1996-042 - Laserfiche WebLink

Home Browse Search

Indian River County, Florida NOTES TO FINANCIAL STATEMENTS Continued Year Ended September 30, 1995 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued I. Property, Plant and Equipment Property, plant and equipment purchased in the Governmental Fund Types are recorded as capital outlay expenditures at the time of purchase. Such assets are capitalized at cost in the General Fixed Assets Account Group, except for certain improvements other than buildings ("infrastructure") such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems. Donated and confiscated assets are recorded in the General Fixed Assets Account Group at their fair market value at the time received. No depreciation has been provided on general fixed assets. The Board holds legal title for the general fixed assets used in the operations of the Board, Clerk of the Circuit Court, Property Appraiser, Supervisor of Elections and Tax Collector, and is accountable for them under Florida Law. The Sheriff is accountable for and thus maintains general fixed asset records pertaining only to equipment used in his operations. These assets have been combined with the Board's general fixed assets in the General Fixed Assets Account Group. Property, plant and equipment of the Proprietary Fund Types are recorded at cost. Donated property, plant and equipment are capitalized at their fair market value at the time received. Depreciation is provided using the straight-line method over the estimated useful lives of the various classes of depreciable assets. The estimated useful lives of the various classes of depreciable assets are as follows: A= Years Buildings and improvements 25-40 Machinery and equipment 3-10 Utility distribution systems 25-50 J. Capitalization of Interest Interest costs related to bond issues are capitalized during the construction period. These costs are netted against applicable interest earnings on construction fund investments. During the current period, the Water and Sewer System Enterprise Fund incurred interest expense during the construction period totaling $982,360. Related interest earnings on construction fund investments totaled $50,282 for the net capitalized interest of $932,078. K Unamortized Bond Costs Bond issuance costs and legal fees associated with the issuance of Proprietary Fund revenue bonds are amortized over the life of the bonds using the straight-line method of accounting. 23