Standard Operating Procedures/ACT001 - Fixed Asset and Depreciation Policy: Difference between revisions
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Orchard City Amateur Radio Club | Orchard City Amateur Radio Club | ||
Standard Operating Procedure | |||
Number: | Number: ACT001 Revised | ||
Subject: | Subject: Fixed Asset and Depreciation Policy | ||
Reference: General Club Administration | Reference: General Club Administration | ||
Purpose: To Establish Fixed Asset Management, Accounting and Depreciation Policies | Purpose: To Establish Fixed Asset Management, Accounting and Depreciation Policies | ||
Asset Management | ==Asset Management== | ||
Individual items or a collection of items that comprise a single installation (i.e. solar power array made up of multiple solar cells) having a purchase price or Fair Market Value “(FMV”) greater than $100 and a useful life greater than 1 year are defined as Assets (“Assets”) for the purpose of this policy. | Individual items or a collection of items that comprise a single installation (i.e. solar power array made up of multiple solar cells) having a purchase price or Fair Market Value “(FMV”) greater than $100 and a useful life greater than 1 year are defined as Assets (“Assets”) for the purpose of this policy. | ||
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Any disposition of an Asset acquired with Gaming funds must be disposed of in accordance with Gaming requirements. | Any disposition of an Asset acquired with Gaming funds must be disposed of in accordance with Gaming requirements. | ||
Database | ===Database=== | ||
A database of all Assets will be maintained. If the Asset information changes the database will be updated. | A database of all Assets will be maintained. If the Asset information changes the database will be updated. | ||
The data base will record: | The data base will record: | ||
* Asset identification number as assigned by the Club | |||
* Asset description | |||
* Details including make, model number and serial number | |||
* List of additional components with description and quantity | |||
* Where purchased or acquired | |||
* Date acquired | |||
* Funding source i.e. Gaming | |||
* Purchase price or FMV of donation | |||
* Accounting sub category and depreciation rate | |||
* Location | |||
* Disposition date | |||
* Method of disposition ( If sold, proceeds of disposition - if donated, to whom) | |||
Accounting Policies | ==Accounting Policies== | ||
Acquisitions | ===Acquisitions=== | ||
All acquisitions must be approved by the Club membership and will be recorded in the financial statements of the Club at the price acquired including shipping and taxes or the FMV of a donation. | All acquisitions must be approved by the Club membership and will be recorded in the financial statements of the Club at the price acquired including shipping and taxes or the FMV of a donation. | ||
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On receipt, all Assets will be assigned an asset identification number and will be recorded in the data base. | On receipt, all Assets will be assigned an asset identification number and will be recorded in the data base. | ||
Previous Acquisitions | ===Previous Acquisitions=== | ||
These policies will apply to Assets acquired prior to the adoption of this policy. Where cost and date acquired are not known it is assumed that the Asset is fully depreciated and the cost of the acquisition will be a FMV as assigned by the Tech Committee. | These policies will apply to Assets acquired prior to the adoption of this policy. Where cost and date acquired are not known it is assumed that the Asset is fully depreciated and the cost of the acquisition will be a FMV as assigned by the Tech Committee. | ||
Depreciation Policies | ===Depreciation Policies=== | ||
The depreciation method will be straight line with no depreciation recorded in the year of acquisition. | The depreciation method will be straight line with no depreciation recorded in the year of acquisition. |
Revision as of 02:34, 7 February 2020
Orchard City Amateur Radio Club Standard Operating Procedure Number: ACT001 Revised Subject: Fixed Asset and Depreciation Policy Reference: General Club Administration Purpose: To Establish Fixed Asset Management, Accounting and Depreciation Policies
Asset Management
Individual items or a collection of items that comprise a single installation (i.e. solar power array made up of multiple solar cells) having a purchase price or Fair Market Value “(FMV”) greater than $100 and a useful life greater than 1 year are defined as Assets (“Assets”) for the purpose of this policy.
On acquisition all Assets will be assigned an Asset identification number and be recorded in the Asset database. If Assets are donated to the Orchard City Amateur Radio Club (“the Club”) the Asset will be recorded at a FMV as established by the Tech Committee of the Orchard City Amateur Radio Club (“the Tech Committee”).
Not less than every five years the Club will identify Assets that are no longer required. Assets that are no longer required will be disposed of by sale, donation or garbage disposal. All dispositions must be approved by the Tech Committee and by vote at a membership meeting. Any disposition of an Asset acquired with Gaming funds must be disposed of in accordance with Gaming requirements.
Database
A database of all Assets will be maintained. If the Asset information changes the database will be updated.
The data base will record:
- Asset identification number as assigned by the Club
- Asset description
- Details including make, model number and serial number
- List of additional components with description and quantity
- Where purchased or acquired
- Date acquired
- Funding source i.e. Gaming
- Purchase price or FMV of donation
- Accounting sub category and depreciation rate
- Location
- Disposition date
- Method of disposition ( If sold, proceeds of disposition - if donated, to whom)
Accounting Policies
Acquisitions
All acquisitions must be approved by the Club membership and will be recorded in the financial statements of the Club at the price acquired including shipping and taxes or the FMV of a donation. All acquisitions of Assets acquired with Gaming funds will be acquired in accordance with Gaming regulations. If a Club member is requested to acquire an asset on behalf of the Club the member will be reimbursed for the purchase after receipt of the Asset by the Club along with the original invoice from the vendor and a completed Expense Claim form. On receipt, all Assets will be assigned an asset identification number and will be recorded in the data base.
Previous Acquisitions
These policies will apply to Assets acquired prior to the adoption of this policy. Where cost and date acquired are not known it is assumed that the Asset is fully depreciated and the cost of the acquisition will be a FMV as assigned by the Tech Committee.
Depreciation Policies
The depreciation method will be straight line with no depreciation recorded in the year of acquisition.
The depreciation rates for Club Assets are as follows:
3 Years - Computers, Software, Electronics, Radio and Communication equipment with associated peripherals
5 years - Vehicles, Hardware, Antennas, Towers, Racks, Electrical, Solar
10 years - Buildings (including sea cans)
Passed a motion to accept as revised at OCARC meeting on June 27, 2019