City of Columbia Purchasing Manual (pages 63-64)
SECTION
XIII:
FIXED
AND
CONTROLLABLE
ASSET
ACCOUNTING
PROCEDURES
13.1
Purpose
The purpose of this policy is to be able to assist in the planning for the purchase of fixed assets; also
properly account for, depreciate and safeguard all fixed and controllable assets purchased by the City.
13.2Scope
All asset purchases over $500.00 shall be subject to this policy. All equipment shall be tagged for
inventory purposes. All assets of $5,000.00 or more in value shall be accounted for as a fixed asset on
the applicable balance sheet of the purchasing enterprise fund. All General Fund equipment purchases
exceeding $5,000.00 shall be recorded in the General Fixed Asset Account Group. All computer
hardware equipment purchased, regardless of price, shall be included in this policy.
13.3Responsibility
All purchases and disposals of fixed and controllable assets shall be accounted for in the City’s asset
database. The Purchasing Agent is responsible for completing the asset accounting form for input in the
asset system for all purchases and disposals of asset property. A copy of said form shall be given to the
Finance Department, who will be responsible for affixing a sticker on most purchases. A copy of the
fixed and controllable asset accounting form shall be forwarded to the user department for scheduling
and safekeeping. Said copy shall come from the Purchasing Agent.
13.4Equipment Transfers
Permanent transfers of equipment between departments must be reported to the Purchasing Agent. This
notification shall allow the Purchasing Agent to properly account and safeguard the asset being
transferred. The Purchasing Agent shall notify the Finance Department of all asset transfers between
departments.
13.5Equipment Disposals
It is the responsibility of the user department to notify the Purchasing Agent of all asset disposals or
trade-in of equipment. The user department shall also notify the Finance Department of all trade-in of
equipment.
13.6Depreciation
Depreciation shall be calculated consistently between fixed assets purchased each fiscal year.
Depreciation shall also be calculated so that the best possible method of depreciation is utilized for the
City. All methods of depreciation are subject to change due to standard uniform accounting changes and
audit.