Current through all regulations passed and filed through September 16, 2024
(A) The determination of net assets is
necessary in order to calculate the contractor's total dollar bidding capacity.
The term "net assets" is qualifying assets minus certain liabilities. Assets
shall mean current assets and other assets as further set out and defined by
rules 5501:2-3-01 to
5501:2-3-10
of the Administrative Code. Liabilities shall mean current liabilities and
other liabilities as further set out and defined by rules 5501:2-3-01 to
5501:2-3-10
of the Administrative Code.
(B)
Current assets are those assets which mature within one year of the date of the
financial statement and which are defined in accordance with generally accepted
accounting principles unless otherwise indicated and shall include the
following:
(1) Cash on hand, excluding cash
that is legally restricted as to its withdrawal or use.
(2) Cash equivalents, defined as highly
liquid asset instruments with original maturities of three months or less,
excluding cash equivalents that are legally restricted as to their withdrawal
or use.
(3) Investments which have
readily determinable fair values and all investments in debt securities.
(4) Unlisted investments which do
not have readily determinable fair values shall be accepted at such valuation
as determined under generally accepted accounting principles.
(5) Trade accounts receivable, unbilled
accounts receivable, retainages, certified bid checks and deposits for bids
must be recorded at their fair value. All receivables must be reduced to their
net realizable value through an allowance for uncollectible accounts or
otherwise. The applicant shall exclude all receivables from owners when
computing net assets. Owners shall include sole proprietors, partners,
shareholders, members or other forms of direct ownership, including immediate
family members to be defined as family members whom an owner might control or
influence or by whom they might be controlled or influenced because of the
family relationship.
(6) Costs and
estimated earnings in excess of billings on uncompleted contracts.
(7) Notes receivable, maturing within one
year, must be reduced to their net realizable value through an allowance for
uncollectible accounts or otherwise, and net of any related discount of
premium. The applicant shall exclude all note receivables from owners when
computing net assets. Owners shall include sole proprietors, partners,
shareholders, members or other forms of direct ownership, including immediate
family members to be defined as family members whom an owner might control or
influence or by whom they might be controlled or influenced because of the
family relationship.
(8) Prepaid
expenses, such as interest, rent, insurance, taxes.
(9) Inventories, at the lower of cost or
market.
(10) Other assets which
mature within one year excluding intangible assets.
(C) Other assets shall be defined in
accordance with generally accepted accounting principles unless otherwise
indicated and shall include the following:
(1) Cash surrender value of life insurance
policies, net of any policy loans.
(2) Notes receivable noncurrent, must be
reduced to their net realizable value through an allowance for uncollectible
accounts or otherwise, and net of any related discount or premium. The
applicant shall exclude all note receivables from owners when computing net
assets. Owners shall include sole proprietors, partners, shareholders, members
or other forms of direct ownership, including immediate family members to be
defined as family members whom an owner might control or influence or by whom
they might be controlled or influenced because of the family relationship.
(3) Equipment of the type
customarily used in highway construction, furniture, fixtures, machinery and
equipment collectively referred to as personal property, owned by the
applicant, which may be accepted at not more than eighty per cent of its true
value as declared on the Ohio personal property tax return filed with the Ohio
department of taxation, for equipment not subject to Ohio personal property
tax, eighty per cent of cost, subject to the true value computation as with
other personal property, as recognized by the Ohio department of taxation for
personal property tax purposes.
(4) Real estate may be accepted at not more
than its valuation for tax purposes as assessed by the county auditor under the
supervision of the tax commissioner.
(D) Current liabilities shall include all
obligations and accrued indebtedness payable within one year following the date
of the financial statement. Examples of such obligations and accrued
indebtedness are as follows:
(1) Trade
accounts payable.
(2) Federal,
state and local income taxes payable.
(3) Retainages payable.
(4) Billings in excess of costs and estimated
earnings on uncompleted contracts.
(5) Accrued payroll related items including
but not limited to compensation, taxes on compensation, tax withholdings and
workers' compensation.
(6) Current
portion of term debt, lines-of-credit and revolving credit agreements.
(7) Amounts payable to related
parties.
(8) Dividends and
distributions payable.
(9) Accrued
warranty and guarantee liabilities.
(10) Accrued deferred compensation
agreements.
(11) Accrued
compensated absences.
(12) Current
portion of accrued pension costs.
(13) Current portion of accrued
postretirement costs.
(14) Current
portion of unconditional promises to give.
(15) Other current liabilities payable within
one year following the date of the financial statement.
(E) Other liabilities shall include:
(1) All indebtedness secured by mortgage or
other lien on personal property.
(2) All indebtedness secured by mortgage or
other lien on real estate.
(3)
Bank letters or letters of credit and related amounts outstanding under these
arrangements payable within one year following the date of the financial
statement.
Five Year Review (FYR) Dates:
08/19/2015 and
08/19/2020
Promulgated
Under: 119.03
Statutory
Authority: 5525.05
Rule
Amplifies: 5525.01,
5525.02,
5525.03,
5525.04,
5525.05,
5525.06,
5525.07,
5525.08,
5525.09
Prior
Effective Dates: 1/15/64, 1/1/98, 7/1/02,
3/19/10
