Sarasota County Comprehensive Annual Financial Report 2019

Sarasota County, Florida Notes to Financial Statements September 30, 2019 F. INTERFUND BALANCES Activity between funds that are representative of lending / borrowing arrangements outstanding at the end of the fiscal year are referred to as either due to / from other funds or advances to / from other funds. G. INVENTORIES Inventories are valued at cost, using either moving average or first-in-first-out (FIFO) method. Inventories in the special revenue funds, consisting of expendable supplies, are recorded as expenditures as they are used (i.e., the consumption method). Governmental Fund inventories are classified as non-spendable fund balance which indicates that the fund balance is not in spendable form. H. RESTRICTED ASSETS The following items are classified as restricted assets on the statement of net position because their use is limited by applicable bond covenants or state regulation: certain proceeds of the County’s enterprise fund revenue bonds and related resources are set aside for their repayment; funds set aside per state regulation for landfill closure and post-closure costs. In addition, impact fee revenues, capital assessment revenues and customer deposits are set aside to be used for their respective purposes in accordance with related state statutes, regulations and County ordinances. I. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure (e.g., roads, bridges, wastewater, water, drainage systems, and similar items), are reported in the proprietary fund financial statements, and, in the applicable governmental or business-type activities columns in the government-wide financial statements. Assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are reported at their acquisition value. Betterments and major improvements which significantly increase values, change capacities, or extend useful lives are capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Amounts expended for maintenance and repairs are charged to expenditures/expenses as incurred. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations. GASB No. 51 established accounting and financial reporting requirements for intangible assets. Sarasota County complies with this statement by incorporating software, easements, patents, copyrights, water, timber and land rights as intangible assets. Information regarding intangible assets is included in Note 6 in the financial statements. Property, plant and equipment of the County are depreciated using the straight-line method over the following estimated useful lives: Assets Years Capitalization Threshold Buildings & building improvements 10 – 40 years Capitalize all Infrastructure: General Gov't/Enterprise 10 – 50 years $1,000,000/$50,000 Equipment: All other 3 – 10 years Per FL Statute 274.02 Intangible Assets: Patents, copyrights, trademarks 10 – 50 years $150,000 Water, and timber use rights 10 – 50 years $150,000 Software 3 – 10 years $150,000 84