FIN 07-20

FILE: 07 CASH AND OTHER ASSETS

20 Property, Plant, and Equipment

20 Depreciation

Subject(A): Plant Depreciation

Purpose: To establish the depreciable base to be used on power structure calculations.

Authority: Department of the Interior, Departmental Accounting Manual (Section 7-20-20)

GAO's Manual for Guidance of Federal Agencies, Title 2, Appendix I, D20 - Depreciation and Amortization.

Contact: General Accounting and Technical Analysis Group (GATAG), Finance and Accounting Services (FAS), by calling (303) 445-3423.

The Regional Offices are responsible for computing annual straight line depreciation on Electric Plant:

• Using current power investment divided by the composite life expressed in years.
  
• Retaining in its records a work sheet similar to Attachment A. to support the annual depreciation amount.

The Finance and Accounting Services is responsible for setting salvage values on a Reclamation-wide basis. The current salvage value for the electric plant and allocated costs is set at zero.

The Program Analysis Office is responsible for developing the composite service life for each Reclamation Power Project.

2. Related References.

• OMB Circular 94-01, Subject: Form and Content of Agency Financial Statements
  
• Project Financial Statements Procedure Manual
  
• Replacements - Units, Service Lives, Factors (a joint publication of WAPA/BOR)

3. Attachments.

A. Example - Seedskadee Project

B. Composite Life Estimates