(A) (1) A department will capitalize buildings at full cost with no subcategories for tracking the cost of attachments. Examples of attachments are roofs, heating, cooling, lighting or sprinkler systems, or any part of the basic building. The department will include the cost of items designed or purchased exclusively for the building. All structures designed and erected to house equipment services or functions are included, such as systems, services and fixtures within the buildings, and attachments such as porches, stairs, fire escapes, canopies, areaways, lighting fixtures, flagpoles and all other units that serve the building.
(2) Plumbing systems, lighting systems, heating, cooling, ventilating and air handling systems, alarm systems, sound systems, surveillance systems, passenger and freight elevators, escalators, built-in casework, walk-in coolers and freezers, fixed shelving and other fixed equipment are included with the building, if owned. Communication antennas and/or towers are not included as building. These are parts of the equipment units that they serve.
(B) A department’s new building will be capitalized only if it meets the following conditions:
(1) The total costs exceed $5,000; and
(2) The useful life is greater than two years.
(C) A department improving or renovating an existing building will capitalize only if the result meets all of the fooling conditions:
(1) The total cost exceeds $5,000; and
(2) The useful life is extended two years or more; and
(3) The total cost will be greater than the current book value and less than the fair market value.
(D) Capital building costs will include preparation of land for the building, architectural and engineering fees, bond issuance fees, interest cost (while under construction), accounting costs if material, any costs directly attributable to the construction of a building.
(E) A department will record donated building at fair market value on the date of transfer with any associated costs.
(F) Purchases made using federal or state funding will follow the source funding policies and above procedures.
(2014 Code, § A3.4(3))