Policy Manual sample

MDT Home Health Care Agency, Inc. CAPITALIZATION POLICY Tracking Financial activities As per regulations "if a depreciable asset has at the time of its acquisition an estimated useful life (based on State Regulatory Agency guidelines) of at least two years and a historical cost of $500 or greater". The asset's cost will be depreciated using the straight-line of depreciation. The depreciation expense for new assets shall be determined by: 1. State Regulation Agency Guidelines 2) Acquisition date The acquisition date for any asset shall be the first of any month, no matter what actual day the asset was acquired. At all times, depreciation expenses will accrue on a monthly basis. As per regulations “If a depreciation asset has a historical cost of less than $500, or if the asset has a useful life of less than two (2) years, its cost is allowable as an expense in the year it is acquired. CHART OF ACCOUNTS The Agency shall maintain a chart of accounts for the purpose of tracking financial activities. All transactions should be allocated to the appropriate account category. Accounts may be neither added nor deleted without the approval of the Administrator or financial manager. Home Health Agency Overall Plan and Budget F-9