“Capital expenditures” can be defined as any expense for significant assets or services used to enhance a company’s performance. These can include property, tools, office furniture and equipment, computer and copying equipment, and automobiles.
This sample Capital Expenditures, Lease Commitments and Service Contracts Policy focuses on management of capital expenditures along with procedures for entering into leases and service contracts. It covers planning, approval, analysis, control and audits. It also includes a list of suggested approval thresholds. In this sample, request for project approval is required to include the business justification and expected financial results for the capital investment.