Fixed Asset Management

Why fixed asset reporting matters

Fixed assets are items of a fixed or permanent nature that your district intends to hold or use over a long period of time. In New Jersey, the capitalization threshold is $2,000. Items are recorded at original cost, or at fair market value when donated, and generally have an estimated useful life beyond one year. They are purchased through enterprise funds and/or through funds 12, 20, 30 and 60. Examples include land and improvements, buildings, leases, furniture and equipment.

An asset is capitalized when it is classified as a fixed asset for inclusion in the financial report. When a district acquires or constructs a fixed asset, it is accounted for on the district’s books as a current-year expenditure — and for financial statement purposes, fixed assets are capitalized.

Districts are required to:

• establish a capitalization policy,
• identify assets and determine their historical costs,
• determine useful lives and depreciation methods,
• develop or purchase a fixed asset program that tracks cost, depreciation expense and accumulated depreciation.

How we do it

1. Compare. We compare your prior year’s CAFR to your existing fixed asset report.
2. Compile. We compile your current fixed asset data, including disposals and acquisitions entered through a spreadsheet.
3. Report. We prepare a final report with our “CAFR-ready” chart for your auditor to use in the preparation of your CAFR.

Physical inventory and asset tagging services are available alongside the depreciation update, so your asset records match what is actually in your buildings.

What you get

• Tracks technology and other fixed assets
• CAFR-ready chart with depreciation
• Matches to prior years’ audit
• Disposal and acquisitions entered through a spreadsheet
• Quick turn around
• Easy to read reports