(A) CAPITAL ASSETS include: land, land improvements including monuments, buildings, building improvements, construction in progress, machinery, equipment, vehicles and infrastructure. All land will be capitalized, but not depreciated. All items with a useful life of more than one year and having a unit cost of $2,000 or more shall be capitalized (including acquisitions by lease-purchase agreements and donated items). A capital asset meeting the criteria set by this policy will be reported and depreciated in the government-wide financial statements.
(B) Assets that are not capitalized (items < $2,000) shall be expensed in the year of acquisition. An inventory will be kept on all computers and other equipment with a capitalized cost of < $2,000 (see § 33.46).
(C) Special exceptions to this policy 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) Purchases made using grant funds or donations must comply with their grant or donation requirements or with the above procedures, whichever are the most restrictive.
(Ord. 3-19-2014, passed 3-19-2014)