Capital assets must be acquired and disposed of in a cost-effective manner that protects the AWNA from conflict-of-interest situations.

 

Parameters:

 

1. Acquisitions

 

1.1 Threshold

1.1. Individual asset items are considered capital assets if the item has a:

Purchase price of $1,000 or more;  and,

Life expectancy of more than one year.

 

Individual asset items purchased that are less than $1000 are considered expenses.

 

1.2 Classes/ lengths of amortization period

1.1 Asset classes/ lengths of amortization are as follows:

a. Computer/ office equipment - five years

b. Office furnishings - ten years

c. Leashold improvements - length of office lease

 

1.3 Method

1.1 The method of amortization is as follows:

The AWNA will follow the “straight-line” method of amortization, with amounts of depreciation to the allocated in equal amounts over each successive year of the amortization period, until the asset item is fully amortized.

 

1.4 The Executive Director includes anticipated capital acquisitions in the normal budgetary process as part of a separate capital acquisitions budget.  The Executive Director must receive Board approval prior to the purchase of unanticipated capital acquisitions.

 

1.5 Capital items must be tagged and inventoried.

 

2. Disposal

2.1 Before disposal, the Executive Director creates a record of all obsolete capital assets that includes the date purchased and the reason for disposal.

 

2.2 AWNA staff may purchase obsolete capital assets.

 

2.3 The Executive Director maintains a record of the disposal.