Town of South Berwick, ME
York County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the Town Council of the Town of South Berwick 6-28-2004. Amendments noted where applicable.]
This policy is adopted to establish procedures for keeping an inventory of fixed assets owned by the Town of South Berwick. It results from and is intended to implement the Governmental Accounting Standards Board Statement No. 34.
As used in this chapter, the following terms shall have the meanings indicated:
Assets which meet the following minimum standards will be considered "capital assets":
Having a value of $5,000 or more. This requirement can be for an individual item in excess if $5,000 or for a "collection," such as a telephone system or computer network system.
Having an estimated useful life of two years or more.
Major asset categories will be buildings and improvements, land and improvements, machinery and equipment, vehicles, and infrastructure.
Purchases or other acquisitions of tangible assets meeting the definition of "capital asset" stated above shall be recorded as expenditures in the appropriate governmental fund and also be recorded as additions to the Town's Capital Asset Listing. All capital assets will be recorded at historical cost as of the date acquired or constructed, except for infrastructure, which is discussed in § 5-7. If historical cost information is not available, assets will be recorded at the estimated historical cost by calculating current replacement cost and deflating the cost using the appropriate price-level index.
The Town will capitalize outlays that increase future benefits from an existing capital asset beyond its previously assessed value or condition if they meet the Town's Capitalization Policy as stated above.
All assets included in the Town's Capital Asset Listing shall be subject to depreciation, which shall be recorded annually. Depreciation shall be computed using the straight-line method and half-year convention. All capital assets shall have an estimated useful life and salvage value assigned based upon the nature of the asset and the Schedule of Useful Lives. Asset lives will be adjusted as necessary depending on the present condition, use of the asset and how long the asset is expected to meet current service demands. Each entry of the Capital Asset Listing shall include annual depreciation expense, accumulated depreciation, estimated useful life assigned and salvage value (if any), along with appropriate identifying and descriptive information and the date placed in service.
The Town will capitalize the following items as collections: land, buildings, computers, radios and pagers, art works and historical treasures, telephone systems, and any other assets bought in bulk purchase that meet the Capitalization Policy as stated above.
General infrastructure assets are defined to be those immovable tangible assets belonging to the Town, which are of no or little value to any party other than the Town itself. This term includes items such as roads, bridges, dams, storm drains and culverts. In accordance with GASB Statement Number 34, the Town will record, at a minimum, "major" infrastructure assets that were acquired, constructed or significantly reconstructed, or that received significant improvements, after June 30, 2003. Other infrastructure assets may be capitalized as deemed appropriate. The Town does not intend to use the "modified approach" to record infrastructure.