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Foxborough Select Board approves $25,000 fixed-asset capitalization policy
Summary
The Select Board approved a formal fixed-asset capitalization policy proposed by Finance Director Maria Movver that raises the town's capitalization threshold from an informal $10,000 to $25,000 to align with the CIP process and strengthen audit readiness.
The Foxborough Select Board voted to adopt a formal fixed-asset capitalization policy on July 15 that sets the town’s capitalization threshold at $25,000, the finance director said.
"The auditors recommended that we have the policy align with our internal CIP approval," Finance Director Maria Movver told the board, explaining that the change moves an informal $10,000 practice into a documented policy and aligns capitalization with the town’s capital-improvement approval thresholds. Movver said assets with a useful life of five years or more would be capitalized and depreciated using the straight-line method, while smaller expenditures would remain operating expenditures and be recorded as such.
Board members asked for clarification on grouped purchases and whether high-cost building components (for example, chillers or cooling towers) would be capitalized. Movver said value-adding improvements and costs that extend an asset’s useful life are to be capitalized, while routine maintenance and repairs should not be. She described the policy as a working document that will be refined through discussions with the audit firm and the board.
The board moved, seconded and approved the policy to take effect for fiscal year 2025. No additional fiscal action was taken at the meeting; Movver said the policy’s adoption is intended to strengthen audit readiness and internal controls and that adjustments can be returned for board review if needed.
