7455 - ACCOUNTING SYSTEM FOR CAPITAL ASSETS
The Board of Education shall maintain a capital asset accounting system. The capital-asset system shall maintain sufficient information to permit the following:
the preparation of year-end financial statements in accordance with generally-accepted, accounting principles
adequate insurance coverage
control and accountability
The Business Manager shall be responsible for the development and maintenance of the capital-asset accounting system. The Business Manager shall develop procedures to ensure compliance with all capital-asset policies. Each administrator shall be assigned capital-asset responsibilities.
Capital assets are defined as those tangible assets of the District system with a useful life in excess of one (1) year and an initial cost equal to or exceeding $5,000. Some items may be identified as "controlled" assets that, although they do not meet all capital-asset criteria, are to be recorded on the capital-asset system to maintain control.
Capital assets shall be classified as follows:
land, buildings (facilities), equipment, and intellectual property (including software) whether acquired by purchase, construction, manufacture, exchange, or through a lease accounted for as financed purchase under Government Accounting Standards Board (GASB) standards or a finance lease under Financial Accounting Standards Board (FASB) standards, and
additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations or alterations to capital assets that materially increase their value or useful life (not ordinary repairs and maintenance).
Leased capital assets and assets which are jointly-owned shall be identified and recorded on the fixed-asset system.
Capital assets shall be recorded at historical cost or, if that amount is not practicably determinable, at estimated historical cost. The method(s) to be used to estimate historical cost shall be established by the Business Manager.
The purchase of capital assets, the transfer of capital assets between buildings, and the disposal of capital assets shall be initiated by the department administrator and require the prior written approval of the Superintendent.
Depreciation shall be recorded for fund capital assets using the method(s) agreed upon by the Business Manager Accumulated depreciation shall be calculated on a straight line basis and be recorded for general capital assets. The following information shall be maintained for all capital assets:
description
asset classification (land, building, equipment, etc.)
location
purchase price
vendor
date purchased
voucher number
estimated useful life
estimated salvage value
replacement cost
accumulated depreciation
method of acquisition (purchase, trade-in, lease, donated, etc.)
appropriation
manner of asset disposal
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