(A) The purpose of this policy is to establish a procedure for the classification of capital assets, including fixed assets and infrastructure, for accuracy in financial reporting through the state Board of Accounts and to fix the minimum value of capital assets to be reported on the city's financial reports. This issuance of a policy document is related to the implementation of a new reporting model, Governmental Accounting Standards Board Statement 34. The capital asset threshold is $5,000. An asset with a value under $5,000 shall be expenced in the year of purchase. The infrastructure portion of this policy is effective January 1, 2006.
(B) The city has established 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.
(C) The purpose of establishing a Capital Policy is fivefold:
(1) To safeguard the investments of the citizens of Union City;
(2) To fix responsibility for the custody of equipment;
(3) To provide a basis for formulating capital asset acquisition, maintenance and retirement policies;
(4) To provide data for financial reporting; and
(5) To demonstrate appropriate stewardship responsibility for public assets.
(D) This policy is intended to classify capital assets, including fixed assets and infrastructure, for accuracy in financial reporting through the Indiana State Board of Accounts. For purposes of this subchapter, capital assets do not include data processing programs, software programming, or computer operations procedures.
(Ord. 2005-16, passed 12-12-05)