Hillsdale Housing Commission
45 N. West Street ¨ Hillsdale, MI 49242
Phone: (517) 439-1210 ¨ Fax: (517) 439-9577 ¨ E-mail: mail@hillsdalehousing.org
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| Click here to download the Microsoft Word Version of this Policy Capitalization Policy PurposeThis policy is being established for the purpose of stating the Capitalization Criteria in determining distinguishing and recording expendable and non-expendable equipment purchased or acquired in connection with the development, management and maintenance of the Public Housing Project owned and/or operated by the Hillsdale Housing Commission. DefinitionsCapitalized Equipment“Capitalized Equipment” is defined as equipment purchased or acquired by the Housing Commission with a value of $200.00 or more which is/are not physically attached to Commission property and the anticipated life or useful value of said equipment and/or property is anticipated to be more than one year. Non-Capitalized Expendable Equipment and Supplies“Non-Capitalized Expendable Equipment” is defined as equipment purchased or acquired by the Housing Commission for less than $200.00 which is/are not physically attached to Commission Property.. Policies1. If the initial cost of the equipment is $200.00 or more and the anticipated life or useful value of said equipment or property is more than one year, the same shall be capitalized and recorded as capitalized equipment and chargeable as a capital expenditure. Capitalized equipment shall require adoption of a formal Housing Commission resolution prior to disposition. 2. If the initial cost of expendable or consumable supplies is less than $200, or its useful life is less than one year, the same shall be considered Non-capitalized Expendable Equipment and Supplies and shall not be recorded on the Commission’s physical property inventory ledgers. 3. The Executive Director is hereby authorized and directed to make determinations upon the purchase of equipment and consumable supplies that are acquired by the Hillsdale Housing Commission in connection with the development, management and maintenance of the projects owned and/or operated by the Housing Commission, the property that is capitalized, expendable, non-capitalized expendable and consumable supplies, pursuant to the criteria established in 1 and 2 above, and cause the same to be documented in the appropriate records of the Housing Commission and retained for the information and guidance of its personnel and for audit purposes. The Executive Director is hereby authorized and directed to make determinations on a basis for application of the Capitalization Criteria with respect to the acquisition of non-expendable equipment, in those instances where the dollar value and/or the anticipated useful life is less than reflected in 1 and 2 above, but where capitalization of the specific equipment would afford, within reasonable limits, more desirable administrative control over the equipment. ProceduresCapitalized EquipmentA record shall be kept of all capitalized equipment purchased or acquired, and this list shall contain an accurate description of expendable equipment in the Commission’s inventory. Physical inventories of capitalized equipment shall be performed at least annually, with any discrepancies submitted in writing to the Executive Director. Non-capitalized Expendable Equipment and SuppliesA record shall be kept of all non-capitalized expendable equipment purchased or acquired.
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