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Staff clarifies inventories and capital asset classifications for financial statements
Summary
Staff told the committee inventory is mostly utility supplies and retail stock (golf and sports park), not items like spare tires; non-depreciable capital assets include items still in construction or land, while depreciable assets are in service and depreciated.
A committee member asked whether items booked to inventory included spare tires, fuel or other incidental supplies. A presenter said inventories are primarily utility supplies—meters, meter setters, boxes, lids, pipe—and retail inventory at the golf course and sports park; the district does not track tires as inventory and fuel is expensed monthly.
The presenter also clarified capital asset classification: non-depreciable capital assets are items paid toward but not yet placed in service (including land), while depreciable assets are closed projects placed into service and recorded for depreciation. "A non depreciable gas capital asset is an asset that we've been paying towards but haven't put into service yet," the presenter said (SEG 400–403).
