Page 414 - Fort Worth City Budget 2019

Capital Assets Policy

XII. Impairment

The department designee is responsible for determining whether an asset should be
classified as impaired. The Capital Asset team in FMS is available to assist in the
determination.

In order to determine impairment, one or more of the following conditions must apply:

 Evidence of physical damage (building damaged by fire or flood,
restoration efforts are needed to restore service utility)
 Enactment or approval of laws or regulations or other changes in
environmental factors
 Technological development resulting in a change of the expected duration
of use of a Capital Asset
 A change in the manner or expected duration of use of a Capital Asset
 Construction stoppage (stoppage of construction of a building due to lack
of funding).
If the asset is not impaired, the department designee should re-evaluate the remaining
useful life and salvage value (if any). All impairment decisions should be communicated
to the FMS Capital Assets Team by the department designee, and must be reviewed and
properly approved by the Department.

XIII. Transfers

When an asset is exchanged between departments, the Capital Asset Team will transfer
the asset in the PSAM system. The Capital Asset Transfer Form shall be used to identify
an asset transfer between City departments. The transfer must be approved by both the
transferor and transferee departments before an asset is transferred.

When a capital improvement project is completed, the Capital Asset Team will transfer
the project from Construction Work in Progress (CWIP) to the appropriate asset category
in the PSAM system when the asset is put into service.

XIV. Monthly Review

The Department Capital Asset Designee is responsible for reviewing the departmental
Capital Assets recorded in the PSAM system on a monthly basis. The department designee
must review the records to identify any missing items, impairments, or retirements, as well
as any completed CWIP projects and to communicate any needed changes to the Capital
Assets Team.
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