Ohio Administrative Code › Title 5501:2 - Division of Highways › Chapter 5501:2-3 - Bidding and Contracting › Section 5501:2-3-01 - Net assets

Current through all regulations passed and filed through July 1, 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.