Resolution number
05-03-10
Effective date
- Worthington Libraries shall maintain a capital asset system. Information within the system will be sufficient to permit the following:
- Preparation of the year-end financial statements in accordance with generally accepted accounting principles.
- Control and accountability for identification and management of assets.
- The Business Manager is responsible for the overall management of the capital asset system. Each library building manager/department manager is assigned responsibility for that library building/department's assets and for working with the Business Manager to ensure control of assets and compliance with the library's goals.
- Capital Assets are defined as those tangible assets of the Worthington Libraries with an estimated useful life in excess of one accounting period (one year) and an initial cost equal to or exceeding the category's capitalization threshold. The Capital asset's historic cost or estimated historic cost will be carried on the balance sheet of the Library until the asset is retired.
Controlled Assets are defined as tangible assets with an estimated useful life in excess of one accounting period (one year) and an initial cost of less than $5,000.00. The controlled asset's historic cost or estimated historic cost is displayed as an expense of the Library in the year the asset is acquired. The Business Manager determines what assets should be controlled with the exception of the library's collections, which are controlled through the Library Automation System.
The term General Assets within the context of this policy includes both capital assets and controlled assets. - Assets of the Worthington Libraries are classified as follows:
Category Threshold Land $.00 Building/Improvements $5,000.00 Moveable Assets $5,000.00 Construction in Progress Major projects that
are not yet completed - Assets are recorded at historic cost, or if that amount is not practicably determined, at estimated historic cost.
- General Assets (excluding Library Collections) – The purchase of capital assets is subject to approval of the Director. Transfer of assets between library buildings/departments and removal of assets to storage is initiated by the library building/department manager controlling (having custody of) the assets. Designated staff members subject to approval of the Director or Associate Director initiate disposal of assets. Assets are generally disposed of in accordance with the Surplus Furniture and Equipment policy.
- Library Collections are acquired, transferred and disposed of according to procedures defined in the Library's Procedures Manual.
Governments are not required to capitalize a collection (and all additions to that collection) whether donated or purchased that meet certain conditions. Worthington Libraries considers its Library Collections to fall under this exception category since the conditions are:- Held for public exhibition, education, or research in furtherance of public service, rather than financial gain,
- Protected, kept unencumbered, cared for, and preserved, and
- With an ongoing annual budgetary commitment to acquire items to replace or enhance the collections.
The circulating library materials are not capitalized because they fail to meet the library's useful life and/or capitalization thresholds.
- With the implementation of GASB 34, depreciation is recorded for capital assets using straight-line depreciation over the useful life of the asset. Useful life is defined for each asset class as follows:
Category Useful Life Land Not Depreciated Buildings and Improvements 30-100 years Improvements Other Than Buildings 15 years Appliances 15 years Furniture, Fixtures 10-20 Years Electronic/Other Equipment 10-20 years Computer/Electronic/Small Equipment 5 years Vehicles 8 years