[HISTORY: Adopted by the Town Board of the
Town of Wawayanda 3-2-1978. Amendments noted where applicable.]
GENERAL REFERENCES
Records — See Ch. 132.
As used in this chapter, the following terms
shall have the meanings indicated:
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.
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.
All real and personal property owned by the Town of Wawayanda.
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.
Determining the actual existence and condition of real and
personal property in the records by visually examining the property
in question.
The individual designated by the governing board to be responsible
for the development and maintenance of the fixed assets records.
The individual ledger card containing the detailed information
about the particular fixed asset or a group of fixed assets.
A.
Classification of assets. Fixed assets shall be classified
into four major categories:
(1)
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.
(2)
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.
(3)
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.
(4)
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.
B.
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:
(1)
Bonds or notes: proceeds from the issuance of serial
bonds, statutory installment bonds, bond anticipation notes or capital
notes.
(2)
Current appropriations: moneys provided from an operating
fund.
(3)
Gifts: moneys or property received from donors.
(4)
Property owners' share of special assessments: moneys
provided by property owners in connection with a special assessment
project.
(5)
Municipality's share of special assessments: moneys
provided by the municipality in connection with a special assessment
project.
(6)
State aid and grants: moneys received from the state.
(7)
Federal aid and grants: moneys received from the federal
government.
(8)
Other: any moneys received which cannot be classified
in one of the above classifications.
C.
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.
D.
Inventory records.
(1)
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.
(a)
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.
(b)
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.
E.
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.
(1)
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.
(2)
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.
