M E M O R A N D U M NO. SAD 02-12
 

TO:	Chief Financial Officers
FROM:	Robert L. Powell  State Controller
SUBJECT:	General Government Capital Asset Depreciation

GASB Statement 34 requires governmental funds to report depreciation on depreciable capital assets in the governmental-wide statements for the 2002 Comprehensive Annual Financial Report (CAFR). The Office of the State Controller (OSC) will calculate the depreciation for the governmental funds who are using the North Carolina Fixed Asset System (FAS). It is imperative that the data in this system be accurate.  When entering an asset into the fixed assets system, one of the fields needing close attention is the ACQ CODE (acquisition code) field.  The following are the choices for this field: P for purchased; C for constructed; D for donated; or I for inventory conversion.  If a user does not fill in the ACQ CODE (acquisition code) field, P for purchased defaults in this field.   Other fields, which OSC will rely on, are the ACQ date (acquisition date) field, the retirement date field, and the cost field. Please review the data in this system periodically to ensure correctness.

OSC will require agencies not using the FAS system to report detail asset information including accumulated depreciation by asset caption beginning for the fiscal year-ending June 30, 2002.  A financial worksheet will be included in the 2002 year-end close package to report this information.

 Any inquiries regarding this matter should be directed to your OSC analyst.  Thank you for your attention to this matter.