6452 - CAPITALIZATION AND DEPRECIATION

This capitalization and depreciation policy is established to safeguard assets, enhance accountability and provide for more accurate and uniform financial reporting in compliance with the Generally Accepted Accounting Principals in the United States of America (GAAP) and Governmental Accounting Standards Board (GASB) Statement No. 34.

1. All fixed asset purchases in excess of $5,000 for items that have a useful life of more than one year shall be capitalized.
2. Certain categories of assets costing less than $5,000 but greater than $1,000 shall be inventoried and tracked, although not in the general ledger. These items will not be depreciated.
3. In accordance with GAAP, assets must be depreciated over their estimated useful lives.
    
   1. Computer Equipment                                      3 years
   2. Vehicles                                                         5 years
   3. Other Equipment                                            5-10 years
   4. Site Improvements                                         20 years
   5. Buildings                                                        50 years
   6. Subsequent modernization to Buildings             50 years
4. For depreciation purposes, only the salvage value of assets is estimated to be immaterial. Therefore, assets will be depreciated at 100% of cost.
5. The “half-year” convention will be utilized whereby one-half of depreciation is recorded in the fiscal year of acquisition and the fiscal year of disposition.
6. Straight-line depreciation will be calculated for all depreciable property.