HomeMy WebLinkAbout98-12 - Res. Amending County Code Chapter 3.56 Fixed Asset Management SystemRESOLUTION NO. 4"l
A resolution amending Mason County Code Chapter 3056 Fixed Asset
Management System
WHEREAS, the Board of Commissioners establishes the dollar value
guidelines for the capitalization of fixed assets;
WHEREAS, capital assets are defined as "New items or improvements that
extend the life of an existing asset for more than a year that cost above s5,0000"
WHEREAS, Mason County Code Chapter 156 56 needs to be updated to
reflect current regulations;
NOW, THEREFORE BE IT RESOLVED by the Mason County Commissioners
to rename Mason County Code Chapter 3a56 "Capital Asset Policy" and amend
Chapter 30560010 and add Chapter 30560020 (Attachment A). Chapter 30560030,
Physical Inventory, shall remain the same.
Adopted this 18th day of December 2012.
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cannon Goud clerkoftrtt Board
APPROVED AS TO FORM:
Tim Whitehead, Chief DPA
BOARD OF COUNTY COMMISSIONERS
MASON COUNTY, WASHINGTON
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Lynda' Ring Ericks Chair
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Tim Sheldon, Commissioner
Terri Jeffreys, o' mrsksioner
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18.doc
Mason County Code Chapter 3.56 Attachment A
3.56.010 Capital Assets
Capital assets will be reported at acquisition cost. Capital assets are defined as "New items or
improvements that extend the life of an existing asset for more than a year that cost above $5,000." The
cost of a capital asset should include ancillary charges necessary to place the asset into its intended
location and condition for use. Donated capital assets will be reported at their estimated fair value at the
time of acquisition plus ancillary charges. If the donated asset was recently constructed and the donor
can provide the asset's actual construction cost, that estimate could be used as a basis of capitalizing the
asset. Otherwise, the estimated fair value at acquisition may be calculated from manufacturer's catalogs
or price quotes in periodicals, recent sales of comparable assets, or other reliable information.
Capital assets shall be depreciated over their estimated useful lives unless they are land or land
improvements.
All capital improvements shall be in the capital budget and capital facilities plan. In budgets for capital
improvements, a review for impact on operating budget and long-term maintenance shall be done to
minimize unforeseen future costs.
The capital expenditures will neither be spent nor budgeted for without a revenue source and until that
revenue source is available.
The use of the project accounting module of the financial system is mandatory for all construction
projects.
3.56.020 Infrastructure Assets
GASB 34 requires infrastructure assets to be reported. Mason County uses the depreciation method to
report infrastructure assets. Infrastructure assets are reported when they have an initial cost of more
than $100,000 and a useful life of more than one year. Beginning in the 2004 fiscal year, the County
capitalized and reported all major infrastructure assets acquired or substantially improved.
The initial capitalization shall be based on historical cost. If that cannot be determined, then estimated
historical cost may be used. Estimated historical cost can be calculated by using the current replacement
cost and using price -level indexes back to the acquisition year. For estimated useful lives shall use (a)
general guidelines obtained from professional or industry organizations, (b) information for comparable
assets of other governments, or (c) internal information.
3.56.030 Physical Inventory - Administration
The annual Mason County inventory of equipment will be the responsibility of the Board of Mason County
Commissioners as authorized and required by RCW 36.32.210.
J:\RESOLUTIONS & ORDINANCES\RESOLUTIONS -ORDINANCES Word Files\2012\Capital Asset
Policy.docx