7455 - ACCOUNTING SYSTEM

Bay Village City School District

Bylaws & Policies

7455 - ACCOUNTING SYSTEM - FIXED ASSETS

The Board of Education shall maintain a fixed asset accounting system. The fixed asset system shall maintain sufficient information to permit the following:

	A.	the preparation of year-end financial statements in accordance with generally accepted accounting principles
	B.	adequate insurance coverage
	C.	control and accountability

Fixed assets are defined as those tangible assets of the District with a useful life in excess of five (5) years and an initial cost equal to or exceeding the amount determined periodically in the District's administrative guidelines. Some items may be identified as "controlled" assets that, although they do not meet all fixed asset criteria, are to be recorded on the fixed asset system to maintain control.

Fixed assets shall be classified as follows:

	A.	land
	B.	building
	C.	improvements other than building
	D.	machinery and equipment
	E.	furniture and fixtures
	F.	vehicles
	G.	underground lines and other infrastructure
	H.	construction-in-progress

Leased fixed assets and assets which are jointly owned shall be identified and recorded on the fixed assets system.

Fixed assets shall be recorded at actual, or if not determinable, estimated purchase price or fair market value at the time of acquisition. The method(s) to be used to estimate such price or market value historical cost shall be established by the Treasurer/Director of Business & Fiscal Services.

The Superintendent shall develop administrative guidelines to ensure proper purchase, transfer, and disposal of fixed assets.

The following information shall be maintained for all fixed assets:

	A.	description
	B.	asset classification (land, building, equipment, etc.)
	C.	original location
	D.	purchase price
	E.	purchase order number
	F.	date of check
	G.	replacement cost
	H.	method of acquisition (purchase, donated, etc.)

Adopted 12/11/89
Revised 2/25/02