Global Journal of Economic and Finance Research

Local government fleet asset investments significantly impact the overall cost of service provision each fiscal year. The costs associated with short retention is subject to significant depreciation losses and increases in asset value, but expenses related to higher inventories and acquisition costs reduce liquidity. This study examines the factors that contribute to fleet asset inventory levels and original purchases. Findings among North Carolina county governments indicate more employees and governments with larger budgets lead to a higher probability of elevated inventory levels. Results also point to asset increases that do not correlate with population growth. Recalcitrance concerning replacement is limited based on life cycle and capitalization metrics, but inquiry among staff exists with new administrative and business-type activity fleet purchases. Implications include potentially reduced costs with more finance office staff oversight of assets and adjustments to existing policy thresholds.    

Asset Management, Local Government Financial Management, Governmental Accounting

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