Commission Meeting Agenda Item
Agenda Item
Consideration of Approval to Increase the Fixed Asset Capitalization Threshold from $3,000 to $5,000 Starting October 1, 2021
Department
Finance
Staff Recommended Motion
Staff recommends approval of increasing the fixed asset capitalization threshold from $3,000 to $5,000 for any tangible property items that have a projected useful life of one year or more starting October 1, 2021.
Summary
The Town has been using a capitalization threshold of $3,000 since October 1, 2015. The Florida Department of Financial Services Rule 69I-73 and the Government Finance Officers Association (GFOA) recommends that a government establish a capitalization threshold of no less than $5,000, and the thresholds are best applied to individual items rather than to groups of similar items.
Fiscal Impact
Less Fixed Asset Tracking
Source of Funding
Not applicable
Funding Impact
Operating and Capital Assets
PSW/ns
Downloads
Commission Meeting Agenda Item 2021174 (.pdf document)