The Assistant Superintendent of Business Services is responsible for implementing procedures and practices that will determine:
- Capitalization policies for district assets (i.e., which assets will be capitalized and depreciated over their estimated useful life versus which assets will be expensed in year of purchase).
- Methods for calculating annual and accumulated depreciation expense for assets including estimates for asset lives, residual asset values, and depreciation methodology.
- Procedures for recording gain or loss on sale of capital assets and proceeds from the sale of capital assets in compliance with GAAP.
- Reporting of estimated cash values or replacement values to district insurance providers.
As required by GAAP, the district’s annual financial statements will include information such as:
- Beginning and ending balances of capital assets.
- Beginning and ending balances of accumulated depreciation.
- Total depreciation expense for the fiscal year.
- Description of significant capital asset activity during the fiscal year including:
- Acquisitions through purchase or donation;
- Sales or dispositions including the proceeds and gains or losses on sale;
- Changes in methods of calculating depreciation expense or accumulated depreciation such as estimates of useful life, residual values, depreciation methodology (e.g., straight line or other method).
Before implementing procedures or changing procedures, the Assistant Superintendent of Business Services will review the proposed procedure with the audit firm appointed by the board of education to conduct the district’s financial audit.