ORDINANCE NO. 2025-040
DELAWARE COUNTY COMMISSIONERS

An Ordinance Creating a Fixed Asset Capitalization and Inventory Policy for Delaware County, Indiana

WHEREAS, the Delaware County Commissioners wish to increase the accuracy and clarity of financial reporting and to better serve the citizens of the County and the County’s constituents; and

WHEREAS, the Delaware County Commissioners must update the Policy from time to time in order to keep it efficient and effective; and

WHEREAS, the Delaware County Commissioners; and

NOW THEREFORE, BE IT ORDAINED BY THE COUNTY COMMISSIONERS OF DELAWARE COUNTY, INDIANA THAT:

SECTION 1: PURPOSE AND DEFINITION OF A CAPITAL ASSET POLICY

Purpose of a Capital Asset Policy -The purpose of establishing a capital asset policy is:

  1. 1. To safeguard the investments of the taxpayers of Delaware County;
  2. 2. To comply with the standards of the Government Accounting Standards Board Statement 34;
  3. 3. To fix responsibility for the custody of the assets;
  4. 4. To maintain accurate records of all fixed assets that are capitalized, including infrastructure;
  5. 5. To provide data for financial reporting for increased accuracy and clarity; and
  6. 6. To demonstrate appropriate stewardship responsibility for public assets.

SECTION 2: DEFINITIONS

  1. A.
    Annual Report – shall mean the reports prepared by Department Heads for the Assets of their respective Departments and filed with the Auditor for Delaware County pursuant to Section 2 below
  2. B.
    Assets – shall mean durable equipment, machinery, office furnishings, transportation vehicles and real property purchased by Delaware County.
  3. C.
    Capital Assets–shall mean assets having a useful life of more than one year and an acquisition cost of $10,000.00 or more. Capital assets include land, land improvements, structures intended to be used longer than one year, building improvements, machinery and equipment, vehicles, construction work in progress, works of art, historical treasures, and infrastructure, the latter of which are long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. The cost of the capital asset will include all expenses necessary to make the asset fully operational. Capital Assets acquired through lease/purchase agreements that meet these specifications are to be capitalized. This lease/purchase cost will be determined as the present value or discounted value of the future stream of lease payments, and not the total lease.
  4. D.
    Department – shall mean the various divisions and offices of Delaware County that are responsible for a specific function or functions for the administration of Delaware County Government.
  5. E.
    Department Head – shall mean the elected official or person or persons appointed by the Board of Commissioners for the County of Delaware who are responsible for a County Office or Department.
  6. F.
    Depreciation – shall mean the devaluation of Assets due to wear and tear that is fiscally measurable over time.
  7. G.
    Disposal – shall mean the disposition of an Asset or Assets by commercially reasonable methods that may include public auction or other means of sale.