The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Sources of Cost Information

Reference Number: MTAS-638
Tennessee Code Annotated
Reviewed Date: September 11, 2017
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The obvious source of information about capital assets are vendors’ invoices or contracts. Another source of information are minutes from past governing body meetings. If historical records are unavailable, use a replacement value and deinflate that amount to the original purchase date. In some cases, using an expert or appraiser may be acceptable to arrive at an estimated cost.

Close cooperation with the property accounting officer is required in cities where a purchasing agent handles surplus property sales, interdepartmental transfers of equipment, or retirements.

Where department heads control the purchase, movement, and disposal of assets, you should design procedures and reports to give the property accounting officer prompt notice of any changes affecting capital assets.