Reporting and Operations
Fixed Assets
Originally Posted: April 30, 2023
Topics:
Size of Organization:
Medium
- Establish a policy for fixed assets detailing which fixed assets are capital (depreciated rather than expensed) assets. This will be included in the organization's footnote disclosures to the audited financial statements.
- Require prior approval of all fixed asset acquisitions and disposals.
- Require all fixed assets to be recorded in the general ledger. Supporting records will include a copy of the acquisition documents, the replacement value, and any warranty information. This will allow an appropriate amount of insurance to be maintained and claims (insurance or warranty) to be more easily filed.
- Annually inventory all fixed assets and verify each is being used.