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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
approved by both the transferor and transferee departments before an asset is
transferred.
Placed In Service Assets

When a capital improvement project is substantially completed and an asset is
used for its intended purpose, the Capital Assets Coordinator will provide the
Capital Asset In-Service form to the Capital Asset Team within six months or
before the current fiscal year ends, whichever comes first. The Capital Asset Team
will transfer the cost of the asset from Construction Work in Progress (CWIP) to

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