital asset is defined as assets having a useful life of more than one year and a historical cost
of $5,000 or more (fair market value of donated assets). These assets will be included in the property
inventory. Major additions, including those that significantly prolong a fixed asset’s economic life or
expand its usefulness, should be capitalized. Normal repairs that merely maintain the asset in its present
condition should be recorded as expenses and should not be capitalized. Hamilton County does not
currently own any historical art or treasures. If in the future the County acquires historical art or treasures,
they will be recorded at historical costs. However, depreciation will not be required as they do not
depreciate in value. The fixed asset class schedule that follows clearly states the useful lives for each class
of capital asset that will be used to determine the depreciation charge annually. These assets will be tagged
according to tagging procedures laid out in the Asset Tagging Procedure.

Controllable assets are those assets that do not meet the criteria for a capital asset, usually because
their historical cost is between $1,000 - $4,999 (fair market value of donated assets). Controllable assets
are maintained for tracking purposes only. The County is responsible for including the controllable assets
in the physical property inventory; however, they will not be included as depreciable assets reported in the
Comprehensive Annual Financial Report. Exceptions to this rule are computers and firearms, which should
be tracked regardless of historical cost. These assets will be tagged according to tagging procedures laid out
in the Asset Tagging Procedure.

Assets with a historical cost less than $1,000 or with a useful life of less than one year will not be
included in the property inventory (fair market value of donated assets). However, if the department heads
feel like it is necessary to track the assets due to the sensitive, portable, and/or theft-prone nature of the
asset, they may keep their own listing separate from the property listing within the fixed asset system.
Departments may choose to tag these items with a sticker stating Property of Hamilton County which must
be obtained by them. These tags will not be issued by the Property Accountant.

Classes of Capital Property

Below is an outline of capital property classes which include but are not limited to the sub-categories listed.

1. Real Property
a. Land
b. Buildings
c. Improvements other than Building
d. Construction in progress

2. Machinery and Equipment

a. Office Machinery and Equipment
b. Furniture and Fixtures
c. Computer Software
d. Computer Hardware

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 e. Communication Equipment
f. Clinical/Dental Equipment
g. Telecommunication Equipment
h. Law Enforcement Equipment
i. Capitalized Leases

3. Motor Vehicles
a. Cars
b. Trucks
i. Passenger
ii. Medium Service
iii. Heavy Service
iv. Road Tractors
v. Garbage Trucks
c. Vans
d. Ambulance

4. Infrastructure
a. Roads
b. Bridges
c. Sewer systems
d. Docks
e. Outdoor Lighting

After capital assets have been acquired and made ready for use, additional costs may be incurred. Costs
incurred to achieve greater future benefits should be capitalized, whereas expenditures that simply maintain
a given level of services should be expensed. Keep in mind that most expenditures below the capitalization
threshold are not capitalized.

Fixed Asset Classes and Depreciable Life

Land - The land account includes all land purchased or otherwise acquired by the County. All costs for
legal services incidental to the acquisition, costs relating to the razing of a structure and other charges
incurred in preparing the land for use normally are capitalized and carried in the land account. If the
purchaser assumes certain obligations against the land at the time of purchase, the cost of the land would
include the cash paid for the land plus the assumed obligation.

Object Code Sub-category Description Life

(Yr.)
9001 Land N/A

Buildings – The building account includes the value of all buildings at purchase price or construction cost.
The cost should include all charges applicable to the building, including broker or architect’s fees.
Additions, improvements, and Leasehold Improvements to buildings as well as the cost of the heating and
ventilating system or other permanently attached fixtures should be added to the building account when
these costs are considered betterments. Heaters and air conditioners that are portable in nature and not
physically attached to the building will be classified as machinery and equipment if the purchase price
meets the threshold.

Object Code Sub-category Description Life

(Yr.)
9002 Building and Structures 40

Improvements other than buildings – The improvements other than building account should be used to
record such items as excavation, non-infrastructure utility installation, driveways, parking lots, flagpoles,

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retaining walls, and fencing. Items not included are landscaping, demolition, land acquisition, and movable
equipment such as picnic tables.

Object Code Sub-category Description Life

(Yr.)
9027 Land Improvements
0101 Land – Clearing 20
0102 Land – Paving 20
0104 Pole Structures 20
0105 Fencing 20
9029 Ball Field Improvements 30
9037 Construction - Lighting N/A
9040 Construction – Potable Water N/A
9041 Construction – Roadway N/A
9042 Construction – Sewer N/A
9043 Construction – Site Prep. N/A
9045 Construction Contingency N/A
9046 Appraisals & Easement Drawings N/A
9054 Const – Recreation Courts N/A
9061 Const – Flood Control N/A

Construction Work In Progress (CWIP) – This account should be used when a government reports
amounts expended on an uncompleted building or other capital construction project. When the project is
complete, the cumulative costs are transferred to the appropriate permanent fixed asset account. It is the
duty of the Property Accountant to keep CWIP current. This means the Property Accountant knows what
he included in CWIP, and he is responsible for finding out when the project is complete. The completion
should be noted and CWIP should be relieved of all charges included and moved to a permanent asset
account.

As a recap, the cost of a fixed asset includes not only its purchase price or construction cost, but also any
other reasonable and necessary costs incurred to place the asset in its intended location and use. Such costs
could include but are not limited to the following:

 Legal and title fees

 Closing costs
 Appraisal or negotiation fees
 Surveying fees
 Damage payments
 Site preparation costs
 Demolition costs
 Architect and accounting fees
 Shipping and handling charges

Machinery and Equipment - The machinery and equipment account should consist of property that does
not lose its identity when removed from its location and is not changed materially or expended in use. This
property should be recorded at cost, including freight, installation and other charges incurred to place the
asset in use.

The cost of the asset acquired when payment includes both cash and a trade-in is the sum of the cash paid
plus the fair market value of the asset traded-in. If the fair market value of the asset being traded-in is not
readily determinable, cost may be recorded as the cash paid plus the book value (asset cost minus
accumulated depreciation) of the asset traded-in.

All assets acquired by gift should be recorded on the basis of their estimated fair market value at the time of
acquisition.

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 Object Code Sub-category Description Life
(Yr.)

9002 Portable Buildings 25

9003 Recycling Equipment 10
9004 Furniture and Fixtures 10
0401 Tables
0402 Chairs
0403 Decorative Chairs/Sofa
0404 Desks/Credenzas
0405 Workstations
0406 File Cabinets
0407 Pictures
0408 Mirrors
0409 Lockers
0410 Shelving
0411 Misc. Furniture
0412 Storage Cabinets
0413 Misc. Fixtures
0414 Book Shelves
9005 Office Machines & Equipment 5
0501 Typewriters
0502 Calculators
0503 Copy Machines
0504 Fax Machines
0506 Misc. Office
0507 Machines/Equip
9006 Heating Ventilating & AC Equip 10
0601 Air Conditioners
0602 Combination Heat/Air Unit
9007 Highway Constr & Maint Equip 10
0701 Dozers
0702 Shovels
0703 Loaders
0704 Graders
0705 Backhoes
0706 Cement Mixers
0707 Rollers
0708 Asphalt Pavers
0709 Right of Way Cutters
0710 Chip Spreader
0711 Farm Tractor
9009 Machinery & Shop Equipment 10
0901 Tire Breaker
0902 Tire Balancer
0903 Alignment
0904 Tune-Up Computer
0905 Air Compressor
0906 Jacks
0907 Welders
0908 Metal Lathe
0909 Wood Lathe
0910 Table Saw
0911 Band Saw

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 0912 Pressure Washer
0913 Gas Power Electric Generator
9010 Farm Machinery & Equipment 10
9011 Recreation Equipment 20
1101 Bleachers
1102 Athletic Equipment
1103 Fitness Equipment
1104 Tanning Bed
1105 Picnic Tables
1106 Park Benches
1107 Play Structures
9012 First Aid Equipment 5
1201 Heart Monitor/Defibrillator
9013 Hospital & Institutional Equip. 5
9015 Lawn & Ground Maint. Equip. 15
1501 Lawnmower
1502 Weedeater
1503 Leaf Blower
1504 Leaf Vacuum
1505 Gas Utility Vehicle
1506 Soil Tiller
1507 Electric Utility Vehicle
1508 Utility Trailer
9016 Kitchen & Dining Room Equip. 12
9017 Telecommunication Equip. 10
1701 Telephone Systems
9018 Radio & Communication Equip. 10
1801 Portable Phones
1802 Portable Radios
1804 Televisions
1805 Video Recorders
1806 Cellular Phones
1807 Radio Transmitters
1808 Misc. Radios/Comm. Equip
1809 VCR
1810 Record Players
1811 Portable Pager
9019 Other Capital Expenditures 5
9020 Educational Equipment 10
9021 Photographic Equipment 10
2101 Cameras
2102 Camera Lenses
2103 Camcorders
9022 Sound Recording Equip. 10
9023 Special Law Enforcement Equip. 10
2301 Radar Gun
2302 Intoximeter
2303 Sirens
2304 Police Dog
2305 K-9 Equipment
2306 Firearms
9024 Dental Equipment 10
9025 Clinical Equipment 10
9026 Firearms Protection Equip. 10
2601 Emergency Mgmt Equipment

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 2602 Self Contain Breath Aparatus
2603 PPV Ventilator Life Jacket
9028 Computer Software 5
9030 Computer Equipment 5
9032 Microfilm Equipment 10
9033 Topographical Map 5
9047 Traffic Control Equip. 10

Motor Vehicles – The motor vehicle account should include all vehicles for which title and license must
be obtained such as cars, trucks, buses, ambulances, boats, airplanes, motorcycles, and road-going trailers.
Vehicle accessories will be identified as a component asset (same tag ID with a suffix) of the vehicle to
which it was attached. This procedure will be more tedious to the asset custodian who will have to report
asset transfers (Exhibit B) when vehicle accessories are taken off one vehicle and placed on another.
Vehicle accessories depreciation will follow the depreciable life of the vehicle. Please note that this asset
class is the only one where depreciation varies based on the category type.

Object Code Sub-category Description Life

(Yr.)
9008 Motor Vehicles
0801 Passenger Autos 5
0802 4WD Autos 5
0803 Pickups & Vans (Lt. Service) 5
0804 Medium Service 10
0805 Dump Truck (Heavy Srv.) 8
0806 Double Axle 8
0807 Triple Axle 8
0808 Cab/Chassis 15
0809 Semi Trailers 15
0810 Road Tractors 15
0811 Garbage Trucks 10
0812 Buses (9-20 Pass.) 8
0816 Ambulances 5
0817 Fire Trucks 15
0818 Motorcycles 10
0819 Boats 10

After the purchase of a new vehicle has been approved by the County Commission and requisitioned, a
purchase order is originated. The department head signs the purchase order as proof of receipt upon getting
the vehicle and checking to make sure the vehicle meets order specifications. Then, the purchase order is
sent to Accounts Payable for payment to vendor. The title is received and filed in Accounting. Odometer
statements are signed by a departmental designee or a Purchasing associate upon receipt of the vehicle.
The Purchasing Director is responsible for signing the title for the purpose of co-titling a vehicle. Upon
disposal/sale of motor vehicles, the Purchasing Director gains custody of the title from Accounting and is
responsible for signing the title at the time of disposition.

Infrastructure – The infrastructure account should include roads, bridges, curbs and gutters, streets and
sidewalks, drainage systems, docks, outdoor lighting systems, and similar assets that are immovable and of
value only to the governmental unit.

Object Code Sub-category Description Life

(Yr.)
9027 Land Improvements 40
9031 Engineering Design 40

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9041 Construction - Roadway 40
9042 Construction – Sewer 40
9043 Construction – Site Prep. 40
9045 Construction Contingency 40
9046 Appraisals & Easement Drawings 40
9054 Const – Recreation Courts 40
9061 Const – Flood Control 40

Infrastructure assets are long-lived capital assets that normally can be preserved for a significantly greater
number of years than most capital assets. Because of this difference, controllable infrastructure assets
have a historical value between $50,000 and $249,999 and capital infrastructure assets have a historical
value of $250,000 or more. Please note that this dollar threshold is different from all other asset categories.
Road costs are capitalized when the physical attributes are changed such as a road widening or if the road
base is changed. Resurfacing of roads is considered a maintenance cost and will be expensed instead of
capitalized.

Depreciation Definition
The usefulness of most assets, other than land and historical art or treasures, declines over time.
Depreciation is the term most often used to indicate that tangible assets have declined in service potential.
In accounting terms, depreciation is the process of allocating the cost of tangible property over a period of
time. Generally, at the end of an asset’s life, the sum of the amounts charged for depreciation (accumulated
depreciation) will equal original cost less salvage value. Hamilton County will calculate depreciation based
on the straight-line method, ½ year convention. The information needed to calculate depreciation is as
follows:

1. date the asset was placed in service

2. asset cost or acquisition value
3. asset salvage value (Hamilton County’s salvage values will be zero.)
4. asset estimated useful life, Fixed Asset Class table set forth above

Under the straight-line depreciation method, the basis of the asset is written off evenly over the useful life
of the asset. In general, the amount of annual depreciation is determined by dividing an asset’s depreciable
cost by its estimated useful life. The total amount depreciated can never exceed the asset’s historical cost
less salvage value. At the end of the asset’s estimated life, the salvage value will remain. Under the half-
year convention, an asset is treated as though it were placed in service or disposed of on the first day of the
seventh month of the fiscal year. One-half of a full year’s depreciation is allowed for the asset in its first
year placed in service, regardless of when it was actually placed in service during the year. Likewise, one-
half of a full year’s depreciation is allowed for the asset in its year of disposition, regardless of when it was
actually disposed during the year. Depreciation ends when an asset’s basis is fully recovered, or when it is
disposed of or sold. If an asset becomes temporarily idle, depreciation continues to be claimed. Should an
asset not be fully depreciated prior to being taken out of service (transferred to surplus inventory),
depreciation will be discontinued. If the asset is ever put back into service, the depreciation will resume. If
the asset is disposed or sold, the remaining depreciation on the asset will be recognized as a gain/(loss) at
that time.

Depreciable property must meet the following qualifications:

 It must have a useful life of more than one year.

 It must wear out or lose value over time.

In summary, the annual amount of straight-line depreciation is determined by the following equation:

Annual depreciation = (historical cost – salvage value)/useful life in years

Keep in mind that the equation changes for the year of acquisition and disposition as follows:

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 Annual depreciation = ((historical cost – salvage value)/useful life in years)*50%

Asset Tagging Procedure

The fixed asset identification number tags should be physically attached to the property in a visible location
whenever possible. The black numbered asset tags are affixed to “capital” assets and the red tags prefaced
with a “C” stating Property of Hamilton County are affixed to the “controllable” assets. These tags are
issued by the Property Accountant. Each custodian should make sure that the tags are affixed upon receipt
of the tags since, in most cases, the asset is received prior to the asset tag. In all cases, the custodian should
have the asset tags affixed prior to a physical audit by the Property Accountant. Once the asset is tagged,
the custodian needs to fill out the Fixed Asset Tag Number Log Sheet with serial number, make, and model
(See Exhibit A). The asset description should be filled out so that the custodian can distinguish the asset.
Once the Property Accountant has received the log sheet, it is his responsibility to update the asset record in
the asset system. If the description is different than what was used in the asset record, it is the
responsibility of the Property Accountant to update.

An asset purchased or constructed as an accessory or modification to an asset that is already included in the
asset inventory should not be tagged; it should be treated as an improvement to the existing asset.
However, if it is not a permanent addition to the existing asset, it should be tagged and monitored
separately.

If a tag becomes misplaced, destroyed, or in need of replacement, it is the custodian’s responsibility to

notify the Property Accountant. The Property Accountant will fill in a blank asset tag with the asset
number that reportedly needed replacement and send to the custodian. Again, upon receipt of the
replacement asset tag, it should be affixed to the asset.

If a tag cannot physically be affixed to the asset, a file should be kept detailing the asset description with
serial number and location. This file should be kept in a secure location.

Asset Audit Trails

A purchase order is requested from the purchasing department. It is the combined responsibility of the
requisitioning party, Purchasing, Accounts Payable, and Property Accountant to ensure that the purchase
orders are charged to the correct general ledger code for all assets. Once payment is made against a
purchase order, the detail of information is available on the C611 report. This report, along with the
payment voucher and purchase order, is the support used to determine whether items are included in the
general fixed assets or not. Therefore, if an asset is purchased with excess fees in fee offices, it is the asset
custodian’s responsibility to notify the Property Accountant of the acquisition by filling out a Fixed Asset
Physical Inventory Form (Exhibit C). Once an asset is added into the general fixed asset inventory, asset
maintenance as described below will need to be reported to the Property Accountant. Asset maintenance
includes the following transactions:

1) Transfers
It is the responsibility of the asset custodian from the transferring department to provide the Property
Accountant with the transfer form (See Exhibit B). The exception to this rule is if a department is
given clearance from Purchasing to send an asset to Surplus Inventory. It then becomes the
responsibility of the Purchasing Department to provide the Property Accountant with copies of the
transfer form when the asset is actually taken into Surplus Inventory. (See Exhibit E).
i) Intradepartmental
ii) Interdepartmental
2) Disposition Process
a) Lost or Stolen
i) It is the responsibility of the asset custodian by location to provide the Property Accountant
with the disposition form. (Exhibit D)
ii) A police report should be obtained on all losses suspected of being stolen.
b) Scrap, Non-useable

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 i) When desiring to transfer an asset out to Surplus Inventory, all departments should notify the
Purchasing Department. It is the Purchasing Department’s responsibility to determine
whether the asset in question is either scrap or surplus. Assets should not be disposed of
without the Purchasing Department’s signature. Purchasing will provide the Property
Accountant with copies of the disposition form. (Exhibit E)
c) Surplus
i) Computer Hardware is surplussed to Purchasing with assistance from IT Services. All
computer hardware is to be tagged as to whether it works or not. When desiring to transfer
computer equipment out to Surplus Inventory, a pre-numbered PC Inventory Control Sheet is
acquired from Purchasing. A copy of the control sheet should be attached to the physical
asset when IT Services retrieves the asset. The Purchasing Department will be responsible for
providing the Property Accountant with the control sheet. (Exhibit F)
ii) All other inventory should be coordinated with the Purchasing Department. All inventories to
be surplussed will remain in your current inventory until the physical asset is taken to the
warehouse. At that point, the inventory will be moved from current inventory to surplus
inventory. The Purchasing Department will be responsible for providing the Property
Accountant with a copy of the transfer form. (Exhibit E)
d) Auction/Sale
Assets for sale should come through the Surplus Inventory process and the auction/sale process
will be coordinated with the Purchasing Department. The Purchasing Department will be
responsible for providing the Property Accountant with a copy of the disposal form. (Exhibit E)
3) Inventory/Verification
The departmental asset custodian is responsible for reporting any additions or deletions to the physical
inventory to the Property Accountant. (Exhibit C)

Surplus Property - Disposition of Capital Fixed Assets

Note: Please do not remove asset tags from the asset upon moving to Surplus Inventory.

Surplus property is defined as assets retained by the County that are not currently in use. The Purchasing
Department administers assets when they are declared surplus by their respective users. Once an asset is
determined to be surplus, it is the responsibility of the owning location to coordinate with Purchasing on
getting the asset picked up or delivered to a storage location. The asset remains in owning location’s
inventory until the asset is physically removed. All surplus property is stored at the Highway Department
(vehicles mostly), White Oak warehouse or in Newell Tower (computer equipment only) until Purchasing
disposes of it. Purchasing utilizes the public auction process to dispose of surplus property (not to include
computers) either manned by county employees or a commercial auction service. An outside recycling
vendor is used to dispose of surplus/scrap computers. Surplus computer equipment that is in working order
is available to view on the County intranet, www.home.hamiltontn.gov. Surplus equipment is not available
for sale to County employees. However, County employees can purchase surplus property at public
auctions.

The disposal of all County surplus property is the responsibility of the Purchasing Department. The
Scrap and Surplus Property Disposal Authorization Form shall be completed and approved by the elected
official, department director or a division administrator prior to declaring property surplus. The Purchasing
Department will provide a copy of the Scrap and Surplus Property Disposal Authorization Form (Exhibit E)
to the Property Accountant. The Purchasing Department, as outlined below in the Recognition of
Gain/(Loss), will provide proceeds from the sale of fixed assets to the Hamilton County Accounting
Department.

Any retirement of fixed assets by sale, trade or scrapping will require approval by the County Purchasing
Department to guard against illegal, unauthorized disposition. The Purchasing Department will follow the
Hamilton County Purchasing Rules, Section 9, and other applicable state laws to dispose of capital fixed
assets.

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Recognition of Gain/(Loss) Upon Disposition of Capital Fixed Assets
In accordance with GASB 34, if an asset is sold, retired, or lost before its useful life has ended, then a gain
or loss will need to be reported at the government-wide level. At the fund level, proceeds rather than gain
or loss will be reported if the asset is sold.

The procedure for sale of fixed assets is as follows:

1) As mentioned above, required approval for moving asset into surplus inventory
2) Purchasing will follow the Hamilton County Purchasing Rules, Section 9, and other applicable state
laws for the sale of surplus property.
3) Upon the disposal of the asset, it is the responsibility of the Purchasing Department to forward the
following information to the Property Accountant:
a) Copies of disposal forms complete with the asset identification and Hamilton County Fixed Asset
number.
b) A reconciliation ledger of monies acquired through a sale. This ledger should include the buyer,
the asset sold and the Hamilton County Fixed Asset number, or other identifying number (serial
number, make, and model). In some cases, the receipt book can be used as support to calculate the
gain/(loss) on sale of fixed assets.
c) The proceeds from the sale will be accounted for in the Purchasing Department. Justification for
this entry is to help offset expenses for the auctions. If the asset is capital in nature, the proceeds
will reside in the general ledger object code for “Sale of Capital Assets” (8921). For scrap sales,
proceeds will reside in the general ledger object code for “Sale of Scrap” (8918). For assets whose
historical cost was less than $5,000 or assets that cannot be identified in the asset system, the
proceeds will reside in the general ledger object code for “Sale of Surplus Property” (8919).

Physical Inventory Procedure

Inventorying is necessary for accountability and control. Inventorying establishes a direct relationship
between actual and recorded fixed assets. An inventory insures that fixed asset transactions have been and
are being recorded properly. An inventory also insures that asset policies and procedures are being
followed correctly.

In early May of each year, a complete inventory listing (through March of current year) will be furnished to
each asset custodian. A comprehensive inventory should be conducted in time for the inventory to be
returned to the Property Accountant no later that June 10th of that same year. After the annual inventory has
been conducted, the asset custodian will reconcile differences, resolve discrepancies, and return the signed
inventory listing to the Property Accountant. The Property Accountant will update the fixed asset system
for the changes submitted by the asset custodian. The new asset inventory listing will be used to establish
the new fiscal year inventory.

It will be the responsibility of the Property Accountant to audit each location every 4 years on a cyclical
basis. This means that all locations do not have to be audited at the same time. The cyclical audit will
require a cutoff date when the results are analyzed, and any interdepartmental transfers that occurred over
the audit period can be reconciled. It is the responsibility of the asset custodian to have the inventory
properly identified prior to the physical audit.

Policy Exceptions
Assets that are paid for through County funding but used by another entity will be considered a donation to
the other entity unless specified via a resolution or other type of contractual document. Examples of
donated assets are those used by the Volunteer Fire Departments and the Methamphetamine Task Force. If
any of these assets come back into the possession of Hamilton County, they will be included at fair market
value in the year that the County gained custody of them.

Another exception currently is the assets obtained by the Public Defenders Office. In 1999 a decision was
made by the Attorney General stating that all equipment purchased for the use of the Public Defender’s
Office belongs to the State regardless of the funding source.

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 Hamilton County Fixed Asset Policy
Table of Contents
Introduction………………………………………………………………………………… Page 1

Accounting Policies………………………………………………………………………... Page 1

Classes of Capital Property…………………………………………………………....... Page 1
Fixed Asset Classes and Depreciable Life……………………………………………… Page 2
Land………………………………………………………………………………..... Page 2
Buildings…………………………………………………………………………….. Page 2
Improvements other than buildings…………………………………………………. Page 2
Construction Work In Progress (CWIP)…………………………………………….. Page 3
Machinery and Equipment…………………………………………………………... Page 3
Motor Vehicles……………………………………………………………………….Page 6
Infrastructure………………………………………………………………………… Page 6

Depreciation Definition……………………………………………………………………. Page 7

Asset Tagging Procedure…………………………………………………………………... Page 8

Asset Audit Trails………………………………………………………………………….. Page 8

Transfers………………………………………………………………………………... Page 8
Disposals………………………………………………………………………………... Page 8
Lost/Stolen…………………………………………………………………………... Page 8
Scrap, non-useable…………………………………………………………………... Page 8
Surplus………………………………………………………………………………. Page 9
Auction/Sale………………………………………………………………………….Page 9
Inventory Verification…………………………………………………………………... Page 9

Surplus Property – Disposition of Capital Fixed Assets…………………………………....Page 9

Recognition of Gain/(Loss) Upon Disposition of Capital Fixed Assets…………………… Page 10

Physical Inventory Procedure……………………………………………………………… Page 10

Policy Exceptions………………………………………………………………… ……….. Page 10

Exhibits ……………………………………………………………………………………. Page 11

A – Fixed Asset Tag Number Log Sheet………………………………………………. Page 11
B – Fixed Assets Transfer Form………………………………………………………... Page 12
C – Fixed Assets Physical Inventory Form……………………………………………...Page 13
D – Fixed Assets Disposition Form…………………………………………………….. Page 14
E – Scrap and Surplus Property Disposal Authorization Form………………………… Page 15
F – PC Inventory Control Sheet………………………………………………………… Page 16

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