102.14 - Statewide Accounting Policy - Internal Policy/Procedures Manual for Capital Assets

Policy Area: Accounting and Financial Reporting
Policy Sub Area: Capital Assets
Authority:  GS 143D-6
Effective Date: 7/1/1995
Last Revision Date: 6/30/2017
Policy Owner/Division: Statewide Accounting

Policy

Each agency is required to have an Internal Policy/Procedure Manual to detail the agency's capital asset requirements. This manual will not replace the requirements set forth in the statewide policies, but will individualize the statewide policies/procedures for each agency. 

The Internal Policy/Procedure Manual should be issued to all persons in the agency dealing with capital assets. This includes, but is not limited to, the capital assets officer, the entry clerks, and the chief fiscal officer. 

The Internal Policy/Procedure Manual must be kept up to date with any changes in the agency, or the agency philosophy. The changes are to be updated in the manual as they occur. 

The following are examples of capital asset requirements which may need additional detail policies/procedures recorded: 

  1. Inventory items - Agency management has the option of tracking assets valued between $500 and $4,999.99 for inventory purposes. Management must document the threshold level chosen. 
  2. Depreciation - What depreciation method is used, how it is calculated, when it is recorded and any other information pertinent to the depreciation calculation.
  3. Physical inventory - Inventory methods, when inventory is to be taken, inventory procedures and how exceptions are to be handled. Detail policies and procedures for the inventories taken when there is a change in management.
  4. Separation of Duties - Each department will document the position responsible for each capital asset duty.

Procedures

N/A

Accounting Guidance

N/A

Related Documents (Memos/Forms)

Capitalization/Classification Policy

Depreciation Policy

Physical Inventory Policy

Separation of Duties Policy

Revision History

  • 1/22/2007 - Policy updates
  • 1/27/2017 - Update link
  • 6/30/2017 - Policy wording changes/update links