The Salt Lake City Public Library adheres to the following policy governing capital and non-capitalized assets.
B3.1 Definitions
Capital assets: Tangible or intangible assets that meet the capitalization thresholds outlined in this policy and, as a result, are included on the library’s capital asset list for financial reporting and physical control purposes.
Non-capitalized assets: Tangible or intangible assets, excluding capital assets, meeting the control thresholds outlined in this policy.
B3.2 Asset Capitalization Thresholds
Capital assets are tangible circulation materials inventory as well as those individual assets, when not grouped with similar assets, that:
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Have an estimated useful life in excess of two years following the date of acquisition, and
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Have a purchase price or fair market value, in the case of donations, of $5,000 or more.
B3.3 Criteria for Capital Asset Depreciation and Amortization
Capital assets are subject to depreciation or amortization. The Library employs the straight-line depreciation and amortization methods on all capital assets unless the Finance Manager and the appropriate department or branch manager deem another method more appropriate and accurate for a particular asset.
Depreciation and amortization are calculated on a prorated basis from the acquisition date or date of substantial completion in cases of constructed capital assets.
B3.4 Responsibilities for Capital Asset Management
Proper capital asset management is dependent on maintaining accurate capital asset lists and monitoring physical control of capital assets. The Finance Department maintains the capital asset list and coordinates an annual review of the list with department and branch managers. Department and branch managers are responsible to review the capital asset list annually noting additions and deletions and to maintain physical control of the capital assets assigned to their department or branch.
B3.5 Non-Capitalized Asset Control Thresholds
Non-capitalized assets include individual assets, when not grouped with similar assets, that:
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Have an estimated useful life in excess of two years following the date of acquisition, and
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Have a purchase price or fair market value, in the case of donations, of at least $500 but less than $5,000.
B3.6 Criteria for Non-Capitalized Asset Depreciation and Amortization
Non-capitalized assets and assets with a purchase price or fair market value, in the case of donations, below $500 are expensed as purchased and are not depreciated or amortized over time.
B3.7 Responsibilities for Control of Non-Capitalized Assets
Department and branch managers are responsible to maintain a list of non-capitalized assets assigned to their department or branch and to know the physical location of those assets for control purposes.
B3.8 Disposal of Capital and Non-Capitalized Assets
Capital and non-capitalized assets, other than circulation materials inventory, having an estimated value of less than $5,000 shall be deemed surplus by the department or branch manager and the Library Director. The Library Director shall approve the method of disposal, which may include selling the asset in some form of public auction process by the Library or in conjunction with another government entity, exchanging the asset for another asset of value to the Library, donating the asset to another government entity, recycling, or other traditional disposal methods. The selected method of disposal shall be based on the method that provides the maximum benefit to the Library while protecting confidential information.
Capital and non-capitalized assets, other than circulation materials inventory, having an estimated value of $5,000 or more shall be declared surplus by the Salt Lake City Public Library Board prior to disposal. Approved disposal methods include selling the asset in some form of public auction process by the Library or in conjunction with another government entity, exchanging the asset for another asset of value to the Library, donating the asset to another government entity or recycling.
Capital and non-capitalized assets destroyed, lost, or unaccounted for shall be identified during the annual inventory process and removed from the capital and non-capitalized asset lists.
Approved by Board of Directors, October 2017