To assure adequate funding for the replacement cost of expended equipment. Each Auxiliary and each Service Center has one OR MORE operating ledgers identified in FIS as an Index. Each reserve fund has ONE operating ledger and therefore ONE Index. The cash outlay from the reserve fund required to obtain a piece of equipment.
Equipment is depreciated over a ten year period using a straight-line method with no residual value.
Depreciation for any given year starts with the equipment report generated by Property Administration. Property acquired during the current operating year is exempt from depreciation for that year.