[HISTORY: Adopted by the Town Board of the Town of Wawayanda 3-2-1978. Amendments noted where applicable.]
Records — See Ch. 132.
As used in this chapter, the following terms shall have the meanings indicated:
- CLASSIFICATION OF FIXED ASSETS
- Division of real and personal property into major categories (land, buildings, improvements other than buildings, machinery and equipment) as required by the uniform system of accounts.
- CONTROL ACCOUNTS
- The summary record of a classification of fixed assets.
- The department head, or his designated subordinate, who is responsible for the real and/or personal property under his control.
- FIXED ASSETS
- All real and personal property owned by the Town of Wawayanda.
- HISTORICAL COST
- The original cost on date of acquisition or the estimated cost, if the original cost is not available, or, in the case of gifts, the appraised value at the time received.
- The Town of Wawayanda.
- PHYSICAL INVENTORY
- Determining the actual existence and condition of real and personal property in the records by visually examining the property in question.
- PROPERTY MANAGER
- The individual designated by the governing board to be responsible for the development and maintenance of the fixed assets records.
- PROPERTY RECORD CARD
- The individual ledger card containing the detailed information about the particular fixed asset or a group of fixed assets.
Procedures employed shall comply with all applicable laws and the requirements of the New York State Department of Audit and Control which are issued pursuant to § 36 of the General Municipal Law.
The minimum standards to be included in the fixed assets records are:
Classification of assets. Fixed assets shall be classified into four major categories:
Land. The land account includes all land purchased or otherwise acquired by the municipality. Land purchased should be carried on the records at cost. All expenses for legal services incidental to the acquisition of the land and other charges incurred in preparing the land for use should be included in the cost. Donated land should be recorded at the appraised value at the time it is received. If rights-of-way, easements and leaseholds are recorded in this account, such fact should be clearly marked on the real property record to distinguish it from land owned by the municipality. Tax deed property, unless appropriated for some governmental purpose, should be carried in the tax accounts and not considered as a fixed asset. If there is a building on the land at the time of acquisition, the value of the land should be determined and only that amount included in the land account; the value of the buildings should be recorded in the buildings account. The cost of demolishing buildings or structures and other costs related to the land will be included in land account.
Buildings. The buildings account includes the value of all buildings and fixtures attached to buildings at purchase price or cost of construction, as the case may be. In either instance, the cost should include all charges applicable to the building, including brokers' or architects' fees, and interest on borrowed money during construction. For a donated building, appraised value should be used. Additions and improvements to buildings will be added to the building account as well as the cost of the heating system and other permanently attached fixtures.
Improvements other than buildings. The improvements other than buildings account will be used to record such items as streets, parks, sidewalks, etc. Usually, values can be recorded on a cost-of-construction basis. When costs are not available, estimated costs or appraised values will have to be used.
Machinery and equipment. The machinery and equipment account consists of property that does not lose its identity when removed from its location and is not materially changed or expended by use. The property will be recorded at cost and include freight, installation and other charges to get the item in place and ready for use. If a piece of equipment is acquired through gift, an appraised value should be assigned to it for record purposes.
Sources of funds. In addition to having a classification of fixed assets, the source of the funds through which these items were acquired must also be shown. Therefore, some notation must be made on the individual property record as to how each fixed asset was financed. The sources of acquiring fixed assets are from the following categories. In accounting and financial reports, these sources are referred to under "Investment in General Fixed Assets." The total of such investments should equal the fixed assets. The categories are:
Bonds or notes: proceeds from the issuance of serial bonds, statutory installment bonds, bond anticipation notes or capital notes.
Current appropriations: moneys provided from an operating fund.
Gifts: moneys or property received from donors.
Property owners' share of special assessments: moneys provided by property owners in connection with a special assessment project.
Municipality's share of special assessments: moneys provided by the municipality in connection with a special assessment project.
State aid and grants: moneys received from the state.
Federal aid and grants: moneys received from the federal government.
Other: any moneys received which cannot be classified in one of the above classifications.
Compiling the inventory. All general fixed assets shall be physically inventoried at the beginning of each calendar year starting with January 1, 1978, and continuing thereafter.
Property record cards. Each piece of property owed by the municipality shall be described on a separate card. These cards take various forms and contain a variety of data. Generally, there are two types of records: the real property record and the personal property record. These records are kept by the property control officer.
Real property records contain substantial information about a parcel. Among the items may be a small diagram showing the location of any building, a deed description and a picture of the property. Other data may include the date of purchase, price, assessed and appraised values, purpose for which acquired and the department using the property. It is good practice also to use an envelope file for each property in which to put a copy of the deed, resolution of the Board, condemnation papers, correspondence and all other documents relating to the individual parcel.
Personal property records are maintained for each piece of personal property, whether it be a truck, typewriter or file cabinet. Sufficient information must be included on the card to identify the item. Some of the information to be shown is a description of the item, including the make, model and serial number, from whom purchased, date, amount and voucher number. Also, the department to which assigned, the location and the identification number should be indicated. The source of funds and any adjustments to the initial cost should be recorded. Some items, such as books, are accounted for on a group basis, and a single property record card is prepared by the property control officer. If part of the cost of an item is financed by a trade-in, the gross amount and not the net expenditure should be shown. When the item has been disposed of, that fact should be reflected on the card. The form could also provide space to record depreciation.
Inventory valuations. All fixed assets will be recorded at cost unless acquired through gift, in which case the fair market value at the time of acquisition will be recorded.
Appreciation. Should a fixed asset appreciate in value, the property manager may want to note this fact on the particular property card for informational purposes. For example, this information will be useful in determining insurance coverage. However, no increase will be recorded in the general ledger accounts.
Depreciation. Depreciation is the loss in service value of fixed assets due to wear and tear and obsolescence. No provision is made in the uniform system of accounts to record depreciation on the accounting records.