2005-09-14 CC Packet - Laserfiche WebLink

Home Browse Search

NOTE 1. NORTH METRO TELECOMMUNICATIONS COMMISSION NOTES TO FINANCIAL STATEMENTS NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES (continued) Capital Assets: Capital assets, which include property, plant and equipment assets are reported in the Statement of Net Assets. Capital assets are defined by the Commission as assets with an initial cost of more than $500 and an estimated useful life in excess of two years. Capital assets are recorded at historical cost when purchased. Donated assets are recorded at their estimated fair market value on the date of donation. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Depreciation of exhaustible assets are provided on the straight-line basis over the following useful lives: Buildings Office and studio equipment Vehicles 39 years 5-10 years 5 years Revenue: Commission revenue consists primatily of contributions from member municipalities as detennined according to the joint powers agreement and public educational and governmental access fees (PEG fees). Franchise fees are assessed to the cable operator during the year-end and are recognized as revenues in the following year. PEG fees are based on a negotiated contract with the cable operator and are recognized as revenues in the year concurrent with the contract. Compensated Absences: Vesled or accumulated vacation and sick leave is accrued for all eligible employees based on their past service and amounted to $50,577 as of December 31,2004. Accounts Receivable: The COllli11ission provides an allowance for doubtfltl accounts for receivables deemed uncollectible. No allowance for doubtful accounts has been provided as all accounts receivable are considered fully collectible by management. Loan Fees: Loan fees are amortized over the life of the loan over 14 years. P.ll)