(a) As steward of this City’s property, the Council of the City recognizes that efficient management and full replacement upon loss requires accurate inventory and properly maintained property records.
(b) The Finance Director shall maintain a continuous inventory of all City-owned equipment and G.A.A.P. conversion requirements.
(c) For purposes of this policy, “equipment” means a unit of furniture or furnishings, an instrument, a machine, an apparatus or a set of articles which retains its shape and appearance with use, is non-expandable, and costs at least two thousand dollars ($2,000) as a single unit and does not lose its identity when incorporated into a more complex unit. For Generally Accepted Accounting Principles (G.A.A.P.) Reporting, the minimum dollar value of an asset to be capitalized is two thousand dollars ($2,000).
(d) Immovable property improvements similar to infrastructure will be added to property values. Maintenance costs of large fixed assets shall be construed as repairs and will be expensed at the time repairs are rendered.
(e) It will be the duty of the Department Superintendents to ensure that inventories are systematically and accurately recorded. It will be the duty of the Finance Director to record the additions of property and equipment by referencing check numbers.
(f) The Finance Director will maintain a system of property records which will include:
(1) A description of the property.
(2) Date of purchase.
(3) Initial cost.
(4) Location by building and fund.
(g) The Finance Director will contract with an outside asset valuation firm to provide the initial valuation. This firm will also calculate depreciation on an annual basis. The Finance Director will provide additions and deletions to the firm on an annual basis, and corrections as needed. The firm shall provide a valuation report including depreciation for G.A.A.P. reporting and a separate report for insurance purposes.
(h) The City of St. Clairsville is subject to GASB 34 Financial Reporting effective 1/1/04 under the guidelines provided therein. The City chooses not to report any infrastructure acquired prior to 1/1/04 on their annual financial reports that has not previously been reported. This includes, but is not limited to roads, sidewalks, streetlights, signs, traffic lights, and water/wastewater distribution and collection lines. Any infrastructure purchase and/or improvement acquired after 1/1/04 will be subject to reporting as a capital asset and depreciated for GASB 34 financial reporting.
(i) The Department Superintendent will prepare or instruct their employees to prepare an inventory list for all supplies annually, on or about December 31 st. The inventory report will include quantity on hand, description, unit cost and total cost based on the First In First Out (FIFO) method. This report will be provided to the Finance Director annually, by January 31st, for the preceding year. If the total for any given group of supplies is less than two thousand dollars ($2,000), a physical count is not required. Supply groupings include:
(1) Office supplies.
(2) Lab supplies.
(3) Maintenance supplies.
(4) Chemicals.
(5) Salt.
(6) Meters, pipe, wire, etc.
(7) Tools.
(8) Signs.
(j) The Department Superintendent will be responsible for notifying the Finance Director of all fixed assets that have been disposed of and their method of disposal. A form will be provided to the Superintendent to use in the sale or scrap of a fixed asset. Any loss or theft of an item should be reported immediately to the Director of Public Services and the Finance Director. An investigation will follow if determined necessary. Major items of equipment will be subject to spot checks to determine loss, mislocation, or depreciation; any major loss will be reported to the Mayor and City Council. (Ord. 2003-57. Passed 12-1-03.)