New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 30 - LOCAL FINANCE BOARD
Subchapter 5 - CERTIFICATIONS OF AVAILABILITY OF FUNDS, AND ACCOUNTING SYSTEM REQUIREMENTS FOR LOCAL UNITS
Section 5:30-5.6 - Accounting for governmental fixed assets
Universal Citation: NJ Admin Code 5:30-5.6
Current through Register Vol. 56, No. 18, September 16, 2024
(a) All local units shall have and maintain a fixed assets accounting and reporting system that:
1. Establishes and maintains a
physical inventory of fixed assets of nonexpendable, tangible property as
defined and limited by the U.S. Office of Management and Budget Circular A-87,
Cost Principles for State, Local and Indian Governments, 2 CFR Part 225,
incorporated herein by reference, as amended and supplemented. A local unit may
establish a capitalization level less than, but not in excess of, the threshold
in Circular A-87, except that nonexpendable, tangible personal property shall
have a useful life of at least five years;
2. Places a value on all fixed assets whether
constructed or acquired through purchase, grant, or gift. Fixed assets acquired
after December 31, 1985, shall be valued on the basis of actual cost; prior to
that time, they may be valued at cost or estimated historical cost, the basis
of which shall be disclosed in the local unit's annual financial
statement;
3. Has a subsidiary
ledger, consisting of detailed property records for controlling additions,
retirements, and transfers of fixed assets. Such ledger shall be maintained and
reconciled periodically and at the end of every fiscal year with the general
ledger control accounts for fixed assets;
4. Provides property management standards for
fixed assets that ensures that:
i. Property
records are maintained accurately, to reflect a description and source of the
property, its ownership, the acquisition cost and date, the percentage of
Federal participation in the acquisition, and the location, use, and condition
of the property;
ii. Property owned
by the Federal government is marked as such;
iii. Periodic physical inventories are taken
and reconciled with property records, with any differences being investigated
to reflect the cause of difference;
iv. Provides a control system with adequate
safeguards against loss, damage, or theft of property, and full investigation
and documentation of any losses; and
v. Property is adequately maintained to keep
the property in good condition; and
5. Provide a Statement of General Fixed
Assets in every annual audit report.
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