School Board Policy 704 -
Development and Maintenance of an Inventory of Fixed Assets and a Fixed Asset Accounting System
Adopted: december 10, 2001
REVISED: december 13, 2010
revised: march 2, 2015
Revised: July 11, 2022
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 is that a fixed asset accounting system and an inventory of fixed assets will 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). In addition, the inventory shall specify the location of all 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.
When a piece of land, land improvement, building, piece of machinery, equipment or licensed vehicle has an original cost of $5,000 or greater, it will be capitalized and placed on the fixed asset inventory. Land improvements, buildings, pieces of machinery, equipment and licensed vehicles will be depreciated over their useful life. Criteria for capitalization include all of the following:
- It retains its original shape and appearance with use.
- It is nonexpendable; that is, if the article is damaged or some of its parts are lost or worn out, it is usually more feasible to repair it rather than replace it with an entirely new unit.
- It does not lose its identity through incorporation into a different or more complex unit or substance.
- It has a useful life of greater than five years.
The value of the District's fixed assets will be included in the annual audit report presented to the Board.
Minn. Stat. 123B.02 (School District Powers)
Minn. Stat. 123B.09 (School Board Powers)
Minn. Stat. 123B.51 (Schoolhouse and Sites; Access for Noncurricular Purposes)
WBLASB Policy 702 (Accounting)
MSBA Service Manual, Chapter 7, Education Funding