As steward of this District’s property, the Board of Education recognizes that the efficient management and full replacement upon loss requires accurate inventory and properly maintained property records. The Board of Education shall maintain a fixed-asset, accounting system. The fixed-asset system shall maintain sufficient information to permit the following:

Fixed assets are defined as those tangible assets of the District with 1.) a useful life of five (5) years or more and 2.) an initial cost equal to or exceeding $500. Only those assets with a historical value of $3,000 will be capitalized.

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 because of their sensitive, portable, and/or theft-prone nature. Textbooks, library books, and computer software will be expensed in the period the obligation is made and will not be recorded in the fixed asset system.

It shall be the duty of the Treasurer to ensure that inventories are recorded systematically and accurately and property records of equipment assets are updated and adjusted by reference to purchase documents and authorizations for disposals and transfers along with supporting documentation.

The Superintendent and Treasurer shall develop administrative guidelines to address the proper purchase, transfer, and disposal of fixed assets. Such assets shall be disposed of in such a manner as will be in the public interest and benefit of the District.

Fixed assets shall be classified as follows:

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 actual (Historical costs). Historical cost is supported by the vendor’s invoice and excludes the initial installation cost such as in-house labor, modifications, attachments, accessories or apparatus necessary to make the asset usable and render it into service. Historical costs include not only the cost of the item, but also ancillary charges, such as freight transportation charges, site preparation costs and professional installation charges.

All purchases, donations and improvements that meet the fixed asset definition shall be recorded in the fixed asset system. Each month, as purchases are processed, the Treasurer shall review voucher packages to determine if there were any fixed assets purchased. The Treasurer shall make copies of the identified fixed asset voucher packages, code purchases for entry into the fixed asset system and assign inventory tags to assets as applicable. Inventory tags shall be distributed to the appropriate building personnel and attached to the item.

There are purchases that may not be tagged, such as those pertaining to infrastructure or buildings. The Tag will be attached to a copy of the voucher packet and filed in a physical inventory file.

The transfer of fixed assets between buildings is to be initiated by the building principals affected, but must be authorized by the Superintendent. However, no fixed asset shall be physically moved without notifying the Treasurer of the move. An Equipment Transfer Form shall be completed and forwarded to the Treasurer for use as entry into the fixed asset system.

The Superintendent or designee, building principals, or department heads may initiate requests for the disposal of fixed assets. The Superintendent shall authorize the disposal and the manner in which the fixed asset will be disposed of within the parameters of State law. Policy 7300 will be followed for disposal of equipment. An "Authorization for Disposal of Equipment Form" shall be completed and approved by the Principal/Director and Superintendent. Such approved form shall be forwarded to the Treasurer for use into the fixed asset system.

Each year, the Treasurer’s Office will request a listing of inventory from each Principal, Lunchroom Manager, Custodial Supervisor, and Athletic Manager. It will include all classrooms as well as the library, lunchroom, auditorium, and weight room. The reports shall be reviewed by the Treasurer, changes from the previous year shall be verified if necessary and the fixed asset system shall be updated appropriately.

The Treasurer shall verify whether an expense should be recorded as an improvement to a fixed asset or maintenance cost. An improvement of a fixed asset significantly increases its value, life or capacity to serve, and should be capitalized and depreciated over its life. Maintenance restorers a fixed asset to its original level of service and should not be capitalized. Depreciation is the allocation of the cost of a fixed asset over its estimated useful life. Depreciation shall be recorded for fixed assets using straight line depreciation.

Salvage value or replacement costs will not be maintained since that value is not available and changes over time. It will be assumed that replacement cost is the same as historical costs.

Improvements to land and buildings will only be capitalized if the cost exceeds $3,000 and the improvement extends the useful life of the asset. Any expense incurred below these criteria will be expensed in the period the obligation is made.

Before a project is to be undertaken, the Treasurer’s Office should be notified of the scope of the project. All information/work sheets regularly required from the building principals or the appropriate administrator/supervisor for asset additions will also be required for "construction in progress" projects. The Treasurer’s Office will keep a running total of expenditures per project. When the project is complete, the Treasurer’s Office should be notified and at that time the asset will be recorded in the fixed asset accounting system to the appropriate class as an asset addition (i.e. buildings, equipment, etc.)

Repairs and maintenance agreements are considered an immediate expense and as such will be expensed in the period the obligation is made. They will not be maintained on the fixed asset system.

All lease agreements shall be filed with the Treasurer’s Office. All assets acquired under a capital lease agreement, which meet the fixed asset capitalization criterion, will be recorded on the fixed asset accounting system.

Useful lives of fixed assets relate to the life expectancy as used by the specific governmental unit. The following general categories of useful lives will be followed: