School District of Winter
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 bookkeeper shall be responsible for the development and maintenance of the fixed-asset accounting system. The bookkeeper shall develop procedures to ensure compliance with all fixed-asset policies. Each supervisor 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 $1,000. 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:

 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

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 bookkeeper.

Depreciation shall be recorded for fund fixed assets using the method(s) agreed upon by the District Administrator, principals, the bookkeeper and the auditor.

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.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