Written by Wendy Karpel Kreitzman Friday, 25 December 2009 00:00
At the Dec. 14 public action meeting, the Great Neck Public Schools Board of Education proposed a new policy, a Policy for Asset Accounting and Inventory. This policy is a means of controlling inventory and protecting school district property by maintaining records for all fixed assets, including replacement costs and insurance coverage.
Board of Education Vice President Fran Langsner, chair of the board’s policy committee, said that this policy is not mandated by New York State law, but it is recommended. She explained that, basically, this policy outlines how to handle financial assets.
The Policy on Asset Accounting and Inventory is proposed to read as follows:
“Property records and inventory records shall be maintained for all fixed assets, which include land, buildings, improvements, equipment, furniture and materials under the control of the district.
“The Board of Education of the Great Neck Public Schools designates the school business administrator with the responsibility for the oversight of all fixed assets and other inventoried property in accordance with ‘The Uniform System of Accounts’ for school districts and the recommendations of the Office of the New York State Comptroller.
“These accounts will serve to: maintain a physical inventory of assets; establish accountability; determine replacement costs; and determine appropriate insurance coverage.
“Fixed assets acquired with a value equal to or greater than the established threshold are considered depreciable assets and shall be inventoried for the purposes of Government Accounting Standards Board (GASB), Statement No. 34, accounting practices and placed on a depreciation schedule according to its asset class and estimated useful life as stipulated by the Office of the New York State Comptroller.
“All capital assets will be recorded at cost. Donated capital assets will be recorded at fair market value at the time received. If determining cost is not practical, estimated cost may be used.
“Fixed assets that have a useful life of one year or more and physical characteristics not appreciably affected by use or consumption shall be inventoried and recorded on a periodic basis based on industry standard. The capitalization thresholds listed below will be applied to individual fixed assets and groups of fixed assets: site improvements, $5,000; building improvements, $5,000; furniture and equipment, $500.
“All assets will be depreciated using the straight-line method. Residual value will be considered.”
Since this was only a first reading, the proposed policy must return for at least two more readings prior to adoption.