FIACCT 09-00_00 Fixed Assets – Definitions, Policy, Overview

Annual Inventory
of Fixed Assets

All fixed assets as defined by this policy are required to be inventoried by the owner agency a minimum of once every fiscal year. Any differences between an agency’s assets and the inventory report should be investigated and, if necessary, correcting entries posted to FINET Fixed Assets within 30 days of completing the inventory. See the FA – Annual Physical Inventory policy in this section of the manual. Agencies may also wish to inventory information-only assets for inventory control and to verify claims for losses filed with the Division of Risk Management. Following standard audit practices, the Annual Inventory of Fixed Assets should not be performed by individuals with fixed asset custodial and/or record keeping duties.

Capital Lease

A lease that transfers substantially all the benefits and risks inherent in the ownership of property from the lessor to the lessee. Capital lease assets are recorded as fixed assets of the State. The amount of the lease is recorded in a Lease Financing Cost account and expenditures for such assets are classified as capital outlay. The Division of Finance will determine if a lease is to be classified as a capital lease and will inform the agency of the proper accounting. All capital leases must have prior legislative approval before being issued. For additional information, see the FA – Leases policy in this section of the manual.

Capital Expenditures

Expenditures coded to Capital Object codes in the General, Special
Revenue, Capital Projects, or Debt Service funds used to purchase fixed assets. The FINET Capital Object codes are as follows:

6600 – 6687 Data Processing Equipment and Software
6700 – 6787 Equipment, Furniture, and Vehicles
6800 – 6803 Buildings
6900 – 6902 Land
6951 – 6964 Infrastructure