Board Orientation Manual 2024

9.

CAPITAL ASSETS

9.1 ACQUISITION 9.1.1 Tangible Capital Assets: The Society defines a capital asset as a purchased or donated tangible item that will provide benefits to the Society for more than one year. In general, the unit prices (or group purchase price) of capital assets will be between $500-1,000 or greater, depending on the item. The value of items that will be capitalized is flexible: sometimes it may be prudent to include items of a lesser value, because of the value they bring to the organization, because they may be an easy target for theft, or because they will be used over more than one year, the latter, being one of the key determinants if an item is capitalized. In the Society’s accounts, and recorded in the audit, the following categories of capital assets are recorded:  Software Redevelopment – includes upgrades or redevelopment of the custom registration software.  Computer Hardware – includes servers, laptops, servers, peripherals, cell phones, etc.  Computer Software – includes perpetual licenses and, on-premise software, etc. (this does not include licenses that must be renewed annually, even if the licenses extend across fiscal years.)  Office Equipment – includes desk phones, scanners, A/V equipment, etc.  Bedding, Flags, Signs, and Torches – these items, with the exception of the flags, are stored in the Games inventory that goes from host society to host society.  Team BC Flags and Signs.  Furniture and Equipment – includes all office equipment. 9.1.2 Authority Authority to acquire capital assets is stated in the Signing Authorities Matrix. Note that any disposal of capital assets is approved by the same authorities required to approve their acquisition. 9.1.3 Purchase Considerations Before major capital assets (See Section 4.1 – Signing Authorities Matrix) are acquired, it is good business to consider alternative means to acquire the use of such assets. Outright ownership may not always be the most economical choice. Consider the alternatives:  Rental: for limited periods of time (note that most of the Games' capital assets are only used 8 days every other fiscal year).  Lease: usually for longer term and supported by a lease agreement.  Buy and Sell: assets may be purchased for the duration and sold after the Games.

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