Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 59

h. Capital Assets Capital assets are reported in the Statement of Net Position for government-wide and enterprise funds and further disclosed in Note 5. Capital assets include: land in urban centers, rural areas and forest preserves; land improvements; land preparation for roads; build- ings which house State offices, correctional facilities, hospitals and educational facilities; equipment used in construction work, hospitals, offices, etc.; construc- tion in progress; intangible assets (i.e., easements and internally generated software); and infrastructure assets such as roads and bridges. Capital assets are reported at historical cost or estimated historical cost and donated capital assets are valued at their acquisition value at the date of donation. For governmental activities, equipment that has a cost in excess of $40,000 at the date of acquisition and has an expected useful life of two or more years is capitalized. All initial building costs and building improvements and land and land improvements in excess of $100,000 are capitalized. Infrastructure assets in excess of $1 million are also capitalized. Software is capitalized when the costs exceed $1 million. The costs of normal repairs and maintenance that do not add to the value or extend lives of assets mate- rially are not capitalized, but are reported as expenses in the year incurred. All maintenance and preservation costs relating to roads and bridges are expensed in the year incurred and not capitalized. Expenses relat- ing to roads and bridges that add to the capacity and efficiency of the road and bridge networks are capi- talized rather than expensed. Capital assets in business-type activities and Enter- prise Funds are from SUNY and CUNY. These capital assets are stated at cost, or in the case of gifts, at acquisition value at the date of receipt. SUNY capital- izes building renovations and additions costing over $100,000, equipment items with a unit cost of $5,000 or more, and intangible assets, including internally generated computer software, costing $1 million or more. CUNY capitalizes renovations and improvements that significantly increase the value or extend the useful lives of the structures and equipment with a cost of more than $5,000 and useful lives of two or more years. CUNY reports intangible assets with a unit cost of more than $5,000. Buildings, land improvements, equipment and intangible assets of the primary government are depre- ciated or amortized using the straight-line method over the following estimated useful lives:

Cash balances not held in the State Treasury and con- trolled by various State officials are generally deposited in interest-bearing accounts or other legally stipulated investments. Additional information about the State’s cash and investments is provided in Note 2. Generally, for purposes of reporting cash flows, cash includes cash and cash equivalents. Cash equiv- alents are liquid assets with maturities of 90 days or less. The Enterprise Funds’ Statements of Cash Flows use the direct method of reporting cash flows. All investments with a maturity of more than one year are recorded on the Statements of Net Position and the balance sheets at fair value and all investment income, including changes in the fair value of invest- ments, is reported as revenue. Fair values were deter- mined using market values at the applicable entities’ year-end. Investments of the short-term investment pool have a maturity of one year or less and are recorded at cost. e. Receivables Receivables are stated net of estimated allowances for uncollectible amounts, which are determined based upon past collection experience and current economic conditions. The Due from federal government category represents amounts owed to the State to reimburse it for expenditures incurred pursuant to federally funded programs. The Other receivables category represents amounts owed to the State, including Medicaid drug rebates, financial service settlements, tobacco settle- ments, patient fees of SUNY and Health Department hospitals and various mental hygiene facilities, student loans and lottery ticket sales. Additional information about receivables is provided in Note 4. f. Internal Balances All outstanding balances between funds at the end of the fiscal year are referred to as “due to/from other funds” on the fund financial statements. Generally, the effects of interfund activity within the governmental funds have been removed. Any residual balances out- standing between the governmental activities and busi- ness-type activities are reported in the government-wide financial statements as “internal balances.” For the most part, the remaining difference is a result of SUNY and CUNY having a different fiscal year than the State. g. Other Assets Other assets in governmental activities and business- type activities include payments for costs applicable to future accounting periods, and other types of assets not reported on other lines. Inventories reported by the governmental funds are recorded as expenditures when they are purchased. Inventories reported by the Enterprise Funds are valued at cost using the first- in/first-out (FIFO) method.

Governmental Business-Type Activities Activities

Assets

(Years)

(Years)

Buildings and building improvements . . . . . . . . . Equipment and vehicles . . . Land improvements . . . . . . Intangibles—easements . . . Intangibles—computer software . . . . . . . . . . . . .

12-60 4-30 12-30

2-50 2-50 2-50 2-50

20

10-12

2-50