CFB(LOCAL) - ACCOUNTING: INVENTORIES
The fixed asset system safeguards the District's assets by establishing and maintaining an accurate inventory of all fixed assets and other property of the District.
The fixed asset policy of the District shall comply with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), federal regulations pertaining to grant application requirements, and as required by TEA Financial Accountability System Resource Guide.
For purposes of the District's financial statement, fixed assets shall be accounted for at cost, or if the cost cannot be practicably determined, at estimated cost. Donated fixed assets shall be recorded at their estimated fair market value at the time received.
Fixed Assets Defined
Fixed assets shall include land and land improvements, buildings and building improvements, capital leases, equipment, furniture, and vehicles that have a useful life greater than one year and a per-unit cost of $5,000 or more. Other material property items with a unit cost of less than $5,000 but a useful life of more than one year shall be inventoried in the District's fixed asset system.
The Superintendent shall designate a fixed assets coordinator responsible for maintaining an accurate inventory and for assigning inventory numbers for the District. Principals and directors are responsible for their individual inventories and are also responsible for accurate reporting of additions, retirements, and transfers according to approved procedures. The fixed asset coordinator shall designate appropriate personnel to take a physical count of all capital outlay property and such count shall be properly entered on the appropriate records for accounting purposes by the end of each fiscal year.
The capitalization threshold for purposes of classifying capital assets shall be $5,000.