CAPITAL ASSETS REGULATION
- Capital Assets Management System
The superintendent, and/or other designated staff, shall:
- Conduct the capital assets physical count;
- Develop the capital assets listing;
- Tag capital assets included in the capital assets management system with a bar code identification number;
- Make a recommendation of a computer software program for managing the capital assets management system;
- Enter the necessary data into the capital assets management system and compile the appropriate reports;
- Develop forms and procedures for maintaining the integrity of the capital assets management system; and,
- Maintain responsibility for an accurate capital assets management system.
- Determining historical cost
- The historical cost of a capital asset is based on the actual costs expended in making the capital assets serviceable.
- Gifts of capital assets are valued at the estimated fair market value at the addition/acquisition date.
- Capital assets purchased under a capital lease are valued at historical cost of their net present value of the minimum lease payments on the addition/acquisition date.
- The historical cost of capital assets must include capitalized interest.
- Annual capital assets listing reconciliation
- The superintendent, and/or other designated staff, in conjunction with the capital assets management team, will conduct an annual capital assets physical count to develop the annual capital assets listing in a manner similar to the initial capital assets listing process in B above.
- Upon completion of the annual capital assets listing, the capital assets listing is reconciled to the capital assets management system database.
- Capital assets found to have been excluded from the database are added to the capital assets management system.
- Addition/acquisition of capital assets.
- The school district's purchasing policy and administrative regulations must be followed when acquiring capital assets. The school district's policy and administrative regulations must be followed for receiving a gift of capital assets.
- The capital assets addition/acquisition documentation must be completed for each additional capital asset with an addition/acquisition cost of equal to or greater than $5,000. The following information should be collected, if applicable:
- Name of location-building/department/room;
- Location-building/department/room code;
- Addition/acquisition date;
- Check/purchase order number or gift;
- Bar code identification number assigned to and placed on the capital asset;
- Serial/model number;
- Cost-historical;
- Fair market value on acquisition date (donated assets only);
- Vendor;
- Purchasing fund and function;
- Description of capital asset;
- The actual costs of construction in progress, other than infrastructure, is entered into the capital assets management system in the year in which costs are incurred until the total cost of addition/acquisition is entered. Upon completion of construction, the total costs accumulated over the period of construction are reclassified to buildings.
- Capital assets acquired in a month must be entered into the capital assets management system in the same month.
E. Disposal of capital assets
1. Capital assets disposed of in a month must be entered into the capital assets management system in the same month.
2. When assets are sold or disposed of, it is necessary to calculate and report a gain or loss in the statement of activities. The gain/loss is calculated by subtracting the net book value (historical cost less any accumulated amortization) from the net amount realized on the sale or disposal.
F. Capital assets reports
- Annual reports for June 30 each year.
- Capital assets listing including the following items:
- Purchasing fund, function and depreciation function;
- Tag identification number;
- Description of the capital asset;
- Historical cost or other;
- Location;
- Current year depreciation/expense; and,
- Accumulated depreciation/amortization.
Adopted: Unknown
Revised/Reviewed: 11.9.2020
