Statewide Accounting, Budgeting And Human Resource System (Sabhrs) : Information System Audit 2002
Statewide Accounting, Budgeting And Human Resource System (Sabhrs) : Information System Audit 2002
Montana. Legislature. Legislative Audit Division
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Test : Asset Management accurately calculates depreciation. Page 11 Chapter III - Assurance Over Operations Method : Extract the capitalization threshold amounts from the database and verify the amounts are consistent with state policy. Conclusion : SABHRS cannot recognize multiple dollar threshold amounts for asset categories set by state policy. Discussion : Depending on the asset category and the asset purchase amount, state policy requires certain assets to be expensed at the time of purcha...se or capitalized as a depreciable asset. Generally, assets costing less than $5,000, building improvements costing less than $25,000, or infrastructure costing less than $500,000 are expensed. Assets costing more than these thresholds are capitalized. The current version of SABHRS can only account for one threshold amount for capitalizing assets and one threshold amount for expensing assets. As a result, SABHRS information users should be aware that no SABHRS control exists to enforce state policy for asset categories minimum or maximum amounts.
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