Code Number: 800.2
The District will establish and maintain a capital assets management system for reporting capitalized assets owned or under the jurisdiction of the District in its financial reports in accordance with generally accepted accounting principles (GAAP) as required or modified by law; to improve the District’s oversight of capital assets by assigning and recording them to specific facilities and programs and to provide for proof of loss of capital assets for insurance purposes.
Capital assets, including tangible and intangible assets, are reported in the government-wide financial statements (i.e., governmental activities and business type activities) and the proprietary fund financial statements. Capital assets reported include school district buildings and sites, construction in progress, improvements other than buildings and sites, land and machinery, and equipment. Capital assets reported in the financial reports will include individual capital assets with a historical cost equal to or greater than $5,000 for land, buildings, and improvements other than buildings, and machinery and equipment. The Federal regulations governing school meal programs require capital assets attributable to the school meal program with a historical cost of equal to or greater than $1,000 be capitalized. Additionally, capital assets are depreciated over the useful life of each capital asset.
All intangible assets with a purchase price equal to or greater than $5,000 with useful life of more than one year, are included in the intangible asset inventory for capitalization purposes. Such assets are recorded at actual historical cost and amortized over the designated useful lifetime applying a straight-line method of depreciation. If there are no legal, contractual, regulatory, technological, or other factors that limit the useful life of the asset, then the intangible asset needs to be considered to have an indefinite useful life and no amortization should be recorded.
The capital assets management system must be updated regularly to account for the addition/acquisition, disposal, relocation/transfer of capital assets.
It is the responsibility of the Superintendent or his/her designee to:
Reconcile the District’s capital assets with the capital assets management system as part of the year-end procedures.
Design a capital assets management system that enables the District to maintain an accurate listing of capital assets. The system should be designed to comply with generally accepted accounting principles.
Contract with an outside party to conduct a physical inventory of machinery and equipment, no less than every five years.
First Adoption:
2007-08-13
Revision Adoption:
February 14, 2011/ April 7, 2016/ January 10, 2022
Reviewed Dates:
November 16, 2021
Legal Reference:
Iowa Code §§ 257.31(4); 279.8; 297.22-.25; 298A (2009).
Documents