Standard Operating Procedures/ACT001 - Fixed Asset and Depreciation Policy: Difference between revisions

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Orchard City Amateur Radio Club
{| style="font-family: courier; border: 1px solid black; padding: 1em;"  |
                                  Standard Operating Procedure
|-
Number:    ACCT-01- Revised
| colspan="2" style="text-align: center"|
Subject:    Fixed Asset and Depreciation Policy
'''Orchard City Amateur Radio Club - Standard Operating Procedure'''
Reference: General Club Administration
|-
Purpose:    To Establish Fixed Asset Management, Accounting and Depreciation Policies
| '''Reference'''
| ACT001
|-
| '''Subject'''
| Fixed Asset and Depreciation Policy
|-
| '''Reference'''
| General Club Administration
|-
| '''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 identification number as assigned by the Club
• Asset description
* Asset description
• Details including make, model number and serial number
* Details including make, model number and serial number
• List of additional components with description and quantity
* List of additional components with description and quantity
• Where purchased or acquired  
* Where purchased or acquired  
• Date acquired
* Date acquired
• Funding source i.e. Gaming  
* Funding source i.e. Gaming  
• Purchase price or FMV of donation
* Purchase price or FMV of donation
• Accounting sub category and depreciation rate
* Accounting sub category and depreciation rate
• Location
* Location
• Disposition date
* Disposition date
• Method of disposition  ( If sold, proceeds of disposition - if donated, to whom)
* 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.
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The depreciation rates for Club Assets are as follows:
The depreciation rates for Club Assets are as follows:
3 Years - Computers, Software, Electronics, Radio and Communication equipment with associated peripherals
;3 Years : Computers, Software, Electronics, Radio and Communication equipment with associated peripherals


5 years -  Vehicles, Hardware, Antennas, Towers, Racks, Electrical, Solar
;5 years : Vehicles, Hardware, Antennas, Towers, Racks, Electrical, Solar


10 years -  Buildings (including sea cans)
;10 years : Buildings (including sea cans)


                        
                        
  Passed a motion to accept as revised at OCARC meeting on June 27, 2019
  June 27, 2019 - Passed a motion to accept as revised at OCARC meeting

Latest revision as of 03:25, 7 February 2020

Orchard City Amateur Radio Club - Standard Operating Procedure

Reference ACT001
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)


June 27, 2019 - Passed a motion to accept as revised at OCARC meeting
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