HomeMy WebLinkAbout2005 11 28 Consent 203
CITY COMMISSION
AGENDA
ITEM 203
CONSENT X
INFORMATIONAL
PUBLIC HEARING
REGULAR
November 28, 2005
Meeting
MGR /?~EPT ~
Authorization
REQUEST: The Finance department requests that the dollar amount for fixed asset
capitalization of tangible personal property be tied to the base amount
established by the State Auditor General, in its definition of 'property' in
Chapter 274.02 of the Florida Statutes as of October 1st each year.
PURPOSE: The Finance Department requests that the dollar amount for fixed asset
capitalization of tangible personal property be tied to the base amount established by the State
Auditor General, in its definition of 'property' in Chapter 274.02 of the Florida Statutes as of
October 1st each year (attached).
CONSIDERATIONS:
. Currently, section 274.02 of the Florida Statutes defines the word "property" as fixtures
and other tangible personal property of a nonconsumable nature the value of which is
$1,000 or more and the normal expected life of which is 1 year or more.
. Currently, we capitalize and account for assets with a value of $750 or more. This action
would result in an increase to the City's fixed asset threshold from $750 to $1000 and this
standard would be applied to all 2005 fiscal year purchases.
. A tremendous amount of time each year is spent inventorying fixed assets. Increasing the
threshold for asset capitalization serves to eliminate the need to account for smaller ticket
items which normally do not have a long useful life. By utilizing the base amount
established by the State Auditor General, we will maintain a conservative benchmark
without unduly burdening the Finance department.
. Every October 1 S\ the State Statutes will be consulted to determine the new fiscal year's
fixed asset threshold. Under no circumstances will our threshold exceed that which has
been established in the statutes. In the event of a delay in applying a new threshold, the
City's lower, more conservative threshold is not to be construed as a violation.
FUNDING: No additional expenditure of City funds is required
RECOMMENDATION: Recommend approval to tie our fixed asset capitalization threshold
with the definition of 'property' as set forth by the State Auditor General.
IMPLEMENTATION SCHEDULE: Upon approval by the City Commission the threshold
amount for fixed asset capitalization would be increased to that established by the State Auditor
General as of October 1st. This new threshold would be retroactively and prospectively applied
to all purchases occurring this fiscal year.
ATTACHMENTS:
. 2005 Florida Statute, Title XVIII - Public Lands and Property, Chapter 274.02 - Record
and inventory of certain property.
COMMISSION ACTION:
112805 _ COMM _ Consent_ 203 ]ixed _Asset_ Threshho1d
The 2005 Florida Statutes
Title XVIII Chapter 274
PUBLIC LANDS AND TANGIBLE PERSONAL PROPERTY OWNED
PROPERTY BY LOCAL GOVERNMENTS
View Entire
Chapter
274.02 Record and inventory of certain property.--
(1) The word "property" as used in this section means fixtures and other tangible
personal property of a nonconsumable nature the value of which is $1,000 or more and
the normal expected life of which is 1 year or more.
(2) Each item of property which it is practicable to identify by marking shall be marked
in the manner required by the Auditor General. Each governmental unit shall maintain
an adequate record of its property, which record shall contain such information as shall
be required by the Auditor General. Each governmental unit shall take an inventory of its
property in the custody of a custodian whenever there is a change in such custodian. A
complete physical inventory of all property shall be taken annually, and the date
inventoried shall be entered on the property record. The inventory shall be compared
with the property record, and all discrepancies shall be traced and reconciled.
History.--s. 2, ch. 59-163; s. 8, ch. 69-82; s. 1, ch. 73-87; s. 5, ch. 82-104; s. 1, ch. 88-53; s. 5, ch. 96-209; s. 2,
ch. 2004-296.
http://www .:flsenate. gOY /Statutes/index.cfm? App _ mode= Display _ Statute&Search _String
=&URL=Ch0274/SEC02 .HTM&Title=->2005->Ch027 4->Section%2002#027 4.02
112805 _ COMM _ Consent_ 203 _ Attachment_1