Elk Rapids Schools
Bylaws & Policies
 

7455 - ACCOUNTING SYSTEM - FIXED ASSETS

The Board of Education realizes that an accurate accounting of the overall financial position of the District must include valuations of properties owned by the District. The Board also recognizes that it is obligated by law to provide accurate year end financial reports to the State of Michigan and has the duty to provide adequate insurance coverage for all capital assets.

For purposes of this policy "fixed assets" are defined as those tangible assets of the District, including real property, with a useful life in excess of one (1) year and an initial cost in excess of $5,000. Some items may be identified as "controlled" assets that, although they do not meet all fixed asset criteria, are to be recorded in the fixed asset system in order to maintain physical and financial control of them.

7455.1

Classification of Fixed Assets
   
 

Fixed asset 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.

plant (aerator)
     
 

H.

underground lines
     
 

I.

construction-in-progress
     
 

J.

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

7455.2

Fixed Asset Accounting System Operations
   
 

The Superintendent shall be responsible for the development and maintenance of a fixed asset accounting system, and shall assign duties and responsibilities within it to each supervisor responsible for any of the District's fixed assets. The Superintendent shall develop procedures to ensure compliance with all fixed-asset policies. The Business Manager shall assigned fixed-asset responsibilities. The system shall contain sufficient information to permit the preparation of year end financial statements in accordance with generally accepted accounting principles, provide a basis for the determination of needed insurance coverage and provide control and accountability of all fixed assets owned by the District.
   
 

The system shall maintain the following information for all fixed assets owned or leased by the District:
   
 

A.

description
     
 

B.

classification
     
 

C.

location
     
 

D.

purchase price
     
 

E.

vendor
     
 

F.

date purchased or leased
     
 

G.

voucher number
     
 

H.

estimated useful life
     
 

I.

estimated salvage value
     
 

J.

replacement cost
     
 

K.

accumulated depreciation
 

L.

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

M.

appropriation
     
 

N.

manner of asset disposal
   
 

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 Business Manager.
   
 

The purchase of fixed assets, the transfer of fixed assets between buildings, and the disposal of fixed assets shall be initiated by the Business Manager and require the prior written approval of the Superintendent. The Business Manager shall establish minimum acceptable prices for assets sold.
   
 

The acquisition and the disposal of fixed assets shall be initiated by the Superintendent in accordance with the policies, rules, and regulations of this District. The transfer of fixed assets between buildings shall be initiated and controlled by the Superintendent.

Revised 12/11/03