6640
Inventories/Capitalization
Definitions
An Inventory is defined as an itemized list for tracking and controlling property.
Capitalization is defined as an accounting treatment whereby an item is recorded as a long-term asset on the balance sheet rather than as a consumable expense of the current period.
Property Control Manager is defined as the individual appointed or assigned by the Board to have overall responsibility for tracking capital assets and for the accuracy of the asset records.
Inventory Records
All equipment items costing in excess of $1,500 will be inventoried
All non-equipment capital assets costing in excess of $15,000 will be inventoried
All technology devices, excluding accessories
The following information must be maintained by the Assistant Superintendent for Business or designee on the equipment/fixed asset inventory:
Name and description of the property by make and model
Serial number or other identification number
District assigned identification number
Date of acquisition
Cost of the asset (amount paid or estimate, if unknown)
Location of use indicating the department having custody
Date and method of disposal and sale price
For items acquired with federal funds:
- funding source
- use and percentage of property
- percentage of federal participation in the cost
To the extent practicable, an inventory software program will be utilized to facilitate the District’s inventory tracking system.
Inventory Tags
All inventory will be tagged with the District assigned identification number and the name of the District
Capitalization of Assets
Equipment items that cost more than $5,000 will be capitalized and depreciated for GASB 34 reporting purposes
Equipment items costing less than $5,000 will be expensed for GASB 34 reporting purposes
All non-equipment capital assets costing in excess of $15,000 will be capitalized and depreciated for GASB 34 reporting purposes
All non-equipment capital assets costing less than $15,000 will be expensed for GASB 34 reporting purposes
Donated items will be capitalized at fair market value on the date of the donation
Some assets individually may fall below the capitalization threshold but may be purchased in large quantities by the District (e.g., computers). The District may choose to capitalize these assets as a group
For financial reporting purposes, fixed assets with a service life of more than two years following the date of acquisition will be capitalized. Useful lives will be determined in the year of purchase based on general guidelines obtained from professional organizations and the asset’s present condition. The District will use the straight-line method of depreciation and residual value will be considered. Depreciation expense will be calculated beginning in the year the asset is placed in service.
This policy will supersede any inconsistent provisions set forth in other Board policies adopted prior to the date hereof.
Adoption date: December 1, 1995
Amended date: April 29, 2008
Amended date: July 9, 2018
Amended date: January 14, 2019
Amended date: October 24, 2022
Amended date: February 12, 2024