- 1.0 - Capital and Non-Capital Asset and Inventory Systems (PDF; revised July 3, 2017)
- 1.01 - Accounting Procedures for Capital Assets (PDF; revised May 8, 2018)
- 1.02 - Accounting Procedures for Non-Capital Assets (Cost $1,000 to $4,999.99) (PDF; revised May 15, 2018)
- 1.03 - Accounting Procedures for Information Technology (IT) Assets (PDF; revised May 15, 2018)
- 1.04 - Annual Physical Inventory (PDF; revised May 15, 2018)
- 1.1 - Use of Capital Account Codes (PDF; revised May 21, 2018)
- 1.2 - Guidelines for Capital Asset Valuation (PDF; revised May 21, 2018)
- 2.1 - Capitalization of Fund 490/495 Capital Projects (Construction Projects) (PDF; revised March 26, 2018)
- 3.0 - Capital and Operating Leases (PDF; revised May 8, 2018)
- 4.0 - Year-End Capital Asset Reporting (PDF; revised May 15, 2018)
- 5.0 - Disposition of State-Owned Assets (PDF; revised March 26, 2018)
Summary of Capital Assets
Capital asset accounting is an important fiscal activity due to:
the large amount of property and equipment owned by the Department of Health Services,
federal and state requirements for property management,
depreciation for federal cost reports and grant reporting, and
Fiscal information needed for the State Comprehensive Annual Financial Report (CAFR).
CAPITAL ASSETS 1.0, 1.01, 1.02, 1.03 and 1.04 establish policies for the maintenance and reporting requirements for capital and non-capital assets; including inventory systems, accounting for IT assets, and physical inventories.
CAPITAL ASSETS 1.1 details the use of capital account codes and establishes the conditions under which assets meet the definitions. Freight, installation or other ancillary costs incurred to acquire and install a capital asset should be recognized in a capital account.
CAPITAL ASSETS 1.2 provides guidelines for capital asset valuation to be used to distinguish repair expenditures from capital assets, to capitalize leasehold improvements and other capital assets, excluding state capital projects. CAPITAL ASSETS 2.1 describe how state capital projects should be capitalized on the capital asset records. These procedures principally apply to institutions. Certain repair projects may need to be capitalized as well.
Preparation of the CAFR requires specific information on capital and operating leases. CAPITAL ASSETS 3.0 requires quarterly notification by the divisions and institutions to the Bureau of Fiscal Services (BFS) of certain lease information. Reporting requirements depend upon the type of lease and are described in CAPITAL ASSETS 3.0 and the attachments.
The year-end requirements for capital assets are described in CAPITAL ASSETS 4.0; capital asset records must be submitted to BFS no later than August 1 of each year for inclusion in the CAFR. The major elements of the capital asset reports are:
Physical inventory certification
CAPITAL ASSETS 5.0 describe the process for the disposal of state-owned assets.