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.