Board Policies

Adoption Date: Dec 27, 1993

The Board 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

Fixed assets are defined as those tangible assets of the Corporation with a useful life by excess of one (1) year and an initial cost equal to or exceeding the amount determined periodically in the Corporation. 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 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. underground lines and other infrastructure

H. 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 actual, or if not determinable, estimated purchase price at the time of acquisition. The method(s) to be used to estimate such value shall be established by the business manager.

Procedures shall be developed to ensure proper purchase, transfer, and disposal of fixed assets.

Depreciation shall be recorded for funded fixed assets using the method(s) agreed upon by the Superintendent and the Treasurer.

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, donation, etc.)

M. appropriation

N. manner of asset disposal

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