(A) Definition. For the purpose of this subchapter, the following definition shall apply unless the context clearly indicates or requires a different meaning.
CAPITAL ASSETS.
(a) Land, land improvements, buildings, building improvements, construction in progress, machinery and equipment, vehicles and infrastructure. All land and land improvements will be capitalized but not depreciated. All items with a useful life of more than one year, and having a unit cost or network cost of $5,000 or more shall be capitalized (including acquisitions by lease-purchase agreements and donated items).
(b) A CAPITAL ASSET meeting this criterion will be reported and depreciated in the government-wide financial statements. Assets that are not capitalized (items less than $5,000) are expended in the year of acquisition. An inventory will be kept on all computers and on all items costing less than $5,000 but more than $1,000. They will be classified as non-capitalized items in the fixed asset management system (GFAMS).
(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 capitalized cost of the larger unit;
2. Modular equipment added subsequent to original 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 limits; and
3. Cabinets, shelving, bookcases and similar items added subsequent to original construction which are custom-made for a specific place and not adaptable elsewhere will be expended.
(d) Purchases made using grant funds must comply with grant requirements or the above procedures, whichever are the most restrictive.
(B) Threshold levels for capital assets. The following schedule will be followed for the different types of capital assets:
Tracking/Inventory | Capitalize/Depreciate |
Tracking/Inventory | Capitalize/Depreciate | |
Building improvements | $1 | $5,000 |
Building | $1 | $5,000 |
Construction in progress | $1 | All/capitalize only |
Infrastructure | $5,000 | $5,000 |
Land | $1 | All/capitalize only |
Land improvements | $1 | $5,000 |
Machinery and equipment | $1,000 | $5,000 |
Vehicle | $1,000 | $5,000 |
(Res. 9, passed 7-20-2004)