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§ 40.02 LAND.
   (A)   This county will capitalize all land purchases, regardless of cost. Exceptions to land capitalization are land purchased outright, as easements, or rights-of-way for infrastructure. Examples of infrastructures are roads and streets, street lighting systems, bridges, overpasses, sidewalks, curbs, parking meters, street signs, viaducts, wharfs, and storm water collection.
   (B)   Original cost of land will include the full value given to the seller, including relocation, legal services incidental to the purchase (including title work and opinion), appraisal and negotiation fees, surveying and costs for preparing the land for its intended purpose (including contractors and/or county workers [salary and benefits]), such as demolishing buildings, excavating, clean up, and/or inspection.
   (C)   A department will record donated land at fair market value on the date of transfer plus any associated costs.
   (D)   Purchases made using federal or state funding will follow the source funding policies and above procedures.
(BC Ord. 1997-19, passed 12-1-97)
§ 40.03 MACHINERY AND EQUIPMENT.
   (A)   Warrick County shall capitalize and inventory machinery and equipment assets with an individual value equal to or greater than $5,000. Machinery and/or equipment combined with other machinery and/or equipment to form one unit with a total value greater than the above-mentioned limit shall be considered to be one unit.
   (B)   Any other reasonable and necessary costs incurred to make such machinery and/or equipment operable for its intended purposes shall be capitalized, including, without limitation, the following:
      (1)   Shipping and/or transportation charges;
      (2)   Professional fees, such as consultant and accounting fees;
      (3)   Damage payments;
      (4)   Any other cost directly associated with the purchase, delivery, or set up of the machinery and/or equipment, including payments to contractors and/or salary and benefit payments to Warrick County employees.
   (C)   Improvements or renovations to existing machinery and/or equipment shall be capitalized only if the result of such improvement(s) or renovation(s) meet all of the following conditions:
      (1)   Total cost of such improvement(s) or renovation(s) exceed $5,000;
      (2)   The useful life is extended two years or more; and
      (3)   The total cost of such improvement(s) or renovation(s) will be greater than the current book value and less than the fair market value.
   (D)   A department shall record donated machinery and equipment at fair market value on the date of transfer, with any associated costs.
   (E)   Purchases of machinery and/or equipment using federal or state funding shall follow the source funding policies and above procedures.
(BC Ord. 1997-19, passed 12-1-97; Am. BC Ord. 2021-11, passed 1-11-21)
§ 40.04 BUILDINGS.
   (A)   A department will capitalize buildings at full cost with no subcategories for tracking the cost of attachments. Examples of attachments are roofs, heating, cooling, plumbing, lighting, or sprinkler systems, or any part of the basic building. The department will include the cost of items designed or purchased exclusively for the building.
   (B)   A department's new building will be capitalized only if it meets the following conditions:
      (1)   The total cost exceeds $5,000, and
      (2)   The useful life is greater than two years.
   (C)   A department improving or renovating an existing building will capitalize the cost only if the result meets all of the following conditions:
      (1)   The total cost exceeds $5,000,
      (2)   The useful life is extended two or more years, and
      (3)   The total cost will be greater than the current book value and less than the fair market value.
   (D)   Capital building costs will include preparation of land for the building, architectural and engineering fees, bond issuance fees, interest cost (while under construction), accounting costs of material, and any costs directly attributable to the construction of a building.
   (E)   A department will record donated buildings at fair market value on the date of transfer with any associated costs.
   (F)   Purchases made using federal or state funding will follow the source funding policies and above procedures.
(BC Ord. 1997-19, passed 12-1-97)
§ 40.05 IMPROVEMENTS OTHER THAN BUILDINGS.
   (A)   This county will capitalize new improvements other than buildings only if it meets the following conditions:
      (1)   The total cost exceeds $5,000, and
      (2)   The useful life is greater than two years.
   (B)   A department will capitalize improvements or renovations to existing improvements other than buildings only if the result meets the following conditions:
      (1)   The total cost exceeds $5,000,
      (2)   The asset's useful life is extended two or more years, and
      (3)   The total cost will be greater than the current book value and less than the fair market value.
   (C)   A department's donated improvements other than buildings will be recorded at fair market value on the date of transfer with any associated costs.
   (D)   Purchases made using federal or state funding will follow the source funding policies and above procedures.
(BC Ord. 1997-19, passed 12-1-97)
§ 40.06 FURNITURE AND FIXTURES.
   (A)   Warrick County shall capitalize and inventory furniture and fixture assets with an individual value equal to or greater than $5,000. Furniture and/or fixtures combined with other furniture and/or fixtures to form one unit with a total value greater than the above-described limit shall be considered to be one unit.
   (B)   Any other reasonable and necessary costs associated with the purchase, delivery, and/or set up of the furniture and/or fixtures shall be capitalized.
   (C)   Improvements, repairs, or renovations to existing furniture and/or fixtures shall be capitalized only if the result of such improvement(s), repair(s), or renovation(s) meet all of the following conditions:
      (1)   Total cost of such improvement(s), repair(s), or renovation(s) exceed $5,000;
      (2)   The useful life of the furniture or fixture is extended two years or more; and
      (3)   The total cost of such improvement(s), repair(s), or renovation(s) will be greater than the current book value and less than the fair market value.
   (D)   An office or department shall record donated furniture and/or fixtures at fair market value on the date of transfer, with any associated costs.
   (E)   Purchases of furniture and/or fixtures using federal or state funding shall follow the source funding policies and above procedures.
(BC Ord. 2021-12, passed 1-25-21; Am. BC Ord. 2022-08, passed 2-14-22)
§ 40.07 RECORDING AND ACCOUNTING.
   (A)   The county and its various departments shall classify capital expenditures as capital outlays within the fund from which the expenditure was made in accordance with generally accepted accounting principles. The cost of property, plant and equipment includes all expenditures necessary to put the asset into position and ready for use. For purposes of recording fixed assets of the county and its departments, the valuation of assets shall be based on historical cost or where the historical cost is indeterminable, by estimation for those assets in existence.
   (B)   When an asset is purchased for cash, the acquisition is simply recorded as the amount of cash paid, including all outlays relating to its purchase and preparation for intended use. Assets may be acquired under a number of other arrangements including:
      (1)   Assets acquired for a lump-sum purchase price;
      (2)   Purchase on deferred payment contract;
      (3)   Acquisition under capital lease;
      (4)   Acquisition by exchange of nonmonetary assets;
      (5)   Acquisition by issuance of securities;
      (6)   Acquisition by self-construction;
      (7)   Acquisition by donation or discovery.
Some of these arrangements present special problems relating to the cost to be recorded. For example, in utility accounting, interest during a period of construction has long been recognized as a part of the asset cost. Reference to an intermediate accounting manual will illustrate the recording of acquisition of assets under the aforementioned acquisition arrangements. For purposes of recording fixed assets of the utilities, the valuation of assets shall be based on historical cost.
   (C)   In addition, an asset register (prescribed form 211) shall be maintained to provide a detailed record of the capital assets of the governmental unit.
(BC Ord. 1997-19, passed 12-1-97)
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