|Cedar Springs Public 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. Each principal shall be assigned fixed-asset responsibilities.
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 $5,000. 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:
|C.||improvements other than building|
|D.||machinery and equipment|
|E.||furniture and fixtures|
|J.||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 Superintendent.
The purchase of fixed assets, the transfer of fixed assets between buildings, and the disposal of fixed assets shall be initiated by the administration and require the prior written approval of the Superintendent.
Depreciation shall be recorded for fund fixed assets using the method(s) agreed upon by the Superintendent.
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:
|B.||asset classification (land, building, equipment, etc.)|
|G.||estimated useful life|
|H.||estimated salvage value|
|K.||method of acquisition (purchase, trade-in, lease, donated, etc.)|
|M.||manner of asset disposal|
© Neola 2002