FIXED ASSETS

Effective:  June 25, 1991 06-13

Objective:         To establish procedures for keeping an inventory of fixed and non-fixed assets owned by the County

Reference:        Office of the State Comptroller Financial Management Guide, Section 3.1, “General Fixed Assets”

Definitions:      Fixed Assets include all real property (land and buildings) and personal property (machinery and equipment) which meet the following minimum standards:

·         having an estimated useful life of one year or more;

·         the physical characteristics of which are not appreciably affected by use or consumption; and

·         having a value of. $5,000 - Regular Equipment           

          $25,000 - Vehicles

Non-Fixed Assets are as described above, except that the value is $50 to $499.

Policy of the Board of Representatives:

To comply with accounting requirements issued by the New York State Office of the State Comptroller, serve as a basis for insurance coverage and claims, and to fix accountability for control and custody of fixed and non-fixed assets, the County shall provide for and maintain a continuous record of fixed and non-fixed assets.

Procedure:

1.       Responsibility for maintaining a computerized and hard copy inventory of fixed and non-fixed assets shall reside with the Division of Purchasing. Hard-copy inventories shall also be kept in the Finance Office.

2.       The inventory shall be updated annually, following the June 30 deadline for equipment purchases and the surplus auction.

3.       The revised Acquisition Form shall be sent to departments with the department and receiving copies of each purchase order for equipment, one form per equipment item. Following receipt of the item(s), the department shall complete the form and send to the Finance Office with invoice and receiving copy of purchase order.

4.       The revised Disposition Form will be sent to departments with the annual memo requesting items to be put into surplus. It is vital that the tag number of all items being disposed of be listed.

5.       Extra acquisition and disposition forms shall be available from the Division of Purchasing.

        Fixed Asset Thresholds

New accounting standards require that fixed assets be reported on balance sheets and that all such assets (with the exception of land) be subject to depreciation. In order to facility compliance with the new standards we have established higher thresholds for such assets. For Example:

Type		Depreciation Life
Passenger Vehicles/Trucks	25,000	5 years
Office Furniture	5,000	10 years
Office Equipment	5,000	5 years
	5,000	5 years
Communications Equipment	10,000	5 years
Bridge Replacement	100,000	20 years
Parking Lot	100,000	10 years
Building Repairs	100,000	10 years
Highway Machinery	100,000	10 years
	50,000
Buildings/Structures	100,000	25 years
Software Systems	100,000	5 years
Airport Infrastructure	100,000	20 years
Roadway Rehabilitation	100,000	15 years