Policy 8350

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FIXED ASSETS CAPITALIZATION   Policy Code:   8350

Fixed asset accounting is an important part of the stewardship responsibility of school officials. It allows school officials to account properly for the financial and economic resources of the school district. An inventory control system shall be established for all tangible fixed assets owned or possessed by the board of education. The finance officer shall ensure that a physical account of fixed assets is taken on an annual basis.

Definition of Fixed Asset

Fixed assets are items of tangible property, both real and personal, having a value of $5000 or more and an estimated useful life of two years or more. Fixed assets are distinguishable from intangible property, such as money or securities, and consumable tangible property, such as office supplies.

Categories of Fixed Assets

For the purposes of accounting for and taking an inventory of fixed assets, they shall be divided into the following categories:

  1. Land -- The legal right of the Board to own, possess, or use real property, including owned in fee simple, easements, rights-of-ways and leases and other interests in land.
  2. Land Improvements -- Permanent improvements (excluding buildings as defined in Section 3 below) which add value to the land or improve the use of land, such as sidewalks, parking lots, driveways, fences and drainage systems.
  3. Buildings -- Any permanent or portable, man-made structure owned by the board of education and used to house or shelter persons or property including schools, offices, warehouses, garages, sheds and similar structures.
  4. Equipment -- Any portable, tangible personal property not permanently affixed to real property that is owned, leased or used by the school system, including such items as machinery, tools, furniture, computers and motor vehicles.

Record Keeping

The finance officer shall develop an appropriate record keeping and inventory system for the school district’s fixed assets.


Legal References: G.S. 115C-36, -47, 115C-102.6A(c)(5), -523, -539

Cross References:

Adopted: July 23, 2007, Revised: September 14, 2009

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