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

POLICY 704

ADOPTED:  November 2002

Revised: August 2005

704      DEVELOPMENT AND MAINTENANCE OF AN INVENTORY OF FIXED ASSETS AND A FIXED ASSET ACCOUNTING SYSTEM

I. PURPOSE

The purpose of this policy is to provide for the development and maintenance of an inventory of the fixed assets of the agency and the establishment and maintenance of a fixed asset accounting system.

II. GENERAL STATEMENT OF POLICY

It is the policy of this agency that a fixed asset accounting system and an inventory of fixed assets be developed and maintained.

III.  DEVELOPMENT OF INVENTORY AND ACCOUNTING SYSTEM

The executive director or the business manager as designated by the executive director shall be responsible for the development and maintenance of an inventory of the fixed assets of the NWSC, 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).  In addition, the inventory shall specify the location of all continued abstracts showing the conveyance of the property to this agency; certificates of title showing title to the property in the NWSC; title insurance policies; surveys; and other property records relating to the real property of the NWSC.

IV. MINIMUM VALUE OF RECORDED ASSISTS

The NWSC shall maintain an inventory of all fixed assets of original value of $2,500 or more.

 V. REPORT

The administration shall annually update the property records of the NWSC and provide an inventory of the fixed assets of the NWSC to the governing board.

Legal References:      Minn. Stat. §123.33

Minn. Stat. §123.34

Minn. Stat. §123.35

Minn. Stat. §123.36