Mo. Code Regs. tit. 15 § 40-2.031
Current through Register Vol. 49, No. 24, December 16, 2024
Section 15 CSR 40-2.031 - Control of Fixed AssetsPURPOSE: This amendment increases the threshold amounts of the cost of equipment and the cost of additions or betterments to equipment required to be accounted for as fixed assets by state agencies.
(1) Definitions. (A) Department means any department, office, board, commission, bureau, institution or any other agency of the state, except the legislative and judicial departments.(B) Fixed assets mean tangible real or personal property, with a useful life of at least two (2) years. Fixed assets include land, land improvements, buildings, equipment, and additions and betterments to property.(C) The cost of a fixed asset item means the purchase price or construction cost, plus any ancillary charges necessary to place the asset in its intended location and condition for use. Ancillary charges include costs such as freight and transportation charges, site preparation expenditures, professional fees, and legal claims directly attributable to asset acquisition.(2) Each department shall establish and maintain a system of control for fixed assets. As part of these responsibilities, a department should periodically review its system and adjust or modify the level of control to correct deficiencies.(3) All fixed assets acquired by a department, whether by purchase, construction, lease-purchase, donation or other means, are to be used for state business and not for personal benefit.(4) Those items with a cost (or estimated fair value if actual cost not available) over the following threshold amounts are required to be accounted for as fixed assets under this rule:(A) Land-all parcels of land (no threshold amount);(B) Land improvements-fifteen thousand dollars ($15,000) or more;(C) Buildings-fifteen thousand dollars ($15,000) or more;(D) Equipment- five thousand dollars ($5,000) or more;(E) Additions or betterments to buildings-fifteen thousand dollars ($15,000) or more; and(F) Additions or betterments to equipment five thousand dollars ($5,000) or more.(5) If more than one (1) set of fixed asset requirements apply (for example, federal grant requirements) the more stringent set of requirements shall apply.(6) Each department shall ensure that controls are adequate over property items, with a cost under the threshold amounts, that are considered attractive or easily pilfered. These sensitive items may include: audiovisual equipment, calculators, computers and accessories, dictating equipment, television sets, recorders and power tools. Each department shall identify its sensitive items, implement appropriate procedures for adequate control and perform annual inventories. The preferred method is to include these sensitive items on the fixed asset control system. Regardless of the method used, adequate accountability shall be provided. Property items under the threshold amounts that are not considered sensitive should have a tag designating ownership (for example, "Property of Missouri State Highway Patrol") affixed to the item in a prominent location.(7) Each fixed asset item shall be identified by a sequential numbering system including a numbered tag or reasonable substitute physically attached to the item. If it is not possible to attach a tag (for instance, to land), a number shall be assigned to the item for control and identification purposes.(8) Each department shall keep fixed asset control records. These records shall be maintained by fund of acquisition and asset classification and shall contain the following data for each item: identification number; description of the item to include name, make, model and serial number, where appropriate; acquisition cost; date of acquisition; estimated useful life at date of acquisition; physical location in sufficient detail to readily locate the item; and method and date of disposition.(9) Each department shall perform an annual physical inventory of all fixed assets in its possession and reconcile this inventory with the fixed asset control records and with the prior annual physical inventory, accounting for all acquisitions and dispositions in the interim. Each department shall annually prepare a statement of changes in fixed assets to summarize the transactions occurring during the fiscal year. AUTHORITY: section 34.125, RSMo Supp. 1999.* Original rule filed Jan. 16, 1978, effective April 13, 1978. Amended: Filed Aug. 16, 1979, effective Nov. 12, 1979. Amended: Filed Sept. 14, 1989, effective July 1, 1990. Amended: Filed May 4, 2000, effective Dec. 30, 2000. Amended by Missouri Register November 1, 2023/volume 48, Number 21, effective 12/31/2023.*Original authority: 34.125, RSMo 1965, amended 1977.