Policy 704 - Development and Maintenance of an Inventory of Fixed Assets and a Fixed Asset Accounting System

Reviewed: October 18, 2016

I. PURPOSE

The purpose of this policy is to provide for the development and maintenance of an inventory of the fixed assets of the school district and the establishment and maintenance of a fixed asset accounting system.

II. GENERAL STATEMENT OF POLICY

The policy of this school district that a fixed asset accounting system and an inventory of fixed assets be developed and maintained.

III. DEVELOPMENT OF INVENTORY AND ACCOUNTING SYSTEM

The superintendent or such other school official as designated by the superintendent or the school board shall be responsible for the development and maintenance of an inventory of the fixed assets of the school district, and for the establishment and maintenance of a formal fixed asset accounting system. The accounting system shall be operated in compliance with the applicable provisions of the Uniform Financial Accounting and Reporting Standards for Minnesota School Districts (UFARS). The inventory shall specify the location of all continued abstracts showing the conveyance of the property to the school district; certificates of title showing title to the property in the school district; title insurance policies; surveys; and other property records relating to the real property of the school district.

IV. CAPITALIZATION

Princeton Public Schools General Fixed Asset Account Group includes assets valued at $1,500 or otherwise required by law, and with a useful life of more than one year.

V. DEPRECIABLE LIVES

In determining the useful life of an asset the district uses ASBO (Association of School Business Officials) GASB 34 Implementation Recommendations for School Districts guidelines. The guidelines are listed below.

Asset Class Estimated Useful Life

(Years)

Athletic Equipment

10
Audio/Visual Equipment

10
Building Construction

25
Buses / Other Vehicles

8

Business Machines

10
Carpet Replacement

7
Communication Equipment

10
Computer Hardware

5

Computer Software (administrative)

10-20
Computer Software (instructional)

5-10

Copiers

5
Custodial Equipment

15
Electrical / Plumbing

30
Furniture & Accessories

20
Grounds Equipment

15
HVAC Systems

20

Instructional Equipment

10
Kitchen Equipment

15
Land

N/A

Large Equipment

10
Library Books

5
Machinery & Tools

15
Musical Instruments

10
Outdoor Equipment

20
Plumbing

30
Portable Classrooms

25
Roofing

20
School Buildings

50
Science & Engineering

10
Site Improvements

20
Sprinkler / Fire System

25
VI. DEPRECIATION METHOD

Princeton Public School will depreciate all classes of fixed assets based on the straight line depreciation method.

VII. DONATIONS/GIFTS

Princeton Public Schools will assign a value to donations or gifts based on the current market value of that item at the time of receipt. The inventory database is to be maintained and updated semi-annually and upon receipt of any new equipment and disposal of any equipment. Each building will also have a trained representative to ensure inventory is updated. In addition to updating the inventory, each classroom, office or department will complete a physical inventory of all assets in their respective areas to ensure current information is available on the database, including all items disposed. Each building representative will update their building inventory semi-annually and give the report to the district office for updating the master list. The district office representative will be trained and updated annually in accordance with our financial software vendor.

The administration shall annually update the property records of the school district and provide an inventory of the fixed assets of the school district to the school board. This inventory may be utilized to prepare the annual report to the Commissioner required by Minn. Stat. §123B.14, Subd. 7.

Legal References:

  • Minn. Stat. § 123B.09 (School Board Powers)
  • Minn. Stat. § 123B.02 (School District Powers)
  • Minn. Stat. § 123B.51 (Schoolhouse and Sites; Access for Non-curricular Purposes)

Cross References:

Adopted: December 16, 2003
Revised: June 22, 2004
Revised: December 20, 2011
Revised: August 10, 2010
Revised: March 27, 2012
Revised: January 8, 2013
Reviewed: April 19, 2016
Reviewed: October 18, 2016