Policy 704 - Development and Maintenance of an Inventory of Fixed Assets and a Fixed Asset Accounting System
Reviewed: October 18, 2016
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.
Princeton Public Schools General Fixed Asset Account Group includes assets valued at $5,000 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)|
|Buses / Other Vehicles||8|
Computer Software (administrative)
|Computer Software (instructional)||5-10|
|Electrical / Plumbing||30|
|Furniture & Accessories||20|
|Machinery & Tools||15|
|Science & Engineering||10|
|Sprinkler / Fire System||25|
VI. DEPRECIATION METHOD
Princeton Public School will depreciate all classes of fixed assets based on the straight line depreciation method.
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.
- 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)
- Princeton Public School Policy 702 (Accounting)
- MSBA Service Manual, Chapter 7, Education Funding
- MSBA Service Manual, Chapter 9, Public School Finance
- Fixed Asset Procedure
- Fixed Asset Form
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
Revised: October 16, 2018