The purpose of this policy is to establish criteria for the identification, depreciation, inventory, protection and disposition of Sno-Isle Libraries’ Capital Assets and Small and Attractive Assets and to comply with the Washington State Office of Financial Management's Financial and Administrative Policies, Regulations, Procedures and Guidelines.
Any items purchased by Sno-Isle Libraries that have an actual cost of $5,000 or more (including sales tax, accessories and shipping) and an estimated life of one (1) year or more shall be considered a Capital Asset. Any item that is donated and has a current market value of $5,000 and a useful life of one (1) year or more shall be considered a Capital Asset. This threshold is applied to individual assets rather than to an aggregation of assets.
Small and Attractive Assets
Small and Attractive Assets are items costing less than $5,000 but more than $300 that are particularly vulnerable to loss such as electronic devices (e.g. computers, iPads, printers, cell phones) and equipment.
Print materials, DVDs, CDs, and other library collection material intended for customers' use are not considered Capital Assets or Small and Attractive Assets for the purposes of this policy.
In accordance with the Budgetary, Accounting and Reporting System (BARS) for Library Districts,Capital Assets are expensed during the year of acquisition. There is no calculation or application of depreciation over the useful life of the asset.All Capital Assets will be expensed when purchased.
An annual risk assessment shall be completed to determine which assets or asset categories are small and attractive assets. The assessment shall be conducted by the Administrative Services Director in conjunction with department managers. A list of Small and Attractive Assets will be maintained.
All Capital Assets and all Small and Attractive Assets shall have a numbered identifying tag attached when purchased. A record of these assets and related tag number shall be maintained.
A physical inventory of all Capital Assets and all Small and Attractive Assets will be conducted a minimum of once a year. Certain Capital Assets, such as land, infrastructure, buildings, and improvements other than buildings, do not require a physical inventory due to their stationary nature.
Sno-Isle Libraries shall adequately maintain its Capital Assets and Small and Attractive Assets to protect its investment and to minimize future maintenance and replacement costs. Department managers shall establish an internal control structure for Capital Assets and Small and Attractive Assets that provides reasonable assurance of effective and efficient operations, reliable tracking and reporting, and compliance with applicable laws and regulations.
When it is determined that Sno-Isle Libraries no longer needs an asset, it will declare that asset to be surplus. The Board of Trustees must approve the disposition of all Capital Assets prior to the asset being removed from the inventory. Following the Board of Trustees' approval, Sno-Isle Libraries may sell, donate or dispose of the asset. Prior to disposition, all tags and other identifying information must be removed.
- DATE AND ACTION TAKEN
Adopted by the Board of Trustees October 25, 2010
Revised: July 28, 2014