HomeMy WebLinkAbout2016-05-02-J01Q Fixed Asset Policy► A 1v/aukee
THE KEY TO GOOD LIVING
AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: May 2, 2016
AGENDA ITEM: Consideration of approval of a resolution approving City of Waukee
Fixed Asset Policy
FORMAT: Resolution
SYNOPSIS INCLUDING PRO & CON: The City currently does not have a formal fixed asset
policy. The national Governmental Finance Officers Association
(GFOA) recommends several policies be approved for municipal entities,
including a fixed asset policy. The attached policy was drafted from the
current policies adopted by Clive, Urbandale, Ankeny, West Des Moines
and Johnston as well as the recommended language from GFOA.
FISCAL IMPACT INCLUDING COSTBENEFIT ANALYSIS:
COMMISSION/BOARDICOMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: .
RECOMMENDATION: Staff would recommend the approval of the financial policy.
ATTACHMENTS: I. General Financial Policy
II. Proposed Resolution
PREPARED BY: Linda Burkhart
REVIEWED BY:
PUBLIC NOTICE INFORMATION —
NAME OF PUBLICATION:
DATE OF PUBLICATION:
THE CITY OF WAUKEE, IOWA
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APPROVING CITY OF WAUKEE FINANCIAL POLICY — FIXED ASSET POLICY,
OF THE STANDARD ADMINISTRATIVE POLICY AND PROCEDURES MANUAL
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Iowa is a duly organized municipality within Dallas
County; AND,
WHEREAS, the Waukee City Council shall approve operating policies and procedures;
AND,
WHEREAS, City staff has presented the City Council with a Fixed Asset Policy, attached
hereto as Exhibit A, and recommends approval.
NOW THEREFORE BE IT RESOLVED by the City of Waukee City Council in session
this 2nd day of May, 2016, that the City of Waukee Financial Policy — Fixed Asset Policy, of
the Standard Administrative Policy and Procedures Manual is hereby approved.
William F. Peard, Mayor
Attest:
Rebecca D. Schuett, City Clerk
ROLL CALL VOTE AYE NAY ABSENT ABSTAIN
Shane Blanchard
Brian Harrison
Shelly Hughes
Larry R. Lyon
Rick Peterson
Waukee
•TTW1 P THE KEY TO GOOD LIVING
Standard Administrative Policy
& Procedures Manual
Title: FINANCIAL POLICY Date of Version: May 2, 2016
Section: FIXED ASSET POLICY Resolution No.: #16-
SECTION 1 — Policy
It is the policy of the City of Waukee that City assets be properly accounted for and used for
appropriate City uses. The Finance Department, with assistance from all other Departments of
the City, will be responsible to ensure fixed assets are tagged, inventoried on a regular basis,
and accounted for by fund and asset category. It is the responsibility of City Department
Director's to ensure that proper budgeting and purchasing guidelines are followed and that
fixed assets are adequately controlled and used for appropriate City purposes. All City
Departments are subject to the provisions of this policy.
A. For an asset to be capitalized (recorded and depreciated), its cost must exceed
certain cost thresholds. An asset's cost includes any cost involved with the
purchase of the asset and readying the asset for use. Capitalization thresholds
are set as follows:
Vehicles and Equipment $ 5,000
Office Furniture and Equipment $ 5,000
Land and Right -of -Way $ -
Land and Building Improvements $ 25,000
Buildings $ 25,000
Infrastructure $ 50,000
In addition, the asset must be tangible in nature and have a useful life of three
(3) or more years. Certain improvements will only be capitalized if they improve
or significantly alter the use, value, or useful life of the asset. The threshold for
insurance coverage is $2,500 for all assets except land and right-of-way ($0).
B. A current inventory ledger of capitalized assets will be maintained by the Finance
Department that will include depreciation, cost and useful life.
C. Eligible fixed assets should be depreciated over their estimated useful lives using
the straight-line methodology for depreciating all fixed assets. Depreciation will
begin in the month the asset is placed in services, and will be written off evenly
over the useful life of the asset.
D. All departments are responsible for the custody, safekeeping, and maintenance
of the assets belonging to their department. Each department will be
responsible for and will maintain adequate insurance coverage, title security,
and license plate records.
E. All City vehicles and equipment will be assigned an equipment number by the
Equipment Services Department. All vehicles and equipment will be assigned a
budget code by the respective Department for the purpose of accounting for the
asset's operating expenses. A list of assets and their respective budget codes
and equipment numbers will be maintained in the Finance Department.
F. Any disposals, trade-ins, sales, or transfers of any assets should be identified by
serial number, make, model or other identification and reported to the Finance
Department. Disposals of fixed assets will be made in accordance with Iowa
State law, as well as the City's Surplus Property Disposal policy.
G. The Finance Department will periodically select assets at random from the
records, to be inspected and will periodically select assets from a department to
trace in order to ensure the accuracy and completeness of the ledger.
SECTION 2 — Procedures
The following procedures shall be followed by all City of Waukee Departments.
A. Fixed assets should be acquired in accordance with the City's Purchasing Policy
and the following steps:
1. Department Director's shall review budget to ensure the
requested asset has been included and approved in the current
fiscal year budget. If not an approved and budgeted item, contact
the Finance Director to determine appropriate action. Criteria to
consider for budget amendment approval includes availability of
funds, urgency, and needs of the Department requesting the
asset.
2. The Department making the asset purchase should complete a
Vehicle/Equipment Record Form, which should include the model
number, serial number, manufacturer, model year, and any other
information such as color, size, weight, etc. that will help identify
the asset. The Form should be submitted to the Finance
Department.
3. For vehicles, equipment, and other assets that are maintained
through the Equipment Services Department, the asset should be
directed to the garage prior to being placed into service for
numbering, decals and lettering, and other field preparation work.
The Equipment Services Department will assign the asset a
vehicle/equipment number.
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4. For assets that require title recording, license plates, and/or
insurance coverage, copies of the acquisition paperwork along
with the title transfer documents and other relevant
documentation, should be forwarded to the City Clerk's office
prior to placing the asset into service.
The disposal of all fixed assets should be conducted in accordance with the City's
Surplus Property Disposal policy, and Iowa State law.
Asset transfers between departments should be conducted following the City's
Surplus Property Disposal policy.