Capital Assets

The district will maintain a comprehensive capital assets record-keeping system. The goal of the capital assets program is to protect the district against losses that would significantly affect the district’s students, staff, property, budget or the ability of the district to continue to fulfill its stewardship responsibilities. 

For purpose of this policy, “fixed capital assets” will mean a unit of furniture or furnishings, an instrument, a machine, an apparatus or a set of articles land, improvements to land, easements, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure and all other tangible and intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period which: 

1. Retains its shape and appearance with use;
   
   
2. Is nonexpendable, meaning if the item is damaged or some of its parts are lost or worn out, it may be more feasible to repair it than to replace it with an entirely new item;
   
   
3. Does not lose its identity when incorporated into a more complex unit;
   
   
4. Is valued no less than $5,000 unless a lesser amount is set by the district; and
   
   
5. Has a life expectancy of at least one year. 

Federal law requires a physical inventory of federally funded assets at least once every two years. Reconciled inventory reports will be provided to the board. Such report will identify lost, damaged, or stolen capital assets.  Missing capital assets will be removed from district property records by a vote of the board.

No equipment will be removed for personal or non-school use.

Theft-Sensitive Assets

For purposes of this policy, “theft-sensitive” are those items identified by the district as most subject to loss. A list of theft-sensitive assets will be maintained by the district. The district should establish procedures for internal controls and conduct an annual inventory of theft-sensitive assets.

The board will be provided a report identifying assets not accounted for in the annual inventory. These assets will be removed from the district property records through school board action annually.

The superintendent will develop procedures to implement this policy, including maintenance requirements and sales procedures to ensure the highest possible return. 

Cross References:    
Board Policy 6570         Property and Data Management

Legal References:         
RCW 28A.335.090         Conveyance and acquisition of property – Management – Appraisal
34 CFR § 80.32               Uniform Administrative requirements for grants and cooperative agreements to state and local governments – Equipment
7 CFR § 3015, 3016       Agriculture
45 CFR § 92.32               Health and Human Services

Management Resources: 
Policy News, June 2012         Auditor Raises Concerns Regarding Theft-Sensitive Assets    
Policy News, June 2008         Capital Assets/Theft-Sensitive Assets
Policy New,s April 2006          Fixed Assets

ADOPTED: 05/25/2006
REVISED: 09/25/08; 09/27/12 

Procedure No. 6801P Capital Assets/Theft-Sensitive Assets

The district’s Deputy Superintendent of Business and Operations is responsible for inventories of district property. Inventory will be conducted at least once every other fiscal year for all capital assets, except land; infrastructure; buildings; and improvements other than buildings and leasehold improvements. A theft-sensitive assets inventory will be conducted annually. The individual(s) conducting each inventory will have no direct responsibility for assets subject to the inventory count.

District assets will be marked with a unique identification number (e.g. bar code, property tag) and identified as district property. All capital assets and theft-sensitive assets will be identified and marked upon purchase or receipt.

When placing a capital asset on the inventory, the Deputy Superintendent of Business and Operations will record: 

1. Description of the item;
   
   
2. Serial number or other identification number (bar code, tag number, etc.);
   
   
3. Source of the property;
   
   
4. Who holds title;
   
   
5. Acquisition date;
   
   
6. Cost of the property;
   
   
7. Percentage of federal participation in the cost of the property and the federal pro-gram charged;
   
   
8. Location of the asset;
   
   
9. Use and condition of the property; and
   
   
10. Ultimate disposition data including the date of disposal and sale price, if applicable. Federally purchased items with a per unit fair market value over $5,000 must reimburse the federal program proportionately. Disposed items with a per unit fair market value of less than $5,000 may be retained, sold or otherwise disposed of with no further obligation to the awarding agency.

The district will maintain an inventory identifying theft-sensitive assets.  This inventory will be reviewed and updated annually.  When placing a theft-sensitive asset on the inventory the Deputy Superintendent of Business and Operations will record the information needed by the district. This should include, at a minimum, a description of the item and identification number, location and federal participation, if any.

At the conclusion of the physical inventory, the building principals and department administrators will be provided with a written copy of the inventory that lists all the assets that have been assigned to that site. The inventory will clearly identify all assigned items, including those that were not found, not used, or were in obviously unserviceable condition.

Principals and department administrators are required to attempt to locate items that have been listed as missing. Within 25 working days, the principals and department administrators are expected to return a copy of the inventory report to the purchasing department showing which items have been located and which are still missing.

The missing items will be consolidated on a report of potential write-offs. The Deputy Superintendent for Business and Operations will review the report and approve the total amount of assets to be written off.  Only write-off items will be removed from the capital assets inventory system.

Items not being used or in an obviously unserviceable condition will be identified during the inventory and the Facilities/Maintenance Department will be contacted to pick up the items for auction or disposal.      

ADOPTED: 04/23/1998
REVISED: 07/18/02; 05/25/06; 09/25/08; 09/27/12