(a) This section is hereby promulgated to establish a Capital Asset Policy for purchases of personal property. Special consideration is given to purchases of minor equipment with a value of $5000.00 or less. The purpose of the Capital Asset Policy is to formalize the policy and procedures necessary to identify and maintain a record of capital assets and to permit the following:
(1) Preparation of financial statements in accordance with Generally Accepted Accounting Principles (GAAP).
(2) Adequate information and documentation for insurance purposes.
(3) Control and adequate accounting of assets.
(4) Management accountability.
Capital assets (also referred to as property units) are items of property that are tangible in nature, have an estimated useful life of no longer than two years, and are intended to continue to be held or used, and are not considered repairs or maintenance.
(b) Purchases of equipment such as office equipment, personal computers, desktop printers, software, hand tools and portable tools not related to a particular identifiable capital project or improvement and costing $5000.00 or less, shall not be considered a capital asset.
(Ord. 45-2013. Passed 11-18-13.)