The Village of Waunakee Finance Committee approved revisions to the villages capital asset policy on July 21 to incorporate a $10,000 capitalization threshold and a new bulk-purchase rule.
Renee, a village staff member, told the committee the policy had not been substantially updated since 2003 and that the village previously raised the capitalization threshold from $1,000 to $5,000 and more recently to $10,000. She said the change reflects current practice and aligns with guidance the auditors recommended about capitalizing large chunk purchases even if individual items fall below the threshold.
Renee told the committee the auditors recommended treating a bulk purchase (for example, buying many chairs or many computers at once) as a capital asset if the aggregate acquisition met the capitalization criteria under the Governmental Accounting Standards Board interpretation now in force.
Committee members had no substantive objections. Jack Heinemann moved to approve the revised capital asset policy incorporating the bulk purchases section and the $10,000 threshold; Al Dasso seconded. The motion carried.
The approved policy edits do not change the villages practice for individual assets above $10,000; they add a clear rule for when many small items bought together should be capitalized and update dated language from the 2003 policy.