Lisa Ladd

The Methuen Housing Authority has established an Equipment Capitalization and Depreciation Policy in accordance with Federal Office of Management and Budget (OMB), A-133 Compliance Supplement -- Part 3, Section F, Equipment and Real Property Management and Generally Accepted Accounting Principles (GAAP). The policy outlines the capitalization and depreciation of equipment with a useful life of more than one year and an acquisition cost of $5,000.00 or more per unit, depreciated using the straight-line method. Additionally, a custodial inventory system will be established for stove and refrigerator purchases, as well as for equipment purchases between $1,000 and $4,999.99, which will not be capitalized. The policy also includes maintaining an equipment record system, tagging items, conducting physical inventories, and implementing controls to safeguard equipment.