Capitalized Asset / Small and Attractive Asset Management Policy
Sno-Isle Libraries Board of Trustees Policy
To establish criteria for the identification, verification, protection and disposal of Sno-Isle Libraries’ Capital Assets and Small Attractive Assets.
Real and personal property acquired by Sno-Isle Libraries through purchase, trade, gift, or fabrication (including but not limited to land, buildings, equipment, fixtures, improvements to land, buildings or infrastructure) which satisfies the definition of a Capital Asset or Small Attractive Asset is subject to this policy.
Tangible property having an actual cost of $5,000 or more (including tax and shipping) and an estimated life of one or more years will be considered a Capital Asset provided the outlay:
- acquires a new addition of property; or,
- extends the useful life of the property as a whole or restores it to a “like new” condition; or,
- enhances the value of the property in terms of a betterment; or,
- improves the efficiency, quality, strength, or capacity of property, or,
- adapts the property to a new use.
The cost threshold will be applied to the individual item acquired as opposed to an aggregation of items. A fair market value will be applied to assets donated to the Library to determine if the definitional criteria are satisfied to classify the donation as a capital asset or small attractive asset under this policy.
Small Attractive Assets
Small Attractive Assets are tangible assets 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.
Capital Assets that are stationary, such as land, buildings, furniture, and fixtures, including mechanical and electrical infrastructure, are not inventoriable assets. Capital Assets and Small Attractive Assets that are easily moved or replaced are inventoriable.
Physical materials such as books, DVDs, CDs, and other library collection material intended for customer use are not considered Capital Assets or Small Attractive Assets for the purposes of this policy.
In accordance with the Washington State Budgetary, Accounting and Reporting System (BARS) for Library Districts, all Capital Assets will be expensed in the year of acquisition. There is no calculation or application of depreciation over the useful life of the asset.
An annual risk assessment will be completed to determine which assets or asset categories are Small Attractive Assets. The assessment will be conducted by the Administrative Services Director in conjunction with department managers. A list of Small Attractive Assets will be maintained.
Sno-Isle Libraries will maintain a capital asset inventory system(s) that includes records for all inventoriable assets. A physical inventory of Capital Assets and all Small Attractive Assets will be conducted each year.
Sno-Isle Libraries will establish asset management practices and procedures that protect capital investments, minimize future maintenance and replacement costs, provide reasonable assurance of effective and efficient operations, and facilitate reliable tracking and reporting of assets in compliance with applicable laws and regulations.
Capital assets which have been destroyed or damaged beyond repair will be reported to the Board of Trustees at a regularly scheduled meeting.
When Sno-Isle Libraries determines it no longer needs a Capital Asset, a majority of the Board of Trustees members present at a duly called meeting must declare the asset surplus before it can be removed from inventory. Sno-Isle Libraries may then sell, donate or dispose of surplused assets in a cost effective and responsible manner.
Date approved: 10/2019
Next review date: 10/2023