To: Board of Supervisors
From: Auditor-Controller
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:title
Revisions to the Humboldt County Capital Asset Policyend
RECOMMENDATION(S):Recommendation
That the Board of Supervisors:
1. Adopt the attached Revised Capital Asset Policy; and
2. Authorize the Auditor-Controller to expense any remaining book value and remove from fixed asset reporting any equipment placed into service on or before Dec. 19, 2018 with a historical cost less than Five Thousand Dollars ($5,000.00) that is not otherwise capitalizable; and
3. Direct the Clerk of the Board to provide the Auditor-Controller's Office with one (1) fully executed certified copy of the Board order related to this item.
Body
STRATEGIC PLAN:
The recommended actions support the following areas of the Board of Supervisors' Strategic Plan:
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
On Dec. 19, 2018, the Humboldt County Board of Supervisors ("Board") adopted the Humboldt County Capital Asset Policy. Since that time, there have been significant changes in accounting requirements from both the Government Accounting Standards Board ("GASB") and the Federal Government's Code of Federal Regulations ("CFR") that impact the policy.
GASB Statement 87 (leases) became effective in fiscal year 2020-21. Upon implementation, it was discovered that the Capital Asset Policy's definition of a lease was no longer accurate according to current financial reporting rules, and the thresholds were not appropriate for effective financial reporting. the attached policy revision corrects these issues to be compliant with GASB Statement 87 and sets appropriate thresholds for leases.
GASB Statement 96 became effective in fiscal year 2022-23. Upon implementation, it was discovered that the Capital Asset Policy lacked a definition for Subscription-Based Information Technology Agreements ("SBITAs"). The attached pol...
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