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School District of Manatee County Finance Department Reference Guide for by guy25

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									                         School District of Manatee County
                               Finance Department
                   Reference Guide for Capital Asset Classification

The new capitalization threshold for all capital assets will increase from the current amount of
$750.00 to the new amount of $1,000.00. This change will become effective on July 1, 2006.
Please refer to the following reference guide for coding capital and non-capital purchases,
effective July 1, 2006.


Audio Visual Materials

Expenditures for non-consumable materials such as film, filmstrips, recordings (cassette tapes,
video tapes, compact discs, video discs, digital video discs, etc…), exhibits, charts, maps and
globes, regardless of cost, should be charged to the following object accounts:

Object 4621 – Items costing $1,000.00 or greater (per individual item)

Object 4622 – Items costing less than $1,000.00 (per individual item)

       Note: Expenditures for VCR’s, televisions, CD players, etc. are considered equipment
       items and should be charged to Furniture, Fixtures and Equipment, object 4641 or object
       4642 depending on the cost of the item.

       Expenditures for computer software should be coded to object 4691 or object 4692
       depending on the cost of the item.


Furniture, Fixtures and Equipment

Expenditures for initial or additional items of equipment such as furniture, furnishings and
machinery that are not integral parts of the building or building service systems should be
charged to the following object accounts:

Object 4641 – Items costing $1,000.00 or greater (per individual item)

Object 4642 – Items costing less than $1,000.00 (per individual item)

       Note: Please code all expenditures related to Security Camera Systems, Security
       Systems, PA Systems, Sound Systems and Intercom System to object 4641. One asset
       will be created for the entire system. This would include all equipment, cables, wiring,
       hookups, labor, power supplies, etc.


Computers

Expenditures for computers and computer related items should be coded to the following object
accounts:

Object 4643 – Items costing $1,000.00 or greater
                      School District of Manatee County
                            Finance Department
                Reference Guide for Capital Asset Classification
   Note: Purchases of computer equipment such as monitors, memory, speakers, warranties,
   etc. that are ordered on the same purchase order to be used together should be considered
   components of a “Computer System.” If the total value of these items is greater than
   $1,000.00, then code to object 4643.

   The computer system includes, but is not limited to the following:

           •   Main processing unit                           •   Expansion cards
           •   Monitor                                        •   Processor upgrades
           •   Keyboard                                       •   Video boards
           •   Mouse                                          •   Sound cards
           •   Memory                                         •   Modems
           •   Speakers                                       •   Warranty
           •   Drives                                         •   Shipping and handling

       The computer system does not include:

               •   Printers
                   Note: If acquisition cost is $1,000.00 or greater, code to object 4643
                   and it will be assigned its own property record number. If cost is less
                   than $1,000.00, code to object 4644.

               •   Battery back-ups, surge protectors – code to object 4643 or 4644
                   depending on acquisition cost.

Object 4644 – Items costing less than $1,000.00 (per individual item)


Computer Software/Site License

Expenditures for software/site licenses should be coded to the following object accounts:

Object 4691 – The original purchase of software/site license is capitalized, if the cost is
             $1,000.00 or greater (per individual software item/license)

               Ex: One software license for $1,200.00 is purchased for 50 users –
                  Capitalize the original purchase only and code to object 4691.

               Ex: 50 individual site licenses are purchased for $36.00 each for a total of
                  $1,800.00 – Do not capitalize and code to object 4692.

Object 4692 – Software/site license items costing less than $1,000.00 (per individual
             software item/license)

               Note: Annual software/site license renewals are not capitalized and
                     should be coded to object 4692, regardless of the cost.
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                      School District of Manatee County
                            Finance Department
                Reference Guide for Capital Asset Classification
Motor Vehicles

Expenditures for all types of motor vehicles should be coded to the following accounts:

Object 4651 – Buses regularly used for the transportation of pupils of the public schools
             to and from school, or to and from school activities.

Object 4652 – Includes other motor vehicles such as trucks, vans and passenger cars
             carrying eight pupils or less. (Golf carts should be coded to object 4641)

       Equipment items for Motor Vehicles:

       When an equipment item is acquired for permanent installation in/on a motor
       vehicle and that item will not be removed, transferred, or in any way separated
       from the motor vehicle during the depreciable life of the vehicle, then the cost of
       the item may be recorded as part of the vehicle. However, if the value of the item
       is material to the total cost of the vehicle, then it may be necessary to record the
       item as a separate asset.

       Equipment items that are installed in/on a motor vehicle that may be removed,
       transferred, or separated from the vehicle during the depreciable life of the vehicle
       should not be recorded as part of the vehicle.


Improvements Other Than Buildings

Construction costs of permanent improvements and additions, other than buildings and
additions, consisting of all expenditures for general construction, advertisements for
contracts, payments, or construction. Examples of such improvements are fill dirt, sod,
shrubs, fences, retaining walls, sidewalks, sewage treatment systems, original or
expanded paving projects, the initial purchase of fixed playground apparatus, flagpoles,
gateways, underground storage tanks, etc., which are not parts of building service
systems, and similar improvements. If the improvements are purchased or constructed,
this account contains the purchase or contract price and related costs. Include under this
classification permanent bleachers requiring footings or foundations, natatoriums and
swimming pools, and the necessary filtering and plumbing equipment.

       Object 4671 – Items/projects costing $1,000.00 or greater.

               Note: Please consider the total project cost when coding expenditures, if
                     multiple expenditures/purchase orders are required to complete a
                     project.

       Object 4672 – Items/projects costing less than $1,000.00.


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                      School District of Manatee County
                            Finance Department
                Reference Guide for Capital Asset Classification
New Construction

Includes all expenditures to acquire existing buildings or to construct new buildings and
additions.

Object 4630 – Construction costs of buildings and additions consist of all expenditures
             for general construction, advertisements for contracts; payments on
             contracts for construction; and any other costs connected with planning
             and construction of buildings or additions to buildings.


Remodeling and Renovation

Object 4688 – Items/projects costing $1,000.00 or greater and meets the capitalization
             test.

Object 4689 – Items/projects costing less than $1,000.00 or items/projects that do not
             meet the capitalization test.

Please refer to the “Florida School Laws” definitions for “Remodeling” and
“Renovation” below. If the item/project meets the appropriate definition, then please use
the capitalization test to determine if a remodeling and/or renovation expenditure/project
should be capitalized.

   Capitalization Test:

       1) Does the expenditure/project extend the useful life of the asset?
       2) Does the expenditure/project add material value to the asset?

       If the answer to both of the questions above is yes, then the expenditure/project
       should be capitalized and coded to object 4688. If the answer to one or both of
       the questions above is no, then the expenditure/project should not be capitalized
       and coded to object 4689.


According to Section 1013.01(12), 1013.01(17) and 1013.01(18) Florida Statutes:

“Remodeling” means the changing of existing facilities by rearrangement of spaces and
their use.

“Renovation” means the rejuvenating or upgrading of existing facilities by installation or
replacement of materials and equipment and includes, but is not limited to, interior or
exterior reconditioning of facilities and spaces; air-conditioning, heating, or ventilating
equipment; fire alarm systems; emergency lighting; electrical systems; and complete
roofing or roof replacement, including replacement of membrane or structure.

                                            -4-
                      School District of Manatee County
                            Finance Department
                Reference Guide for Capital Asset Classification
“Maintenance and repair” means the upkeep of educational and ancillary plants,
including, but not limited to, roof or roofing replacement short of complete replacement
of membrane or structure; repainting of interior or exterior surfaces; resurfacing of floors;
repair or replacement of glass; repair of hardware, furniture, equipment, electrical
fixtures, and plumbing fixtures; and repair or resurfacing of parking lots, roads, and
walkways. Maintenance and repair expenses should not be capitalized.


Please feel free to contact Mark Burt at 708-8770, extension 2117 or email
burtm@fc.manatee.k12.fl.us, if you have any questions regarding these coding
guidelines, or if you need assistance with coding capital object expenditures.




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