2-1700 Capital asset accounting

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2-1700 Capital asset accounting

  1. 1. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1700 CAPITAL ASSET ACCOUNTING........................................................................5 2-1701.00 Introduction..................................................................................................................5 2-1701.10 Assets not recorded in SABHRS................................................................................5 2-1701.20 Objectives and benefits of property accounting.........................................................6 2-1701.21 Capitalization thresholds (modified April 2010)...................................................7 2-1701.22 Depreciable versus non-depreciable assets...........................................................7 2-1701.23 Infrastructure to use depreciation method .............................................................8 2-1701.24 Assets by fund type...............................................................................................8 2-1701.25 Asset balance sheet accounts.................................................................................8 2-1701.26 Additions, betterments, preservation versus maintenance and repair costs..........9 2-1705.00 Definitions relating to assets (modified April 2010)..................................................9 2-1710.00 Responsibilities...........................................................................................................11 2-1710.10 Department of Administration (DOA).....................................................................11 2-1710.11 Responsibilities of the Accounting Bureau .........................................................11 2-1710.12 Responsibilities of the SABHRS Finance and Budget Bureau ...........................11 2-1710.13 Responsibilities of the Property and Supply Bureau............................................11 2-1710.20 Agency property coordinator...................................................................................12 2-1710.21 Duties of the agency property coordinator...........................................................12 2-1710.30 Property officers.......................................................................................................12 2-1710.31 Duties of property officers...................................................................................12 2-1715.00 Capital asset reported cost........................................................................................12 2-1715.10 Calculation of historical cost....................................................................................12 2-1715.20 Historical cost estimation procedures......................................................................13 2-1715.21 Standard costing method......................................................................................13 2-1715.22 Price level index method......................................................................................13 2-1715.23 Price level indicators............................................................................................13 2-1715.24 Estimation procedures..........................................................................................13 2-1715.25 Example - historical cost estimation....................................................................14 2-1720.00 General property management.................................................................................14 2-1720.10 Identification of property.........................................................................................14 2-1720.11 Property tags.........................................................................................................14 2-1720.12 Ordering tags........................................................................................................15 2-1720.13 Affixing tags.........................................................................................................15 2-1720.14 Control of unmissed tags......................................................................................15 2-1720.15 Sensitive equipment.............................................................................................15 2-1720.16 Expendable supplies.............................................................................................15 2-1720.17 Rental or leased equipment..................................................................................15 2-1720.20 Physical inventories..................................................................................................16 2-1720.21 Agency inventory plan.........................................................................................16 2-1720.22 Missing tags or untagged items............................................................................16 2-1720.23 Inspection of equipment.......................................................................................17 1700-1
  2. 2. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1720.24 Reconciliation and adjustments............................................................................17 2-1720.30 Asset characteristics.................................................................................................17 2-1720.31 Useful life and/or salvage value...........................................................................17 2-1720.32 Asset class............................................................................................................17 2-1720.33 Asset profile / salvage value / useful life / category / class table (modified April 2010)..................................................................................................................18 2-1730.00 Inventory (supplies, merchandise, etc.) ...................................................................28 2-1730.10 General information.................................................................................................29 2-1730.20 Accounting entries for recording inventories...........................................................29 2-1730.21 Governmental fund entries...................................................................................29 2-1730.22 Proprietary fund entries........................................................................................29 2-1730.23 Surplus Property Fund inventory entries .............................................................30 2-1730.24 Livestock inventory entries..................................................................................30 2-1740.00 Asset accounting general discussion.........................................................................31 2-1740.10 Accounting for capital assets ...................................................................................31 2-1740.11 Assets to be recorded in the entitywide ledger.....................................................31 2-1740.12 Assets to be recorded in the actuals ledger...........................................................31 2-1740.13 Accounting for expensed assets...........................................................................31 2-1740.20 Purchase of split funded assets ................................................................................31 2-1740.21 Examples of split funded asset.............................................................................31 2-1750.00 Recording capital asset related expenses..................................................................32 2-1750.10 Capital asset cost budgeted in a range other than the capital outlay expense level. 32 2-1750.11 Example of internally developed software costs..................................................32 2-1750.12 Result for GAAP financial statements.................................................................33 2-1750.13 Correction needed by agency...............................................................................33 2-1750.20 Budgeted capital outlay expense that won’t be capitalized......................................33 2-1750.21 Example of building construction costs...............................................................33 2-1750.22 Result for GAAP financial statements.................................................................34 2-1750.23 Correction needed by agency...............................................................................34 2-1750.30 List of accounts used to offset budgeted expenses for GAAP reporting.................34 2-1760.00 General asset accounting structure and procedures...............................................35 2-1760.10 Things to remember about AM ...............................................................................35 2-1760.11 Reminders when adding assets to AM.................................................................35 2-1760.12 AM generated journals.........................................................................................36 2-1760.13 Changing the useful life or salvage value of an asset (modified April 2010)......36 2-1760.14 Changing the historical cost of an existing asset..................................................37 2-1760.15 General ledger cleanup required when you retire/add the same asset on AM.....37 2-1760.20 Recording land, buildings and construction work-in-progress................................38 2-1760.30 Purchase of capital assets.........................................................................................39 2-1760.31 Recording purchase of capital assets ...................................................................39 2-1760.32 Adding capital assets to AM................................................................................39 2-1760.33 Capital asset entries .............................................................................................39 2-1760.34 Capital asset entries (asset purchased in prior period month)..............................40 1700-2
  3. 3. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1760.35 Adjustments in regard to an asset purchased in a prior fiscal year......................40 2-1760.36 Example of entries/adjustments for asset purchased in prior fiscal year..............41 2-1760.40 Gifts/donated assets..................................................................................................42 2-1760.41 Gift/donated asset accounting entries...................................................................42 2-1760.50 Recording intangible assets (modified April 2010).................................................42 2-1760.51 Recording intangible assets not completed at year-end.......................................43 2-1760.52 Capitalizable software (modified April 2010)......................................................43 2-1760.53 Adding intangibles to AM (modified April 2010)...............................................45 2-1760.54 Recording purchase of intangible asset................................................................45 2-1760.55 Intangible asset entries subject to amortization....................................................45 2-1760.56 Intangible asset entries when asset completed/purchased in prior period month. 45 2-1760.57 Adjustments in regard to an asset completed/purchased in a prior fiscal year.....46 2-1760.58 Example of entries/adjustments for asset purchased in prior fiscal year (modified April 2010)........................................................................................................46 2-1760.59 Easements and other Land Use Rights (modified April 2010)............................47 2-1760.60 Accounting for depreciation.....................................................................................47 2-1760.61 Depreciation accounting entries...........................................................................48 2-1760.70 Accounting for amortization (modified April 2010)................................................48 2-1760.71 Amortization accounting entries..........................................................................48 2-1760.80 Transfer of capital assets..........................................................................................48 2-1760.81 Asset transferred is fully depreciated without a salvage value.............................49 2-1760.82 Asset is fully depreciated with a salvage value or not fully depreciated..............49 2-1760.83 Asset transferred with monetary compensation to the transferor fund.................51 2-1760.90 Construction work-in-progress (CWIP)...................................................................51 2-1760.91 Manufactured locally............................................................................................52 2-1760.92 A&E appropriated................................................................................................52 2-1760.93 Agency appropriated............................................................................................53 2-1760.94 Accounting entries to add CWIP..........................................................................53 2-1760.95 Accounting entries to add completed capital asset ..............................................54 2-1770.00 Disposition of property..............................................................................................54 2-1770.10 Sale of property........................................................................................................55 2-1770.11 Sale of property – surplus property entries..........................................................55 2-1770.20 Trade-in of property ................................................................................................55 2-1770.21 Trade-in with a loss..............................................................................................56 2-1770.22 Trade-in of asset when fair market value is greater than the book value of the exchanged asset (boot paid or no boot involved)..............................................57 2-1770.23 Trade-in of asset when fair market value is greater than the book value of the exchanged asset (boot received)........................................................................58 2-1770.30 Junked property........................................................................................................59 2-1770.40 Lost, stolen, or destroyed property...........................................................................60 2-1780.00 Lease/installment purchases......................................................................................60 2-1790.00 Asset impairment........................................................................................................60 2-1790.10 Identifying potential impairments............................................................................61 2-1790.20 Testing for the impairment.......................................................................................61 1700-3
  4. 4. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1790.30 Measuring the impairment of capital assets.............................................................63 2-1790.31 Asset no longer used, construction and/or development stoppage.......................63 2-1790.32 Asset will continue to be used..............................................................................63 2-1790.33 Restoration cost approach....................................................................................64 2-1790.34 Example of the restoration cost approach............................................................65 2-1790.35 Service units approach..........................................................................................65 2-1790.36 Example of service units approach.......................................................................65 2-1790.37 Deflated depreciated replacement cost approach.................................................65 2-1790.38 Example of deflated depreciated replacement cost approach...............................65 2-1790.40 Insurance recoveries.................................................................................................66 2-1790.41 Insurance recoveries in modified accrual funds...................................................66 2-1790.42 Insurance recoveries in full accrual funds............................................................66 2-1790.50 Recording impairment write-down in a modified accrual fund...............................66 2-1790.51 Insurance proceeds realized or realizable in the same year the impairment write- down is recorded...............................................................................................67 2-1790.52 Insurance proceeds realized or realizable in a year subsequent to the impairment write-down.........................................................................................................68 2-1790.60 Recording impairment write-down in a full accrual fund .......................................69 2-1790.61 Insurance proceeds realized or realizable in the same year the impairment write- down is recorded...............................................................................................69 2-1790.62 Insurance proceeds realized or realizable in a year subsequent to the impairment write-down.........................................................................................................70 2-1790.70 Replacement or repair costs of the impaired asset...................................................71 2-1790.80 Other asset impairment topics..................................................................................71 2-1790.81 Temporary impairments.......................................................................................71 2-1790.82 Assets impaired prior to implementation of GASB Statement No. 42................71 2-1790.83 Disclosure of asset impairment............................................................................72 1700-4
  5. 5. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1700 Capital asset accounting 2-1701.00 Introduction The asset management system (AM) is an integrated module of the Statewide Budgeting Accounting and Human Resource System (SABHRS) used to manage and account for the State of Montana's investment in all capital assets: property, plant, and equipment. This includes intangible assets that meet the capitalization threshold. All agencies are required to use AM, except the Higher Ed Units, which maintain their capital assets on a BANNER asset subsystem similar to asset management. The capital asset balances for the Higher Ed Units are posted to the general ledger module of SABHRS through an interface process. As a subsystem of SABHRS, AM provides general ledger accounting in SABHRS and property subsidiary detail in AM. To facilitate full disclosure in SABHRS financial reports, this chapter is in agreement with guidelines set forth by the GASB (Governmental Accounting Standards Board). In addition to providing asset detail, AM provides information to conduct regular asset inventories as well as depreciation/amortization schedules for all funds. AM incorporates the ability to perform inventories using barcode scanners and to print barcode labels to use as asset tags. Each capital asset item is assigned a property number and a corresponding property tag is affixed thereto, as appropriate. Section 2-1720.20 includes procedures for the taking of an inventory upon implementation of AM and periodic physical inventories thereafter. The assets are generally recorded in the fund(s) that purchased the assets. When reconciling assets, the related reports or queries must be ran using the correct fund and ledger combination. It is also important to reconcile both the governmental and proprietary fund assets to the general ledger. All assets are now included in the State of Montana’s general purpose financial statements and should be in the scope of the independent auditor’s audit process. This will be discussed further in the accounting methods section. 2-1701.10 Assets not recorded in SABHRS Those agencies maintaining a more detailed capital asset system must submit summary totals at fiscal year-end to affect AM. These summary entries must include total increases and total decreases for the year (i.e., not a net increase or net decrease) by fund. Agencies must receive Department of Administration approval prior to using systems other than AM to maintain their capital asset detail. An example of a system maintaining more detailed information relating to capital assets is the Department of Transportation’s Land and Right of Way system. In addition to recording assets on BANNER, the State of Montana universities have chosen to maintain the fund structure and accounting methods used prior to GASB 34. The funds and accounts used for these transactions on the university BANNER systems are posted in total to SABHRS; the related accounting entries are not presented in this chapter. However, the 1700-5
  6. 6. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 university systems are required to follow the general accounting guidance contained in this chapter. 2-1701.20 Objectives and benefits of property accounting In the following sections, instructions for real and personal property asset accounting on a uniform statewide basis are detailed. The importance of complete and accurate accounting cannot be overemphasized. Adequate accounting procedures and records are essential for the protection of State of Montana property. The responsibilities of stewardship involved in safeguarding such a large public investment are of the utmost importance to sound financial administration. This responsibility can be more effectively discharged through adequate property accounting. In addition to protective custody of the State of Montana's property, a system of property accounting permits the assignment of responsibility for custody and proper use of specific property with individual public officials. Such a system also makes possible the provision of data essential to the proper management of property. This includes such information as type of assets, location, cost, funding source and useful life. Finally, an accounting of property is a prerequisite to the preparation of satisfactory and complete financial reports. An annual financial report of a governmental unit without complete and accurate property information does not meet the objective of full disclosure and, to that extent, is deficient. Adherence to the guidelines contained in this chapter will provide: • Property records, if properly maintained, that furnish information about the investment taxpayers and others have made for the future benefit to users of government property. This should be contrasted with expenditures for current purposes. • A basis for adequate insurance coverage on insurable assets. Although cost is not the only determinant of insurable value, it is a necessary consideration. • The ability to identify worn-out or obsolete equipment on a concurrent basis. Provision for replacement can be included in a budget before emergency replacement or unwarranted repairs are necessary. • Information necessary to perform regular inventories to determine physical condition, theft, or unauthorized transfers. • Reliable information about assets now owned. Because capital budgets are best developed on a long-term basis, such information is invaluable in projecting future requirements. • Assistance in maintaining accountability for the custody of individual items and in determining who is responsible for their care and maintenance. • The ability to centralize property management, either statewide or within an agency, so that location is readily determinable for physical control. This should also alleviate the problem of excess equipment in one department while a shortage of like equipment exists in another department. It will also help to avoid unwarranted purchases of duplicate equipment. • Comprehensive asset records for all funds to use as a basis for computing depreciation or amortization. 1700-6
  7. 7. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1701.21 Capitalization thresholds (modified April 2010) In general, all State of Montana agencies are required to capitalize tangible and intangible assets if an item's unit cost meets or exceeds the capitalization threshold. Capital assets consist of assets of a relatively permanent nature with a useful life of more than one year. Items costing less than the capitalization threshold must be expensed in the year of purchase. Individual collections or land items may consist of individual items less than the capitalization limit if the total collection value exceeds the capitalization limit. Software license purchases should be capitalized if the aggregate purchase price, not the individual price per license, is greater than the capitalization threshold. The State of Montana’s capitalization thresholds are as follows: Asset Type Thresh old Equipment 5,000 Land 5,000 Library Materials 5,000 Museum & Art 5,000 Museum & Library Collections 5,000 Other Assets 5,000 Land Improvements 25,000 Buildings 25,000 Building Improvements 25,000 Land Use Rights 100,000 Land Use Rights – Permanent 100,000 Other Intangibles 100,000 Software - Purchased 100,000 Infrastructure 500,000 Software – Internally Generated 500,000 The capitalization thresholds listed above will be used because the cost of keeping dollar value records of most items costing less than these amounts usually exceeds the value of the benefits received. All other property is expensed in the year that it is purchased. If an intangible asset type’s capitalization threshold has increased, and an intangible asset has already been capitalized under the previous capitalization threshold, the intangible asset should remain a capital asset and continue to be amortized for the remainder of its useful life. The capitalization thresholds increased from $5,000 to $100,000 and $500,000 for land use rights and purchased or internally generated software respectively in fiscal year 2010. For accountability purposes, applicable agencies are encouraged to utilize AM to keep records detailing expensed property, especially items that are sensitive to theft, i.e., laptop computers, cell phones, and guns. 2-1701.22 Depreciable versus non-depreciable assets Land, construction work in progress, museum and art collections, library collections, and easements are not depreciable. Per GASB 34, capitalized museum and art collections or 1700-7
  8. 8. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 individual items are not depreciable if all the following conditions are met in regard to the collections or items: • Held for public exhibition, education, or research in furtherance of public service, rather than financial gain • Protected, kept unencumbered, cared for, and preserved • Subject to an organizational policy that requires the proceeds from sales of collection items to be used to acquire other items for collections. All other capital assets that meet the capitalization threshold are required to be depreciated or amortized using the straight-line depreciation method. This requirement is for both Governmental and Proprietary assets. 2-1701.23 Infrastructure to use depreciation method Infrastructure is required to be capitalized at its historical cost and depreciated over its useful life. Under GASB 34 the state agencies must, at a minimum, retroactively report major capital assets that were acquired in fiscal years ending after June 30, 1980. Major general infrastructure is defined as either a subsystem or network for which the related cost or estimated cost is expected to be 5% or 10% of the total cost of all general assets reported for fiscal year 1999. For this calculation state agencies should use $54,000,000 as the 10% threshold and $27,000,000 for the 5% threshold. This threshold is only applicable to adding assets not already on Asset Management. 2-1701.24 Assets by fund type Governmental assets are assets, which are purchased by any governmental fund, i.e., all funds except for 06XXX, 065XX, 07XXX, 086XX and 095XX funds. Governmental assets are found in the entitywide ledger of the general ledger. Proprietary assets are assets, which are purchased by any proprietary fund, i.e., all 06XXX, 065XX, 086XX and 095XX funds. Proprietary assets are found in the actuals ledger of the general ledger. Agency funds (07XXX) should only be used to report resources held by the State of Montana in a purely custodial capacity. Therefore, no assets should ever be reported in agency funds on AM. 2-1701.25 Asset balance sheet accounts The following is a list of the balance sheet accounts used in regard to capital assets and their related depreciation accounts, if required: • 1701 Land • 1702 Buildings • 1703 Building Improvements • 1704 Equipment • 1705 Other Capital asset • 1706 Construction Work In Progress 1700-8
  9. 9. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 • 1707 Accum Depr – Buildings • 1708 Accum Depr - Bldg Improvements • 1709 Accum Depr – Equipment • 1710 Accum Depr - Other FA • 1711 Livestock • 1712 Easements • 1713 Library Books • 1714 Museum and Art • 1715 Land Improvements • 1716 Infrastructure • 1718 Library Collections • 1719 Museum and Art Depreciable • 1720 Accum Depr Land Improvements • 1721 Accum Depr Infrastructure • 1722 Accum Depr Museum and Art • 1723 Accum Depr Library Books • 1809 Intangible Asset 2-1701.26 Additions, betterments, preservation versus maintenance and repair costs Preservation costs are those costs that extend the useful life of an asset beyond its original estimated useful life, but do not increase the capacity or efficiency of the asset. The table below summarizes the similarities and distinctions for additions, betterments, and repairs and maintenance. Additions Betterment Preservation Ordinary repairs and s Costs maintenance Cost capitalized. Yes Yes Yes No Increases the physical size Yes No No No of a facility. Extends useful life. Yes Yes Yes No Benefits a future period. Yes Yes Yes No May involve replacement. No Yes Yes Yes May involve substitution. No Yes Maybe No Makes facility better than Yes Yes Maybe No when it was acquired. 2-1705.00 Definitions relating to assets (modified April 2010) Building Improvements Significant alterations or structural changes that increase the usefulness, efficiency or asset life of existing buildings. Since these are not buildings in their own right they must be capitalized as building improvements. Fixed Assets Assets of a relatively permanent nature with a useful life of more than one year whose identity does not change with use. The unit must be identifiable and separately accounted for. Infrastructure Long-lived assets that normally are stationary in nature and 1700-9
  10. 10. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams and lighting systems. Intangible Assets A long-lived, nonfinancial in nature legal right that lacks substance. Land Improvements Betterments that ready land for its intended use. Examples include site improvements such as excavation, fill, grading and utility installation; removal, relocation or reconstruction of others, such as railroad and telephone and power lines; retaining walls; parking lots; fencing; and landscaping. For example, if a house and land are purchased and the house razed immediately then the cost of the land, house, any land improvements and the demolition costs would be included as the cost of the land. If the house remains standing and is used for state purposes or as rental property until it is razed sometime in the future the house and land components (if material) should be estimated and capitalized separately. The house will then be depreciated until it is demolished sometime in the future. When the house is demolished the demolition costs will become part of the cost of the land. Land Use Right A legal right to use conservation easements and right-a-ways, as well as minerals, timber, and water. Major Property Property items having a normal useful life of one year or more (including extended life due to repairs), an identity which does not change with use (i.e. retains its identity throughout its useful life), is identifiable and separately accounted for, and has a unit cost greater than the capitalization threshold. Minor Property Property items having a normal useful life of one year or more, an identity which does not change with use, is identifiable, can be separately accounted for, and has a unit cost of less than the capitalization threshold. Network of Assets All assets that provide a particular type of service for a government. A network of infrastructure assets may be only one infrastructure asset that is composed of many components. For example, a network of infrastructure assets may be a dam composed of a concrete dam, a concrete spillway and a series of locks. Other Capitalized Assets All assets that meet the definition of major property not in another asset type. For example, this category could include livestock. Other Intangibles All intangible assets that meet the definition of an intangible asset not in another intangible asset type. Examples are copyrights, patents and trademarks. Software – Purchased Commercially available software that is purchased or licensed with little or no modifications necessary before being put into operation. Software – Internally Generated Software developed in-house or by a third-party contractor on behalf of the organization. Also includes commercially available software that is modified using more than minimal effort before being put into operation. Subsystem of a Network of Assets All assets that make up a similar portion or segment of a network of assets. For example, all the roads of a government could be considered a network of infrastructure assets. Interstate highways, state highways and rural roads could each be considered a subsystem of that network. 1700-10
  11. 11. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Supplies and Materials Consumable commodities purchased for inventory or immediate consumption; articles and commodities, which are consumed or materially altered when used; and software and fixed assets with a unit cost of less than the capitalization threshold. This may include operating supplies, office supplies, and small tools (Expenditure accounts 622XX). Works of Art and Historical Works of art and historical treasures (including related collections) Collections will be capitalized as required under GASB 34 para 27 through 29 and note 22. These will be capitalized by the state and are not depreciable. Capitalized collections or individual items that are “exhaustible such as exhibits whose useful lives are diminished by display or educational or research activities will be depreciated.” A separate depreciable category and related accounts have been established for this activity. 2-1710.00 Responsibilities 2-1710.10 Department of Administration (DOA) Section 17-1-102 (2) MCA, provides that the Department of Administration “shall prescribe and install a uniform accounting and reporting system for all state agencies and institutions, reporting the receipt, use and disposition of all public money and property in accordance with generally accepted accounting principles”. Statewide administration of AM is divided within the Department of Administration, between the Accounting Bureau, the SABHRS Finance and Budget Bureau and the Property and Supply Bureau. 2-1710.11 Responsibilities of the Accounting Bureau .1 Issue related accounting policy and development of procedures. .2 Work with agencies and SABHRS to insure AM complies with GAAP. .3 Provide primary helpdesk support. .4 Assist with report and query development. .5 Assist with the correction of system deficiencies. 2-1710.12 Responsibilities of the SABHRS Finance and Budget Bureau .6 Maintenance of AM. .7 Work with DOA Accounting Bureau and PeopleSoft to correct system deficiencies. .8 Run monthly AM processes. .9 Develop reports and public queries. .10 Correct system deficiencies. 2-1710.13 Responsibilities of the Property and Supply Bureau .11 Coordinate disposal of surplus property for agencies. .12 Dispose of surplus property. .13 Provide agencies with notification that the surplus process has been completed. 1700-11
  12. 12. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1710.20 Agency property coordinator Agencies are to designate an agency property coordinator who will serve as the liaison with the DOA Accounting Bureau in carrying out duties assigned relative to property management and to assure the exchange of administrative information between the DOA Accounting Bureau and the agency. Agencies must notify the DOA Accounting Bureau of the individual designated as the agency's property coordinator. 2-1710.21 Duties of the agency property coordinator .14 Timely and accurate entry of asset information into SABHRS. This entry should be performed as assets are received. The entries should, at a minimum, be made on a monthly basis, and not be accumulated until fiscal year-end. .15 Analysis of asset balances and information and correction of data accordingly. .16 Assign responsibility for property matters to property officers within the agency. .17 Assign responsibility for the physical inventory of property to personnel within the agency. .18 Assign responsibility for the coordination of surplus equipment. .19 Control and distribute of property tags. 2-1710.30 Property officers The number of property officers within each agency will be designated by the agency property coordinator, with the approval of the agency director, considering such factors as the size and organizational structure of the agency, geographical locations and number of property items. In general, the property officer should be the individual having direct supervision over the persons using the property, (e.g., the foreman in a carpenter shop, the accounting supervisor in an accounting office, etc.). 2-1710.31 Duties of property officers .20 Ensure the proper use and maintenance of property. .21 Promptly report any property loss, misuse of property or any condition requiring repair or which creates a hazardous working condition. .22 Responsible for the assignment of property within their area of responsibility. .23 Responsible for the tagging of property within their area of responsibility. 2-1715.00 Capital asset reported cost Capital assets should be reported at their historical cost (after any cash discounts). In the absence of historical cost information, the asset’s estimated historical cost may be used. Assets donated by discretely presented component units or by parties outside the financial reporting entity should be reported at their fair value on the date the donation is made. When capital assets are moved from one fund to another, the recipient fund should continue to report those assets at their historical cost as of the date they were acquired by the primary government. 2-1715.10 Calculation of historical cost The historical cost of a capital asset should include all of the following: 1700-12
  13. 13. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 .24 Ancillary charges necessary to place the asset in its intended location (for example, freight charges). .25 Ancillary charges necessary to place the asset in its intended condition for use (for example, installation and site preparation charges). .26 Capitalized interest on debt incurred during the construction phase of a project. This is only applicable for debt issued in enterprise funds for a project that will be paid for out of enterprise funds. The historical cost of a capital asset should include the cost of any subsequent additions or improvements but exclude the cost of repairs. An addition or improvement, unlike a repair, either enhances a capital asset’s functionality (effectiveness or efficiency), or it extends a capital asset’s expected useful life. If additional costs need to be added to an asset’s historical cost, they should be added as a separate asset on AM and linked to the original asset using the parent/child functionality. 2-1715.20 Historical cost estimation procedures When the historical cost of capital assets is no longer available, the estimated historical cost can be calculated by using either the standard costing method or the price level index method. In either case once calculated, the estimated historical cost of the capital asset would need to be reduced by an appropriate amount of accumulated depreciation/amortization. This is accomplished in AM by changing the transaction date to correspond to the actual in-service date of the asset when it is added. 2-1715.21 Standard costing method Standard costing involves using historical sources, such as sales catalogs or advertisements, to establish the average cost of obtaining the same or similar assets. In addition, the standard costing method could use a quote from a manufacturer as to the cost at the time of purchase. 2-1715.22 Price level index method The price level index method deflates the current cost of the same or similar asset using an appropriate price index. 2-1715.23 Price level indicators Annual price levels are measured in terms of the Gross National Product Implicit Price Deflators (GNP Deflators) for government purchases of goods/services. GNP Deflators can be found at the following website. http://www.bea.gov/bea/dn/nipaweb/SelectTable.asp?Selected=N 2-1715.24 Estimation procedures The following steps are used in converting the current cost of purchasing an asset at today's prices into the estimated historical cost of a capital asset: .27 Calculate the conversion factor by determining the deflator prevailing when the capital asset was acquired and dividing it by the current year GNP Deflator. 1700-13
  14. 14. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 .28 Calculate the estimated historical cost by multiplying capital asset cost times the conversion factor determined in step 1. Important: Documentation of the source of the capital asset's current cost and the actual or estimated year the asset was acquired should be maintained by the agency for future reference and audit purposes. 2-1715.25 Example - historical cost estimation Current cost of comparable equipment $22,000 Acquisition year of equipment 1994 Acquisition year GNP Deflator (1994) 96 GNP Deflator (2002) 111 Step I conversion factor 1994 Deflator/2002 Deflator = 96/111 = .865 Step II estimated historical cost $22,000 X .865 = $19,030 2-1720.00 General property management 2-1720.10 Identification of property AM will automatically assign the next sequential number available for an agency or AM business unit unless the user assigns a different number when the asset is added. It is recommended that agencies allow the system to assign the numbers unless there is a valid reason to assign different number sequences. In the case of property for which a tag is required, AM will automatically assign the asset identification number as the tag number unless an agency assigns a different tag number to the asset. Individual asset identification numbers are assigned to each asset item added to AM within the agency beginning with one (00000000001) and continuing sequentially to 9999999999. A specific asset identification number may not be used more than once within the business unit code. 2-1720.11 Property tags Some capital assets (e.g., land, buildings, etc.) may not actually be physically tagged or identified, although individual asset identification numbers for each item will be assigned by AM. Because of the physical nature of some equipment, it may not be feasible to affix one of the standard tags. However, whenever possible, the tag number will still be identified on the item by some means such as etching, decal, indelible ink, etc. Where possible, property tags should conform to the following specifications: .29 Tags shall contain the description "State of Montana" .30 Tags shall contain the responsible agency name. .31 They can be numbered from 00000000001 to 99999999999. Non-numbered tags can be ordered. These can be used to replace missing numbered tags by typing the tag number directly on the property tag. Barcode labels used in place of metal tags must contain the same information noted above. 1700-14
  15. 15. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Departments that have established identifying and tagging procedures that meet or exceed the above specifications will be allowed to retain their property tags. 2-1720.12 Ordering tags Agency property coordinators should contact the Department of Administration Property and Supply Bureau for instructions on ordering property tags. 2-1720.13 Affixing tags All major equipment (equipment meeting the capitalization threshold) should be identified in the manner that promotes easy identification. At the agencies discretion, minor equipment should have a property tag attached. Property tags should be placed in plain sight on the equipment, but in such a manner so as not to interfere with the operation of the equipment or be easily removed during the use of the equipment as physical conditions permit. Any manufacturer's mark and/or serial number should remain exposed and intact in order to expedite repair and facilitate the maintenance of service records. 2-1720.14 Control of unmissed tags Proper control must be exercised over the issuance of property tags. An example of a format to record the information necessary to control the issuing of tags is shown below: PROPERTY TAG CONTROL SHEET DEPARTMENT OF ABC FOR TAG NUMBERS: through Tag Number(s) Date Issued Issued By Issued To 2-1720.15 Sensitive equipment Agencies must track, and inventory sensitive items with a cost under the capitalization limit. Examples of sensitive items include personal computers, laptops, cameras, spotting scopes, firearms, etc. If possible, these items must be tagged in the same manner as capital equipment. It is recommended these be added to AM as expensed assets for inventory control purposes. 2-1720.16 Expendable supplies Expendable supplies, to the extent considered necessary, will be identified and marked in an appropriate manner that will identify them as belonging to a specific agency of the State of Montana. Examples: (1) wood handled tools can be marked by branding, stamping with a dye or by distinctive paint marks; (2) cloth items, such as sheets, blankets, and mattresses, can be stenciled. 2-1720.17 Rental or leased equipment A property tag or decal that can be removed later without defacing the equipment should be affixed to rented or leased equipment to distinguish them from State of Montana property and to assure their proper care and return. 1700-15
  16. 16. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1720.20 Physical inventories An agency must take a complete physical inventory of all capital assets, tagged minor equipment, and sensitive equipment using either the inventory listing available from either an asset management system or an automated barcode scanner process. At a minimum, this inventory must be taken every two years. 2-1720.21 Agency inventory plan The agency property coordinator will designate personnel or work with agency management to obtain personnel who are to take the inventory. The custodian of the property records or the person to whom the capital assets have been assigned should not exclusively control the inventory. Property records should be utilized whenever possible to assist in locating capital asset items. Inventories should be taken progressively from one small area to another (e.g., a building, one floor at a time, room by room). All capital assets, tagged minor equipment, and sensitive equipment should be included in the inventory. Personnel conducting a manual inventory should record all data possible on the inventory by location report to be utilized in the update of the asset management system for individual capital asset items. Upon completion of the capital asset inventory, the asset management system should be updated and accounting entries recorded on SABHRS, when appropriate. Inventory records must be retained in the agency files. Additional documents related to individual property items should be filed with the inventory records. The frequency of a physical inspection and inventory of all capital assets will be determined by each agency's inventory system. If an agency has a perpetual capital asset inventory system where the records are updated every time a capital asset is purchased or disposed of, a physical inventory need only be taken once every two years. If the agency does not have a perpetual inventory system, a physical inventory must be performed every year near June 30. The annual inventory will insure that the capital assets recorded on asset management at fiscal year-end are correctly stated. A physical inventory should be taken to coincide with the June 30 fiscal year- end. While taking inventories, it may be desirable to prepare separate listings of minor, expendable, rental or leased equipment for which tagging or other identification is considered necessary. 2-1720.22 Missing tags or untagged items While the physical inventory of capital assets is being conducted, attention should be directed to any capital assets without tags. It is possible that the item's original tag is missing or that it was not initially tagged. Sufficient information should be noted so that a research of property records can determine if the item needs to be tagged or retagged. If the untagged item is on the inventory list correctly and a new tag number is given to that asset, no adjustment is needed to the asset management system other than noting of the new tag number. 1700-16
  17. 17. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1720.23 Inspection of equipment Equipment should be inspected during inventories to determine its condition and the appropriate condition code entered on the inventory listing. If the personnel conducting the inventory suspect that replacement or extensive repairs may be necessary, it should be reported to the custodian of the asset and the agency property coordinator. 2-1720.24 Reconciliation and adjustments Capital assets disclosed by the physical inventory should agree with the items as listed on the inventory list. Discrepancies must be thoroughly investigated and reported to the agency property coordinator. Any necessary write-offs because of missing capital assets should be documented and submitted to the Legislative Audit Division and the Attorney General. The Report of Property Survey form may be used for this. It is available at the following address: http://accounting.mt.gov/accountingformsinfo.mcpx Upon completion of the physical inventory, all necessary adjustments should be made to the asset management system to accurately reflect capital asset totals. If the item was found not to have been included on the asset management inventory list, then the asset must be added to asset management. In SABHRS, the transaction date must be changed to properly reflect in-service date of the asset. 2-1720.30 Asset characteristics 2-1720.31 Useful life and/or salvage value The useful life and salvage value of an asset is defined based on the Profile ID as designated on AM. The useful life and/or the salvage value of an asset can be changed in certain circumstances. Reasons to adjust the useful life and/or salvage value of an asset could include, but is not limited to, experience with similar assets or a need to meet federal depreciation/amortization allowance guidance. Supporting documentation for determining the estimated useful lives of fixed assets would be engineering studies, actual experience documented in the records of similar assets, etc. Agencies may also be required to follow the useful lives identified by third party regulators such as those specified by the American Hospital Association Depreciation Guide. Any change of the useful life and/or salvage value of an asset should be documented and maintained by each agency. The useful life of an asset is expressed in periods (months) on AM. 2-1720.32 Asset class In AM, a five-digit number has been assigned to the various classes of property as listed below. The first two digits represent the classification of property and the next three digits represent the type of property within the classification. Agencies must include a class type to each asset as it is added to AM. The class type is not defaulted into the asset as part of the profile. This is also not a system-required field because it is not available in some AM panels. However, this field is required by State of Montana policy on AM panels that it appears on. 1700-17
  18. 18. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 2-1720.33 Asset profile / salvage value / useful life / category / class table (modified April 2010) Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Expensed EXPENSED N/A N/A EXPEN As Req’d Agricultural G03, P03 10 120 GEQUP, 03 Equipment PEQUP Field Machinery 03001 Attachments 03002 Tractors 03003 Farm Wagons 03004 Livestock Feeding 03005 Equipment Grain Moving 03006 Equipment Tractors/Mowers 03033 Agriculture Other 03999 Airport & G04, P04 05 120 GEQUP, 04 Airways PEQUP Equipment Airway Beacons 04001 Non-Directional Radio 04002 Beacons Unicom Radios 04003 ELT Homer 04004 Weather System 04005 Airport/Airway Other 04999 Audio-Visual & G05, P05 08 60 GEQUP, 05 Photo PEQUP Equipment Microfilm 05001 Projection 05002 Radio and Television 05003 Recording 05004 Sound 05005 Cameras 05006 Camera Lenses 05007 Film Developing/Printing 05008 Equipment Movie Film 05009 Audio/Visual Other 05999 Books and G10, P10, 00 84 GBOKS, 10 Maps PBOKS 1700-18
  19. 19. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Depreciable Books and G9101, N/A N/A GLCOL,P 10 Maps Non- P9101 LCOL Depreciable Books and Maps Other 10999 Buildings G15, P15 05 300 GBLDG, 15 PBLDG Building G30, P30 05 84 GIMPR,PI 15 Improvements MPR Hospitals 15001 Sheds 15002 Classroom/Research 15003 Residences 15004 Garages/Barns 15005 Buildings Other 15999 Construction G18, P18 10 84 GEQUP, 18 Equipment PEQUP Excavation & Trenching 18001 Equipment Earth-Moving 18002 Equipment Loaders 18003 Crawlers 18005 Fork Lift 18006 Motor Patrol/Graders 18030 Rollers 18031 Loaders 18032 Crawler/Tractors 18035 Pulverizers 18037 Const Equip Other 18999 Construction G19, P19 N/A N/A GCWIP, 19999 Work in PCWIP Progress Data G20, P20 10 60 GEQUP, 20 Processing PEQUP Equipment Computers 20001 Terminals 20002 Communications 20003 Equipment Peripheral Equipment 20004 Printers 20005 1700-19
  20. 20. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Scanners 20006 Data Processing Other 20999 Firearms G22, P22 10 84 GOTHR, 22 POTHR Handguns 22001 Rifles 22002 Shotguns 22003 Tranquilizing Guns 22004 Firearms Other 22999 Furniture and G25, P25 02 120 GEQUP, 25 Fixtures PEQUP Beds 25001 Benches 25002 Bookcases 25003 Carpeting 25004 Chairs 25005 Desks 25006 Drapes 25007 Filing Cabinets 25008 Lamps 25009 Shelves, Movable 25010 Sofas 25011 Stools 25012 Tables 25013 Tubs and Showers 25014 Clocks 25015 Dressers 25016 Furnaces 25017 Decorative & 25018 Ornamental Items Storage Cabinets 25021 Display Cases 25023 Files - Fiche, Card, Map 25025 & Plan Furniture/Fixtures Other 25999 Infrastructure 90 Dams G9001, 0 600 GINFR 90001 P9001 Paved Roads G9002, 0 240 GINFR 90002 P9002 Gravel Roads G9003, 0 120 GINFR 90003 1700-20
  21. 21. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months P9003 Sewage Lagoons G9004, 0 480 GINFR 90004 P9004 Water Systems G9005, 0 480 GINFR 90005 P9005 Hatchery Raceways G9006, 0 600 GILND 90006 P9006 Urbanized Interstate G9012 0 336 GINFR 90007 Urbanized Other Princ G9012 0 336 GINFR 90008 Arterial Urbanized Minor Arterial G9012 0 336 GINFR 90009 Urbanized Collectors G9012 0 336 GINFR 90010 Highways Miscellaneous G9012 0 336 GINFR 90011 Bridges G9011, 0 420 GINFR 90012 P9011 Interstate Highways G9007 0 336 GINFR 90013 National Highway G9008 0 336 GINFR 90014 System Primary Highways G9009 0 336 GINFR 90015 Secondary Highways G9010 0 336 GINFR 90016 Dams G9001, 0 600 GINFR 90017 P9001 Lakes/Ponds G9001, 0 600 GINFR 90018 P9001 Reservoirs G9001, 0 600 GINFR 90019 P9001 Septic Systems G9099, 0 300 GINFR 90020 P9099 Ditches G9099, 0 300 GINFR 90021 P9099 Natural Gas Lines G9099, 0 300 GINFR 90022 P9099 Electrical Lines G9099, 0 300 GINFR 90023 P9099 Telephone Lines G9099, 0 300 GINFR 90024 P9099 Water Lines G9099, 0 300 GINFR 90025 P9099 Fiber Optic Lines G9099, 0 300 GINFR 90026 P9099 Infrastructure Other G9099, 0 300 GINFR 90099 P9099 Kitchen G35, P35 02 60 GEQUP, 35 Equipment PEQUP Dishwasher 35001 1700-21
  22. 22. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Food Proc. & Handling 35002 Equipment Freezers 35003 Ovens 35004 Ranges 35005 Refrigerators 35006 Kitchen Fixtures 35007 Kitchen Equip Other 35999 Laboratory & Laboratory & Scientific G40, P40 02 84 GEQUP, 40 Scientific Equipment PEQUP Equipment Analysis 40001 Electronic 40002 Heating & Cooling 40003 Devices Measuring & Control 40004 Devices Optical 40005 Collecting Devices 40006 Animal Care & 40007 Propagation Equipment Purifying Apparatus 40008 Electricity Variance 40009 Equipment Scales and Balances 40010 Mixing/Separating 40011 Equipment Electrical Test 40012 Equipment Microtome Equipment 40013 Laser/X-ray Equipment 40014 Medical Equipment 40017 Drilling Equipment 40018 Traffic Counters 40019 Laboratory Other 40999 Land G42, P42 N/A N/A GLAND, 45 PLAND Land Other 45999 Land G32, P32 05 84 GLIMP, 30 Improvements PLIMP Fences & Barriers 30002 Pavement 30004 1700-22
  23. 23. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Sidewalks 30005 Walls, Retaining 30007 Boat Docks, Landings 30008 Camping & Picnic Sites 30009 Corrals, Chutes 30010 Landscaping, shrubbery 30011 Wildlife Habitat 30012 Modifications Picnic Tables 30014 Latrines 30015 Signs 30021 Storage Tanks 30023 Land Improvements 30999 Other Land Use G41, P41 N/A 360 GESAM, 41 Rights PESAM Easements/Right-a- 41001 ways Mineral Rights 41002 Timber Rights 41003 Water Rights 41004 Land Use G43, P43 N/A N/A GEASE, 43 Rights - PEASE Permanent Easements/Right-a- 43001 ways Mineral Rights 43002 Timber Rights 43003 Water Rights 43004 Leased G44, P44 05 300 GLBLD, As Building PLBLD Req’d Leased G45, P45 05 84 GLME, As Machinery/ PLME Req’d Equipment Leased Land G46, P46 00 360 GLLND, As PLLND Req’d Leased G47, P47 05 84 GLIMP, As Improvement PLIMP Req’d 1700-23
  24. 24. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Leased Other G48, P48 00 60 GLOTH, As PLOTH Req’d Livestock G50, P50 00 60 GSTCK, 50 PSTCK Livestock Other 509999 Maintenance G55, P55 05 60 GEQUP, 55 and Janitorial PEQUP Floor Polishers, Waxers, 55001 Sanders Laundry Equipment 55002 Vacuum Cleaners 55003 Grounds-Keeping 55004 Equipment Garbage 55005 Containers/Packers Maint/Janitorial Other 55999 Major G87, P87 10 180 GEQUP, 87 Maintenance PEQUP Equipment Truck-Dump Under 87019 250HP Truck 5th Wheel or 87021 Stake Under 250HP Truck-Core Drill/Hole 87022 Auger/Water Under 250HP Paint Stripers 87023 Truck with Wing Plow 87025 Under 250HP Truck - Dump or 4x4 87027 Over 250HP TMA Trucks 87028 Truck - Tandem Axle 87029 Truck - Mounted Special 87034 Equipment One Way Plows 87050 Reversible Plows 87051 V-Plows 87053 Snow Blowers 87054 Sanders/Spreaders 87057 Asphalt Dist -Rd Oil, 87062 Crack Sealers, Tar Pots, etc 1700-24
  25. 25. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Asphalt Equip -Hot 87063 Plants, Towed Pavers, etc Miscellaneous G88, P88 10 240 GEQUP, 88 Major PEQUP Maintenance Equipment Miscellaneous 88036 Equipment Drilling Equipment 88039 Air Compressors 88041 Broom and Sweepers 88042 Support Equipment 88044 Trailers (61-21T, Safety, 88061 Pup and Belly Dumps) Mobile Office and Lab 88064 Trailers Museum and G60, P60 00 360 GMUSE, 60 Art Purchased PMUSE, Museum G9201, 00 240 GMUSD, 60 Depreciable P9201, PMUSD, Museum and G9301, GMADN, 60 Art Donated P9301 PMADN Collections 60001 Paintings 60002 Pictures 60003 Plaques 60004 Specimens 60005 Statutes 60006 Mounts and Hides 60007 Historical Maps 60008 Museum Other 60999 Operating OPERLEASE N/A N/A OPLSE N/A Lease Office G65, P65 05 60 GEQUP, 65 Equipment PEQUP Adding Machines 65001 Air Conditioners, 65002 Portable Bookkeeping Machines 65003 Calculators 65004 1700-25
  26. 26. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Cash Registers 65005 Computers 65006 Fans, Electric 65007 Copying Machines 65009 Transcribing Machines 65010 Typewriters 65011 Safes 65012 Addressing & Mailing 65013 Equipment Printing & Assembly 65014 Equipment Microfiche Reader 65015 Telephones & 65016 Communications System Office Equipment Other 65999 Other G66, P66 N/A 240 GOTIN, 66 Intangibles POTIN Copyrights 66001 Patents 66002 Trademarks 66003 Other Intangibles 66004 Outdoor G67, P67 05 60 GEQUP, 67 Equipment PEQUP Tents 67001 Stoves & Cooking 67002 Equipment Snowshoes 67005 Saddles, Bridals, Etc. 67006 Diving Equipment 67007 Outdoor Equipment 67999 Other Professional G70, P70 05 84 GEQUP, 05 Equipment PEQUP Drafting 70001 Engineering 70002 Surveying 70003 Professional Other 70999 Recreational G75, P75 05 60 GEQUP, 75 Equipment PEQUP Exercise and Gymnastic 75001 1700-26
  27. 27. Montana Operations Manual (MOM) Volume II Chapter 1700 Capital asset accounting Effective 7/1/2006 Profile Asset Class Profile ID Salvage Useful Category Asset Description Description Value Life in Class Percent Months Game Equipment 75002 Sports Equipment 75003 Sewing/Textile 75005 Equipment Musical Instruments 75006 Arts & Crafts Equipment 75007 Recreational Other 75999 Safety G78, P78 05 84 GEQUP, 78 Equipment PEQUP Fire Fighting Equipment 78001 Water Safety Equipment 78002 Fireline Equipment 78003 Fireline Support 78004 Equipment Firefighting - Water 78005 Pumps Firefighting - Water 78006 Tanks Firefighting - Detection 78007 Equipment Firefighting - Weather 78008 Equipment Firefighting - 78009 Communication Equip. Firefighting - Chainsaws 78010 Arrow Boards 78011 Safety Other 78999 Shop G80, P80 05 84 GEQUP, 80 Equipment PEQUP Machine Tools & 80001 Related Equipment Power Equipment 80002 Work Benches 80003 Work Tables 80004 Tool Cabinets 80005 Two-way Portable 80006 Radios Vehicle Service 80007 Equipment Generators/Alternators 80008 Timing Gauges 80009 Tire Equipment 80010 Cleaning Equipment 80011 1700-27

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