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7455 Policy - 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. Control and accountability

      

The Director of Business Services 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 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:
 

 

            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 Director of Business Services.

 

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.   Date purchased        
 
F.   Estimated useful life
 
G.   Accumulated depreciation
 
                                     

 

Approved/Adopted:  July 13, 2009

ĉ
Shari Weinstock,
Aug 9, 2011, 1:52 PM