The district will establish and maintain a capital assets management system for reporting capitalized assets owned or under the jurisdiction of the district in its financial reports in accordance with Generally Accepted Accounting Principles (GAAP) as required or modified by law; to improve the 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 (ex: governmental activities and business type activities) and the proprietary fund financial statements. Capital assets reported include district buildings and sites, construction progress, improvements other than buildings and sites, land, 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). The federal regulations governing school meal programs requires capital assets attributable to the school meal program with a historical cost of equal to or greater than $500 be capitalized. Additionally, capital assets are depreciated over the useful life of each capital asset per the schedule below.
|Class Description||Useful Life|
|Site Improvements||20 years|
|Outdoor Equipment||20 years|
|Roof Replacements||20 years|
|Audiovisual Equipment||10 years|
|Machinery and Tools||15 years|
|Communications Equipment||10 years|
|Furniture and Accessories||20 years|
|Licensed Vehicles||8 years|
|Athletic Equipment||10 years|
|Custodial Equipment and Appliances||15 years|
|Musical Instruments||10 years|
All intangible assets with a purchase price equal to or greater than $175,000, with a useful life of two 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.
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 third-party contractor on behalf of the government, and for development of internally generated intangible assets should be capitalized.
All equipment used by employees or students to meet the educational mission of the district must be tagged in a manner to identify them as permanent property of the Linn-Mar Community School District.
The capital assets managements system must be updated to account for the addition/acquisition, disposal, and/or relocation/transfer of capital assets. It is the responsibility in conjunction with the chief financial/operating officer to count and reconcile the capital assets with the capital assets management system on June 30th each year.
It is the responsibility of the superintendent in conjunction with the chief financial officer to develop administrative regulations implementing this policy. It will also be the responsibility of the superintendent [or designee] to educate employees about this policy and its supporting administrative regulations.
Reviewed: 7/10; 5/15; 12/18
Revised: 10/12; 12/13; 12/19; 6/21; 1/22; 10/22
Legal Reference (Code of Iowa): §§ 257.31(4); 279.8; 297.22-25; 298A
IASB Reference: 802.4