Resolution 2015-92 - Laserfiche WebLink

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Fixed assets that are reported on the City's balance sheet are said to be "capitalized" and must meet the capitalization criteria outlined in this policy. The City's capitalization criteria are, as follows: • Assets should be capitalized only if they have an estimated useful life of at least two years following the date of acquisition. • The capitalization thresholds shall normally be applied to individual items rather than to groups of similar items (e.g., chairs), unless the effect of doing so would be to eliminate a significant portion of total capital assets (e.g., library books). • The capitalization threshold for each individual item is $5,000. • Directors are responsible for establishing control and inventory procedures at the department level for non - capitalized assets such as office equipment, communications equipment, fleet management inventory, firearms, etc. 8.7 Accounts Receivable Write -Off. Accounts receivable is an asset account reflecting amounts owed to the City. Staff will make every effort to collect all receivables. Only receivables deemed uncollectible can be written off. In order to be deemed uncollectible, a receivable must meet the following criteria: • All standardized collections procedures have been exhausted; • Further measures to collect the debt have been determined as inappropriate; and • The characteristics of the debt are such that write -off is appropriate (e.g., the debt is small relative to the cost of further collection efforts). The City Manager or Finance Director is authorized to approve a write -off of up to $100 per individual account. Staffs request to write -off accounts greater than $100 must be approved by the Finance Committee. The amounts and reasons for all write -offs will be documented and made available for audit.