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INDIAN RIVER COUNTY <br /> POLICIES & PROCEDURES <br /> CAPITAL ASSETS <br /> The acquisition, disposition, and monitoring of County owned property is governed by <br /> Chapter 274 of the Florida Statutes and Rule 69I-73 of the Florida Administrative Code. <br /> The County will consider capital assets to be any tangible or intangible property with a <br /> value of$1,000 or more and a projected useful life of more than one year. <br /> A. DESIGNATION OF CUSTODIAN <br /> The Department head will designate a custodian(s) of all capital assets held by that <br /> department. The custodian will be responsible for monitoring the locations of all capital <br /> assets and facilitating the purchase, disposition and transfer of any assets within their <br /> inventory. The custodian will work with the Finance Department during the annual <br /> physical inventory to ensure all assets are accounted for and will also be responsible for <br /> ensuring all procedures are followed in the acquisition and disposition of capital assets. <br /> B. ASSET CAPITALIZATION GUIDELINES <br /> These guidelines are being provided to assist management when making the <br /> determination between which asset related expenditures are/are not recommended to be <br /> capitalized in accordance with governing laws, rules and regulations. The following <br /> guidelines, except where noted, apply equally to both Governmental Funds and <br /> Proprietary Funds. Definitions are provided as needed. <br /> 1. New As —Cost of$1,000.00 or more incurred to acquire an individual asset <br /> or to make an asset ready for its intended use should be capitalized. <br /> 2. Additions—Purchased additions to previously capitalized assets that meet the <br /> capitalization threshold, should be capitalized as add-ons to the existing <br /> property record. <br /> 3. Replacements/Improvements — The cost to replace or improve an existing <br /> asset should be capitalized if it meets the capitalization threshold and at least <br /> one of the following criteria: <br /> a. Extends the useful life of the existing asset <br /> b. Increase the effectiveness or efficiency of an asset <br /> For replacements, the old asset should be removed from the fixed asset system <br /> if it can be separately identified or if a cost can be estimated for its original <br /> value and then adjusted in the fixed asset system. <br /> 1d <br />