RES 2023-049 - Laserfiche WebLink

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Lrter$al Coutrol or,'s Financial Repcrting: e Signrfcanf De/icienries. We reported :ro deficiercies iu the dmip or opelation of htunal conhol st'er financial reporting that un consider to be signilicant deficicucies. r .l{atedal llranFtesses. trVe identifred deficiercies lhat nn consider to be rnaterial rl'e{knesses- We noted no imtmes of nonconptiame tbat were nuterial to the fiuncial statetrents of the County. Federal Arvards lnl€fnal Conhol oler Majnr Frograms: . SisrtrJicarf .qfcidnrias: tire reportedno deficiencies in the dsign or operation of internal coulrol oter m.rjor federal propganrs tlrat wr csosidef, to be significaut d,rficiencies- r .lfnfetftil lt'.'mfuieuser-' trVe idedified no deficiencie* that qe consider to be m-rterial u'e*ftnessrs. tr!'e issued an uunodified opinion otr the County's courpliance *'ith requuenrents applicable to its najorftderal p(oganr. lTe rtparted no findinp ih.rt are required to be disclased in arrordance wilh I C.FR:00.51qa).1 Depreciation Capital assets, which includes property, plant, equipment, and infrastructure assets, (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business{ype columns in the government-wide financial statements. Capital assets are defined by the county as assets with an initial, individual cost of more than $5,000 and an estimated useful life more than one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. Kittitas County has elected to use the modified approach to account for the infrastructure account; Gravel Roads, which eliminates the need to report depreciation expense. Computer Software is reported as lntangible Assets with a capitalization limit of $5,000 and is not depreciated. Capital Leases are defined as long term debt to the county. The asset is tracked but there is not value placed in the Capital Assets. Capital Leases are determined by one of the following four criteria; 1) The lease transfers ownership of the property to the lessee by, or at, the end of the lease term; 2) The lease contains an option to purchase the leased property at a bargain price; 3) The lease is equal to or greater lhan 75o/o of the estimated economic life of the leased property; 4) The present value of rental and other minimum lease payments, excluding that portion representing executory costs to be paid by the lessor, equals or exceeds 90% of the fair value of the lease property. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. lnterest incurred during the construction phase of the capital assets of business-type activities is included as part of the capitalized value of the assets constructed.