FY2016 CCDOA Financial Report as of 6302016.pdf - page 58

Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
(d) Accounts Receivable
Accounts receivable are reported at their gross value when earned. The Department’s collection terms
are generally 20 days. The allowance for uncollectible accounts is based on a percentage of open
aged receivables at June 30 of each fiscal year. As a customer’s balance is deemed uncollectible, the
receivable is cleared, and the amount is written off. If the balance is subsequently collected, payments
are applied to the allowance account. Accounts receivable are shown net of the allowance for
doubtful accounts in the amount of $554.5 thousand for FY 2016 and $428.1 thousand for FY 2015.
(e) Inventories
Inventories held for resale are valued at the lower of cost or market and consist primarily of jet fuel to
be consumed by customers at the general aviation facilities as well as airline baggage tags and
maintenance supplies at the Airport System. Expendable parts and supplies held for consumption over
the course of the next fiscal year are valued at cost.
(f) Capital Assets
Capital assets with a useful life of more than one year are capitalized and are stated at historical cost.
The capitalization threshold is $5,000. Costs related to the alteration or demolition of existing facilities
during major expansion programs are capitalized as additional costs of the program. Depreciation is
computed using the straight-line method based on useful lives currently estimated as follows:
Land Improvements
20-50 years
20-50 years
Furniture and Fixtures
15 years
Machinery and Equipment
3-20 years
Repairs and maintenance are charged to operations as incurred unless they have the effect of
improving or extending the life of an asset, in which case they are capitalized as part of the cost of the
asset. Refer to Note 6, "Changes in Capital Assets," for further details.
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