Capital Asset Report Policy


Tangible Assets- Assets that can be observed by one or more of the physical senses.

Capital Assets- Tangible assets, of a durable nature, that are employed in the operating activities of the library, relatively permanent, and needed for the production of goods or services. This broad group is usually separated into classes according to the physical characteristics of the items (e.g. land, buildings, improvements other than buildings, furniture, and equipment).

Capital Outlays.-Expenditures that benefit both the current and future fiscal periods. This includes the cost of acquiring land or structures; construction or improvement of buildings, structures, or other capital assets; and equipment purchases having an appreciable and calculable period of usefulness. These are expenditures resulting in the acquisition of or addition to the library’s general capital assets.


Purchases made for land, furniture and equipment, buildings, other improvements and circulating materials using federal, state, donated or other funding will be included in an inventory through the procedures outlined in the following paragraphs. Previously purchased items will be included at their historic cost if know or at an estimated cost if an estimate is possible. Donated items will be recorded at fair market value on the date of transfer plus any associated costs.  CAPITAL ASSETS WILL BE REPORTED IN AN INVENTORY LOG AND WILL BE KEPT CURRENT BY THE LIBRARY DIRECTOR.


The library will capitalize all land purchases, regardless of cost. Original cost of land will include the full value given to the seller, including legal services incidental to the purchase (including title work and opinion), appraisal and negotiation fees, surveying and costs for preparing the land for its intended purpose (including contractors and/or library workers, salary and benefits).

Furniture and Equipment

The definition of furniture and equipment is an apparatus, tool, or conglomeration of pieces to form a tool. This category will also include artwork on display in the library. The tool will stand alone and not become a part of a basic structure or building. The library will capitalize items with an individual value equal to or greater than $­­­1,000.00. Equipment combined with other equipment to form one unit with a total value greater than the above-mentioned limit will be one unit.

Non-Capitalized Assets including Computers, Electronic Equipment, etc

For accountability and safeguarding of assets, an inventory will be kept on all computers, electronic equipment, and on all items costing less than the thresholds noted above, but more than $100.00, which will be classified as non-capitalized assets.


Buildings will be capitalized at full cost with no subcategories for tracking the cost of attachments. Examples of attachments are roofs, heating, cooling, plumbing, lighting, or any part of the basic building. Cost of items designed or purchased exclusively for the building will be included (Construction costs and items purchased during the process of renovating the building will be included if the cost exceeds $5,000.00).

 Improvements Other Than Buildings

This asset group includes improvements to land, attached or not easily removed, and with a life expectancy of greater than two years. The total cost exceeds $5,000.00and useful life is greater than two years.

Circulating Materials

In addition, the aggregate of all books and similar circulating materials with a useful life of more than one year, regardless of the original cost, will be considered capital assets.

Thanks to Delphi Public Library and Hammond Public Library for assistance with this policy.