§ 33.096  DEFINITION OF CAPITAL ASSETS.
   (A)   Capital assets include land, land improvements, monuments, buildings and building improvements, construction in progress, machinery, equipment, vehicles, and infrastructure. All items with a useful life of more than one year and having an initial unit cost of $5,000 or more shall be capitalized including, but not limited to, acquisitions by lease- purchase agreements and donated items. A capital asset meeting the criteria set out herein will be reported in the government-wide financial statements.
   (B)   Assets that are not required to be capitalized (i.e., items under $5,000) shall be expensed in the year of acquisition. An inventory shall be kept on all computers and other equipment with a capitalized cost of under $5,000.
   (C)   Exceptions are:
      (1)   Items costing less than the above limits which are permanently installed as a part of the cost of original construction or installation of a larger building or equipment unit will be included in the cost of the larger unit;
      (2)   Modular equipment added subsequent to original equipment construction of a larger building or equipment unit which may be put together to form larger units costing more than the prescribed limits will be charged to capital assets even though the cost of individual items is less than such units; and
      (3)   Cabinets, shelving, bookcases, and similar items, added subsequent to original construction, which are custom made for a specific place and adaptable elsewhere, will be capitalized.
   (D)   This policy is intended to classify capital assets, including fixed assets and infrastructure, for accuracy in financial reporting through the State Board of Accounts. For purposes of this subchapter, capital assets do not include data processing programs, software programming, or computer operations procedures.
(Ord. 2016-13, passed 9-29-2016)