Capital Assets Policy

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" height=80 BGCOLOR="#CCFFFF" TEXT="#080000"> <div> <FONT SIZE="4" COLOR="#000000" FACE="Arial" ><B>Roscommon Township</B></FONT>  |     <A HREF="index.htm" TARGET="_top" TITLE="Roscommon Township">home</A>      <A HREF="id28.htm" TARGET="_top" TITLE="Ambulance">Ambulance</A>      <A HREF="newsletterce.htm" TARGET="_top" TITLE="Newsletter">Newsletter</A>      </div> <div> <A HREF="board_membership.htm" TARGET="_top" TITLE="Board Members">Board Members</A>      <A HREF="ambulance_meeting_dates.htm" TARGET="_top" TITLE=" Meeting Dates"> Meeting Dates</A>      <A HREF="ambulance_orgainzation.htm" TARGET="_top" TITLE="Ambulance Organization">Ambulance Organization</A>      <A HREF="building.htm" TARGET="_top" TITLE="Building">Building</A>     <A HREF="houghton_lake_employee_handb.htm" TARGET="_top" TITLE="Employee Handbook">Employee Handbook</A>  </div> <bR> <bR> <bR> <bR> <div> </div> </td> </tr><tr> <td valign="top" height=400 style=" border-top: 5px solid #00CCFF;" BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>Capital Assets Policy</I></div> <bR> <DIV ALIGN="LEFT"></DIV> <div> <B>HOUGHTON LAKE AMBULANCE AUTHORITY</B></div> <div> <B>GASB 34, CAPITALIZATION AND DEPRECIATION POLICY</B></div> <bR> <div> Effective with the 2006 Accounting Year, which begins January 1, 2006:</div> <bR> <div> <B>A</B><FONT SIZE="3" COLOR="#000000" FACE="Times-Roman" >. Houghton Lake Ambulance Authority adopts the Governmental Accounting Standards Board Statement #34, Basic Financial Statements-and Management?s Discussion and Analysis-for State and Local Governments as it?s reporting standard.</FONT></div> <bR> <div> <B>B</B><FONT SIZE="3" COLOR="#000000" FACE="Times-Roman" >. Houghton Lake Ambulance Authority will capitalize all individual assets with a cost of $1000.00 or more and that has an estimated useful life of 1 year or more. Individual assets that cost less than $1000.00, but operate as part of a network system will be capitalized in the aggregate, using the group method, if the estimated average useful life of an individual asset is 1 year or more. A network is determined to be where individual components may be below the $1000 but are interdependent and the overriding value to the HLAA is on the entire network and not the individual assets. There are currently 2 non-infrastructure networks in operation at the HLAA: telephone system and computer system. The telephone system has an estimated useful life of 10 years and would be capitalized in the aggregate using the group method. The following ranges are proposed as guidelines in setting estimated useful lives for asset reporting:</FONT></div> <bR> <DIV ALIGN="LEFT"></DIV> <div> Buildings and Improvements; 25-40</div> <div> Land Improvements; 10-20 years</div> <div> Machinery and Equipment; 5-10 years</div> <div> Vehicles; 5-10 years</div> <div> Infrastructure; 20-40 years Note: Land and construction in Progress are not depreciated.</div> <bR> <div> With respect to asset improvements, costs over $1000 should be capitalized if:</div> <div> 1. The estimated life of the asset is extended by more than 25%, or</div> <div> 2. The cost results in an increase in the capacity of the asset, or</div> <div> 3. The efficiency of the asset is increased by more than 10%, or</div> <div> 4. Significantly changes the character of the asset, or</div> <div> 5. In the case of streets and roads, if the work done impacts the ?base? structure.</div> <div> 6. Otherwise, the cost should be expensed as repair and maintenance.</div> <bR> <div> <B>C</B><FONT SIZE="3" COLOR="#000000" FACE="Times-Roman" >. The Straight-line method of depreciation will be used for all capital assets.</FONT></div> <bR> <div> Houghton Lake Ambulance Authority hereby approves this policy on February 8, 2006.</div> <div> _____________________________</div> <div> Dick Pastula, Treasurer</div> <bR> </td> </tr></table></body>