An example of an item that may appear in the capital budget portion of an asset plan is:

The capital budget portion of an asset plan typically includes significant expenditures that are intended to enhance the value of an asset or extend its useful life. The replacement of the HVAC system is a prime example of such a capital expense, as it involves a substantial investment designed to improve or maintain the property’s functionality and efficiency. This type of expenditure is often categorized under capital budgets because it is not considered a recurring expense but rather an investment in the long-term assets of a facility.

In contrast, the other choices pertain to operational or incidental expenses. Office supply expenses, employee salaries, and professional fees are recurring costs associated with daily operations or services and are usually budgeted in an operating budget rather than a capital budget. These expenditures do not generally enhance the physical assets of the property or contribute to its longer-term value in the same way that a major system replacement would. Thus, the inclusion of the HVAC system replacement in the capital budget aligns with the principles of asset management focused on long-term investment and value enhancement.