Inventory and insurance schedules are two basic schedules reflecting assets in use and containing value. These schedules reveal assets that would often need replacement due to their use in meeting public needs. As we review these schedules, we need to understand whether the assets listed have outstanding debt; would need debt to replace the assets; and whether the assets are short life, lower cost or long life, higher cost type of assets. This understanding assists in our capital planning, which in turn helps develop our debt service plan. One should further understand if the insurance schedule reflects asset purchase cost or replacement cost.
Recommended Practice: Maintain current inventory and insurance schedules as part of your Debt Management Plan