Policy Area: Accounting and Financial Reporting
Policy Sub Area: Capital Assets
Authority: GASB Codification Section 1400.727-1; Title 2 US Code of Federal Regulations (CFR) Part 200:311 - 200:313
Effective Date: 7/1/1995
Last Revision Date: 6/30/2017
Policy Owner/Division: Statewide Accounting
When the State does not hold title to property acquired with federal funds, the property should not be capitalized. (Possession does not equal ownership). The property, however, can be inventoried for tracking purposes.
When the State does hold title to property acquired with federal funds, the property should be capitalized, subject to the OSC Capitalization Policy.
All inventoried/capitalized assets acquired with federal funds, regardless of whether the state holds title or not, must be flagged to ensure that federally funded assets will not be sold or transferred without following federal property disposition guidelines. When federally-funded assets are no longer needed for the grant program, the state must dispose of the assets according to the property disposition guidelines.
Capital assets acquired with federal financial assistance are subject to property management standards set by the federal government. These standards are found in Title 2 U.S. Code of Federal Regulations (CFR) Part 200:311-313. Additional property management standards may be included in the grant agreement.
Related Documents (Memos/Forms)
- 1/22/2007 - Updated references
- 6/30/2017 - Updated statutory references, GASB references, and clarify policy language.