2023.01.24 CC Packet - Laserfiche WebLink

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8 3) Competitive Bidding If the expected selling price is $50,000 or more, then competitive bidding requirements must be followed, as described in the Employee Handbook Section titled “Purchasing Policy.” The Finance Department should be notified of any disposals so that the capital asset records can be properly updated. In addition, any lost or stolen items should be reported so that the proper paper work can be submitted to our insurance provider. See Attachment B. Assets that are sold will be retired from the capital asset system at original cost less any applicable accumulated depreciation. Any proceeds from the sales will be credited to a revenue account in the fund that accounts for the asset. Obsolete or scrapped assets will also be retired in the same manner. Other provisions, such as bond covenants or other agreements, may supersede these City procedures. TRADES An asset may be traded through a transaction involving the acquisition of a new asset. The traded assets will be retired from the capital asset system at its book value, which is original cost less any applicable depreciation. TREATMENT OF SUBSEQUENT COSTS Expenditures for maintenance or betterment may be made relating to an asset after its original acquisition. Costs that materially add to the value of the asset or substantially prolong its life will be capitalized. All other maintenance costs will be considered as operating expenditures or expenses in the year they were completed. TRANSFERS A capital asset may be transferred between departments. The Finance Department must be notified of the change for proper allocation of costs and reporting purposes. See Attachment C. DEPRECIATION The City’s depreciation method will be straight line depreciation with a full year’s depreciation taken the first year after acquisition. USER DEPARTMENT RESPONSIBILITIES The user department is the department that purchases, controls, and uses an asset. This department is responsible for notifying the Finance Department, in a timely manner, of purchases, transfers, retirements and betterments of an asset. The capital asset forms are the vehicle through which notification will be made. In general, user departments carefully analyze asset needs in order to expend budgeted amounts wisely. The user department is responsible for obtaining the best price available and securing and controlling the capital asset use. All purchases should follow the guidelines found in the Purchasing Policy. The user department is responsible for notifying the Finance Department within two weeks of any asset acquisition, disposal, transfer, or betterment. FINANCE DEPARTMENT RESPONSIBILITY The Finance Department is responsible for maintaining the capital asset system, preparing necessary financial statements and note disclosures, providing audit work papers and back‐up documents, and conducting internal accounting procedures. Proper internal accounting controls over capital assets require periodic counts and comparisons to existing subsystem records in order to determine if recorded assets still exist and if they are accounted for