3.30.020 Recording and accounting.
A. Capital Outlays and Fixed Assets Generally. Capital outlays shall be associated with the fund from which the expenditure was made in accordance with the chart of accounts of the County’s accounting manual. Fixed assets which are capitalized under this chapter shall be recorded by taking into account the actual or estimated historical costs and all expenditures necessary to make the asset ready for use.
B. Buildings.
1. Buildings shall be capitalized at full cost without subcategories. Capitalized building costs shall include the cost of the building and items which are designed or purchased exclusively for the building and are permanently installed, such as roofs, heating, cooling, plumbing, lighting, and sprinkling systems.
2. Costs of new buildings will be capitalized if:
a. The total cost of a new building exceeds $5,000; and
b. The useful life is greater than two years.
3. Costs of improving or renovating existing buildings will be capitalized if:
a. The total cost meets or exceeds $5,000; and
b. The useful life is extended two or more years.
4. Donated buildings will be valued at fair market value on the known or estimated date of transfer and including any associated costs.
5. Purchases of buildings funded in whole or in part with Federal or State funds will be recorded taking into account the accounting policies of the source of outside funding and this chapter.
C. Construction in Progress.
1. Entries shall be made noting payments and dates of all expenditures of the construction or renovation of a building or improvement other than a building.
2. Construction in progress of a particular project will be capitalized if:
a. The total cost of the project exceeds $5,000; and
b. The new building or improvement’s useful life will be two or more years or the renovation will extend the building or improvement’s useful life by two or more years.
D. Infrastructure. Infrastructure is not capitalized.
E. Improvements Other Than Buildings.
1. Costs of new improvements other than buildings shall be capitalized if:
a. The total cost exceeds $5,000; and
b. The new asset’s useful life will be two or more years.
2. Costs of renovations to existing improvements other than buildings shall be capitalized if:
a. The total cost exceeds $5,000; and
b. The renovated asset’s useful life will be extended by two or more years.
F. Land.
1. The County will capitalize all land purchases, regardless of cost. The capitalized cost of land shall include the full value given to the seller, transaction costs incidental to the purchase and costs for preparing the land for its intended purpose including costs of demolition, excavation and inspections.
2. Donated land shall be recorded at fair market value on the date of transfer plus associated costs.
3. Purchases of land funded in whole or in part with Federal or State funds will be recorded taking into account the accounting policies of the source of outside funding and this chapter.
G. Machinery and Equipment.
1. The cost of machinery and equipment shall include purchase price and related charges and costs of delivery, installation, and other tasks necessary to make the item ready for its intended use.
2. Costs of new machinery and equipment shall be capitalized if:
a. The total cost exceeds $5,000; and
b. The new machinery or equipment’s useful life will be two or more years.
3. Costs of improvements or renovations to existing machinery and equipment will be capitalized if:
a. The total cost of the improvement or renovation exceeds $5,000; and
b. The item’s useful life is extended by two or more years.
4. Donated machinery and equipment will be recorded at fair market value on the date of transfer plus associated costs.
5. Purchases of machinery and equipment funded in whole or in part with Federal or State funds will be recorded taking into account the accounting policies of the source of outside funding and this chapter. [Ord. 12-1-14C § 2.]