Britton Deerfield School District
Bylaws & Policies
 

7455 - ACCOUNTING SYSTEM FOR 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

The Superintendent shall be responsible for the development and maintenance of the fixed-asset accounting system. The Superintendent shall develop procedures to ensure compliance with all fixed-asset policies.

Fixed 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 $5000. 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

 H.construction-in-progress

 I.computers shall be identified as "controlled" and shall be monitored in the fixed asset management system

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

Fixed 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 replacement cost.

The purchase of fixed assets and the disposal of fixed assets shall be initiated by the Superintendent and require the prior written approval of the Board. An asset to be disposed of by sale may be sold at auction. An auction shall be held at the discretion of the Superintendent when sufficient assets have accumulated to warrant the cost. The Superintendent shall establish minimum acceptable prices for assets sold at auction.

Depreciation shall be recorded for fund fixed assets using the method(s) agreed upon by the Superintendent, principal, and Business Manager.

Accumulated depreciation shall be calculated on a straight line basis and be recorded for general fixed assets.

The following information shall be maintained for all fixed assets:

 A.description

 B.asset classification (land, building, equipment, etc.)

 C.location

 D.purchase price

 E.vendor

 F.date purchased

 G.method of acquisition (purchase, trade-in, lease, donated, etc.)

© Neola 2002