Summary
To: Town Commission
From: Gay Lancaster, Town Manager
Date: 2/13/2024
______________________________________________________________________
Subject:
Title
Removal of Assets from Accounting Records
Summary:
Request approval to remove assets from accounting records for items with an original asset value of less than $5,000, where most are fully depreciated, as of FYE 9-30-23..d
Body
Previous Commission Action: Commission approved multiple purchase orders to obtain equipment using General, Water and Solid Waste Funds from fiscal years beginning in 1968 through 2014.
Background/Problem Discussion: To be considered a fixed/capital asset for accounting purposes, an item must have a value of $5,000 and a useful life of at least one year. Upon review of the asset records, Finance noted that there were items that were fully depreciated that had an original asset value of less than $5,000. Also, in a few cases, there were items recorded as assets that did not meet the definition of a capital asset and should not have been recorded as such.
Expenditure Challenges: NA
Financial Implications: The proposed changes to the accounting records will not have any significant financial implications.
Recommendation: Staff recommends approval of the removal of these items from the capital asset records.
Proposed Motion: I move to approve the removal of the listed items from the capital asset records.