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(a) The City's fixed asset and property listing is to be produced and/or updated annually. This record is to be maintained for use in the preparation of the financial statements in accordance with generally accepted accounting principles (GAAP).
(b) The City's capitalization threshold is $5,000 with a useful life of more than two years for financial records issued for 2007 and thereafter in accordance with Ordinance 7-2008 (That Ordinance did not provide for the removal of assets 2006 and prior which used a capitalization threshold of $500). The Director of Finance has the ability to group similar items if it shall represent a significant portion of capital assets in total.
(c) Fixed assets are to be reported at cost (or estimated historical cost). Donated assets are to be reported at their fair market values as of the date they are received. The contractor's estimate of value is sufficient for determination of fair market value.
(d) The initial year of depreciation on fixed assets shall be taken during the year of acquisition. Fixed assets shall be classified and depreciated calculated based on the following useful lives:
Building and Improvements
Equipment, Furniture and Fixtures
5 - 30 years
2 - 50 years
10 - 30 years
(e) A department's asset records as required by the above guidelines are to be updated annually by the department head and reported to the Director of Finance.
(f) The procedure set above is subject to change to be in conformity with state ORC law, the Charter and ordinances of the City of Norton, GAAP or other regulatory requirement, and state and federal grant guidelines.
(Ord. 59-2017. Passed 6-26-17.)