ORDINANCE   2   , 2005

AN ORDINANCE SETTING FORTH A CAPITOL ASSETS POLICY FOR THE TOWN OF BUNKER HILL, MIAMI COUNTY, INDIANA.

WHEREAS, THE TOWN COUNCIL OF THE TOWN OF BUNKER HILL IS THE STEWARD IN THE SAFEGUARDING OF PUBLIC ASSETS FROM LOSS, DAMAGE OR MISAPPROPRIATION, AND

WHEREAS, CAPITOL ASSETS MUST BE IDENTIFIED AND ACCURATE RECORDS KEPT FOR SAID TOWN TO CARRY OUT THESE RESPONSIBILITIES, AND

WHEREAS, THE STATE BOARD OF ACCOUNTS IN CONJUNCTION WITH THE GOVERNMENT STANDARDS ACCOUNTING BOARD (GSAB) REQUIRE ACCURATE RECORDS OF BOTH TOWN AND UTILITY DEPARTMENTS CAPITOL ASSETS BE MAINTAINED, AND

THEREFORE, BE IT ORDAINED THAT THE TOWN COUNCIL OF THE TOWN OF BUNKER HILL, MIAMI COUNTY, INDIANA ADOPT A CAPITOL ASSETS POLICY IN ACCORDANCE WITH GOVERNMENT STANDARDS ACCOUNTING BOARD STATEMENT 34. (GSAB-34).

ARTICLE I.   TITLE.

This ordinance shall be known as and may be cited as the "Capitol Assets Policy Ordinance" of Bunker Hill.

ARTICLE II.   ADMINISTRATION AND MAINTENANCE OF ORDINANCE.

It shall be the duty of the Town Council for the overall administration of this ordinance. It shall be the duty of the Clerk/Treasurer and all department heads for maintaining the capitol assets inventory in a current status. Department heads shall be responsible for conducting year end inventories and completing Capitol Asset Notification forms on any changes of status. ( See sample form on page 5. )

ARTICLE III.   DEFINING CAPITOL ASSETS.

Capitol assets include land, easements, right of ways, land improvements, buildings, building improvements, construction in progress, machinery and equipment, vehicles, infrastructure, works of art and monuments.

  1. Land, easements, right of ways and land improvements will be capitalized but not depreciated.
     
  2. Capitol assets with a useful life of more than one year and a threshold of $5,000.00 shall be capitalized and depreciated. This includes acquisitions by a lease-purchase agreement and donated items and will be reported in the government wide financial statements. (See attachment A, page 4.)
     
  3. For accountability and safeguarding of assets an inventory will be kept on all computers and on all items costing more than $1,000.00 and up to but not including $5,000.00. These will be classified as non-capitalized assets. Assets that are not capitalized are expensed in the year of acquisition.

ARTICLE IV.   VALUATION OF CAPITOL ASSETS.

Capitol assets should be recorded at actual cost. Normally the cost recorded is the purchase price or construction costs of the asset, but also included is any other reasonable and necessary costs incurred to place the asset in its intended location and intended use, that can be directly related to the asset. Donated or contributed assets should be recorded at their fair market value on the date donated or acquired.

ARTICLE V.   ASSET DEFINITIONS BY MAJOR CATEGORY.

It is important to the maintenance of accurate records that each asset category be precisely defined and that all persons responsible for records maintenance be fully aware of the categorization system. This section further clarifies the asset definitions by major category.

  1. LAND, EASEMENTS AND RIGHT OF WAYS:   Specified land, easements, right of ways, lots, parcels or acreage owned by the town or its various departments, boards or authorities, regardless of the method or date of acquision.
     
  2. IMPROVEMENTS OTHER THAN BUILDINGS:   Assets in this category are walks, parking areas and drives, fencing, retaining walls, pools, fountains, planters, underground sprinkler systems, and other similar items. Utility assets in this category are water supply mains, collection sewers, wells, fences, intake pipes, manholes, and fire hydrants.
     
  3. BUILDINGS:   All structures designed and erected to house equipment, services or functions are included. This includes systems, services and fixtures within the buildings, attachments such as porches, stairs, fire escapes, canopies, areaways, lighting fixtures, flagpoles and all other such units that serve the building.
     
    1. Plumbing systems, lighting systems, heating, cooling, ventilating and air handling systems, sprinkler systems, alarm systems, sound systems, and surveillance systems, passenger and freight elevators, escalators, built-in casework, walk-in coolers and freezers, fixed shelving and other fixed equipment are included with the building., if owned.
       
    2. Communications antennas and/or towers are not included as buildings, but as parts of the equipment units that they serve.
       
  4. EQUIPMENT:   Equipment includes all other types of physical property within the scope of the Capitol Assets Policy not previously classified. Included within this category are office mechanical equipment, office furniture, appliances, furnishings, machinery items, maintenance equipment, communications equipment, police, fire, sanitation and park department equipment, laboratory equipment, dogs, horses, vehicles, road equipment, aircraft, emergency equipment, earth moving equipment, text equipment, civil defense equipment, data processing equipment and zoo wildlife. All supplies are excluded.
     
  5. INFRASTRUCTURES:   Infrastructure assets are long-lived capitol assets that normally can be preserved for a significant greater number of years than most capitol assets and are normally stationary in nature. Included in this category include roads, bridges, sidewalks, street lights, traffic signals, street signs, drainage and water systems. Infrastructure assets can include structures directly related to infrastructure. These would include rest area facilities and road maintenance structures such as shops and garages associated with a highway system, and water pumping buildings associated with water systems.

ARTICLE VI.   ASSET TRANSFERS AND DEPOSITIONS:

Property shall not be transferred, turned in for action or disposed of without prior approval of the appropriate department head. A Capitol Asset Notification form shall be sent to the Clerk/Treasurer in all cases.

  1. A Capitol Asset Notification form will be accomplished on each new purchase item by the department head receiving the purchased item.
     
  2. Deletions for any reason shall be reported by the department head by means of accomplishing a Capitol Asset Notification form.
     
  3. Transfers are defined as any movement of an asset by virtue of change of location, either by account, department, building, floor or room, and require a Capitol Asset Notification form by the receiving department head.
     
  4. Assets that are stolen shall require the department head to ensure a police report is promptly filed and a copy of the police report attached to the Capitol Asset Notification form.
     
  5. All Capitol Assets Notification forms shall be sent to the Clerk/Treasurers office within three (3) working days of the transaction.

ARTICLE VII.   PERIODIC INVENTORIES.

A physical inventory of capitol assets will be conducted by each department head as near as practical to year-end. The Clerk/Treasurer will provide a list of the inventory on file which will be sent to each department before year-end.

Department heads will compare physical observations of assets to the listing noting whether the asset exists, the location if not apparent otherwise, and any other relevant factors. If the condition of an asset has deteriorated to the point its useful life has been impaired, that fact shall be noted.

Assets which are observed during the physical inventory which are not on the inventory list shall be noted. Omission of assets included on the inventory list provided, shall also be noted, and the reasons for such omissions shall be documented to the extent possible.

Department heads will be accountable for the capitol asset inventory charged to their department. The physical inventory sheet and related documentation will be forwarded to the Clerk/Treasurer when requested.

The Clerk/Treasurer will compare the results of the physical inventory to the capitol asset records and make necessary adjustments to the capitol assets.

ARTICLE VIII.   APPROVAL.

THIS ORDINANCE WAS DULY ADVERTISED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF BUNKER HILL, MIAMI COUNTY, INDIANA AFTER A PUBLIC HEARING ON THE   14   DAY OF   JUNE   , 2005 AND IS EFFECTIVE UPON APPROVAL.

 
ATTEST:
 
 
  Norman A. McBride    
Norman McBride, Clerk/Treasurer 		                               
 
  Leslie H. Briggs        
      Leslie H. Briggs, President

  Byron Kosanke         
      Byron Kosanke, Member

   

 
  Daryl Mosley            
      Daryl Mosley, Member

  Marilyn Floyd          
      Marilyn Floyd, Member

  Donald Jaberg          
      Donald Jaberg, Member

 

 


ATTACHMENT A
CLASS OF ASSET MINIMUM
    THRESHOLD     		USEFUL LIFE/
    COMPOSITE RATE     		    DEPRECIATION    
METHOD
  Land, Easements and Right of Ways        
      Lots, Parcels, Acreage      
    
    
    
    
  Improvements Other Than Buildings      
      Walks      
      Parking Areas and Drives      
      Fencing      
      Pools      
      Underground Sprinkler Systems      
    
    
    
  Buildings      
      Office      
      Storage      
      Garages      
    
    
    
  Equipment      
      Office Furniture      
      Maintenance Equipment      
      Park Equipment      
      Transportation Equipment      
        Autos      
        Trucks      
    
  Infrastructure      
      Network — Roads and Bridges      
            Subsystems      
                Cement      
                Concrete and Brick Roads      
                Bituminous Roads      
                Gravel and Stone Roads      
                Unimproved Roads      
                Bridge Spans      
                Sidewalks      
    
      Network — Storm Sewers      
            Subsystems      
                Catch Basins      
                Storm Drains      
                Inlets      

 

 

CAPITAL ASSET NOTIFICATION FORM
  


DEPARTMENT:     ____________________________________________________________


THIS NOTIFICATION IS FOR:       ADDITION        UPDATE        TRANSFER        DISPOSAL

ACQUISITION IS BY:              PURCHASE        DONATION      LEASE           TRANSFER

                                   (ATTACH COPY)

_________________________________________________________________________________________

DATE OF TRANSACTION:    _________________________________________________________________

ACCOUNT NO.    ____________________________________ P.O. No. ____________________________

ESTIMATED:         LIFE EXPECTANCY ____________________   MILEAGE OR HOURS ______________

CIP NUMBER         ____________________     LOCATION:____________________________________

SERIAL OR VIN NUMBER:     _______________________________________________________________

TOTAL/PARTIAL VALUE OF ASSET:    ________________________________________________________

(PLEASE ATTACH OR FORWARD COPY OF CHECK(S) TO DOCUMENT COST IF ASSET WAS DONATED, ATTACH 
DOCUMENTATION OF FAIR MARKET VALUE OF ASSET, HOW DETERMINED, AND DATE BOARD APPROVED.)

DESCRIPTION OF ASSET:    ________________________________________________________________

_________________________________________________________________________________________


(BUILDING DESCRIPTION MUST INCLUDE SQUARE FOOTAGE. BUILDING MATERIAL ROOF TYPE, AND IF 
EQUIPPED WITH SPRINKLER SYSTEM OR BOILER.)

BRAND OR MAKE:  ______________________________    MODEL No.       _______________________

YEAR:  _______________________________________    LICENSE No.     _______________________
                                                  (ATTACH COPY OF REGISTRATION)

GROSS VEHICLE WEIGHT:   ______________________    TYPE OF FUEL:   _______________________
      (TRUCKS ONLY)
_________________________________________________________________________________________

DISPOSAL OF CAPITAL ASSET:

METHOD OF DISPOSITION:     SALE      TRADE-IN       SCRAPPED       END-OF-LEASE

                           STOLEN/WRECKED           TRANSFERRED TO:______________________
                           (ATTACH POLICE REPORT)

AMOUNT OF CASH RECEIVED OR TRADE-IN VALUE (IF APPLICABLE)         $ _____________________

DATE BOARD APPROVED:   ____________________________ DATE COUNCIL APPROVED: ______________
(ATTACH COPY OF MINUTES)		            (REAL PROPERTY VALUE > $9,999)
			
			
DATE MAYOR APPROVED:   ____________________________ SIGNATURE:      _____________________
        (REAL PROPERTY ONLY)

PERSON RESPONSIBLE:    ___________________________________          _____________________
                                   SIGNATURE                            PRINTED NAME

RESPONSIBLE DEPARTMENT HEAD'S SIGNATURE: ________________________________________________

IF TRANSFERRED
RECEIVING PERSON'S SIGNATURE:    ________________________________________________________


                PRINTED NAME:    ________________________________________________________

_________________________________________________________________________________________

CLERK-TREASURER'S USE ONLY


RECEIVED:         ____________________       ENTERED CAPITAL ASSET:      ________________

INSURED:          ____________________       CLERK-TREASURERS INITIAL:   ________________