DID - Capital Asset Inventories

Code: DID
Adopted: 8/13/97

Re-adopted: 9/24/2003

The district will maintain a complete capital asset inventory that lists all school sites, buildings, and equipment.  This inventory will be updated as necessary.

To update these records, the district will keep current records of equipment disposed of and purchased.

The superintendent will develop administrative regulations to implement this policy, including the appropriate value of items to be inventoried.

CAPITAL ASSETS POLICY

  1. Criteria for Capitalizing Land, New Construction, Extraordinary Building Repairs, Betterments or Improvements, and replacements.
    1. Capitalize all land acquisitions, regardless of cost. All ancillary costs, such as legal and title fees, surveying fees, appraisal and negotiation fees, site preparation costs and costs related to the demolition of unwanted structures should be included. Depreciation is not calculated for land.
    2. Capitalize all costs of new construction, including professional fees of architects, attorneys, or appraisers, as well as any other costs necessary to place a building into its intended state of operation. Depreciation is not calculated for construction in progress.
    3. Capitalize costs of repairs, betterments or improvements that increase future benefits from an existing fixed asset beyond its previously assessed standard of performance if they cost $25,000 or more. Increased future benefits include an extension in the estimated useful life of the asset; an increase in the capacity of an existing fixed asset; or a substantial improvement in the quality of output or a reduction in previously assessed operating costs. Depreciation is calculated using the District defined useful life.
    4. Capitalize the acquisition of a fixed asset to replace a part of another fixed asset when the cost of the replacement is $25,000 or more, with the exception of replacement roof coverings (unless the replacement extends the useful life of the building), replacement floor coverings and windows, and the costs to convert a building to a different use (where the remodeling does not extend the useful life of the structure itself). Remove the cost and accumulated depreciation of the replaced fixed asset from the accounting records if the amounts are determinable and the replacement is capitalized. Depreciation is calculated using the District defined useful life.
  1. Criteria for Capitalizing Vehicles, Furniture and Equipment.
    1. All computers, with a historical cost greater than or equal to $5,000, shall be included in the fixed asset inventory. Computers are defined as the central processing unit (CPU), monitor, keyboard and mouse. The cost of any pre-installed software should also be included. Computers costing under $5,000 shall be inventoried for tracking and insurance purposes, but will not be capitalized and depreciated.
    2. All vehicles, furniture, and equipment with an individual value of $5,000 or more should be capitalized. In addition to the cost of the item itself, the capitalized cost should include any other normal or necessary costs required to place the asset in its intended state of operation, such as transportation charges, installation costs and any extended maintenance or warranty contracts purchased at the same time as the fixed asset.
    3. Characteristics which distinguish a fixed asset from an expendable supply:
      1. The item has an anticipated useful life of three or more years.
      2. The item retains its’ original shape and appearance with use.
      3. It is non-expendable; that is if the article is damaged or some of its part are lost or worn out, it is more feasible to repair it than to replace it with an entirely new unit.
      4. It does not lose its identity through incorporation into a different unit.
      5. Depreciation on all vehicles, furniture and equipment is calculated using District defined useful life.
  1. Depreciation Guidelines
    1. Depreciation on all capitalized assets is calculated using the District defined useful life.
    2. The straight-line method of depreciation will be used to calculate depreciation expense.
    3. During the year of acquisition, depreciation will be calculated based on the modified half-year convention, where all assets placed in service during a fiscal year will be depreciated for ½ the year.
    4. If the asset is retired during its last depreciable year, the final year’s depreciation expense will reflect any “unused” depreciation, which will equal ½ year.
  1. Disposal Guidelines
    1. Eliminate the book value of the asset being disposed. First, record depreciation expense up to the date of the disposal in order to bring the book value up to date.
    2. Record the consideration received (if any).
    3. Record any gain or loss at the time of disposition. This is calculated as the difference between consideration received (usually cash) and the book value of the asset. For example, if the District sold a building with a historical cost of $200,000 and accumulated depreciation of $140,000 at the date of disposal for $80,000 in cash, the sale would be recorded as follows:
Cash                                                          80,000
Accumulated Depreciation               140,000
Buildings                                       200,000
Gain on sale of building               20,000

 

Douglas County School District No. 4

Roseburg Public Schools

Capital Assets Listing

Suggested Useful Lives

 

 

 

 

 

 

 

Suggested

 

 

 

Useful Life

Description

 

 

(Years)

 

 

 

 

Athletic/PE equipment

 

 

10

Playground/Outdoor equipment

 

 

20

Medical/Therapy equipment

 

 

5

Telephone equipment

 

 

10

Projectors/accessories

 

 

10

Radios (mobile, portable radios)

 

 

10

Video equipment

 

 

10

Broadcast/sound/PA systems

 

 

10

AV equipment - other

 

 

10

Duplicating/copier equipment

 

 

5

Laminators

 

 

5

Office equipment - other (minimum value $5,000)

 

 

5

Microcomputers (minimum value $5,000)

 

 

5

Network equipment

 

 

10

Printers/plotters (minimum value $5,000)

 

 

5

Scanners/readers (minimum value (5,000)

 

 

5

Disk/tape/CD rom drives

 

 

5

Kitchen service equipment

 

 

20

Maintenance equipment

 

 

10

Musical instruments

 

 

10

Science/lab equipment

 

 

10

Art/craft equipment

 

 

10

Photo/film equipment

 

 

10

Printing/binding equipment

 

 

10

Stage/auditorium

 

 

30

Tools and machinery

 

 

10

Misc. school furnishings

 

 

30

Vehicles - buses

 

 

20

Vehicles - delivery type

 

 

10

Vehicles - Automobiles and pick up trucks

 

 

10

Vehicle accessories

 

 

10

Land

 

 

N/A

Buildings

 

 

50

Building systems:

 

 

 

   HVAC systems

 

 

20

   Roofing

 

 

20

   Carpet replacement

 

 

10

   Electrical/plumbing

 

 

30

Portables

 

 

25

CIP (construction in progress)

 

 

N/A

Miscellaneous

 

 

5

 

Legal Reference(s)