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HomeMy WebLinkAboutResolution 008-2011Resolution No. 08 -1 1 City of Brookings Capital Asset Policy Amended: January 25, 201 1 Objective: Whereas, the City of Brookings is required to be accountable for all property under its control. Whereas, it is necessary to provide a standard method of maintaining records for the cities owned capital that city departments must follow. Now, Therefore, Be It Resolved the following Capital Assets Policy be adopted to provide control and accountability over all city capital assets. Purpose: The purpose of this capital asset policy to: I) to provide control and accountability over capital assets, 2) to provide uniform procedures for furnishing information needed for effective analysis and control of capital expenditures, and 3) to provide a data base of inventory information to meet the reporting needs for the preparation of the Cities financial statements. The Benefits of Inventory System: I. Property control and accountability through a comprehensive citywide inventory system. 2. Improved equipment utilization through control and identification of capital assets. 3. Database to meet the GAAP, Federal grants and City of Brookings requirements. 4. Data base to meet requirements of proper risk management and provide basis for identifying equipment for the City's insurance. 5. Basis for management to project and budget future capital replacement requirements. The Finance Department is required to: I. Establish a Generally Accepted Accounting Principles (GAAP) based accounting system and procedures to ensure the cities assets, including capital assets, are properly accounted for. 2. To provide a standard method of maintaining records for the cities owned equipment that city departments must follow. 3. To provide for the maintenance of an inventory of city owned or controlled land resources by the City. Policies differ in cases of absolute title and residual title. I. When an external entity, such as the federal government retains residual title to a capital asset it will be included in the capital asset inventory (title remains at the disposal of the governmental authority after a delegation). 2. This includes capital on lease or long -term loan. 3. Temporary custodial responsibility or title shall not be considered absolute and should not be included as the cities capital asset. Component units of the city must designate, in writing, one or more persons to be responsible for maintaining and safeguarding the component unit's capital assets. The component unit is responsible for developing internal policies and procedures to protect and control the use of all capital assets. Capital projects will be tracked within a work in progress number assigned by the Finance Department. At the completion of the project the department in charge will: a) Break down the project into the proper categories to be added into the capital assets inventory. b) The Finance Office enters the above information in the Capital Assets Management System. I) General Guidelines /Applicable Policies The City of Brookings requires all departments to be accountable for all property under its control. a) In accordance with state and federal guidelines, the current threshold for which an inventory of capital assets is maintained is $5,000 unless conditions of a grant require a lower threshold or assets of less value are subject to high rate of theft. b) The enterprise funds will continue to depreciate equipment purchased prior to 2003 in the same manner as previous to this policy until the equipment is fully depreciated. c) The City's Departments responsibilities are to be accountable for all property under its control. 2) Department Responsibilities The departments have an important role in the maintenance of an accurate, up -to -date inventory system. Adherence to the following guidelines helps to ensure that departmental inventory records are as accurate and complete as possible. a) Entering correct information on purchases through the Accounts Payable (AP) system. Most of the data recorded on the Capital Assets system is taken directly from the vouchers. Correct coding by departments avoids the need for later corrections. b) Proper coding of capital assets expenditures. Equipment purchases must be coded with a "5" and "900" expenditure object. Use of an object code outside the 5 -900 ranges increases the possibility that the asset will be omitted from the CAP system. c) Entering correct asset location, serial numbers, make, etc on voucher saves considerable time and effort. 3) Capital Assets - Additions This statement explains the procedures for the addition of assets to the Capital Assets Management System. a) All capital equipment, regardless of whether the items are loaned to or owned by the City, must be included on the Capital Assets Management System. Additions of capital assets are generated by accounts payable, donations to the City, or equipment loans or private sources. b) The Finance Office is provided with copies and documents relating to the equipment purchases. (i.e. cost, fair market value, serial numbers, model numbers, building /room location of assets) c) The Finance Office enters the above information in the Capital Assets Management System. 4) Capital Assets - Retirement a) Property unfit for use by reason of age, wear, tear, or otherwise and is beyond repair will be determined by City Manager. A note shall be given to the Finance Office to be entered into the Capital Assets Management System for that year of the condemnation of such property. b) Auctions or sealed bids for sale of unfit property is required. The property described on page 2 in 4 a) shall be sold only for cash at public auction or upon opening of sealed bids (1) The notice of the sale shall be published in the newspaper stating the following: • A day on which the sale is to be made (at least fifteen days after first publication) • Location where such auction will be held, or a place where offers or bids will be received (which day shall be at least fifteen days from the first publication of the notice). • The right to reject any or all bids shall be reserved. c) All money derived from the sale of public personal property shall be deposited to the City. d) Record retention. Departments should retain copies of surplus property forms, assets transfer form, stolen property reports and any other documentation regarding equipment dispositions. The information must be retained by the department for verification purposes until the Finance Office removes the item from the department's inventory. Lost or destroyed property is to be noted in the inventory. An item is considered stolen when it has been illegally removed from its designated location. Send the Finance Office a copy of the stolen property report. 5) Capital Assets - Transfers This statement explains the procedures for the transfer of assets in the Capital Assets Management System. Transfers are recorded on the City's inventory when there is a permanent change in asset location or physical custody. (i.e. from one department to another). If the equipment is temporarily loaned or relocated and the intention is to reclaim the item in the near future, the asset record need not be changed a) The physical custody of equipment is the responsibility of the department. All transfer data submitted to Finance Office must be accurate in order to ensure the reliability of the City's inventory. b) Fill out the Equipment Transfer Disposition Request Form showing the old location and the new location. The form must be signed and dated by department head for the new location. 6) Capital Assets -Home Use of Equipment This statement explains the procedures for notifying the Finance Office of equipment being used at home by management and staff. City management and staff may use equipment that is the property of the City at home, provided the following criteria are met: a) Use of the equipment at home will not interfere with the operational needs of the department. b) The appropriate department head approves home use. c) The equipment is used for City business only. d) Individuals who receive approval to remove equipment from the City for use at home for a period greater than 30 days should complete the Equipment Tracking Home Use Authorization Form. This form must be completed on any piece of equipment that is taken home regardless of the cost of the equipment or whether the asset is tagged. e) The first half of the form should be filled out when an employee is approved to use City equipment in his or her home for a period greater than 30 days. The original should be kept in the department's files and a copy should be given to the employee. Once the equipment has returned to the City, the department should complete the bottom half of the original form that was retained in the departmental files. f) If the use of City equipment is less than 30days, then department should keep an internal record of equipment that has been approved for use off city property. The list should include a description of the equipment, the asset number, serial number, and the individuals name using the equipment, where the equipment is being used and the expected return date. 7) Capital Assets - Storage of Equipment on Privately Owned /Leased Premises This statement explains the procedures for requesting storage of assets at off -city locations that are privately owned or leased to the City. a) In order to maintain accurate inventory records and comply with asset control procedures, the Finance Office must be aware of approved storage of equipment at off - city locations. City personnel should anticipate storage needs in advance in order to obtain the proper approvals before removing the assets from the City. b) Fill out request storage of assets form for locations that are privately owned or leased to the City. The form must be signed by the City Manager and the Department Head and forwarded to the Finance Office. 8) Capital Assets - Gifts -in -kind This statement explains the procedures for reporting equipment and other assets donated to the City. a) All capital assets that are donated to the City must be included in the Capital Assets System inventory. It is the responsibility of each department head to notify the Finance Office when equipment and other assets are donated to the City. b) When donated items are received by departments, the pertinent sections of the Notification of Gift For must be completed and forwarded to the Finance Office. The Finance Office will record the information on its Capital Assets System. 9) Capital Assets - Annual Equipment Inventory This statement provides policies and procedures relating to the annual physical inventory of capital assets conducted by departments. a) State regulations require the City to take an annual equipment inventory. Each department is responsible for verifying information about its own inventory and making all changes and corrections and forwarding them to the Finance Office. b) The Finance Office distributes annual inventory reports and instructions to departments in December of each year. All inventory reports are due back to Finance by January 1 th c) All changes and corrections should be made directly on the inventory printout. The department should keep a copy and send the original of the completed printout to the Finance Department. d) Use the departmental inventory printout to conduct a room -by -room equipment verification. Please verify all information on the report. 10) Capital Assets - Useful lives a) Depreciation is the systematic and rational allocation of the historical cost of a capital asset over its estimated useful service life. The estimated useful service life as listed will be for assets added in the year of 201 1 and future years. (1) Buildings /Permanent structures 50 years (2) Buildings /Permanent structures /wood /pole 25 years (3) Buildings /Permanent structures /steel 35 years (4) Buildings /Portable structures 25 years (5) Buildings /Excavation 50 years (6) Buildings /Foundation 50 years (7) Buildings /Frame /masonry 50 years (8) Buildings /Frame /wood or pole 25 years (9) Buildings /Frame /steel 35 years (10) Buildings /Floor structure 50 years (I 1) Buildings /Floor covering 15 years (12) Buildings /Carpeting 10 years (13) Buildings /Computer flooring 10 years (14) Buildings /Exterior walls /masonry 50 years (15) Buildings /Exterior walls /wood or pole 25 years (16) Buildings /Exterior walls /steel 35 years (17) Buildings /Roof cover 15 years (18) Buildings /Roof cover /EDPM 20 years (19) Buildings /Interior construction 15 years (20) Buildings /Interior renovation 10 years (21) Buildings /Ceiling finish 10 years (22) Buildings /Plumbing 20 years (23) Buildings /HVAC 20 years (24) Buildings /Electrical /masonry 15 years (25) Buildings /Electrical /wood or pole 25 years (26) Buildings /Electrical /steel 35 years (27) Buildings /Elevator 20 years (28) Roadways /Dirt 10 years (29) Roadways /Gravel 15 years (30) Roadways /Concrete 35 years (31) Roadways /Asphaltic Concrete 30 years (32) Roadways /Brick or Stone 50 years (33) Alleys /Concrete 40 years (34) Alleys /Asphaltic Concrete 25 years (35) Alleys /Dirt I0 years (36) Alleys /Gravel 15 years (37) Alleys /Brick or Stone 50 years (38) Sidewalks /Concrete 30 years (39) Sidewalks /Asphalt 25 years (40) Sidewalks /Gravel 10 years (41) Sidewalks /Brick or Stone 45 years (42) Parking Lots /Concrete 35 years (43) Parking Lots /Asphalt 20 years (44) Parking Lots /Gravel 10 years (45) Parking Lots /Brick or Stone 45 years (46) Airport Runways 30 years (47) Bridges /Continuous Concrete 50 years (48) Bridges /Pre- stressed Concrete 45 years (49) Bridges /Steel with Truss 50 years (50) Bridges /Steel Without Truss 45 years (51) Bridges /Timber /wood 30 years (52) Bridges /Pedestrian /Steel 30 years (53) Bridges /Pedestrian /Concrete 30 years (54) Bridges /Pedestrian/Wood 25 years (55) Major Culverts /Concrete 40 years (i) Precast box, precast elliptical Cast in place (56) Major Culverts /Concrete pre stress 40 years (57) Major Culverts /Timber log treated 30 years (58) Major Culverts /Steel 30 years (i) Corrugated round, Corrugated Bottomless arch (59) Small Culverts /Plastic 25 years (60) Small Culverts /Cast Iron 30 years (61) Small Culverts /Metal corrugated 30 years (62) Small Culverts /Concrete 50 years (63) Storm Drains /Plastic 25 years (64) Storm Drains /Cast Iron 30 years (65) Storm Drains /Metal Corrugated 30 years (66) Storm Drains /Concrete 40 years (67) Storm Drains /Ditch /Trench 100 years (68) Moveable Equipment (i) Athletic equipment 10 years (ii) Audio visual equipment 7 years (iii) Books 7 years (iv) Multi -media materials 7 years (v) Business machines 7 years (vi) Contractors /construction equipment 12 years (vii) Furniture (viii)Machinery and tools (ix) Outdoors recreational equipment (x) Stage and auditorium equipment (xi) Custodial equipment (xii) Photocopiers (xiii) Sculptures/Wood (xiv) Sculptures /Stone Capital assets by department 20 years 15 years 15 years 20 years 15 years 5 years 20 years 30 years SOLID WASTE LANDFILL AND COLLECTION Landfill — Excavation of Cells (estimated # of years to fill excavation) Landfill — Leachate System (estimated life of landfill) Landfill — Liners (estimated life of landfill) Landfill — Test Wells (estimated life of landfill plus 30 years) Landfill large crawler loader 5 years Landfill large compactor 5 years Landfill large wheel loader 5 years Landfill small wheel loader 10 years Landfill blade 15 years Landfill grader 15 years Landfill pickups 10 years Landfill trucks 12 years Landfill tractors 10 years Collection- Garbage truck — rear loader 10 years Collection- Garbage truck — automated loader 8 years STREET DEPARTMENT Pickup 10 years Pickup for special use 20 years Tandem Trucks 12 years Skidsteer I0 years Loader 12 years Backhoe 20 years Street Sweeper 6 years Snow Blower 12 years Grader 12 years Blade 12 years Air compressor 15 years Fuel computerized system 15 years Underground tanks 30 years Electronic Street Signals 15 years Road Signage 10 years RECREATION Buildings 50 years Parking lot 20 years Vehicle -Van 20 years Vehicle 20 years PARKS Buildings 50 years Restrooms 50 years Shelters 50 years Prefab shelters 50 years Pool 40 years Pool heaters 10 years Spectator heaters 15 years Irrigation system 40 years Parking lot 20 years Sidewalks 30 years Steel bridge 45 years Outdoor lighting 20 years Fencing, gates 35 years Retaining walls 20 years Bleachers 30 years Scoreboard 20 years Fountains 40 years Playground equipment 20 years Recreational equipment 15 years Landscaping 10 years Septic systems 15 years Underground tanks 30 years Athletic Field 40 years Soccer Fields 40 years Stadiums 45 years Skate Park 20 years Tennis courts 40 years Running track 30 years Disc Golf Facility 20 years Bike Jogging Paths /Dirt 10 years Bike Jogging Paths /Gravel 15 years Bike Jogging Paths /Concrete 30 years Bike Jogging Paths /Asphalt 20 years Grounds equipment 10 years Mowers 10 years Other motorized equipment 15 years Tractor /compact skidsteer 15 years Tractor /standard 20 years Non - motorized equipment/attachments 20 years Ice re- surfacer 15 years Generator 15 years Pickups & trucks 10 years Seasonal Vehicles 20 years FORESTRY Buildings 50 years Loader /compact 15 years Motorized equipment 15 years Aerial trimming device 20 years Season vehicles 20 years Trucks and pickups 10 years GOLF COURSE Buildings - permanent 50 years Buildings - portable 25 years T- stands 40 years Driving range 40 years Executive nine 40 years Chipping green 40 years Concrete cart paths 30 years Mowers -Rough 15 years Mowers -Green 7 years Mowers - Fairway 10 years Tractors /compact 15 years Tractors /standard 20 years Motorized equipment 15 years Non - motorized equipment 20 years Irrigation system 40 years Pumps 25 years Storm drainage improvements 25 years Pickups 10 years Pickups seasonal 20 years FIRE DEPARTMENT Fire Trucks (Structural Pumpers, Aerials, Rescue) 16 years 6F 1 and 6F2 Command Vehicles 5 years Breathing air compressor 15 years Self Contained Breathing Apparatus (SCBA) 10 years Safety House 25 years Extrication equipment 10 years Brush /Utility Trucks & Slide -in units 12 years Thermal Imagers 12 years POLICE DEPARTMENT Patrol Vehicles 3 years or 100,000 miles SRO Vehicle 7 years Unmarked Police Vehicles 8 years Animal Control Vehicle 5 years or 100,000 miles Sirens 15 years In vehicle video system 6 years Z -tron system I0 years Portable radios in vehicles I0 years Portable hand radios 8 years SWIFTEL CENTER Panels 20 years Window treatments 8 years Tradeshow equipment 12 years Food and beverage equipment 10 years Scoreboard & Electronic signs I0 years Scrubbers 5 years Battery back -up 5 years Parking Tots 20 years Concrete sealing 5 years Catwalk 50 years Air Conditioning Units 20 years Portable dance floor 10 years Portable stage 12 years Portable stalls 20 years Vehicles 20 years Skidsteer I0 years AIRPORT Building 50 years Grounds equipment I0 years Snow removal equipment 10 years ARFF truck (Fire truck) 20 years Fencing 30 years Gate opener 10 years Above ground fuel tanks 20 years Landscaping I0 years Runway lighting 10 years Taxiway lighting 10 years Runway asphaltic concrete 25 years Runway concrete 40 years Runway overlay 10 years Beacon 20 years Security system 7 years Vehicles I0 years INFORMATION TECHNOLOGY Desktop computer 5 years Laptop computer 5 years Servers 6 years Networking (switches, firewalls, etc) 7 years Backup equipment 5 years Security system 7 years Small printers 6 years Large printer /copiers 5 to I0 years CODE ENFORCEMENT Vehicles I0 years I I) Forms a) Capital Asset Purchases b) Equipment Transfer Disposition Request c) Storage of Equipment on Privately owned /Leased Premises d) Equipment tracking home use authorization Alt Tuchoe (PLEASE attach a copy of the invoice to this form) DATE DEPARTMENT VENDOR NAME & NO. INVOICE DATE ACCOUNT NO. AMOUNT $ RESPONSIBLE PARTY (Job Title) LOCATION SERIAL # *LIFE OF ASSET *Refer to the Capital Asset Policy — use Article I 0 — Identify category and useful life per policy COMPLETE DESCRIPTION List only ONE Capital Asset per form please. CITY OF BROOKINGS Capital Asset System Equipment Transfer Disposition Request Asset Number: Date: Equipment Description: Department: Name of Person Submitting Request: I. TRANSFER SECTION: To transfer asset to another department (requires dual signatures). H. DISPOSITION SECTION: To permanently remove assets from Capital Asset System. Please provide a brief narrative describing when and under what circumstances the asset was removed from inventory. If the equipment is returned or located in the future, the Finance Office must be notified as soon as possible to add the item(s) back into the inventory. Disposal Method (please check box and give explanation) ❑ Lost ❑ Altered Explanation: ❑ Destroyed ❑ Hazardous Other Both signatures below are required certifying the asset has been transferred to another department, or permanently removed from City Property by some other means. Department Head Signature City Manager Signature CITY OF BROOKINGS Capital Asset System Storage of Equipment on Privately owned /Leased Premises OFF -SITE STORAGE FACILITY Building Name: Address: Length of time equipment will be store at this facility: Reason for off -site storage: Description of Equipment: Asset Numbers: Department Head City Manager Please forward completed form to the Finance Office. CITY OF BROOKINGS Equipment Tracking Home Use Authorization Department: Name of User: Description of Equipment: Asset #: Justification for Home Use: Equipment condition: E — excellent G —good F —fair P —poor To Be Returned: 0 Annual Review 1= Date: 0 Other User's Signature Department Head COMPLETE UPON RETURN OF EOUIPMENT The equipment listed above has been returned. User's Signature Date Department Head Date Equipment condition: E — excellent G —good F —fair P —poor U — unusable L —lost S — Stolen X — Surplus Instructions for Initial Authorization: Complete and send original to Finance Office. Retain a copy for your files. Instructions for return: Use retained copy, complete bottom portion of form and send to Finance Office. Update equipment condition to the appropriate value. Passed and approved this 25th day of January, 2011. /1C(A. 7 Or-_,4 i Thornes, City Clerk Passed: September 25, 2007 Amended: January 25, 2011 City of Brookings Tim Reed, Mayor