BOP Program Statement 8563.08 § 9

on all machinery and equipment and building and improvements

begin on the first day of the month in which the items are

acquired and ready for use.

a. The following class codes and corresponding accounts are to

be established in Millennium:

Class Asset Accum Depreciation

Codes Description Account Depreciation Expense

1000 Building & Impr 173000 173900 614700

2000 Mach & Equip 175100 175900 614500

2500 Assets Under 181000 181900 614500

Capital Lease

3000 Non Capitalized ----- ----- -----

4000 Assets Under Const 172000 ----- -----

5000 Donated B&I 173000 173900 614700

5100 Donated M&E 175100 175900 614500

b. At the beginning of each month, the Financial Manager or

designee in the Financial Management Branch (FMB) is to calculate

and post the depreciation for the preceding month. After the

depreciation expense has been posted, the Financial Manager or

designee is to close the previous posting period for assets.

c. The accountant at each location is to review the monthly

depreciation charges for fixed assets at his or her location for

accuracy. Errors to review include incorrect depreciation

amounts, assets in service with no depreciation charges, and

assets that are fully depreciated, retired, or disposed and still

being depreciated.

The Business Manager is to report any errors immediately to the

Deputy Controller or designee in FMB in Central Office.

PS 8563.08

12/13/2001

Page 6