(A) To be considered a capital asset for financial reporting purposes, an item must be at or above the capitalization threshold and have a unit historical cost of $20,000 or more. With regard to improvements to buildings and improvements to infrastructure, the expenditure must be at a historical cost of $20,000 or more; however, repairs and most renovations will be expensed in the current year. This capitalization threshold is to be applied prospectively starting January 1, 2022. Regarding land, including rights of way, all land shall be capitalized at the time of the acquisition. If donated, it shall be recorded at its acquisition value. All vehicles, regardless of historical cost or acquisition value, will be capitalized.
(B) Assets funded through a federal grant will be capitalized on a basis of a unit historical cost of $5,000. These assets will also be indicated as federally funded within the property record for audit purposes.
(C) The Clerk Treasurer will ensure that accounting for capital assets is being exercised by establishing a capital asset inventory, both initially and periodically in subsequent years. The Clerk Treasurer will further ensure that the capital asset report will be updated annually to reflect additions, retirements, and transfers and to reflect the new, annual capital asset balance.
(Ord. 10, 2022, passed 12-5-22)