IV.L. Capitalization Policy

Purpose

The purpose of this policy is to establish capitalization standards for the Organization in accordance with U.S. generally accepted accounting principles (GAAP).

Capitalization Threshold

The Organization capitalizes property and equipment with an acquisition cost of $5,000 or more and an estimated useful life greater than one year.

Capitalizable Assets

Capitalizable assets include, but are not limited to, furniture, equipment, computer hardware and software, vehicles, and leasehold improvements.

Expensed Items

Expenditures below the $5,000 threshold or with a useful life of one year or less are expensed as incurred. Routine repairs and maintenance that do not extend the useful life of an asset are expensed.

Depreciation

Capitalized assets are recorded at historical cost and depreciated over their estimated useful lives using a method approved by management.

Asset Records

All capitalized assets are recorded in the Organization’s fixed asset records and reviewed periodically for impairment or disposal.

Retroactivity

In support of our back audit, we need to pass this policy change retroactively, starting June 1, 2019.

[Updated per Board Approval at Board #2 (02.10.2026)]

[Updated as per Board approval at Board #1 (01.29.2026)]

[Board Approved 12/8/11]