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5541 - Accounting of Funds and Fixed Assets Publication of District’s Annual Financial Statement

Policy: Accounting of Funds and Fixed Assets Publication of District’s Annual Financial Statement Policy Number: 5541
Date of Original Policy: Date Revision Adopted: 07/11/2018
Reviewed by Policy Committee: 06/20/2018 Date of Next Review: 08/19/2021
Replacement of Policy Number: 5510, 5540 & 5621  

Accounting of Funds
  
         
Accounting and reporting procedures shall be developed to facilitate analysis and evaluation of the District’s financial status and fixed assets. The District will use the Uniform System of Accounting for School Districts.  

Books and records of the District shall be maintained in accordance with statutory requirements.  

Provision shall be made for the adequate storage, security and disposition of all financial and inventory records.  

Accounting of Fixed Assets  
                     
The District Treasurer shall be responsible for accounting for general fixed assets according to the procedures outlined by the Uniform System of Accounts for School Districts and GASB Statement 34 Regulations.

The accounts will serve to:
a)    Maintain a physical inventory of assets
b)    Establish accountability
c)    Determine replacement costs
d)    Provide appropriate insurance coverage

Fixed assets with a minimum value established by the Board, that have a useful life of one (1) year or more and physical characteristics not appreciably affected by use or consumption, shall be inventoried and recorded on an annual basis. Fixed assets shall include land, buildings, equipment and materials.

The Board shall establish a dollar threshold as a basis for considering which fixed assets are to be depreciated. Such thresholds shall ensure that at least 80 percent of the value of all assets is reported. However, it is recommended that such threshold shall not be greater than $5,000.00. A standardized depreciation method and averaging convention shall also be established for depreciation calculations.


Fixed assets acquired having a value equal to or greater than the established threshold are considered depreciable assets and shall be inventoried for the purposes of GASB 34 accounting practices and placed on a depreciation schedule according to its asset class and estimated useful life as stipulated by the NY State Comptroller’s Office or the IRS.

Assets shall be recorded at initial cost or, if not available, at estimated initial cost; gifts of assets shall be recorded at estimated fair value at the time of the gift. A property record will be maintained for each asset and will contain, where possible, the following information:

a)    Date of acquisition
b)    Description
c)    Cost or value
d)    Location
e)    Asset Type
f)    Estimated useful Life
g)    Replacement Cost
h)    Current Value
i)    Salvage Value
j)    Date and Method of disposition
k)    Responsible Official

The District Treasurer shall arrange for the annual update of the inventory and arrange for the 5-year full inventory and appraisal of school district property, equipment and material.  Any discrepancies between the inventory and the District’s property records on file should be traced and explained.

Publication of the District’s Annual Financial Statement         

In compliance with Education Law, as a central school district, the Board of Education is required to publish a financial statement, including the items of expenditure in full, at least once a year, during either July or August.  

The law requires that the information be published in one public newspaper which is published in the District.  If no public newspaper is published in the District, then the District must use a newspaper having general circulation in the District.  If no public newspaper is published in the District, and there is no newspaper having general circulation in the District, then the School District must provide the information to the taxpayers by posting copies in five (5) public places in the District.  

Education Law Section 2116-a
Education Law Section 1610, 1721, 2117, 2528 and 2577
8 New York Code of Rules and Regulations (NYCRR) Section 170.2


 
 
Superintendent: James R. Froio
Phone: 315.689.8500
Address: 9 N. Chappell St., PO Box 902 | Jordan, NY 13080