Page 59 - Financial Report 2020

PRIVACY AND CIVIL LIBERTIES OVERSIGHT BOARD

I. Other Assets
Other assets consist of advances and prepayments. Advances are cash outlays made as
required by reimbursable agreements to cover the Board’s anticipated expenses or as
advance payments for the costs of goods and services acquired by a contracted agency.
Prepayments are payments made by PCLOB to cover certain periodic expenses before
those expenses are incurred.
As goods and services are received, advanced and prepaid amounts are expensed. Any fees
charged for related contracting services are considered administrative overhead costs and
are expensed when paid.

J. General Property, Plant, and Equipment, Net

General Property, Plant, and Equipment (“PP&E”) represents furniture, fixtures,
equipment, and information technology hardware and software and are recorded at
original acquisition cost, which includes all costs incurred to bring the item to a form and
location suitable for its intended use (e.g., transportation, contract price, contract fee,
installation/labor, etc.). Major alterations and renovations are capitalized, while
maintenance and repair costs are expensed as incurred.
PCLOB’s capitalization threshold is $5,000 for individual purchases and bulk purchases.
Property, equipment, and software acquisitions that do not meet the capitalization criteria
are expensed upon receipt. Applicable standard governmental guidelines regulate the
disposal and convertibility of agency property, equipment, and software. All property (real
and personal) is in PCLOB’s possession and there is nothing held by others (see Note 5).

PCLOB’s PP&E is depreciated or amortized using the straight-line method over the assets’
estimated useful lives. The useful life classifications for capitalized assets are as follows:

Description Useful Life (years)
Leasehold Improvements Lease Term

Office Furniture 15 years

General Equipment 5 years
IT System/Network 5 years
Internal Use Software (IUS) 3 years

The Board’s PP&E is presented net of accumulated depreciation on the Balance Sheet.

K. Accounts Payable and Other Liabilities

Liabilities represent amounts expected to be paid as the result of a transaction or event
that has already occurred. Liabilities covered by budgetary resources are liabilities
incurred which are covered by realized budgetary resources as of the balance sheet date.
Available budgetary resources include new budget authority, spending authority from the

FY 2020 AGENCY FINANCIAL REPORT 50