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Fixed Assets Policy and Procedures
Additions to Infrastructure Capital Assets
Additions to Infrastructure Capital Assets


All additions to infrastructure capital assets should be properly authorized.

Infrastructure capital assets 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. Examples of infrastructure capital assets are roads, sidewalks, bridges, drainage systems, water and sewer systems, dams and lighting systems.

Infrastructure capital assets should be reported at historical cost. The cost of an infrastructure capital asset should include capitalized interest and ancillary charges necessary to place the asset into its intended location and condition for use.

Valuation for infrastructure capital assets acquired prior to implementation of GASB 34: Estimated historical cost is reported for general infrastructure capital assets if determining the actual historical cost of those general infrastructure capital assets is not practical because of inadequate records.

Expenditures to preserve the useful life of eligible infrastructure capital assets that are reported by the Modified Approach should be expensed in the period incurred. Additions and improvements to eligible infrastructure capital assets that increase the capacity or efficiency of the infrastructure assets should be capitalized.

Eligible infrastructure capital assets reported under the Modified Approach are reported separately from depreciated infrastructure capital assets.

Items with useful lives less than two (2) years or of small monetary value (less than $5,000 per unit cost) are reported as an expense or expenditure in the period in which they are acquired.


Infrastructure capital assets are generally categorized by the following broad asset types.

Asset Type                                          Estimated Useful Life

Roads                                                          20-35 years

Water and sewer mains and extensions     30-65 years

Drainage Systems                                      10-35 years


Accounting Department


Record additions of infrastructure fixed  assets in the detailed fixed asset sub-ledger.

Reconcile the detailed fixed asset sub-ledger to the general ledger.

Investigate and resolve differences found in the reconciliation.

Procedure Coordinator: Director of Finance


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