(A) The capital asset policy is being issued effective January 1, 2006. This policy is being issued to document the minimum value of capital assets to be reported on financial reports and to include infrastructure assets. 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 will be $5,000. An asset with a value under $5,000 will be expensed in the year of purchase. The infrastructure portion of this policy is also 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 five-fold:
(1) To safeguard the investments of the citizens of the 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 will only serve to classify capital assets, including fixed and infrastructure, for accuracy in financial reporting through the Indiana State Board of Accounts. It does not include data processing, programming requirements, or computer operations procedures.
(Ord. 2005-24, passed 9-19-05)