CAPITAL ASSET POLICIES

For City of Edmond, Oklahoma

Updated 4-7-14

FEBRUARY 2012

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PURPOSE OF THE MANUAL

The Capital Asset Policy Manual is a publication of the Accounting Department of the City of Edmond, Oklahoma. It is intended that the Manual be used as a working guide by City personnel concerned with property accounting activities.

The primary objectives of the Manual are to:

Provide for consistent and uniform accounting of capital asset transactions throughout the City;

Gather and maintain information needed for the preparation of the City’s Comprehensive Annual Financial Report (CAFR) in conformity with Generally Accepted Accounting Principles and in principle with Governmental Accounting Standards Board Statement 34;

Provide guidelines for physical control, accountability and management of capital assets; and

Provide a training tool to the individuals responsible for capital asset management.

The City’s assets are recorded at historical cost and reported in the government-wide financial statements. Proprietary and component unit capital assets are also reported in their respective fund and combining component unit’s financial statement.

The City’s threshold is currently at $5,000 per item.

The budgeted line items used for assets are 8400-8699 currently.

City uses straight-line method of depreciation, and when the asset is donated, sold or removed due to wear and tear, the cost and depreciation are completely removed and the gain or loss is recorded in operations. If the City trades in an asset for a new asset, any applicable book value is added to the cost of the new asset and therefore depreciated out over the life of that asset.

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Table of Contents:1. What is a capital asset? 4

2. Classification of capital assets. 4

3. How are assets acquired? 11

4. Construction in Progress-CIP. 13

5. Responsibilities of departmental capital asset liaison. 13

6. Impairment of capital asset. 15

7. Budgeting for capital assets. 16

8. Estimate useful life of an asset. 16

9. Depreciation 17

10. Contributed/Donated Asset 17

11. Simple Flowchart to determine if an asset or an expense 18

12. Fixed Asset Accountant’s Reconciliation of Assets (for Financial Services only) 19

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WHAT IS A CAPITAL ASSET?

The crucial factor in determining whether a given items should be classified as a capital asset is not the form of the asset, but its intended use. Ex: A parcel of land to build a new building on to house the Fire department would be classified as an asset, but not a parcel of land acquired for eventual resale to a private-sector business as part of a redevelopment program. Governmental funds (e.g. General Fund) do not report capital assets, they do report items acquired for the purpose of resale, including items that resemble capital assets.

A capital asset as a specific piece of property or equipment that has the following characteristics:

1. Mostly tangible in nature and will be used in operations; Intangible items such as legal rights (e.g. easements) and internally developed computer software typically qualify as capital assets. Software maintenance IS NOT capitalized. Because intangible assets do not “look like” other capital assets, financial preparers often overlook them when calculating the portion of net assets classified as invested in capital assets, net of related debt.

2. Useful life longer than one year; and3. Significant value.

The City has defined “significant value”, for capitalization policy purposes, as having an initial cost in excess of $5,000.

CLASSIFICATION OF CAPITAL ASSETS

Capital assets of the City will be grouped and reported in the financial statements in one of the following major types:

1. Land2. Buildings3. Other improvements4. Machinery, furniture and equipment5. Utility infrastructure (water, sewer lines, treatment plants, lift stations,

electric meters, streets, bridges, drainage systems, etc.))6. Intangible Water Rights (Arcadia Lake)

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The above six classifications of capital assets are defined as follows:

LAND: Real property, which generally includes both the surface and the contents of the land. Right to land may include full ownerships, accompanied by deed and abstract of title. There may also be land interests or rites of passage such as easements, and air rights all of which require outlay and/or common law procedures.

Land cost includes the initial land or rights cost, plus legal and title fees, commissions, professional fees, surveying, appraisal and negotiation fees, water wells (initial cost for drilling), ROW, damage payments, clearing, filling, leveling and demolitions of unwanted improvements.

BUILDINGS: A facility used to house and safeguard public property and personnel. Buildings are realty and designed with a foundation, roof, and may or may not have full enclosure (not intended to be mobile). Building cost includes constructions or purchase costs and the cost of all fixtures permanently attached and made a part of a building.

Examples:

Original purchase price Expenses for remodeling, reconditioning or altering a purchased

building to make it ready for the purpose for which it was required Environmental compliance (i.e. asbestos abatement) Professional fees, legal, inspection, appraisal, title search etc. Payment of unpaid or accrued taxes on the building at the date of

purchase Cancellation or buyout of existing leases on the building

Building Improvements-are defined as capital events that increase the value of a building, materially extend the useful life of a building or both. A building improvement should be capitalized as a sub-asset of the building and recorded as an addition of value to the existing building if the expenditure of the improvement increases the life or value of the building by 25 percent of the original life period or cost. Note: Architect fees are expensed if a decision is made to NOT proceed with the construction of a building.

Examples:

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Conversion of attics, basements, etc. to usable office, clinic, research or classroom space.

Structures attached to the building such as covered patios, sunrooms, garages, carports, enclosed stairwells, etc.

Original installation/upgrade of heating and cooling systems Original installation /upgrade of wall or floor covering such as

carpeting, tiles, etc. Structural changes such as reinforcement of floors or walls,

replacement of beams, rafters, interior framing. Interior renovations such as baseboards, light fixtures, ceiling trim,

etc. Exterior renovation, such as installation or replacement of siding,

roofing, masonry, etc. Installation or upgrade of phone or closed circuit TV’s, networks,

fiber optic cable and wired required in the installation of equipment that will remain in the building.

Permanently attached fixtures or machinery that cannot be removed without impairing the building.

Additions to building (expansions, extensions, or enlargements)

Building Maintenance Expense:Maintenance costs allow an asset to continue to be used during its originally established useful life. Costs are expensed in the period incurred.

Examples of expenditures NOT to be capitalized Adding, removing and/or moving of walls relating to renovation

projects that are not considered major rehabilitation projects and do not increase the value of the building.

Improvement projects of minimal or no added life expectancy and/or value to the building.

Plumbing or electrical repairs Cleaning, pest extermination or other periodic maintenance Interior decoration, such as draperies, blinds, wallpaper Exterior decoration such as awnings, uncovered porches, decorative

fences, etc. Maintenance type renovations such as repainting, touch up

plastering, replacement of carpet, tile or panel sections, sink and fixture refinishing, etc. or exterior renovations such as repainting, replacement of deteriorated siding, roof, or masonry sections

Replacement of a part of component of a building with a new part of the same type and performance capabilities, such as replacement of an old boiler with a new one of the same type and performance capabilities

Any other maintenance related expenditure which does not increase the value of the building.

Determining whether to capitalize or expense an item

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In determining whether expenditures are related to a maintenance item or whether it is related to a capital items, the following guidance is offered:Care is sometimes needed to distinguish actions that lengthen the usefullife of an asset from those that merely avoid shortening it.

Assume, for example, that a new building is expected to have a useful life of 80 years but will have to have a room replace in just half that time. Further assume that the cost of the roof is included in the cost of the building (rather than treated as a separate capital asset)It might be tempting to argue that since the building’s useful life would be just 40 years if the roof were not replaced, the replacement extends the building’s useful life and so qualifies as an improvement. In substance, however, the replacement of the roof DOES NOT lengthen the building’s originally estimated useful life of 80 years, but simply avoids cutting it in half. That is, the roof replacement MAINTAINS rather than EXTENDS the originally estimated useful life of the building, and therefore should be treated as a repair rather than a replacement.

Expenditures that increase the economic value of the asset, increase the useful life beyond the original useful life, or increase the productive capability of capacity (uses, scope of users, etc.) should be capitalized.

Expenditures made to restore or maintain an asset at its original condition are expensed and not capitalized.

A simple test:1. Are you removing something from the asset and replacing it with

something else? If yes go to question #2: if no, see decision tree for add on.

2. Will the item be permanently and intrinsically tied to the FA for the duration of the FA’s life? If yes, to on to #3. If no, then expense

3. Will this asset now perform a function or provide additional capabilities it was unable to perform previously? (This is a NEW function, NOT AN ENHANCEMENT of a function performed previously). If no, then expense; if yes, then go to add on decision tree.

Questions for FA add on to existing asset decision tree:1. Will the item be permanently and intrinsically tied to the FA for the

duration of the FA’s life? If yes, go on to #2, If no, then expense.2a Does item increase the FA’s capacity, functionality or operating efficiency?And/or2b Does item extend the FA’s useful life by at least 1 year? If the answer to either is yes, then capitalize; if no, then expense.See decision tree for more information at end of manual.

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OTHER IMPROVEMENTS:

Improvements are also realty and those not attached or mounted on or in a building are normally considered improvements not chargeable to land or buildings. Improvements other than buildings cost included purchase or contract price, job order cost, professional fees of architects, attorneys, appraisers, financial advisors, damage claims, cost of fixture attached and insurances during construction.

Examples:

fencing and gates landscaping of a non temporary nature, parking lots, roadways, outside sprinkler system, recreation areas, athletic fields (including bleachers), golf course, paths and trails, septic systems, pools, tennis courts, fountains, pavilions, retaining walls, lighting systems, and water impoundment structures or

attachments (dam, liner, other water control structures).

MACHINERY, FURNITURE AND EQUIPMENT:This category usually refers to furniture, rolling stock (cars, trucks, etc.) and machinery. The intended use of the equipment by the City determines this classification. Furniture, machinery and fixtures which are attached to land, building or other improvements in such a way that removed alters the intended use of the facility are part of the land, building or improvement to which attached.

Examples to be capitalized as equipment include: Invoice price Freight charges Handling and storage charges Sales, use, and other taxes imposed on the acquisition Installation charges Charges for testing and preparation for use Cost of reconditioning used items when purchased. Parts and labor associated with the construction of equipment

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Note: if incidental items, such as extended warranties or maintenance agreements, are included with the capital asset upon receipt and are not listed as a line item on the purchase order or on the invoice, then the incidental charges are considered a part of the capital asset.

Equipment vs. VehicleA vehicle is a fixed asset that can move itself under its own power. Cars and Trucks should be classified as vehicles. Travel trailers, trailers that are pulled by a vehicle, would be classified as equipment. City of Edmond’s vehicles are carried under the equipment category with a 10 year life span.

UTILITY INFRASTRUCTURE:Long lived capital assets that are normally 1) stationary in nature and 2) can be preserved for a significantly greater number of years than most capital assets.

This category includes all utility infrastructures such as water and sewer lines, water towers, and other utility infrastructure, and is primarily accounted for in the City’s utility enterprise fund. These assets also include roads, bridges, curbs and gutters, streets, and sidewalks, drainage systems, lighting systems, fire hydrants and similar assets that are immovable and of value only to the City. The Governmental Accounting Standards Board (GASB) states that the generally accepted accounting principles (GAAP) reporting of such assets are required with the implementation of GASB Statement 34. The City, classified as a Phase III government by the GASB, is not required to account retroactively for all general infrastructures in place when it implemented GASB Statement 34. However, it is the City’s policy to maintain detail capital asset records for major infrastructure assets acquired, constructed or significantly improved in fiscal years subsequent to GASB Statement 34 implementation.

Examples:

Highway and rest areas Roads, streets, curbs, sidewalks, fire hydrants Bridges, railroads Canals, waterways, docks, dams, drainage facility Radio or TV transmitting tower Electric, water, and gas main lines and distribution Fiber optic and TV distribution systems between buildings Light system (traffic, outdoor, street etc.) Signage Airport runway, strip, taxiway

INTANGIBLE WATER RIGHTS:

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Co-purchased capital assets: In the public sector, it is not uncommon for a higher level of government (e.g., county) to acquire or construct a capital asset for a lower level of government (e.g., township), with the latter assuming responsibility for maintenance. Under GAAP the same items cannot be reported as a capital asset of two different governments. When 2 or more governments are involved with the same capital asset, it is the government that owns it that should report it. If ownership is difficult to establish, it is the government responsible for maintaining the asset that would normally report it. Ownership always “trumps” maintenance for this purpose.

Feasibility Studies: Governments often undertake a feasibility study prior to the acquisition or construction of a capital asset. Accountants presume that cost should be recognized as expense when incurred, unless they have demonstrable future value at that time. It is hard to argue that cost has demonstrable future value before the feasibility of a project has been established. Therefore, the cost of a feasibility study associated with the acquisition or construction of a capital asset should not be included as part of the cost of the asset thus acquired.

Capitalized Interest: For enterprise funds and business-type activities, interest incurred during the acquisition or construction of a capital asset must be included as part of the cost of that asset. It would be understandable to conclude that there would be no interest to capitalize if the government did not issue debt to finance a given project. However, GAAP often require that interest be capitalized even in situations where no new debt is issued. In theory, if a given enterprise fund or BTA had both available resources and outstanding debt; it could apply those resources to liquidate the debt. If this were done, of course, the resources would no longer be available to financeacquisition or construction, thus necessitating a new borrowing. Consequently, GAAP take the position that if there is any outstanding debt in a given enterprise fund or BTA, even though that debt may relate to a different project of a prior period, the government’s decision not to pay off the debt is equivalent to a new borrowing and the related interest should be capitalized during acquisition or construction as part of the cost of the capital asset.

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HOW ARE CAPITAL ASSETS ACQUIRED?

A capital asset may be acquired in a number of different ways. These include:

Direct Purchase; Lease-Purchase; Construction (by City personnel or outside contractors); or Contributed/Donated.

Direct Purchase

A direct purchase of a capital asset, as it is being considered here, is a purchase of property for cash. In this instance, the cost of the capital asset is the cash expended. The cash expended includes any amounts paid for freight, unloading, assembly, initial installation cost (excluding in house labor), professional fees, inspection and any other costs incurred to prepare the asset for operating use. The accumulation of all associated costs is sometimes an extension task, and the use of the Construction in Progress (CIP) is recommended. The acquisition of a building is an example of a direct purchase for which project accounting is utilized. Project accounting facilitates the collection of all associated charges such as legal fees, initial clearing and relocation, grading, etc. and eases the effort of specifically identifying the item to which these charges apply.

Note: the book value of assets recorded at historical costs should never be increased to reflect appraised value, insurance value, replacement costs, etc.

Lease Purchase

All leases in effect should be examined to determine if they are capitalizable leases. If any one of the following criteria is met, the lease should be treated as a capital asset transaction.

1. The present value of the minimum lease payments at the beginning of the term is 90% of the fair value of the property/capital asset at the inception date of the lease.

2. The lease term of a non cancellable lease if 75% or more of the property/capital assets estimated economic life.

3. The lease contains a bargain purchase option.4. Ownership is transferred to the city by the end of the lease term.

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The acquisition cost of capital assets acquired under a capitalizable lease is the calculated present value of the lease payments.

All lease transactions not qualifying as capitalizable leases are to be handled as expenses.

Leases between funds of the City do not qualify as capitalizable leases.

Construction

The accounting principle of recording all costs related to putting a capital asset into operating condition is equally as applicable to constructed capital assets as it is to purchased capital assets. The primary difference between the two methods of acquisitions is the increased administration required to capture a wide variety of cost and, frequently, a large number of individual transactions. For these reasons, Construction in Progress (CIP) is to be used to account for constructed capital assets.

Contribution

The City acquires property by contribution primarily in two ways (1) the City received property, or (2) cash is received to provide funding or reimbursement for property purchases or constructed by the City.

Where property is contributed, the capital asset must be recorded at its fair market value, which may not always be easy to determine. For property contributions which are recurring in nature, such as developer’s contributions of roads, water mains, etc. the Department receiving the property should develop a methodology for determining the fair market value of the property. Non-recurring property contributions must be coordinated with Accounting as they occur or no later than end of current fiscal year.

GAAP require that donated capital assets be recorded at the FV as of the date of donation. FV should be understood as referring to what it would have cost the government to acquire the asset, not the amount for which it could resell the asset. Example: a developer donated the right of way for a road. There is little market for the land under a road, so the ROW would have little or no resale value. Conversely, the cost of acquiring the land for the ROW could have been substantial. Some have reasoned in similar cases that the minimal anticipated resale value of the donated land justified itsbeing reported at some nominal value (e.g., $1. Per acre). GAAP, however, would require that the ROW be reported at the cost the government would have had to incur to acquire it.

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CONSTRUCTION IN PROGRESS (CIP)

CIP, as we call it, is maintained by the Finance Department and will booked upon completion of the project. It is currently found on the S Drive, under the current Audit work papers. A CIP record is created upon receipt of a new project that is going to spana period of time (meaning that it will be paid with more than 1 payment and perhaps many vendors). Once an asset is determined to an asset and it is going to be a CIP, it is put on the CIP listing (this is a manual listing as IFAS cannot track CIP in a manner that we want; therefore, an excel spreadsheet is maintained by different the different funds that we record: Governmental, Fleet, Administrative, Electric, Water, Sanitation, Wastewater, Drainage, Arcadia Lake and Golf.

Items that are on the CIP listing will stay on the list until such time that the project is completed. The City usually waits 6 months from the last ‘final’ invoice of the construction of a CIP project so to catch all loose invoices or engineering fees that may trickle in. There are engineering fees and plans drawn up for a large scale say a 50 year water plan that costs the City 100,000 for example. This plan may spin out 4 projects that the City wants to implement. The cost of the plan should be split 4 ways and added to those appropriate projects costs. (This is something that has been lacking in our system; Finance is unable to determine what the plan is for? Or perhaps only 3 of the 4 items were actually implemented and they decide to not ever do the 4th project, now our CIP listing continues to have that project sitting on the CIP. )

Amount of retainage will be included in the cost of the project at the end of each fiscal year for reporting purposes, once the project is paid in full the retainages will be reversed out so that only the true cost of the project will be booked.

RESPONSIBILITIES OF DEPARTMENTAL CAPITAL ASSET LIAISON

Departmental policies are designed to complement this procedure manual, but should not substitute any part of this manual. All departments are required to follow the Purchasing Manual for acquiring the asset. Each department if responsible for

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developing internal control policies to protect and control the use of the capital asset. Each department should appoint a Capital Asset Liaison. While the department head is ultimately responsible for managing and accounting for the department’s capital assets, this liaison individual will have the primary responsibility for maintaining the accuracy and completeness of the capital assets records for the department. This includes purchasing, maintenance, inventory, training, storage, security, disposition, and reporting. Such individual will have the following responsibilities:

1. CONTROL OVER ALL DEPARTMENTAL CAPITAL ASSETS IN TERMS OF LOCATION KNOWLEDGE, DISPOSITION, AND TRANSFER APPROVAL.

a. Valuation basis does not change when assets are reassigned within the primary government.

b. If asset is transferred from one department to another, Fixed Asset Accountant shall be notified in writing of new owner.

c. If you discover that an asset has been lost, stolen, or damaged, it must be recorded in writing and sent to Fixed Asset Accountant as well as investigated as needed for theft by appropriate other departments.

2. PARTICIPATION IN MAINTAINING ACCURATE PHYSICAL INVENTORY FOR THE DEPARTMENT BY PERIODICALLY PERFORMING ASSET VERSUS REPORT VERIFICATION.

3. RESPONSIBILITY FOR TAGGING NEW CAPITAL ASSETS UPON ACQUISITION. THIS WILL BE COORDINATED WITH THE ACCOUNTING OFFICE ONCE THE ASSET HAS BEEN ADDED TO THE SYSTEM. ACCOUNTING OFFICE MAINTAINS AND USES ASSET TAGGING EQUIPMENT TO DOCUMENT ASSETS WERE IN CITY’S POSSESSION AND SCANS BARCODES INTO SYSTEM DIRECTLY FROM CAPITAL ASSET.

There are certain exceptions to the above noted definition of a capital asset which have been identified to accommodate accounting, reporting or operating information requirements.

Property and equipment that is to be omitted completely form the Capital Asset Management System (usually all things under $5,000 in original cost):

Supplies: Stationery, forms, envelopes, paper clips-even if purchased in bulkAuto Needs: Tire, batteries, spare partsMaint. Items: Paint, pipe and fittings, wire, lumber, brooms, pails, bulbsData Supplies: Reels, tapes, CD’s, Rec. items: Balls, bats, nets and standsKitchen: Dishes, flatware, small appliances

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Health: First aid kits, emergency oxygen units, resuscitators, stretchers, etc.

Office: Letter trays, wastebaskets, staplers, rubber stamps, folding chairs, file cabinets

Uniforms: And related items include boots, shoes, hats, badges, belts, etc.Hand Tools: Hammers, wrenches, saws, etc.

The following are exceptions to the $5,000 criteria to be considered for inclusion in the capital asset management system:

Utility customer meters: All meters used to measure utility consumption which are owned by the City are classified as capital assets and are recorded through the City’s work order system. These are sent to Financial Services and are booked as a lump sum for infrastructure at the end of each fiscal year.

Computer equipment: IT has begun to track the smaller asset items (laptops, printers etc.), however, the larger items such as network items, or server projects are considered in the block amount and booked accordingly.

4. RESPONSIBILITY FOR REPORTING ASSET DISPOSITIONS, RETIREMENTS OR TRANSFERS TO THE CITY’S ACCOUNTING DEPARTMENT.

5. PARTICIPATION IN AND COORDINATION OF THE INVENTORY OF EXISTING ASSETS AND ANY SUPPORTING RECORDS, IF NOT YET DONE.

Impairment of Capital Assets:

A capital asset is considered to be impaired when its service utility has permanently declined significantly and unexpectedly. Events or changes in circumstances that maybe indicative of impairment include evidence of physical damage, changes in legal or environmental factors, technological changes or evidence of obsolescence, changes in the manner or duration of use of a capital asset and constructions stoppage.

Generally, an asset would be considered impaired if both:

The decline in service utility of the asset was large in magnitude and The event or change in circumstances was outside the normal life cycle of the

asset.

In the event a reportable capital asset is impaired, there are two options for reporting the impairment:

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If the asset will no longer be used, the asset should be written down to the lower of carrying value or fair market value.

If the asset will continue to be used, the asset should be written down by the estimated impairment loss, as defined in GASB Statement 42, “Accounting and Financial Reporting for Impairment of Capital Asset and for Insurance Recoveries.”

BUDGETING FOR CAPITAL ASSETS

During the budget process, all capital assets should be added into each departments working budget using the object codes 8400-8699. Some object codes are generally named while others are very specific. Each department needs to look at whether the amount they are budgeting is truly a capital asset or expenditure for repairs of an asset already on the books.

Improvements v. Repairs:

Improvements: (capitalized)-Does it increase service capacity (effectiveness or efficiency)?

Lengthen life of asset

Lengthen service value of asset

Repairs (recognized in period)

ESTIMATING USEFUL LIVES

Start with common experience

Adjust for specific circumstances

o Quality of assets-cheaper made asset may wear out quickero Application-asset may not be used as intended, causing it to wear out

quickero Environment-extreme cold or heat can accelerate the deterioration of asseto Asset Management-having someone manage and repair assets may extend

life

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Depreciation is provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:

Buildings 15-50 years Other Improvements 5-50 years Infrastructure 50-100 years Equipment and vehicles 2-40 years Water rights 25-50 years

Depreciation:

Normally begins when the asset is purchased or completed (plus 6 months if a construction project). Depreciation distributes the cost of the asset over the useful life established above in a consistent manner each month. City of Edmond’s assets have a 10% salvage value at the end of their lives. It is calculated as annual depreciation:

(cost-salvage)/useful life

CONTRIBUTED/DONATED INFRASTRUCTURE

Engineering provides any donated infrastructure. It is provided at the end of the fiscal year and it will be a list of all donated streets, waterlines, etc. This should not includeany projects that they City have paid for. In 2011, we had to restate assets because city projects were included on this list of donated property, therefore, overstating assets by millions.

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Simple Flowchart to Determine if an asset or expense

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This section is for the Fixed Asset Accountant and the reconciliation of assets each month and year end.

FIXED ASSET ACCOUNTANT

MONTHLY RECONCILIATION OF FIXED ASSETS

It is, in my opinion, best to do some of this prep work during any slow time. The first thing that you do is to print copies of invoices. This will be eliminated in the future when we take our documents online so in that instance you would scan the invoice. To do either one of these processes, you can go to the CDD list of reports and under Purchasing choose the report titled GL: Transactions by date range for FA pull. This will provide you a list of all (or most) of the invoices that were posted during the month you are working on. Credit Memo’s I don’t think print on this report. This report can be utilized to print copies of the invoices-at your convenience. During July through December, assets are not posted into the capital asset module of IFAS, because if you need to rerun any reports for audit work papers it will pick up those recently added items.

Once you begin to work on a monthly reconciliation, run insight for all funds for 8400-8600 object codes. Note: invoices can be posted at anytime, so even though you have balanced out a month, A/P may have posted something to that month after you have reconciled that month. Using the Insight information, verify that you have every invoice for what is showing in IFAS at the time you balance. You will need your CIP listing report, as well as the Recon report. Starting with CIP listing, you will post any invoices to any of the related projects, posting the date, description, PO# and amount. As you will see, I utilize a color coding process for each month, so if there is a reason to look for something in a particular month, it is easier to search for colors vs. the date. When you have all the items for tab 990 (example only), you can move to the recon report and fill in information for that month. If there are any items that you will directly post to the Capital Asset module in IFAS, those will need an Asset form filled out to record the asset into IFAS. Those are recorded directly under the appropriate column. Utilizing the CIP listing report, you will fill in the recon column for CIP-do not hard code the number; list all asset amounts that you have recorded on the CIP report. Once you have the information filled out, it should be linked so the bottom of the Recon report, and this is used to enter information into IFAS. Do this process for each of the tabs…652, 653, 562 etc.

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As you add the numbers from the CIP listing report, that is when I highlight each of the numbers so I know I have included it on the Recon sheet. At the bottom of the CIP listing, there should be a difference amount showing for CIP vs. worksheet, this difference should equal the amount on the Recon page that you will be posting into IFAS. You will click on the worksheet total and add the monthly amount you are adding for the month. This should now balance out, if not, you will need to find out why the two are not in balance, CIP and Recon. Once you post the Recon sheet into IFAS, then this Recon should also tie down to the TB in IFAS. If not, find out why before proceeding to next month.

For any items that were going to be added directly such as equipment etc. you will enter the asset into IFAS, under FAUPAS. Refer to FAUPAS section for detailed information on entering items into IFAS. Again, once you post them, the totals on the Recon sheet should balance to the TB in IFAS for all account listed on the Recon sheet.

Once everything is balance for all accounts, you can run Depreciation. It is recommended to run it for each month, but you can also run it for months or even the entire year. If you run Depreciation, it is recommended that you run it to the Workflow printer, so that the report does not print. The only one that I would save would be the one at the end of the Fiscal Year so you have something permanent to view. See Depreciation for more information.

FAUPAS

This is the IFAS location to input or change any fixed asset that is recorded.

FACODES

FAUPCD, you can browse to see the many Coded Values for Assets. Below is a list of the Codes:

ACQCD (Acquisition codes when entered through FAUPAS)01 Purchase Order02 Construction03 Donation

CATE01 PO/Invoice02 Construction Record03 In house Estimate04 Third Party Estimate

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05 Transfer Book value06 Lease Purchase

CONDEXCL EX. CONDITIONFAIR FAIR CONDITION

DEPT00 General Government02 City Council04 Police05 Fire06 Park and Recreation07 Streets08 Municipal Court09 Downtown Community Center11 Vehicle Maintenance12 Sr. Citizens Center13 Social Agencies14 Emergency Management15 Cemetery16 Community Image17 Planning18 Festival Marketplace19 Building20 Risk Management21 Historical Society22 Fleet Management32 Electric33 Water34 Sanitation35 Wastewater37 Arcadia Lake38 Drainage50 Kickingbird Golf53 Administrative Services54 Central Communications55 City Manager56 Engineering57 Facility Maintenance58 Financial Services59 Human Resources60 MIS (now called IT)61 Legal Services62 Management Services63 Organizational Development64 Utility Accounting65 City Treasury

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FREQ Depreciation FrequencyMO MonthlyYR Yearly

FS Funding Source10 Held Prior to 6-30-8311 General Fund12 Special Revenue13 G.O. Bonds14 Federal / State Grants15 Special Assessments16 Donations17 Other Sources18 PWA Utility Division19 Golf Course20 Capital Projects Funds21 Internal Service Funds

LCTN Location01 Admin. Bldg 100 East First St.02 Public Works Bldg-10 S. Littler03 Municipal Court Bldg. 101 E. First04 City First Buiding-24 E. First St.07 Downtown Comm Ctr. 28 E. Main10 Facility Maint-200 N. Kelly (has moved to Crosstimbers)11 Vehicle Maint-325 SW 33rd St.12 Sr. Ctr/ MAC15 Cemetery-Danforth and Brdway16 Mitch Park –Covell Rd.40 Police Dept. 23 E First ST.41 Animal Welfare-30 W. Third St.42 Police Pistol Range MW Blvd.44 Police-Arcadia Lake-Hwy 6651 Fire Station #1 925 E. Second52 Fire Station #2 1315 S. Broadway53 Fire Station # 3 1540 W. Danforth54 Fire Station #4-1701 S. I-3555 Fire Station #5 Covell St.56 Fire Station #6, 15th & Kelly57 Fire Station #7, 60 Park Admin-Mitch Park61 Park-Pelican Bay 1034 S. Bryant62 Park Tennis 1600 E. Danforth63 Historical Trust-431 S. Blvd.64 Park-Main Bldg 1700 E. Ninth65 Barnett Ball Fields MW Blvd. (?)

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72 Street Maintenance74 Street-Signs75 Street Signals220 Fleet Management 315 SW 33rd

320 Electric Utility 315 SW 33rd

331 Waterline Maintenance332 Water Treatment Plant333 Water Wells340 Solid Waste-Residential341 Solid Waste-Commercial343 Solid Waste-Roll Off344 Solid Waste Administration351 Wastewater Line Maintenance352 Wastewater Treatment Plant370 Arcadia Lake380 Drainage Utility710 Golf Clubhouse720 Golf Cart Barn and Drainage Range730 Golf Restaurant740 Golf Maintenance750 Golf Administration1000 Land

PC Primary Code01 GFA Gen Govt Land02 GFA Gen Govt Building and Imp03 GFA Gen Govt Equipment04 GFA Gen Gov Impr Non Bldg07 GFA Council Equipment09 GFA Police Land10 GFA Police Bldgs & Impr11 GFA Police Equipment12 GFA Police Impr Non Bldg13 GFA Fire Land14 GFA Fire Bldg & Impr15 GFA Fire Equipment16 GFA Fire-Impr Non Bldg17 GFA Park Land18 GFA Park Bldgs & Impr19 GFA Park Equipment20 GFA Park Impr Non Bldg & Land21 GFA Street Land22 GFA Street Bldgs & Impr23 GFA Street Equipment24 GFA Street Impr Non Bldg25 GFA Street Infrastructure30 GFA DCC Land

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31 GFA DCC Bldgs & Impr34 GFA Senior Ctr Land35 GFA Senior Ctr Bldgs & Impr36 GFA Senior Ctr Equipment37 GFA Senior Ctr Improv Non Bldg39 GFA Emer Mgmt Bldgs & Impr40 GFA Emer Mgmt Equipment41 GFA Emer Mgmt Impr Non Bldg42 GFA Cemetery Land43 GFA Cemetery Bldgs & Improv44 GFA Cemetery Equipment45 GFA Cemetery Impr Non Bldg63 GFA Hist Soc Bldgs & ImprAA Admin Support Gen Govt LandAB Admin Gen Govt Bldgs & ImprAC Admin Gen Govt-EquipmentAD Admin Gen Govt Impr Non BldgAE Admin City Clerk-EquipmentAH Admin Fac Maint-Bldgs & ImprAI Admin Fac Maint-EquipmentAJ Admin MIS Bldgs & ImprAK Admin MIS EquipmentAN Admin Mgmt Svc LandAO Admin Mgmt Svc Bldg & ImprAR Admin Engineering-EquipmentAS Admin Accounting EquipmentAT Admin Utility Acctg Bldgs & ImprAU Admin Util Acctg-EquipmentAV Admin Util Acctg Impr Non bldgCA Arcadia lake LandCB Arcadia lake Bldg & imprCC Arcadia Lake EquipmentCD Arcadia Lake Impr Non BldgCE Arcadia Lake Rec FacilitiesEA Drainage Land & ImprGA Electric Land & ImprGB Electric Bldgs & ImprGC Electric EquipmentGD Electric Impr Non Bldg & landGE Electric Meters & DistrubutionIC Fleet Mgmt –EquipmentKA Kickingbird landKB Kickingbird Bldgs & ImprKC Kickingbird EquipmentKD Kickingbird Impr Non BldgKE Kickingbird Utility Prop /ImprMB Solid Waste Bldgs & Impr

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MC Solid Waste EquipmentOC Veh Maint-EquipmentQA Wastewater Land & ImprQB Wastewater Bldgs & ImprQC Wastewater EquipmentQD Wastewater Util Prop/ImprSA Water Land & ImprSB Water Bldgs & ImprSC Water EquipmentSD Water Impr Non Bldg & LandSE Water Meters & Util PropSF Corp Water Rights

POST Posting strategy, created automatically by IFAS based on Primary code.01 2190 for GFA Land & all others02 2192 GFA Posting for Bldgs03 2193 GFA Posting for Equip04 2194 GFA Posting for Non Bldg08 2198 GFA Posting for Infrstructure

SC Secondary Code (only used for Art pieces)ART Art & Statues

STAT StatusAC ActiveDI Disposed

TTYPEADD Add TransactionADJ AdjustmentDISP DisposedXIN Transfer INXOUT Transer Out

TYPENA Not DepreciatedSL3 Roll Assets OnlySL4 Straight Line 4