Page 402 - FortWorthFY22AdoptedBudget

Asset Retirement Form should be properly approved by the Department with
signature and date on the form.
Impairment

A capital asset generally should be considered impaired if both (a) the decline in
service utility of the capital asset is large in magnitude and (b) the event or change
in circumstance is outside the normal life cycle of the capital asset. The
Department Capital Assets Coordinator 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, Department Capital Assets Coordinator should re-
evaluate the remaining useful life and salvage value (if any). All impairment
should be analyzed and estimated by the Department Capital Assets
Coordinator, and submit to the FMS Department Assistant Director or Director
for final review and approval.
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

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