N.J. Admin. Code § 5:30-5.6

Current through Register Vol. 57, No. 1, January 6, 2025

Section 5:30-5.6 - Accounting for governmental fixed assets

(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.

N.J. Admin. Code § 5:30-5.6

New Rule, R.2003 d.404, effective 10/20/2003.
See: 35 New Jersey Register 2427(a), 35 New Jersey Register 4862(b).

Amended by 55 N.J.R. 1690(a), effective 8/7/2023