(A) This fixed asset capitalization policy is being implemented effective retroactively to January 1, 2003. The policy is being implemented to document the minimum value of capital assets to be reported on the town's financial reports and shall include infrastructure assets. The implementation of a policy statement is related to the implementation of the reporting model, Government Accounting Standards Board Statement 34.
(B) The town hereby establishes a Capital Asset Policy in order to provide a higher degree of control over its investment in capital assets, and to be able to demonstrate accountability to its various constituencies: citizens, rate-payers, oversight bodies and regulators.
(C) The purposes for establishing this Capital Asset Policy are as follows:
(1) To safeguard the investments of the citizens of the town;
(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;
(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. 154, passed 2-20-2007)