[Ord. No. 1576 §§1 —
3, 9-8-2003]
This policy covers all City of St. Robert capital purchases
including general fixed assets, infrastructure assets and capital
improvements.
[Ord. No. 1576 §§1 —
3, 9-8-2003]
A.
It is
our goal to have a uniform capitalization policy for generally accepted
accounting principles purposes (GAAP). For internal reporting purposes
and inventory control we will continue to track fixed assets in the
manner we have been (Non-GAAP).
B.
The following
guidelines will be followed with regard to City of St. Robert capitalization
policy:
1.
Departments
are required to properly account for all fixed asset transactions.
This includes the proper recording of and reconciliation of a periodic
inventory of both GAAP and Non-GAAP fixed assets.
2.
Physical
inventories of fixed assets are completed annually as of December
thirty-first (31st) of each fiscal year.
3.
Non-GAAP Fixed Assets. Non-GAAP fixed assets are buildings
and equipment, including computer software, with a useful life of
more than one (1) year and an original cost between five hundred dollars
($500.00) and four thousand nine hundred ninety-nine dollars ninety-nine
cents ($4,999.99).
4.
GAAP Fixed Assets. GAAP fixed assets are defined as all
land regardless of cost, buildings and equipment, including computer
software, with a useful life of five (5) years or more and an original
cost at or above the thresholds as established by the City.
[Ord. No. 1576 §§1 —
3, 9-8-2003]
A.
The following
will be the guidelines for establishing capitalization thresholds
for fixed assets for the City of St. Robert:
1.
Fixed
assets are to be capitalized only if they have an estimated useful
life of at least one (1) year following the date of acquisition.
2.
Fixed
assets' capitalization thresholds are to be applied to individual
fixed assets rather than to groups of fixed assets (e.g., desks, tables).
3.
Items
are to be capitalized that have a value of five thousand dollars ($5,000.00)
or more.
4.
Fixed
assets having a value of one thousand dollars ($1,000.00) to five
thousand dollars ($5,000.00) are to be controlled at the department
level.
5.
Capitalized
fixed assets are to be inventoried annually.
