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of-way and easements are recorded at purchase cost plus legal costs. If land is acquired as a gift (donation), the valuation recorded should be the appraised value at the time of acquisition. Proceeds from the salvaging of any assets removed from the land reduce the land's value. 2. Buildings and Building Improvements (Account 9820) If purchased or constructed, the valuation of buildings includes such costs as the purchase price, acquisition legal fees, and other professional fees (related to design or construction). If acquired as a gift (donation), the valuation recorded should be the appraised value at the time of acquisition. 3. Land Improvements The basis for valuation is the same as for buildings and building improvements. 4. Equipment Vehicles and Furniture (Account 9860) The basis for valuation of purchased equipment includes the net contract price, transportation charges, and the cost of installing special devices or other preparations required to ready the asset for its intended use. The basis for valuation of donated equipment is the appraised value at the date acquired. Accounting for Fixed Assets Fixed assets transactions arrive primarily from acquisitions and disposals of fixed assets. These transactions appear first in the expenditure ledger as purchases. It is important that fixed assets' records be maintained once they have been established. Fixed Assets' Inventory The existence and condition of all fixed assets should be verified annually by each department. Any discrepancies discovered should be brought to the attention of the Purchasing Agent for correction. Procedure: 1. Recording Fixed Assets The County may acquire fixed assets by several methods. Possible acquisition methods include: purchase, lease-purchase, installment purchase, construction, eminent domain, tax foreclosures, and gifts (donations). Listed below are the categories in which we record assets in the County. a. Land All land and permanent rights to land (e.g., easements) should be recorded without regard to value. b. Buildin~s and Building Improvements All buildings should be recorded at acquisition cost without regard to significant value. Additions costing $5,000 or more should be recorded as fixed assets. c. Land Improvements Improvements other than buildings that cost $5,000 or more should be recorded as fixed assets (e.g., parking lots, sidewalks, and fences). d. Equipment Vehicles and Furniture Equipment costing $5,000 or more should be recorded as fixed assets. e. Construction in Progress All costs incurred in the construction of buildings or other capital construction projects which have not been completed by the end of the fiscal year should be capitalized. When the County decides to increase the dollar value for capitalization, all old assets not meeting the new requirement should be removed from the fixed assets records. 2. Controlling Fixed Assets Periodically, Fixed Assets records will be updated by the Fixed Asset Manager. Annually, a current Fixed Asset report will be submitted to each department, listing all assets maintained by the respective department. The report should be reviewed upon receipt. Each department head should assign a person to assume responsibility for that department's fixed assets. This person should physically identify aR4-t:ag the fixed asset in the appropriate place. This person should also be responsible for F-b 23