1100 - Fixed Asset Policy

Policy #1100 Fixed Asset Policy covering SVSU, SVSUESD, MAUSD, and NBGSD

PURPOSE

It is the policy of the Southwest Vermont Supervisory Union, Southwest Vermont Union Elementary School District, Mount Anthony Union School District, and North Bennington Graded School District to provide for the proper control and conservation of district and supervisory union property as well as proper accounting for financial reporting purposes, the
Superintendent or his/her designee shall maintain a schedule of capitalized assets reported in conjunction with each of the district’s and supervisory union’s annual audit.

Capitalization of assets, inclusive of computing devices, equipment, general purpose equipment, information technology systems, special purpose equipment and supplies, occurs when all of the following criteria are met:
  1. The asset is tangible and complete. Construction in progress is capitalized but not depreciated until construction is completed;
  2. The asset is used in the operation of the district’s activities;
  3. The asset has a value and useful life at the date of acquisition that meets or exceeds the values set forth in the capitalization procedures and has a useful life of more than one year. All buildings and land must be reported regardless of value and useful life at date of acquisition.
Assets acquired through donation will be recorded at their estimated fair market value on the date of donation and capitalized according to the criteria above.

Annual depreciation will be charged in equal amounts over the estimated useful lives of all capital assets. The assets’ estimated useful life will be assigned by management in accordance with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) rulings.

Legal Reference(s): 2 CFR 200.33

Policy 1100 SVSU review date 9/9/2019

Administrative Procedures (#1100)

Value of Assetsall capitalized assets shall be recorded at historical cost at acquisition date or estimated cost if acquired prior to the date of the initial inventory. Any donated capital asset shall be recorded at the date of donation using fair market value of the item at that date.
Depreciationdepreciation shall be based on the straight-line method of depreciation over the estimated useful life of each depreciable asset or group of assets. Periodically, management shall evaluate the estimated useful life of each depreciable asset to determine if revision of such estimate is required.
Dollar Thresholda dollar threshold for each asset shall be set at an appropriate level. Management should periodically review these levels with assistance from the independent auditor and make any modifications necessary.