Sno-Isle Libraries Board Policy

Purpose

To establish criteria for the identification, verification, protection, and disposal of Sno-Isle Libraries’
Capital Assets and Small Attractive Assets.

Scope

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.

Definitions

Capital Assets

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 District to determine if the definitional criteria are satisfied to classify the donation as a capital asset or small and attractive asset under this policy.

Small and Attractive Assets are tangible assets costing less than $10,000 but more than $300 that are
particularly vulnerable to loss, such as electronic devices (e.g. computers, iPads, printers, cell phones) and equipment.

Real Property refers to immovable assets like land and buildings.

Personal Property refers to movable items like furniture, equipment, or vehicles.

Inventoriable Assets are capital or small and attractive assets that are easily moved or replaceable. Items that are stationary, such as land, buildings, furniture, and fixtures, including mechanical and electrical infrastructure, are not inventoriable assets. Library Collections are physical materials such as books, DVDs, CDs, and other library collection material intended for customer use are not considered Capital Assets or Small and Attractive Assets for the purposes of this policy.

Revised Code of Washington (RCW) is a compilation of all permanent laws currently in force. It is a collection of Session Laws (enacted by Legislature, and signed by the Governor, or enacted via the initiative process), arranged by topic, with amendments added and repealed laws removed. It does not include temporary laws such as appropriations acts.

Implementation

Depreciation

In accordance with the Washington State Cash-Basis 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.

Risk Assessment

An annual risk assessment will be completed to determine which assets or asset categories are Small and Attractive Assets. The assessment will be conducted by the Finance Director in conjunction with department managers. A list of Small Attractive Assets will be maintained.

Inventory

The Library District will maintain an inventory system(s) that includes records for all inventoriable assets. A physical inventory of Capital Assets and all Small and Attractive Assets will be conducted at least every two years.

Protection

The Library District 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.

Disposition

Capital assets which have been destroyed or damaged beyond repair will be reported to the Board of Trustees at a regularly scheduled meeting.

When the Library District 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. The Library District may then sell, donate or dispose of surplused assets in a cost effective and responsible manner.

Associated Policies and Laws

• Office of the Washington State Auditor BARS Cash Manual Capital Assets Management Chapter 3
• Washington State RCW 12.210 Library trustees – Organization-Bylaws-Powers and duties

Policy History

Date approved: July 28, 2025
Next review date: 2029
Date adopted: 2010