Texas Department of Agriculture / Worksheet | Depreciation
April 10, 2013

Depreciation Schedule for Non-Expendable Equipment Worksheet

(Use only for equipment originally costing more than $100 a unit; use additional sheets if needed)

Contracting Entity (CE): / Date:
Site: / CE ID Number:
Section I, Food Service Equipment[1]
Date of
Purchase / Description and Identification Number / Acquisition Cost / Equipment Life Expectancy / Depreciated Value / Service Status
In Service / Out of Service
Total Section I, Food Service Equipment Depreciated Value
Section Il, Vehicles (Empty weight OVER 13,000 pounds)[2]
Date of
Purchase / Description and Identification Number / Acquisition Cost / Equipment Life Expectancy / Depreciated Value / Service Status
In Service / Out of Service
Total Section II, Vehicles Over 13,000 Pounds Depreciated Value
Section III— Vehicles (Empty weight UNDER 13,000 pounds)[3]
Date of
Purchase / Description/Identification Number / Acquisition Cost / Equipment Life Expectancy / Depreciated Value / Service Status
In Service / Out of Service
Total Section III, Vehicles Under 13,000 Pounds Depreciated Value
Section IV, Summary Depreciation Schedule for Non-expendable Equipment
Type of Equipment / Total Depreciated Value / Number of Months in Operation / Monthly Depreciation Value
Section I, Food Service Equipment Total
Section II, Vehicles, Heavy Weight Total
Section III, Vehicles, Light Weight Total
Total All Types of Equipment Depreciated Value


Directions: Depreciation Schedule for Non-expendable Equipment Worksheet

Use This Form
Frequency / Yearly, but provides monthly values as well
Required Form Format / Use this form or a similar form
Record Retention / Completed form sent to TDA as directed and kept onsite and made available on request.
State Board of Education policies require public and charter schools to maintain records for a period of five years. Private schools and RCCIs maintain records for three years.
Purpose
This form is designed to assist a Contracting Entity (CE) in documenting and determining the depreciation value of equipment with an original value of more than $100. This form provides yearly and monthly depreciation values.
Depreciation information is reported on other school nutrition program fiscal forms including the Summary of Food Costs Form.[4]
This form allows CEs to record depreciation values for three types of equipment:
·  Section I: Food Service Equipment
·  Section II: Vehicles over 13,000 pounds
·  Section III: Vehicles under 13,000 pounds.

For many CEs, the value for depreciated equipment is determined by a financial officer. The food nutrition director should work with that financial officer to complete this form.

Things to Know Before Completing Form

Method for Depreciation

·  Each CE must use a method of depreciation that meets the standards of local, state, and federal regulation and law. CEs will find detailed information on appropriate depreciation methodologies at

-  United States Internal Revenue Service (IRC) Overview, Forms, and Explanations—Located at http://www.irs.gov.

-  United States Office of Management and Budget, (OMB) Circular A-87 (2 CFR, Part 225)—Located at http://www.whitehouse.gov/omb/circulars_default.

-  Texas Comptroller of Public Accounts, Capital Assets, Depreciation—Located at https://fmx.cpa.state.tx.us/fmx/pubs/afrrptreq/cap_assets/index.php.

Shared Equipment

·  If a central source provides equipment to multiple sites or equipment is shared with other users, costs are allocated according to the percentage of actual usage for Food Service Operations only. The CE’s method of allocating percentages must be documented. Documentation must be retained.

Changing Methodologies

·  A CE must use the same method of depreciation year after year unless permission is given to change methodologies. CEs should contact TDA before changing its depreciation methodology.

Age of Equipment—Equipment Life Expectancy and Depreciation Schedule

·  Depending on the type of equipment, there are a standard number of years that are allowed for the depreciation of equipment. The number of years varies by the type of equipment. As the equipment ages, the value of the equipment decreases. After a specific number of years, the value of the equipment drops to zero.

The number of years allowed is called the equipment life expectancy. The systematic decrease in value by year is called the depreciation schedule.

The resources referenced in the Method of Depreciation subsection in these directions will be useful in assigning a depreciation schedule for each type of equipment.

Directions for Completing Form

General Information

·  Contracting Entity (CE): Record the name of the CE in the designated space.

·  CE ID Number: Record the ID number for the CE in the designated space.

·  Site: Record the name of the site in the designated space.

·  Date: Record the date the form is completed in the designated space.

Section I, II, and III

·  Determine the appropriate section for recording information about each item:

-  Section I, Food Service Equipment—Not over 20 years old

-  Section II, Vehicles—Empty weight over 13, 000 pounds

-  Section III, Vehicles—Empty weight under 13, 000 pounds

·  Date of Purchase: Record the date the item was purchased in the designated space. If the item was purchased, but not used immediately, the date of purchase is still the date used to determine depreciation.

·  Description and Identification Number: Record a brief description and identification number, if available, for each item in the designated space.

·  Acquisition Cost: Record cost of the item when it was purchased in the designated space. If the item was donated, the CE should use fair market value to determine the acquisition cost.

·  Equipment Life Expectancy: Record the number of years for depreciation of the equipment in the designated space. The life expectancy for equipment is set by local, state, and federal regulation and law. The resources described in Things to Know Before Completing Form provide this information.

For Example: A computer has a life expectancy of 5 years. In this case, a 5 would be recorded in the designated space.

·  Depreciated Value: Record the current depreciated value of the equipment in the designated space. The depreciated value is based on the original cost of the equipment and the equipment life expectancy. This information is contained in the depreciation schedule.

For Example: The following depreciation schedule of a straight line process illustrates the depreciation values for a computer that costs $800.00

Age from Date of Purchase / Original Cost of Item / Percentage of Original Cost Depreciated / Depreciated Value Based on Percentage of Original Cost Depreciated
1 / $800 / x / 80 % / = / $640
2 / $800 / x / 60 % / = / $480
3 / $800 / x / 40 % / = / $320
4 / $800 / x / 20 % / = / $160
5 / $800 / x / 0 % / = / $0

There are other methods for depreciation that a CE may use. The resources listed in the Things to Know Before Completing Form subsection in these directions will be helpful in identifying the most appropriate methodology. The CE’s financial or accounting department may also provide information related to depreciation.

·  Service Status: Record a check in the box under Service Status that reflects whether the equipment is In Service or Out of Service in the designated space. The Service Status, In and Out designation will help the CE in tracking equipment that has been sold or discarded.

·  Section, I, II, and III Depreciated Value Total: Total the amounts in the Depreciated Value Column for each section. Record the amount in the designated space.

Section IV, Summary Depreciation Schedule for Non-expendable Equipment

·  Total Depreciated Value: Record the total for each section’s Depreciated Value column in the designated space.

·  All Types of Equipment Depreciated Value Total: Total the amounts from all three sections to get the total depreciated value of all equipment. Record the amount in the designated space.

·  Number of Months in Operation: Record the number of months each year the program is in operation in the designated space.

·  Monthly Depreciation Value: Divide the All Types of Equipment Depreciated Value Total by the Number of Months in Operation to get the Monthly Depreciation Value. Record the amount in the designated space.

All Type of Equipment Depreciated Value Total / Number of Months in Operation / Monthly Depreciation Value
¸ / =

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[1] If equipment is provided from a central source or shared with other users, costs are allocated according to the percentage of actual usage for Food Service Operations only. Allocation method must be documented.

[2] If equipment is provided from a central source or shared with other users, costs are allocated according to the percentage of actual usage for Food Service Operations only. Allocation method must be documented.

[3] If equipment is provided from a central source or shared with other users, costs are allocated according to the percentage of actual usage for Food Service Operations only. Allocation method must be documented.

[4] Form available at http://www.squaremeals.com.