03.101 CAPITAL ASSET

SECTION 03 – BUSINESS and AUXILIARY SERVICES

03.101 CAPITAL ASSET
Capital assets are defined as land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, software, works of art, historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and have initial useful lives extending beyond a single reporting period. The purpose of the capital asset policy is to establish a framework from which the district may work to maintain fiscal responsibility to stakeholders, compliance with grant funding sources, and compliance with the dictates of internal control over district assets.

Assets with an original cost of $10,000 or more and a useful life in excess of one year will be inventoried, capitalized, and depreciated.

Depreciation guidelines are to be established by the Superintendent in consultation with the district's auditor.

A schedule of asset inventory, acquisitions, dispositions, current year and accumulated depreciation, and net book value of capitalized assets should be maintained by the Director of Finance and updated and reconciled to district accounting records no less than annually.

Capitalization levels are to be set at a level to fairly present the capital assets of the district and based upon district size, administrator and board preferences, and auditor recommendations.

The district will establish procedures to conduct physical inventory so that all assets are reviewed every three years. However, records will be updated as necessary or as information becomes available.

Straight Line Depreciation will be used for all assets.