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The use and issuance of credit cards by various offices and departments of the city is hereby authorized as follows:
(A) (1) The Clerk-Treasurer may negotiate on such terms as he or she deems advisable, with banks, suppliers, or service providers to the applicable department to obtain credit cards or accounts of credit (collectively “credit cards”) for the use and benefit of the city to operate efficiently.
(2) The Clerk-Treasurer is authorized to obtain credit cards and purchasing cards titled for city departments on the request of the department head.
(B) A list of all credit cards issued to the city shall be maintained by the Clerk-Treasurer’s office. The list shall include the credit limit and authorized users. Unless a higher limit is authorized in advance, the credit limit for each credit card shall not exceed $5,000.
(C) (1) The department head may authorize certain employees within the department to use the credit card solely for the purposes set out herein, but the department head, or their designee shall be responsible for the safekeeping of the credit cards and purchasing cards.
(2) City credit cards and purchasing cards shall be used only with the approval of the department head, or their designee. The department head shall maintain a usage log for each card identified by card account number, with entries certified by signature of the department head, or their designee. The log shall include the following information:
(a) The name and position of the individual using the city’s cards;
(b) The date the card is issued to the individual, the estimated amounts to be charged, the type of expenses (such as airline tickets or office supplies), and the appropriate account numbers to be expended; and
(c) The date the card is returned and the amount charged to the card.
(D) Credit cards and purchasing cards shall be used for purchases relating to the performance of city business only. No personal use of a city credit card or purchasing card is permitted, even if an employee offers to reimburse the city for the employee’s personal use of a city credit card or purchasing card. Such permitted uses include but are not limited to:
(1) Purchasing of supplies and equipment of the use and benefit of the department;
(2) Travel and lodging expenses of departmental personnel while traveling on approved business;
(3) Meal expenses of departmental personnel while traveling on approved business, provided that any such expense may not exceed any authorized per diem for meals. Reasonable tips or gratuities are allowed as meal expenses if service is provided as part of the meal. Tips shall not exceed 20% of the bill. No charges for alcohol will be permitted;
(4) Approved training and education costs for departmental personnel; and
(5) Any other use required for the efficient operation of the department when use of vouchers, checks, or other means of credit are not possible, provided that said use had been approved by the department head.
(E) (1) Within seven days of use of a credit card, the employee using the credit card shall deliver to the Clerk-Treasurer the following documents:
(a) A claim form for the charges made signed by the employee;
(b) Original receipts and/or invoices for the charges; and
(c) Any other documentation requested by the department which supports the claim.
(d) If the employee loses the original receipt and/or invoice, the employee shall provide a duplicate receipt and/or invoice or an affidavit of lost receipt.
(2) Notwithstanding division (E)(1) above, payment of credit card and purchasing card bills shall be subject to the audit requirements of accounts payable vouchers in conformity with I.C. 5-11-10, I.C. 36-4-8 and the regulations of the State Board of Accounts. Electronic invoices or itemized receipts are required for all credit card and purchasing card purchases, including restaurant charges. Payment will not be made on the basis of a credit card or purchasing card statement. Signed charge slips showing a total charge only, with no itemization of items purchased, are not acceptable. It is the responsibility of the employee authorizing the charge to obtain proper itemized receipts.
(F) The department head shall ensure no charges are placed on the credit card for an amount which would cause any budgeted appropriation of the department to be overdrawn.
(G) The Clerk-Treasurer shall pay the credit card company through the standard claim procedure of the city. The underlying invoice or receipt for travel and/or supplies under the credit card shall be attached to the claim.
(H) The city may pay interest and annual fees on the credit card. However, any interest or late fees accruing because of delays in the billing by the office shall be paid by that office.
(I) The Clerk-Treasurer shall be listed on the account as authorized to access the credit card records.
(J) The Clerk-Treasurer is authorized to revoke credit cards or purchasing cards that have been used in violation of city policy. The Clerk-Treasurer is authorized to cancel any card at any time, or to remove any authorized user at any time.
(K) Any authorized user leaving employment is to be removed from the card at the time of resignation/dismissal/termination.
(L) Any unauthorized use of the card is to be considered grounds for dismissal by the department head and/or the Mayor and the Board of Works.
(M) On-time payment of credit cards is the responsibility of the Clerk-Treasurer; recurring late charges are to be considered unauthorized use of the account.
(Res. 2014-01, passed 1-13-2014; Res. 2014-07, passed 4-28-2014)
CAPITAL ASSET POLICY
(A) The fixed asset policy is being issued retroactive effective January 1, 2018. The new policy will be referred to as the capital asset policy. This policy is being issued to document the minimum value of capital assets to be reported on our financial reports and to include infrastructure assets. This issuance of a policy document is related to the implementation of a new reporting model, Governmental Accounting Standards Board Statement 34. Statement 34 will require the city to depreciate capital assets. The capital asset threshold will be $5,000. An asset with a value under $5,000 will be expensed in the year of purchase. The infrastructure portion of this policy is also effective January 1, 2007.
(B) City stormwater utility will follow this same definition of capital assets except any item with a unit cost of $5,000 or more shall be capitalized. Assets that are not capitalized (items less than $5,000) are expensed in the year of acquisition. City stormwater utility will follow the capitalization guidelines of the Indiana State Board of Accounts.
(C) The City of Lebanon is, by this subchapter, establishing a capital asset policy in order to provide a higher degree of control over its considerable investment in capital assets, and to be able to demonstrate accountability to its various constituencies: citizens, rate-payers, oversight bodies and regulators. All public information pertaining to capital assets will be made available in the Comprehensive Annual Financial Report (CAFR).
(D) The purpose of establishing a capital policy is fivefold:
(1) To safeguard the investments of the citizens of Lebanon;
(2) To fix responsibility for the custody of equipment;
(3) To provide a basis for formulating capital asset acquisition, maintenance and retirement polices;
(4) To provide data for financial reporting; and
(5) To demonstrate appropriate stewardship responsibility for public assets.
(E) This policy will only serve to classify capital assets, including fixed and infrastructure, for accuracy in financial reporting through the Indiana State Board of Accounts. It does not include data processing, programming requirements, or computer operations procedures.
(Ord. 05-01, passed - -; Ord. 2018-12, passed 8-13-2018)
(A) Capital assets include land, land improvements, including monuments, buildings, building improvements, construction in progress, machinery and 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 $5,000 or more shall be capitalized (including acquisitions by lease-purchase agreements and donated items). A capital asset meeting the criteria will be reported and depreciated in the government-wide financial statements.
(B) Assets that are not capitalized (items less than $5,000) are expensed in the year of acquisition. An inventory will be kept on all computers and other equipment with a capitalized cost of less than $5,000. See § 36.21.
(C) (1) Exceptions are:
(a) 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;
(b) 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
(c) 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.
(2) Purchases made using grant funds must comply with grant requirements or the above procedures, whichever are the most restrictive.
(D) Threshold levels for capital assets. The following schedule will be followed for the different types of capital assets other than infrastructure assets:
Capitalize/Depreciate |
Capitalize/Depreciate | |
Building | $5,000 > |
Building improvements | $5,000 > |
City stormwater utility assets | $5,000 > |
Construction in progress | All/capitalize only |
Land | All/capitalize only |
Land improvements | $5,000 > |
Machinery and equipment | $5,000 > |
Vehicle | $5,000 > |
(Ord. 05-01, passed - -; Ord. 2018-12, passed 8-13-2018)
(A) Capital assets must be recorded at actual cost. Normally the cost recorded is the purchase price or construction costs of the asset, but also included is any other reasonable and necessary costs incurred to place the asset in its intended location and intended use. Such costs could include the following:
(1) Legal and title fees, closing costs;
(2) Appraisal and negotiation fees, surveying fees;
(3) Damage payments;
(4) Land preparation costs, demolition costs;
(5) Architect, engineering and accounting fees;
(6) Insurance premiums during construction;
(7) Transportation charges; and
(8) Interest costs during construction.
(B) Donated or contributed assets should be recorded at their fair market value on the date donated.
(Ord. 05-01, passed - -; Ord. 2018-12, passed 8-13-2018)
(A) It is important to the maintenance of accurate records that each asset category be precisely defined and that all persons responsible for records maintenance are fully aware of the categorization system. This section further clarifies the asset definitions by major category.
(1) Land. Land is defined as specified land, lots, parcels or acreage including rights-of- way, owned by the City of Lebanon, its various departments, boards or authorities, regardless of the method or date of acquisition. Easements will not be included as the city does not own them, but as an interest in land owned by another (i.e. property owner) that entitles its holder to a specified limited use.
(2) Improvements other than buildings.
(a) Examples of city assets in this category are walks, parking areas and drives, fencing, retaining walls, pools, fountains, planters, underground sprinkler systems, and other similar items.
(b) Examples of city stormwater utility assets in this category are storm sewers, dams, fences, intake pipes, and manholes.
(3) Buildings.
(a) All structures designed and erected to house equipment, services, or functions are included. This includes systems, services, and fixtures within the buildings, and attachments such as porches, stairs, fire escapes, canopies, areaways, lighting fixtures, flagpoles, and all other such units that serve the building.
(b) 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.
(c) Communication antennas and/or towers are not included as buildings. These are parts of the equipment units that they serve.
(4) Equipment. Equipment includes all other types of physical property within the scope of the fixed asset management system not previously classified. Included within this category are office mechanical equipment, office furniture, appliances, furnishings, machinery items, maintenance equipment, communication equipment, police, fire, sanitation and park department, laboratory equipment, vehicles, road equipment, aircraft, emergency equipment, earth moving equipment, text equipment, civil defense equipment, and data processing equipment. All supplies are excluded.
(5) Infrastructure.
(a) Infrastructure assets are long-lived capital assets that normally can be preserved for a significant greater number of years than most capital and that are normally stationary in nature. Examples include roads, streetlights, traffic signals, drainage systems, and water systems. Infrastructure assets do not include buildings, drives, parking lots or any other examples given above that are incidental to property or access to the property above.
(b) Additions and improvements to infrastructure, which increase the capacity or efficiency of the asset, will be capitalized. Maintenance/repairs will be considered as necessary to maintain the existing asset, and therefore not capitalized. For example, patching, resurfacing, snow removal, etc., are considered maintenance activities and will be expensed. Also, normal department operating activities such as feasibility studies, and preliminary engineering and design, will be expensed and not capitalized as an element of the infrastructure asset.
(c) Alleys will not be included as part of infrastructure for the following reason: Existing improved alleys will be maintained as gravel alleys, and the city is responsible only for the maintenance, such as patching and repairing. Any investments to upgrade the alleys will be done by homeowner participation. Therefore, the city will not track and value alleys, and the patching/repairs will be expensed as they occur.
(B) Retroactive asset reporting. The retroactive reporting requirements for infrastructure of GASB 34 requires the city to report items put into service from 1980 forward, and gives the city the option to report items put into service prior to 1980. The city will report only on items put into service after 1980.
(Ord. 05-01, passed - -; Ord. 2018-12, passed 8-13-2018)
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