Policy 3800 – Capital Assets

The District establishes this policy to safeguard assets, enhance accountability, and provide accurate and uniform financial reporting in compliance with generally accepted accounting principles (GAAP), the Governmental Accounting Standards Board (GASB) Statements, the State of Wisconsin Uniform Financial Accounting Requirements (WUFAR), and U.S. Federal Government Uniform Grant Guidance.

The Chief Financial Officer and the Office of Finance shall have capital asset oversight responsibility and the authority to establish, modify, and delegate internal controls and procedures over capital assets.

The Governmental Accounting Standards Board defines Capital Assets as land, land improvements, buildings, building improvements, vehicles, machinery and equipment, easements, works of art, historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have an initial useful life extending beyond a single reporting period.

The District shall record capital assets (as defined above) that have an individual cost of $10,000 or higher and an estimated useful life in excess of one year.

The Chief Financial Officer and the Office of Finance have the authority to determine if a group of capital assets is significant. Government accounting standards state, “It may be appropriate for a government to establish a capitalization policy that would require capitalization of certain types of assets whose individual acquisition costs are less than the threshold for an individual asset.” It further states, “Capitalization policies adopted by governments include many considerations such as finding an appropriate balance between ensuring that all significant capital assets, collectively, are capitalized and minimizing the cost of recordkeeping for capital assets. A government should capitalize assets whose individual acquisition costs are less than the threshold for an individual asset if those assets in the aggregate are significant.” Computers, classroom furniture, and library books are examples of asset types that may not meet a capitalization policy on an individual basis, yet could be significant collectively.

In accordance with governmental accounting standards, capital assets must be depreciated over their estimated useful lives. The Chief Financial Officer and the Office of Finance have the authority to determine useful lives based on generally accepted accounting principles. The Chief Financial Officer and the Office of Finance have the authority to determine the appropriate depreciation methodology in accordance with governmental accounting standards.

Capital Assets no longer needed by the District are to be disposed of by making them available on a reasonable basis to any non-profit organization in quantity lots or by periodically holding public sales. Public notice will be given concerning details for the disposition of these items. The trade-in value (if applicable) will be considered before an item is disposed of and non-saleable items will be sold for salvage or destroyed.

Textbooks, library books, and other instructional materials no longer needed by the District may be disposed of by recycling, incinerating, sale, or scrapping. Requests from organizations or individuals for any of such materials will be considered, with first priority being given to non-profit organizations.

Any sale of land and property belonging to and no longer needed by the District shall be authorized by the District’s Board of Education. All monies received from the sale of land or property will be deposited in the General Fund.

Professional appraisers may be used to determine the value of capital assets, if needed.

LEGAL REF.:

  • Wisconsin Statutes
    • Sections 120.10(12) [Annual meeting power; sale of district property]
    • 120.12(1) [Board duty; care, control and management of district property]

CROSS REF.:

ADMINISTRATIVE REGULATIONS: None

AFFIRMED: March 26, 1991

REVISED:

  • April 9, 1991
  • September 9, 1991
  • October 26, 1999
  • October 28, 2003
  • December 18, 2007
  • June 24, 2025