2023.01.24 CC Packet - Laserfiche WebLink

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4 POLICIES AND PROCEDURES ACCOUNTING SYSTEM The capital asset system maintains a complete database of all City assets that are subject to capitalization. Maintaining this system requires coordination and cooperation between departments that purchase, use, and dispose of assets and the Finance Department that record, manage, and report on the capital asset system. The City’s capital asset accounting system is maintained in the BS&A Fixed Asset module and is a subsidiary system that is connected to the City’s general ledger system. The major functions of this system are to maintain asset records by activity and type, and to provide data for financial statements, replacement schedules and insurance records. It is updated solely through the use of capital asset forms, construction work papers, and by reconciling subsystem reports to the general ledger. Therefore, given the financially material nature of the City’s capital assets as a whole and the independence of the subsystem, timely notification to the Finance Department is vital. ACCOUNTING STRUCTURE The City maintains assets in various funds depending on their type and function. The list below describes the funds and the types of assets included. Fleet Replacement Fund – accounts for all fleet related equipment including vehicles, trucks, motorized trailers, riding lawnmowers and other motorized equipment. Non‐Fleet (equipment) Replacement Fund – accounts for all capital assets not accounted for in the Fleet Replacement Fund that have a planned replacement scheduled using installments to save for future purchases. Pavement Management Fund – accounts for the replacement of items such as parking lots, asphalt trails and tennis courts. Information Technology Fund – accounts for all of the capital assets such as computers, network systems, printers, copiers, and phone system. Water Enterprise Fund – accounts for all of the capital assets needed in the operation of the water utility system. However, scheduled fleet and non‐fleet items are recorded in the appropriate Fleet on Non‐Fleet Replacement Fund. Sewer Enterprise Fund ‐ accounts for all of the capital assets needed in the operation of the sewer utility system. However, scheduled fleet and non‐fleet items are recorded in the appropriate Fleet on Non‐Fleet Replacement Fund. Stormwater Utility Enterprise Fund ‐ accounts for all of the capital assets needed in the operation of the stormwater utility system. However, scheduled fleet and non‐fleet items are recorded in the appropriate Fleet on Non‐Fleet Replacement Fund. General Fixed Asset Account Group (GFAAG) – accounts for all capital assets used by general city departments that are not accounted for in any other fund. VALUATION 1) Basis Capital assets should be accounted for at original cost, or if the cost is not practicably determinable, at estimated cost. Donated capital assets should be recorded at their estimated fair market value at the time received.