Suggested Capital Asset Policy

XYZ Fire District

Capital Asset Policy

Adopted: ___________

The following policies set forth the internal controls for acquisition, tracking, inventory, depreciation and disposal of the Fire District’s fixed assets and real property.

1. Purpose

The purpose of this policy is to provide for the orderly and consistent acquisition, tracking, financial reporting and disposal of the Fire District’s assets, including real property owned by the XYZ Fire District (the District) and to insure that such assets are properly acquired, tracked, sold, transferred or disposed of and that the Fire District realizes the best value for those assets.

This section should be added after consultation among Fire District Counsel, the Fire District Treasurer and the Auditor for the Fire District.

This policy establishes the minimum cost for financial assets to be included in the annual financial statements in order to comply with the requirements of GASB Statement 34. This policy also addresses other considerations for recording and depreciating fixed assets in order to comply with the provisions of GASB Statement 34.

This policy shall be reviewed and approved annually to insure compliance with all legal requirements.

2. Acquisition of Assets

The XYZ Fire District acquires capital asset in compliance with the District Procurement policy.

3. Disposal of Assets

The XYZ Fire District may sell or otherwise dispose of real and personal property of the district no longer necessary for any of its uses or purposes. District Law §176 (23). If the property being disposed of is valued under ten thousand dollars ($10,000), only a proposition is required to be voted upon by the XYZ Board of Fire Commissioners (the Board). If such property is to be sold for more than ten thousand dollars ($10,000), but not in excess of fifty thousand dollars ($50,000), the Board of Fire Commissioners can only dispose of the asset only after a resolution subject to a permissive referendum has been successfully approved by the board. If such property is valued over fifty thousand dollars ($50,000), then it can be sold only if the proposition adopted by the Board of Fire Commissioners is submitted, adopted and approved at a special or annual fire district election.

4. Policy Implementation and Compliance

The Board of Fire Commissioners is responsible for compliance with and implementation of this policy. The Fire District Treasurer will track and report all assets owned by the district and make recommendations to the Board. The Fire District Secretary shall cause this policy to be made available to the general public as requested and to be posted on the Fire District’s website. All...