HomeMy WebLinkAbout000154.tiff POLICIES & PROCEDURES FOR HANDLING FIXED ASSETS
I . Specific way equipment is added or deleted from the #850 account with
the exception of Social Service (follow procedure IV) .
A. Purchase Orders:
1 . Receive a xerox copy of the purchase order (PO) from expenditure
accountant. Purchase Orders are received for only those items
purchased out of account 850. When the PO is received , determine
if the item purchased meets the rules for capitalization i .e. ,
it cost at least $100 with exception of calculators and it has
at least 3 years useful life. If an item does not meet these 2
rules, follow procedure in II .
2. A number is assigned for each niece of equipment which is taggable
for labeling and control purposes. The Fixed Asset Accountant is
responsible for tagging items. Refer to the computer fixed asset
number book which lists all number assigned to each niece of
equipment the County owns. Assign the next consecutive number
to the item. Check to be sure that the number has not already
been assigned and waiting to be innuted into the comou'ter.
Record the pertinent data regarding the equipment assigned that
lumber to the computer input sheets. Never place an item on
inventory until the PO is received and the item has been paid for
(as verified by the monthly expenditure list or J .E. account *850) .
When you place an item on inventory, it means to complete the
input data for keypunch and submit that data.
3. File the input data in the folder containing work to go to
keypunch with the xerox copy of the PC attached.
4. Refer to the monthly expenditure listing to determine if the
item has been expended, i .e. , does the General Ledger indicate
that a paid warrant or J.E. has been posted for the purchase.
5. If the item has not been paid for you must wait for the Expenditure
List to show that this item has been paid for (expended) .
6. when the Expenditure List indicates that this item has been paid
for, send the input data for those items to keypunch.
7. .After the input data comes back from keypunch monthly, the
Fixed Asset Accountant will post chances to all departments
involved to the valuation sheet. See index for sample.
154
8. File the input sheet according to location.
B. Delete and add back by JE or PO - This refers to attachments added to
items already on inventory and to corrections to the original warrant,
etc.
1 . Fill out a computer input sheet entering the new value, date of
change and purchase order number or JE number causing the change.
2. Send these to keypunch at the month end with other input sheets.
3. Keypunch returns the input data to the Fixed Asset Ac_cuuucart
4. Attach the correction to the original input sheet that has already
been filed.
5. Post these in the same way as other adds or deletes to valuation
sheet.
II. Purchases That Do Not Meet Capitalization Standards.
A. When a purchase is charged to the #850 account and it does not meet
the 2 rules for capitalization, i .e. , cost at least $100 with the ex-
ception of calculators and has at least 3 years useful life, then
either of two steps have to be taken. If the PO has not been processed,
then immediately notify the expenditure accountant to charge the purchase
to the appropriate account. If the PO has been processed, a journal
entry request form should be filled out with the necessary information to
transfer the charge. The form should then be sent to the Comptroller
for his approval . After the approval the form is then sent to the
expenditure accountant where the correction is entered into the computer.
III . When an item needs to be stenciled "Property of Weld County" .
A. The purchasing department should notify the accounting department
when furniture and equipment have been purchased and charged to an
account other than the #850 account because of capitalization policies.
The accounting department will then send someone to stencil on the
item "Property of Weld County" .
IV. Specific ways equipment is added or deleted from the #850 account with
Social Services.
A. After approval to purchase equipment out of the #850 account, a purchase
order is made by the Administrative Assistant, for only those furniture
and equipment purchases that meets the rules for capitalization, i .e. ,
costs at least $50 and has at least 1 year useful life. For purchases
that do not meet capitalization standards , see V.
B. A number is assigned for each piece of equipment which is taggable for
labeling and control purposes. Refer to the computer fixed asset run
which lists all numbers assigned to each piece of equipment the county
owns. Assign the next consecutive number to the item. Make sure that
the number has not already been assigned and waiting to be inputed into
-2-
the computer. Record the pertinent data regarding the equipment
assigned that number on the computer input sheets.
C. A copy of the PO should be made and filed with pending PO's and the
computer input sheet should also be filed.
D. Send the original PO to the Accounting Clerk in the Business Office
for process.
E. The Administrative Assistant refers to the monthly Administrative
Payroll to determine if the item has been expended, i .e. , the drop
indicates that a paid warrant has been made for that P0. if the item
has not been paid for, wait until the monthly Administrative Payroll
shows that it has been expended.
F. After -indication that the item has been paid for, discard the copy of
the PO in the pending PO file.
G. Post all changes to the #850 account to the valuation sheet. See
index for sample.
H. Monthly, send the input data for those items paid for to the Fixed
Asset Accountant. The accountant will send the input sheets to
keypunch.
I. The accountant will file the input sheets according to location.
V. Purchases that Do Not Meet Capitalization Standards.
A. Purchase Orders are prepared by the Business Office for those items
that do not meet capitalization standards. The Business Office will
notify the Administrative Assistant when purchase and delivery has
occurred. Those items will require a stamp placed on each item
stating, "Property of Weld County" by the Administrative Assistant.
VI. Requesting the Transfer of Furniture and Equipment.
A. Requesting the transfer of furniture and equipment is most frequently
used when:
1 . A department declares that they have a surplus or obsolete property
in their possession which they want to transfer to salvage.
2. A department selects an item (or items) from the salvage inventory
and wants it physically moved to their location.
3. A department is relocating its offices from one building to another
and requests that all furnishings belonging to their office
environment be moved.
4. Selected pieces of equipment purchased and operated by one depart-
ment are being transferred to another department, which is identified
by a different location number.
-3-
B. The request to transfer or move furniture and equipment begins by
preparing a "Salvage and Equipment Transfer" form (see sample 2) .
The gold copy should be retained by the department making the request
and all the other copies should be sent to the Comptroller.
C. The Comptroller reviews the request and after approval records the per-
tinent data on the request form and retains the original copy. The
remaining copies are sent to Buildings & Grounds.
D. Building & Grounds performs the actual move of furniture and equipment
according to the request. After completing the task and recording the
necessary information on the request, the yellow copy is retained and
the pink copy is forwarded to the fixed asset accountant.
E. The Accountant assigns a new location code for the equipment that has
been moved and fills out an input sheet with the pertinent information
and sends it to keypunch on a monthly basis.
-4-
COUNTY OF WELD - .
ACCOUNTING OFFICE
VALUATION OF EQUIPMENT
(Based On Actual Cost Figures)
DEPARTMENT Location #
DATE INVENTORY NO. DEBIT CREDIT AMOUNT-ADDED AMOUNT TOTAL
DEDUCTED
r
i _
WELD COUNTY
ACCOUNTING OFFICE
EQUIPMENT INVENTORY
•
INVENTORY DEPARTMENT -- DEPARTMENT
NUMBER TRANSFERING DESCRIPTION TRANSFERING SIGNATURE
FROM TO
Hello