7455 - ACCOUNTING SYSTEM FOR FIXED ASSETS

Farwell Area Schools

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

The Superintendent shall be responsible for the development and maintenance of the fixed-asset accounting system.

Fixed assets are defined as those tangible assets of the District system with a useful life in excess of three (3) years and an initial cost equal to or exceeding $5,000.00. 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.	plant (aerator)
	H.	underground lines
	I.	construction-in-progress

Adopted 7/02