704 Policy: Development and Maintenance of an Inventory of Fixed Assets and a Fixed Asset Accounting System

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1. PURPOSE
   
   The purpose of this policy is to provide for the development and maintenance of an inventory of the fixed assets of the school district and the establishment and maintenance of a fixed asset accounting system. 
    
2. GENERAL STATEMENT OF POLICY
   
   The policy of the school district is that a fixed asset accounting system and an inventory of fixed assets  be developed and maintained.
    
3. DEVELOPMENT OF INVENTORY AND ACCOUNTING SYSTEM
   
   The superintendent or such other school official as designated by the superintendent or the school board shall be responsible for the development and maintenance of an inventory of the fixed assets of the school district and for the establishment and maintenance of a formal fixed asset accounting system.  The accounting system shall be operated in compliance with the applicable provisions of the Uniform Financial Accounting and Reporting Standards for Minnesota School Districts (UFARS) with a capitalization level that equals or exceeds $5,000. Group purchases for technology, SBITAS (subscription-based information technology arrangements), furniture, or other equipment that is purchased as a per quantity that otherwise may be below the individual item threshold, the total threshold is $25,000.  The inventory shall specify the location of all continued abstracts showing the conveyance of the property to the school district; certificates of title showing title to the property in the school district; title insurance policies; surveys; and other property records relating to the real property of the school district. 
    
4. REPORT
   
   The administration shall annually update the property records of the school district and provide an inventory of the fixed assets of the school district to the school board.
   
   
   Legal References:     
   
   Minn. Stat. § 123B.02 (General Powers of Independent School Districts)
   Minn. Stat. § 123B.09 (General Powers of Independent School Districts)
   Minn. Stat. § 123B.51 (Schoolhouse and Sites; Uses for School and Nonschool Purposes; Closings)
   GASB Implementation Guide 2021-1
   
   Cross References:     
   
   MSBA/MASA Model Policy 702 (Accounting)
   MSBA Service Manual, Chapter 7, Education Funding
   
   ISD47 04.23.12
   Revised 04.27.15           
   Reviewed 03.26.18
   Revised 03.08.21
   Revised 10.11.22
   Revised 10.07.24
   Revised 05.19.25