Capital Assets Policy

 

Purpose
The purpose of establishing a formal Capital Assets Policy is as follows:
  1. To safeguard the investments of the citizens of Starke County and demonstrate the appropriate stewardship responsibility for public assets;
  2. To provide a basis for formulating capital asset acquisition, maintenance, and retirement policies;
  3. To provide for financial reporting.
Definitions
Capital assets include items such as: land, easements, rights of way, land improvements, buildings, building improvements, construction in progress, machinery and equipment, vehicles, infrastructure, books and audio-visual materials, works of art, and monuments. Capital assets with an estimated useful life of more than one year and an original cost of $1,000 or more will be accounted for as capital assets. In addition, the aggregate of all books and similar materials with a useful life of more than one year, regardless of their original cost, will be considered capital assets. For accountability and safeguarding of assets, an inventory will be kept on all computers and other equipment costing less than the $1,000 threshold noted above, but more than $500, and will be classified as non-capitalized assets.
 
Valuation of Capital Assets
Capital assets should be recorded at actual cost. Normally the cost recorded is the purchase price or construction cost of the asset, but also included is any other reasonable and necessary cost incurred to place the asset in its intended location and intended use that can be directly related to the asset. Donated or contributed assets should be recorded at their fair market value on the date donated or acquired.
 
Land
Land is defined as specified land, lots, parcels or acreage owned by the Starke County Public Library System, regardless of the method or date of acquisition.
 
Improvements Other than Buildings
Examples include walks, parking areas, drives, fencing, retaining walls, fountains, planters, sprinkler systems, and other similar items.
 
Buildings
All structures designed and erected to house equipment, services, or functions of the Library are included in this category. This includes systems, services, and fixtures within buildings and attachments such as porches, lighting fixtures, flagpoles, and other such units that serve the building. Plumbing systems, lighting systems, heating and cooling, ventilating and air handling systems, alarm systems, sound systems, surveillance systems, elevators, fixed shelving and other fixed equipment are included with buildings.
 
Equipment
Equipment includes all other types of physical property within the scope of the Capital Asset Policy not previously classified. Included within this category are bookshelves, office mechanical equipment, office furniture, appliances, furnishings, machinery items, maintenance equipment, communication equipment, books and similar items, vehicles, data processing equipment, and similar items. All supplies are excluded.
 
Library Materials
This will include all books, audio-visual materials, microforms, and other media that are customarily included in the library collection.
 
Asset Transfers and Dispositions
Property should not be transferred, turned in for auction, or disposed of without prior approval of the Library Director. Deletions for any reason must be reported to the Library Director, prior to deletion. Transfers are defined as any movement of an asset. If an asset is stolen, a police report should be promptly filed.
 
Inventories
A physical inventory of capital assets will be conducted annually by the Business Manager, or by an outside vendor hired to perform such an inventory.
 
Adopted by the Starke County Public Library Board of Trustees 4/10/12

 

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