CAPITALIZED, SMALL & ATTRACTIVE ASSET POLICY POLICY

Adopted by Spokane Public Library Board of Trustees in August 2018.

A. PURPOSE

The purpose of this policy is to establish criteria for the identification, depreciation, inventory, protection and disposition of Spokane Public Library’s 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.

B. SCOPE

Capital Assets

Items purchased by Spokane Public Library 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 or transferred to the Spokane Public Library that has a current market value of $5,000 and a useful life of one (1) year or more shall be considered a Capital Asset.

Small and Attractive Assets

Small and Attractive Assets are items costing less than $5,000 that are particularly vulnerable to loss.

Library Materials Collections

All print, virtual and digital materials, DVDs CDs, and other collection items regardless of cost which are intended for public use are recorded as a bundled Capital Asset in the fixed asset system.

Depreciation

Depreciation is not presented on the Spokane Public Library financial statements. Capital Assets are expensed in the financial management system in the year of acquisition. There is no calculation or application of depreciation over the useful life of the asset in the financial management system. The fixed asset system which is separate from the financial management system records depreciation for other intended purposes.

C. IMPLEMENTATION

Risk Assessment

A small and attractive risk assessment shall be completed at the time of purchase to determine which items costing less than $5,000 are vulnerable to loss. The assessment shall be conducted by the Business Office and a list of Small and Attractive Assets will be maintained in the fixed asset system. A numbered identification tag will be attached to Capital Assets and Small and Attractive Assets when purchased. A record of the asset and related tag number shall be maintained in the fixed asset system. A physical inventory of Capital Assets and Small and Attractive Assets will be conducted on a periodic basis. Certain Capital Assets, such as land, infrastructure, buildings and improvements do not require a physical inventory due to their stationary nature.

Protection

Spokane Public Library shall adequately maintain its Capital Assets and Small and Attractive Assets to protect its investment and to minimize future maintenance and replacement costs. Responsibility for control of assets will rest with the operating department where the asset is located. The operating department will ensure such control is maintained by reporting additions, internal transfers, disposals or any other asset changes to the Business Office. The Business Office 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.

Removing Assets from Inventory

Capital assets are to be removed from inventory once they are obsolete or claimed as surplus property. The operating department must immediately report obsolete or surplus items to the Business Office. When a suspected or known loss of an asset occurs, the operating department should immediately report the occurrence to the Business Office and conduct a thorough search.

Small & attractive assets are to be removed from inventory once they are obsolete or claimed as surplus property. The operating department must immediately report obsolete or surplus items to the Business Office. When a suspected or known loss of an asset occurs, the operating department should immediately report the occurrence to the Business Office and conduct a thorough search. The Business Office will routinely perform a risk assessment on the existing small & attractive asset inventory and remove items from future tracking if they no longer are considered vulnerable.

Surplus Library Materials consisting of books, periodicals, newspapers, and other reading material available for public use shall be disposed of pursuant to RCW 39.33.070. Losses are handled in accordance with the policy on fines and fees.