Fixed Assets Disposal Policy Draft

Fixed Assets Disposal Policy

All voluntary disposals of fixed assets must be pre‐approved by the board of directors. The board will consider such disposals on a case‐by‐case basis at the request of the executive director.

Methods of voluntary disposal may include sale, trade, recycle, donate, scrap, or most expeditious manner under the circumstances. The board may either specify a preferred disposal method or delegate the decision to the executive director.

Special Considerations  Contributed fixed assets –Care will be taken to see that any disposal of contributed fixed assets is properly reported in compliance with IRS regulations governing the disposal of contributed fixed assets.  Computers and related equipment – Care will be taken to see that all data, memory, and drives are deleted, erased, wiped, and / or otherwise cleared prior to disposal of any computer or related equipment containing organizational data.

All disposals, voluntary and involuntary (e.g., theft, casualty, etc.), must be documented by the executive director on the attached form and reported to the board. Fixed assets disposal records are to become part of the permanent records of the organization.

Any gains or losses realized from the disposal of fixed assets will be accounted for in the period in which a) the voluntary disposal occurs, or b) the involuntary disposal is discovered.

The executive director is responsible for communicating disposals to the treasurer of the board of directors in a timely fashion. The board treasurer is responsible for recording disposals in the fixed assets records and making the relevant adjustment(s) to the organization’s general ledger in a timely fashion.

The attached Fixed Assets Disposal Record is an integral part of this policy. HOLY FAMILY CHILD CARE AND DEVELOPMENT CENTER, INC. FIXED ASSET DISPOSAL RECORD

Please fill out ALL relevant information: Asset ID Description Model # Serial #

VOLUNTARY DISPOSAL Authorized by board of directors on . Disposal method approved by board of directors: SELL DONATE TRADE RECYCLE SCRAP OTHER (Specify) ANY

Was this asset contributed? YES NO Is this asset a computer or related equipment? YES NO

Authorized Board Signature Date:

Actual disposal method: SOLD DONATED TRADED RECYCLED SCRAPPED OTHER (Specify)

Disposal details: Asset Recipient Name: Address: City: State: Zip Code: Telephone #: Amount Paid: Payment Method: CASH CHECK # CREDIT CARD Describe how price was determined, including all other offered or refused amounts.

Executive Director Signature: Date:

INVOLUNTARY DISPOSAL Reported to board of directors on . OTHER (describe) Type of loss: THEFT CASUALTY (describe)

Authorized Board Signature Date:

Executive Director Signature: Date: