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4. Repairs and Maintenance — Costs that are associated with repairs and <br /> maintenance are not recommended for capitalization because they do not add <br /> value to the existing asset. However, major repairs that extend the useful life <br /> or increase the effectiveness or efficiency of an asset may be classified as <br /> improvements and therefore should be capitalized(see#3). <br /> Any questions regarding whether purchases should be capitalized should be <br /> directed to the Finance Department. <br /> C. ACQUISITION OF CAPITAL ASSETS <br /> All acquisitions will follow the procedures outlined: <br /> 1. After a department determines a need for a capital asset, they will obtain <br /> approval to purchase the item from the Board of County Commissioners <br /> (BCC) or designee during the annual budget process. In the event a capital <br /> asset needs to be purchased and was not approved in the budget, the <br /> department will need approval from the BCC or the Office of Management <br /> and Budget (OMB)through a budget amendment or line transfer. <br /> 2. After approval is obtained, the requesting department will enter a requisition <br /> into the system and forward it to the Purchasing Department with the required <br /> IL authorizations. The requisition shall contain a detailed description of the item <br /> and the cost. The requisition will then be converted to a purchase order. <br /> 3. After receiving a capital asset, the requesting department will send the <br /> approved invoice and the receiving copy of the purchase order to the Finance <br /> Department for payment. If the item is a replacement for an existing <br /> capital asset, the Disposal of Excess Property Form must be sent to the <br /> Finance Department prior to or at the same time as purchase of the new <br /> asset. <br /> 4. The Finance Department will place an inventory tag on all capital assets <br /> except for County vehicles, computer equipment, or items that are unable to <br /> be tagged. County vehicles are tagged by the Fleet Manager and computer <br /> equipment is tagged by the Computer Services Manager or his designee. <br /> Items that are unable to be tagged will still be assigned a capital asset number. <br /> 5. Donated property with a market value in excess of $1,000.00 will be added <br /> into the capital assets system. The department must provide written <br /> notification to the Finance Department of any donated capital assets. <br /> 6. All vehicles purchased will be held solely in the name of Indian River County. <br /> If a trade-in is involved please refer to section F of this policy. <br /> -� 15 <br />