HomeMy WebLinkAboutRESOLUTIONS-2004-020-R-04•
04/02/2004
20-R-04
A RESOLUTION
Approving the Township of
Evanston Capitalization Policy
WHEREAS, the auditor for the Township of Evanston has recommended that the
Township Board of Trustees formally approve a Township Capitalization Policy; and
WHEREAS, the Township has drafted such a Capitalization Policy, which has
been reviewed and approved by the Township Auditor and the City's Finance Director,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EVANSTON, COOK COUNTY, ILLINOIS:
• SECTION 1: That the Township of Evanston Capitalization Policy is hereby
approved, attached as Exhibit A and made a part hereof.
SECTION 2: That this Resolution shall be in full force and effect from and after
its passage and approval in the manner provide�kpy law.
ATTEST:
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Adopted:2004
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Lorraine H. Morton, Mayor
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Town of the City of Evanston
Capitalization Policy
The Township of Evanston will set its Capitalization Policy on all assets purchased with
an original price of $1,000.00 and a useful life of over one (1) year. The Township will
also set its Capitalization Policy on all leasehold improvements of $1,000 and over to be
based on the useful life of the lease.
Physical assets acquired with unit costs of $1,000 or more are capitalized as fixed assets
on the financial statements. Items with unit costs below this threshold shall be expensed
in the year purchased.
Capitalized fixed assets are accounted for at their historical cost and all such assets are
subject to depreciation over their estimated useful lives, as described later.
Depreciation and Useful Lives
Estimated useful lives of capitalized assets for depreciation purposes are:
Furniture and fixtures 10 years
General Office equipment 5 years
Computer hardware and peripherals 3 years
Computer software 3 years
Leased assets life of lease
Leasehold improvements remaining lease term
For accounting and interim financial reporting purposes, depreciation expense will be
recorded on a monthly basis.
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Hon. Patricia A. Vance
Township Supervisor
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February 26, 2004
MEMORANDUM
1
IThe7tonof Evans
TO: The Town of the City of Evanston Trustees
Sylvester Hilliard
Executive Director
FROM: Patricia A. Vance, Township Supervisor, Town of the City of Evanston Avt/
RE: ADOPTION OF A CAPITALIZATION POLICY
In the most recent audit of the Township, the auditors stated that the Trustees of the
Township should formally adopt a Capitalization Policy for the Township. Attached is
the proposed Capitalization Policy for adoption by the Trustees based on the current
fiscal management of assets.
Attachment
1910 Main Street ■ Evanston, Illinois 60202-1516 ■ 847-475-4481 ■ Fax 847-475-4572
F' TOWN
of
Hon. Patricia A. Vance FIThe City of Evanston
Township Supervisor
Town of the City of Evanston
Capitalization Policy
Sylvester Hilliard
Executive Director
The Township of Evanston will set its Capitalization Policy on all assets purchased with
an original price of $1,000.00 and a useful life of over one (1) year. The Township will
also set its Capitalization Policy on all leasehold improvements of $1,000 and over to be
based on the useful life of the lease.
Physical assets acquired with unit costs of $1,000 or more are capitalized as fixed assets
on the financial statements. Items with unit costs below this threshold shall be expensed
in the year purchased.
Capitalized fixed assets are accounted for at their historical cost and all such assets are
subject to depreciation over their estimated useful lives, as described later.
Depreciation and Useful Lives
Estimated useful lives of capitalized assets for depreciation purposes are:
Furniture and fixtures 10 years
General Office equipment 5 years
Computer hardware and peripherals 3 years
Computer software 3 years
Leased assets life of lease
Leasehold improvements remaining lease term
For accounting and interim financial reporting purposes, depreciation expense will be
recorded on a monthly basis.
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1910 Main Street ■ Evanston, Illinois 60202-1516 ■ 847-475-4481 ■ Fax 847-475-4572