[HISTORY: Adopted by the Board of Trustees of the Village of Hamburg 8-19-1991. Amendments noted where applicable.]
GENERAL REFERENCES
Procurement policy — See Ch. 67.
A. 
Maintaining adequate fixed asset records and fairly reporting fixed assets allows local governments to meet the requirements under generally accepted accounting principles (GAAP) for fairly reporting fixed assets in their general purpose financial statements. Second, fixed asset accounting provides management with a valuable tool for controlling fixed assets and planning replacements.
B. 
Fixed asset accounting is a valuable management tool because it accomplishes the following:
(1) 
Establishes a record of fixed assets. Having a formal record enables the Board to easily determine what assets the local government has and where the assets are located.
(2) 
Fixes responsibility. Fixing responsibility for assets improves the care employees exercise over assets and diminishes the number of assets lost or stolen. This aspect of fixed asset accounting in and of itself makes it well worth the effort it takes to begin and maintain fixed asset accounting. In addition, it enables the Board to fulfill its stewardship responsibilities in managing the local governments assets.
(3) 
Identifies financing source of assets. Fixed asset accounting provides a record of how each asset was financed which becomes useful in planning future purchases and how they will be financed.
(4) 
Provides the Board with useful supplemental information:
(a) 
Replacement cost. Knowing what an asset cost may help the Board in determining an approximate replacement cost. This is particularly important if the Board establishes a reserve for future capital acquisitions.
(b) 
Insurance coverage. Knowing the value of assets permits the optimum insurance coverage by eliminating over or under insurance coverage. In addition, fixed asset records provide valuable information for proof of loss if a claim for loss is filed.
(c) 
Maintenance cost. Knowing what assets a local government has is beneficial in planning a repair and preventive maintenance schedule and providing for the required expenditure.
(d) 
Useful life. Knowing how long an asset is expected to last helps in planning for future replacements and expansion programs.
(e) 
Capital budget. Knowing what assets a local government has is very useful in forming an overall capital improvement program for acquiring and replacing fixed assets and determining how to finance such purchases.
As used in this chapter, the following terms shall have the meanings indicated:
FIXED ASSETS
Assets of a long term character, which are intended to be held or used for more than one year, e.g. land, buildings, improvements on buildings, machinery and equipment.
Below is a procedure to follow for the Village of Hamburg's fixed assets:
A. 
Assets are purchased by each department through the normal Village of Hamburg purchasing procedures as per Chapter 67, Procurement Policy.
[Amended 6-15-1998 by L.L. No. 3-1998]
B. 
After purchase and receipt of the asset, an inventory change report is to be filled out and signed by the department head. This form consists of the following: name of department, type of transaction (addition, subtraction, deletion or transfer), property identification number, description, location code of transaction, vendor, purchase price, method of disposition and signature. This procedure is for any asset $1,000 or more in cost or for pilferable items that the department head wishes to track for accountability purposes, such as computer software, hand tools, etc.
[Amended 6-15-1998]
C. 
All inventory change reports are to be handed in to the Clerk-Treasurer's office. This office acts as the property control manager. A Village of Hamburg sticker will be issued by the Clerk-Treasurer's office for the reported items.
[Amended 6-15-1998]
D. 
The Property Control Manager (Clerk-Treasurer) accumulates these change reports and transfers the information onto computerized records. These reports designate the actual location of each item in the village.
E. 
The inventory change reports consist of addition, deletion or transfer sheets. These addition sheets can now be verified to see if all inventory has been recorded for the year by checking them against the department's expenditure guideline listing.
F. 
The Property Control Manager then prepares a schedule of general fixed assets by function and activity and another showing additions and deletions for the year. This report is then used in our annual financial report.
G. 
Procedures employed shall comply with all applicable laws and the requirements of the New York State Department of Audit and Control which are issued pursuant to Section 36 of the General Municipal Law of the State of New York.
H. 
All fixed assets will be physically inventoried on an annual basis. The Clerk-Treasurer is responsible to ensure the inventory is completed not later than April 30 of each fiscal year.
[Added 6-15-1998]