AG 1998 12 21 - Laserfiche WebLink

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Procedure: Buildings and Building Improvements 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. Land Improvements The basis for valuation is the same as for buildings and building improvements. Equipment, Vehicles and Furniture 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. 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. a0 bo Land All land and permanent rights to land (e.g., easements) should be recorded without regard to value. Buildings and Building Improvements All buildings should be recorded at acquisition cost without regard to significant value. Additions costing $5,000.00 or more should be recorded as fixed assets.