704.7 Fixed Assets Management System
To improve the school district's oversight of fixed assets by assigning and recording them to specific facilities and programs and to provide for proof loss of fixed assets for insurance purposes, the school district will establish and maintain a fixed assets management system for reporting capitalized fixed assets owned or under the jurisdiction of the school district in its financial reports in accordance with generally accepted accounting principles (GAAP) as required or modified by law.
A separate fixed assets listing is prepared for fixed assets in the general fixed assets account group (GFAAG) and for the fixed assets of each proprietary and fiduciary fund. "Fixed assets" in the GFAAG will include school district buildings and sites, construction in progress, improvements other than buildings and sites, land and machinery and equipment. "Fixed assets" in the proprietary funds will include school district buildings and sites, construction in progress, improvements other than buildings and sites, capitalized interest, infrastructure, land and machinery and equipment. Fixed assets reported in the financial reports will include individual fixed assets with an historical cost equal to or greater than $2,500. This district will not utilize salvage value. Fixed assets accounted for and reported in the proprietary funds are depreciated over the useful life of each fixed asset.
In accordance with Standard 34, set forth by the Governmental Accounting Standards Board, depreciation will be recorded for general fixed assets, utilizing the straight-line method with a full-month convention over the following asset lives:
Asset Class Examples Estimated Useful Life In Years
Site Improvements Paving, flagpoles,
outdoor lighting. 20
School Buildings 50
Equipment Classroom and office
furniture, fax, copiers,
grounds equipment. 5
Licensed Vehicles Buses, other on-road
Enterprise Fund Assets or Business-Type
Enterprise fund type property and equipment is accounted for at historical cost for assets with a useful life greater than one reporting period and with a value of at least $500. Depreciation is recorded over 12 years, using the straight-line method.
The fixed assets management system is updated annually to account for the addition/acquisition, disposal, relocation/transfers of fixed assets. It is the responsibility of the fixed assets manager to count and reconcile the fixed assets listing for the general fixed assets account group and for each proprietary and fiduciary fund with the fixed assets management system on June 30 each year.
It is the responsibility of the superintendent to develop administrative regulations implementing this policy. It will also be the responsibility of the superintendent to educate employees about this policy and its supporting administrative regulations.
Legal Reference: Iowa Code §§ 257.31(4); 279.8; 297.22-.25; 298A (2003).
Cross Reference: 709 Insurance Program
701.3 Financial Records
- Series 700 Auxiliary Services