Code Number: 800.2
The School District will establish and maintain a capital assets management system for reporting capitalized assets owned or under the jurisdiction of the School District in its financial reports in accordance with generally accepted accounting principles (GAAP) as required or modified by law; to improve the School 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 a useful life of one or more years 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.
Phase I districts, as determined under GASB 34, will retroactively report intangible assets. If the actual historical cost cannot be determined for intangible assets due to lack of sufficient records, estimated historical cost will be used.
This policy applies to all intangible assets. If an intangible asset that meets the threshold criteria is fully amortized, the asset must be reported at the historical cost and the applicable accumulated amortization must also be reported. It is not appropriate to “net” the capital asset and amortization to avoid reporting. For internally generated intangible assets, outlays incurred by the government’s personnel, or by a thirdparty contractor on behalf of the government, and for the development of internally generated intangible assets should be capitalized.
The capital assets management system must be updated yearly to account for the addition/acquisition, disposal, relocation/transfer of capital assets.
It is the responsibility of the CFO to develop administrative regulations implementing this policy.
See Administration Regulation 800.2 for current capital asset procedures.
- First Adoption:
- 2007-08-13
- Revision Adoption:
- February 14, 2011/ April 7, 2016
- Legal Reference:
- Iowa Code §§ 257.31(4); 279.8; 297.22-.25; 298A (2009).