Page 423 - FortWorthFY23AdoptedBudget

The term capital assets include land, improvements to land, easements,
buildings, building improvements, vehicles, machinery, equipment, works
of art and historical treasures, infrastructure, and all other tangible or
intangible assets that are used in operations and that have initial useful
lives extending beyond a single reporting period.

Capital assets should be recorded at original cost or, if the cost is not readily
determined, at estimated original cost. Cost shall include applicable ancillary costs
necessary to place the asset in its intended location and condition for use. All costs
should be documented, including methods and sources used to establish any
estimated costs.

The City acquires capital assets in one of the following ways:

1. Purchased assets – The recording of purchased assets should be made on
the basis of actual costs, excluding some ancillary costs*, based on
vendor invoice or other supporting documentation. *See Section VII-A
for further explanation.

2. Constructed assets – Direct costs (including labor) associated with the
construction project should be included in determining the asset
valuation. For Community Facilities Agreements, City of Fort Worth
inspection costs are no longer capitalized as part of the project effective
06-01-2019 associated with fund 30114 (CFA Developer).

3. Donated assets – Capital assets acquired by donation should be valued
based on the acquisition value at the time of receipt and capitalize in
accordance with the threshold value for each asset category. Please refer
to the City of Fort Worth’s Donations Policy for guidance on acceptance
of donations.
Responsibility / Authority

City-wide Department responsibilities:

A. Serve as custodians of capital assets including land, land improvements,
vehicles, machinery and equipment (including rolling stock), that are assigned
to their departments.

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