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===== COMMISSION POLICY ===== | ===== COMMISSION POLICY ===== | ||
- | __**SUBJECT: | + | __**SUBJECT: |
=== Purpose === | === Purpose === | ||
- | This policy is established to provide guidelines to ensure adequate stewardship over District resources through control and accountability of capital | + | This policy is established to provide guidelines to ensure adequate stewardship over District resources through control and accountability of assets. |
+ | |||
+ | The District operates on a Cash Basis and does not have Capital Assets and Depreciation on the Balance Sheet. The District maintains an Asset system and is required | ||
+ | |||
+ | The District uses the Asset list to calculate the General Facility Connection charges, control inventory of assets, document condition of asset, | ||
- | The District operates on a Cash Basis and so does not have Capital Assets and Depreciation on the Balance Sheet. The District does keep a subsidiary Fixed Asset system and is required to track assets. | ||
=== Definitions === | === Definitions === | ||
| | ||
- | Fixed assets are tangible, non-consumable items including, but not limited to: land, buildings, water lines, lift stations, machinery, equipment and vehicles owned by the District valued at $5,000 or more with a life expectancy of over one year. The value of the fixed asset includes the purchase price, or the construction costs, plus sales tax, as well as costs to acquire (shipping and handling), install, secure, and prepare an item for its intended use. | + | Fixed assets are tangible, non-consumable items including, but not limited to: land, buildings, water lines, lift stations, machinery, equipment and vehicles owned by the District, valued at $5,000 or more with a life expectancy of over one year. The value of the fixed asset includes the purchase price and construction costs, plus sales tax, as well as costs to acquire (shipping and handling), install, secure, and prepare an item for its intended use. |
- | The original purchase of a software program | + | __Surplus asset__ |
- | Improvements to an existing | + | A surplus asset is an asset that was recorded by the District (can be a fixed or attractive |
- | __Small & Attractive__ | + | __Original cost__ |
- | Assets Small and attractive | + | The sum of all costs necessary in placing an asset into service for the District. |
- | - Portable and marketable, either alone or as a component unit. | + | |
- | - Can be utilized for personal gain. | + | __Attractive Assets__ |
+ | Attractive | ||
+ | - Portable and marketable, either alone or as a component unit (example power tool). | ||
+ | - Can be utilized for personal gain (example computer). | ||
- Are repeatedly reported as lost and/or stolen within the industry and society. | - Are repeatedly reported as lost and/or stolen within the industry and society. | ||
- | === Requirements | + | __Custody__ |
- | | + | All District employees and officials are equally responsible for the care and proper use of District-owned assets. |
+ | |||
+ | |||
+ | === Routine Repair or Complete Replacement | ||
+ | |||
+ | Repair: | ||
+ | |||
+ | Complete replacement: | ||
+ | |||
+ | === Recording New Assets === | ||
+ | |||
+ | Approval for the purchase of fixed or attractive assets occurs during a Purchase Order. | ||
+ | |||
+ | === Disposal of Surplus Assets === | ||
+ | |||
+ | Before a fixed or attractive asset is sold or otherwise disposed of, it must first be determined if the asset had originally been purchased with grant monies. If this is the case, the District must refer to the grant agreement and follow prescribed procedures for disposition. To dispose of a surplus asset, the Board must **first** declare a fixed or attractive asset surplus before it can be sold, or disposed of in any manner. If the asset is to be sold, it will then be sold in accordance with applicable state law. A list of surplus assets will be forwarded to the Board for a motion to declare them surplus. | ||
+ | |||
+ | If the asset is no longer in working order the department manager will complete an Asset Disposition sheet which will be given to the District Treasurer, who shall remove the asset from the asset tracking system and approve the disposal. | ||
+ | |||
+ | === Lost or Stolen Assets === | ||
- | __Capital Asset Tracking System__ (Chapter 7, Section A) a district that owns capital assets must establish | + | When suspected or known losses of fixed or small and attractive asset items occur, the employee shall notify their manager. The manager shall notify the General Manager |
- | - The tracking system must adhere to the formal asset policies approved by the governing body. | + | === Annual Physical |
- | - It must contain the following information: | + | |
- | - Inventory | + | |
- | - Individual information record for each capital asset. | + | |
- | - Reconciliation of asset records and performance of a physical inventory. | + | |
- | - Maintain a method with controls over additions and deletions to the capital asset tracking system. | + | |
- | - Have a method to track changes in custody and assign responsibility for the assets. | + | |
- | === Capitalization Threshold === | + | The District Treasurer will coordinate physical inventory |
- | All assets with a cost of $5, | + | |
- | === Improvement/ | + | |
- | | + | |
- | === Depreciation Method | + | |
- | All assets are depreciated using the straight-line method of depreciation. The District will use the IRS Publication 946 Table of Class Lives and Recovery Periods to determine the life of acquired assets. The estimated life of acquired assets is assigned in the following | + | |
- | * Lift Station Electrical & Mechanical- 20 years | + | |
- | * Lift Station Structures — 50 years | + | |
- | * Office Equipment electrical- 5 years | + | |
- | * Office Furniture, Fixtures, and Equipment non-electrical — 10 years | + | |
- | * Plans & Studies — 5-15 years | + | |
- | * Reservoir Structures and Improvements — 50 years | + | |
- | * Shop Tools — l0 years | + | |
- | * Telemetry/ | + | |
- | * Treatment Plant Electrical & Mechanical- 20 years | + | |
- | * Treatment Plant Structures — 50 years | + | |
- | * Vehicles — 10 years | + | |
- | * Wastewater Services — 20 years | + | |
- | * Wastewater Cast Iron, Ductile Iron & Concrete Mains — 50 years | + | |
- | * Wastewater PVC Mains — 50 years | + | |
- | * Water Meters — l0 years | + | |
- | * Water Mains — 50 years | + | |
- | * Water Hydrants — 40 years | + | |
- | * Water Pump Equipment- 20 years | + | |
- | * Water Rights — not depreciated | + | |
- | * Water Services — 20 years | + | |
- | === Revision of Expected Useful Life === | + | The Assistant General Manager has custody responsibility for the Location “Administration Building” and the Operations Manager has custody responsibility for all other Locations. The physical inventory sheets will be kept until the State Audit for both years is complete or according to the State of Washington records retention schedule whichever is longer. The sheets will note the following information: |
- | The District may need to revise | + | - Assets have been physically located |
- | === New Assets === | + | - Missing assets will be noted and explained. |
- | All assets fitting descriptions | + | - Incorrect and/or incomplete information will be corrected. |
- | === Disposal | + | - Any new items located but not on the list will be added, with proper unique identifiers |
- | | + | - Condition |
+ | - The inventory results will be presented | ||
- | The Board must __**first**__ declare a capital or small and attractive asset surplus before it can be sold, or disposed of in any manner. If the asset is to be sold, it will then be sold in accordance with applicable state law. If the asset is no longer in working order and cannot reasonably be repaired for re-sale, the department manager, along with one other employee will properly dispose of the asset. The department manager will complete an Asset Disposition sheet which will be given to the District Treasurer, who shall remove the asset from the asset tracking system. | ||
- | === Lost, Stolen, or Missing Property === | ||
- | When suspected or known losses of capital assets or small and attractive items occur, the department head shall be notified. The department head shall notify the General Manager and the District Treasurer, and if determined the asset has been stolen, the appropriate authorities shall be notified. | ||
- | **Approved:** 6/28/12 | + | Approved: June 28, 2012\\ |
+ | ** Amended:** May 14, 2015 |