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INTRODUCTION <br />The City of Lino Lakes was required to implement Governmental Accounting Standards <br />Board (GASB) Statement No. 34, Basic Financial Statements and Management's <br />Discussion and Analysis for State and Local Governments for the fiscal year ending <br />December 31, 2003. Statement No. 34 established new financial reporting requirements <br />for state and local governments throughout the United States. Statement No. 34 created <br />new information and restructured much of the information that the City of Lino Lakes <br />had presented in its annual reports prior to implementation. The intent of those new <br />requirements was to make annual reports more comprehensive and easier to <br />understand and use. <br />Two key components of Statement No. 34 required governments to report capital assets <br />and the capital assets depreciation over their estimated useful lives. Though the City <br />has informally followed a policy since the introduction of the new standards, it is <br />necessary for the City to formally develop and implement a Capital Asset Policy that <br />meets the financial statement reporting requirements. <br />While the Capital Asset Policy is not all encompassing, it will provide guidance for the <br />City to meet the reporting requirements, i.e., meeting the primary objective of financial <br />reporting as it pertains to valuation, allocation, presentation and disclosure; therefore, <br />this policy will not be used for property control purposes. <br />This policy was approved 2/14/2022 and is effective retroactively to 1/1/2021. <br />