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Page 10 <br /> Property and Equipment <br /> The Massachusetts system of accounting makes no provision for accounting <br /> for fixed assets. However, there is no prohibition against maintaining fixed <br /> assets on the books of account. The Municipia7 Finance Officers Association of <br /> the United States recommends that all expenditures for fixed assets should be <br /> capitalized and that detailed records of municipialities investments in fixed <br /> assets be maintained and that an inventory of property be taken at least once <br /> ayear and checked against these detailed records. While it is not the practice <br /> of local governmental units to record depreciation on fixed assets there is an <br /> increasing trend in the number of governmental grants which allow depreciation <br /> as a reimbursable cost. I suggest that the town give some consideration to <br /> establishing a fixed asset group of accounts. This would necessitate an <br /> appraisal of all town owned property and considerable record keeping but the <br /> advantages of maintaining financial controls over town property and the <br /> possibilities of recovering additional costs on future grants may make it worth— <br /> while. <br /> Purchasing Procedures <br /> At the present time purchase orders are required for major purchases <br /> only. The highway department is using a purchase order system for all purchases <br /> however small. I suggest that purchase orders be required for all purchases <br /> by the town. This would help to control spending making each department head <br /> directly responsible for all purchases by the department. Major purchases <br /> should continue to require the approval of the board of selectmen. <br />