The Board of Education shall maintain a fixed-asset accounting system. The fixed-asset system shall maintain sufficient information to permit the following:

     A.    the preparation of year-end financial statements in accordance with generally-accepted, accounting principles

     B.    adequate insurance coverage

     C.    control and accountability

The District Administrator shall be responsible for the development and maintenance of the fixed-asset accounting system. The District Administrator shall develop procedures to ensure compliance with all fixed-asset policies.

Fixed assets are defined as those tangible assets of the District system with a useful life in excess of one (1) year. Some items may be identified as "controlled" assets that, although they do not meet all fixed-asset criteria, are to be recorded on the fixed-asset system to maintain control.

Fixed assets shall be classified as follows:

     A.    land

     B.    building

     C.    improvements other than building

     D.    machinery and equipment

     E.    furniture and fixtures

     F.    vehicles

     G.    plant (aerator)

     H.    underground lines

     I.    construction-in-progress

Leased fixed assets and assets which are jointly-owned shall be identified and recorded on the fixed-asset system.

Fixed assets shall be recorded at historical cost or, if that amount is not practicably determinable, at estimated historical cost. The method(s) to be used to estimate historical cost shall be established by the District Administrator.

The purchase of fixed assets, the transfer of fixed assets and the disposal of fixed assets shall be initiated by the District Administrator. An asset to be disposed of by sale which has a current value shall be sold at auction. An auction shall be held at the discretion of the District Administrator when sufficient assets have accumulated to warrant the cost. The District Administrator shall establish minimum acceptable prices for assets sold at auction.

Depreciation shall be recorded for fund fixed assets using the method(s) agreed upon by the District Administrator.

Accumulated depreciation shall be calculated on a straight line basis and be recorded for general fixed assets.

The following information shall be maintained for all fixed assets:

     A.    description

     B.    asset classification (land, building, equipment, etc.)

     C.    location

     D.    purchase price

     E.    vendor

     F.    date purchased

     G.    voucher number

     H.    estimated useful life

     I.    estimated salvage value

     J.    replacement cost

     K.    accumulated depreciation

     L.    method of acquisition (purchase, trade-in, lease, donated, etc.)

     M.    appropriation

     N.    manner of asset disposal