BUILDING & SITES
800 - OBJECTIVES OF BUILDINGS & SITES
This series of the board policy manual sets forth the board’s objectives for the school district's buildings and sites. It shall be the intent of the board to provide sufficient school district buildings and sites for the education program. The board shall strive to provide an environment which will encourage and support learning.
In providing this environment the school district buildings and sites will accommodate the organizational and instructional patterns that support the education program. The board shall have final authority to determine what is necessary to meet the needs of the education program.
It is the responsibility of the superintendent to oversee the day-to-day operations of the school buildings and sites and to notify the board of areas in need of improvement.
Approved: 3/16/00
Reviewed: 2/15/16, 6/20/22
Revised:
BUILDINGS & SITES
801.1 - BUILDINGS & SITES LONG RANGE PLANNING
As part of the board's long range plan for the school district's education program, the board shall include the buildings and sites needs for the education program. The long-term needs for building and sites shall be discussed and determined by the board.
It is the responsibility of the superintendent to provide information including, but not limited to, enrollment projections and education program requirements to the board.
It is the responsibility of the superintendent to make a recommendation to the board regarding the need for such services and who should perform such services for the board.
Legal Reference: Iowa Code §§ 280.3, .12, .14; 297 (1995).
Cross Reference: 103 Educational and Operational Planning
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 6/20/22
BUILDINGS & SITES
801.2 - BUILDINGS & SITES SURVEYS
The board may engage the services of consultants or other personnel to study the needs of the school district's buildings and sites in providing the education program. The results of these services will be considered in planning the education program and in making decisions about the improvement and acquisition of additional buildings and sites.
Legal Reference: Iowa Code §§ 280.3, .14; 297 (1995).
Cross Reference: 103 Educational and Operational Planning
801 Site Acquisition and Building Construction
Approved: 3/16/00
Reviewed: 2/15/16, 6/20/22
Revised:
BUILDINGS & SITES
801.3 - EDUCATIONAL SPECIFICATIONS FOR BUILDINGS & SITES
Buildings and sites considered for purchase or construction by the board or currently owned by the school district and used for the education program must meet, or upon improvement be able to meet, the specifications set by the board. The board shall make this determination.
Prior to remodeling or other construction of buildings and sites, the board may appoint a committee of consultants, employees, citizens, or others to assist the board in developing the specifications for the new or improved buildings and sites. These specifications shall be consistent with the education program, and they shall provide the architect with the information necessary to determine what is expected from the facility. It shall be within the discretion of the board to determine whether a committee shall be appointed.
The education specifications shall include, but not be limited to, the financial resources available for the project, the definition and character of classrooms, the functional use to be made of the rooms, description of specialized needs, and other pertinent information as the board deems necessary.
It is the responsibility of the superintendent to make a recommendation to the board regarding the specifications of buildings and sites.
Legal Reference: Cedar Rapids Community School District, Linn County v. City of Cedar
Rapids, 252 Iowa 205, 106 N.W.2d 655 (1960).
Iowa Code §§ 73A.2, .18; 280.3, .14; 297; 544A (1995).
1974 Op. Att'y Gen. 529.
Cross Reference: 801 Site Acquisition and Building Construction
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 6/20/22
BUILDINGS & SITES
801.4 - SITE ACQUISITION
Sites acquired by the board shall meet or, upon improvement, be able to meet the specifications set out by the board prior to using the site for the education program. The board may meet in closed session to discuss potential purchases of sites in compliance with applicable laws.
It is the responsibility of the superintendent to assist the board concerning the acquisition of sites.
Legal Reference: Iowa Code §§ 21.5(j); 297 (1995).
Cross Reference: 212 Closed Sessions
705.1 Purchasing - Bidding
801 Site Acquisition and Building Construction
Approved: 03/16/00
Reviewed: 2/15/16, 6/20/22
Revised:
BUILDINGS & SITES
802.1 - MAINTENANCE SCHEDULE
The school district buildings and sites, including the grounds, buildings and equipment, will be kept clean and in good repair. Employees should notify the building principal when something is in need of repair or removal, including graffiti.
It is the responsibility of the superintendent to maintain the school district buildings and sites. As part of this responsibility, a maintenance schedule shall be created and adhered to in compliance with this policy.
NOTE: The sentence on graffiti is necessary because of the liability a school district could incur in a case involving harassment. The continued presence of graffiti could expose the school district to liability. It is recommended that school districts implement a procedure to discourage, report and remove graffiti in a timely manner.
Legal Reference: Iowa Code §§ 279.8; 280.3, .14 (1995).
Cross Reference: 502.2 Care of School Property/Vandalism
502.5 Student Lockers
802 Maintenance, Operation and Management
804.1 Facilities Inspections
Approved: 3/16/00
Reviewed: 2/15/16, 6/20/22
Revised:
BUILDINGS & SITES
802.2 - REQUESTS FOR IMPROVEMENTS
Generally, except for emergency situations, requests for improvements or repairs will be made to the superintendent by building principals and the head custodian. Requirements for requests outlined in the maintenance schedule shall be followed.
Minor improvements, not exceeding a cost of $25,000, may be approved by the superintendent. Improvements exceeding $25,000 must be approved by the board. Routine maintenance and repairs outlined in the maintenance schedule will be followed.
Legal Reference: Iowa Code §§ 279.8; 280.3, .14 (1995).
Cross Reference: 802.1 Maintenance Schedule
802.3 Emergency Repairs
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 6/20/22
BUILDINGS & SITES
802.3 - EMERGENCY REPAIRS
In the event an emergency requiring repairs in excess of the state limit to a school district facility are necessary to correct or control the situation and to prevent the closing of school, the provisions relating to bidding will not apply.
It is the responsibility of the superintendent to obtain certification from the area education agency administrator stating such repairs in excess of the state limit were necessary to prevent the closing of school.
It is the responsibility of the superintendent to notify the board as soon as possible considering the circumstances of the emergency.
NOTE: This policy reflects Iowa law regarding emergency repairs. The certification of the AEA administrator is a legal requirement.
Legal Reference: Iowa Code §§ 280.3, .14; 297.8 (1995).
Cross Reference: 705.1 Purchasing - Bidding
802 Maintenance, Operation and Management
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 6/20/22
BUILDINGS & SITES
802.4 - CAPITAL ASSETS
The school district will establish and maintain a capital assets management system for reporting capitalized assets owned or under the jurisdiction of the school district in its financial reports in accordance with generally accepted accounting principles (GAAP) as required or modified by law; to improve the school district's oversight of capital assets by assigning and recording them to specific facilities and programs and to provide for proof of loss of capital assets for insurance purposes.
Capital assets, including tangible and intangible assets, are reported in the government-wide financial statements (i.e. governmental activities and business type activities) and the proprietary fund financial statements. Capital assets reported include school district buildings and sites, construction in progress, improvements other than buildings and sites, land and machinery and equipment. Capital assets reported in the financial reports will include individual capital assets with an historical cost equal to or greater than $25,000. The Federal regulations governing school lunch programs require capital assets attributable to the school lunch program with a historical cost of equal to or greater than $500 be capitalized. Additionally, capital assets are depreciated over the useful life of each capital asset.
All intangible assets with a purchase price equal to or greater than $25,000 with useful life of two or more years, are included in the intangible asset inventory for capitalization purposes. Such assets are recorded at actual historical cost and amortized over the designated useful lifetime applying a straight-line method of depreciation. If there are no legal, contractual, regulatory, technological or other factors that limit the useful life of the asset, then the intangible asset needs to be considered to have an indefinite useful life and no amortization should be recorded.
Phase III districts, as determined under GASB 34, will not retroactively report intangible assets. If actual historical cost cannot be determined for intangible assets due to lack of sufficient records, estimated historical cost will be used.
This policy applies to all intangible assets. If an intangible asset that meets the threshold criteria is fully amortized, the asset must be reported at the historical cost and the applicable accumulated amortization must also be reported. It is not appropriate to “net” the capital asset and amortization to avoid reporting. For internally generated intangible assets, outlays incurred by the government's personnel, or by a third-party contractor on behalf of the government, and for development of internally generated intangible assets should be capitalized.
The capital assets management system must be updated monthly to account for the addition/acquisition, disposal, relocation/transfer of capital assets. It is the responsibility of the superintendent to count and reconcile the capital assets with capital assets management system on June 30 each year.
It is the responsibility of the superintendent to develop administrative regulations implementing this policy. It will also be the responsibility of the superintendent to educate employees about this policy and its supporting administrative regulations.
NOTE: This is a mandatory policy. It is suggested the board consider a capitalization threshold consistent with the GASB 34 Committee Recommendations which recommended "districts and AEAs implement capitalization levels that would capture at least 80% of the value of assets. However, the threshold should not be greater than $5,000." In addition, Boards may wish to establish guidelines at lower thresholds for keeping track of capital assets for internal control and insurance purposes.
In determining the capital asset capitalization threshold, the size of the school district, the property insurance deductible and the time and effort necessary to account for and track capital assets with a lesser value should be considered. It is strongly recommended the board consult with the school auditor prior to setting the capitalization threshold.
An intangible asset should be recognized in the statement of net assets only if it is identifiable which means the asset is either separable or, arose from contractual or other legal rights, regardless of whether those rights are transferable or separable. The intangible asset must also possess all of the following characteristics/criteria:
- lack of physical substance;
- be of a nonfinancial nature (not in monetary form like cash or investment securities); and,
- the initial useful life extending beyond a single reporting period.
Examples of intangible assets include easements, land use rights, patents, trademarks and copyrights. In addition, intangible assets include computer software purchased, licensed or internally generated, including websites, as well as outlays associated with an internally generated modification of computer software.
Intangible assets can be purchased or licensed, acquired through nonexchange transactions or internally generated. Intangible assets exclude assets acquired or created primarily for purposes of directly obtaining income, assets from capital lease transactions reported by lessees, and goodwill created through the combination of a government and another entity.
A school district could, and many do, use bar code identification tags to control capital assets, such as VCRs, technology equipment, etc., even though these capital assets have a cost below the capitalization threshold. In tracking these capital assets only the information necessary to control the location and use of them needs to be maintained. Some school districts video-tape each classroom/office annually to save time and effort tracking capital assets below the capitalization threshold. The video tape is also helpful for insurance claims. Whether a school district chooses to track capital assets with a cost below the capitalization threshold or not, capital assets with a cost below the capitalization threshold should not be included in the capital assets listing for reporting purposes.
This policy provides for valuing capital assets at historical cost as required by GAAP. This policy bases the capitalization threshold on the historical/acquisition cost of the individual asset. The school district can choose to use the historical cost of all the items included in a purchase order as the basis for determining whether to capitalize the capital asset. The cost of improvements may be added to the historical cost of a capital asset. Deciding whether to add the costs of an improvement to a capital asset's historical cost is a judgment call which should be made after consulting with the school auditor.
Legal Reference:
Iowa Code §§ 257.31(4); 279.8; 297.22-.25; 298A.
I.C. Iowa Code
Description
Iowa Code § 257.31
Finance Program - Committee
Iowa Code § 279.8
Directors - General Rules - Bonds of Employees
Iowa Code § 297
School Houses/Sites
Iowa Code § 298A
School District Fund Structure
Cross References
Code
Description
701.03
Financial Records
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 6/20/22
BUILDINGS AND SITES
802.4R1 - CAPITAL ASSETS REGULATION
NOTE: This sample administrative regulation provides a sample capital asset management system. It is important the administrative regulations adopted by a school district reflect is its actual practice. The school district may choose to employ a service provider to conduct the annual capital assets physical count, annual capital assets listing and to implement a capital assets management system for capital assets required to be capitalized under board policy. Should the board employ a service provider, it is important to have the school attorney review the request for proposals and to draft the service provider contract.
This sample administrative regulation provides for valuing capital assets at historical cost as required by GAAP. This administrative regulation also requires the school district to maintain the replacement value of capital assets. Should the school district decide not to maintain replacement values for its capital assets, the requirement should be deleted from the administrative regulation.
Some school districts in completing their initial capital assets listing consider a room a unit. For example, 25 student desks, one teacher's desk, one teacher's chair, wastebasket, two storage/file cabinets and so forth could be considered a room unit with a value of $35,000. The unit is included as one item on the capital assets listing.
This may be a difficult element of a capital assets management system. Capital assets have a tendency to be moved around and the employees moving them generally do not remember to complete the paperwork or even to inform the superintendent. A quality annual reconciliation process must be done to ensure a valid capital assets listing. Some school districts require a designated person at each building to complete the paperwork upon the disposal of a capital asset. School districts with a local area network can save paperwork by allowing each building to enter the information regarding disposal of capital assets as long as the appropriate checks and balances exist to verify the information.
The school auditor may, at a minimum, require a capital assets listing with the historical or other cost basis and balance sheet accounting/class code for each capital asset in the capital assets listing. It is important for the school district to consult with the district’s auditor prior to determining the school district's requirements for this annual report. The other items listed above are optional unless recommended by the school auditor to meet the school district's needs.
The capital assets listing total dollar amount must equal the amount entered on the school district's Certified Annual Report (CAR). This amount is calculated as follows:
Capital assets listing prior year by balance sheet accounting/class code
+ Additions/Acquisitions by balance sheet accounting/class code
- Disposal by balance sheet accounting/class code
= Capital assets listing current year by balance sheet accounting/class code
The last three reports may be used by school districts for many different purposes. For example, the "capital assets listing by location/building" and “capital assets listing by department/employee/person charged with custody" are used by school districts for the annual capital assets listing reconciliation to compare the actual capital assets in a building or department/room with the information in the capital assets management system.
| I.C. Iowa Code | Description |
|---|---|
| Iowa Code § 257.31 | Finance Program - Committee |
| Iowa Code § 279.8 | Directors - General Rules - Bonds of Employees |
| Iowa Code § 297 | School Houses/Sites |
| Iowa Code § 298A | School District Fund Structure |
| Code | Description |
|---|---|
| 701.03 | Financial Records |
| 709 | Insurance Program |
BUILDINGS AND SITES
802.4R2 - CAPITAL ASSETS MANAGEMENT SYSTEM DEFINITIONS
Balance sheet accounting/class codes - the codes set out for assets in the Iowa Department of Education Uniform Accounting Manual. They are: 200-capital assets; 211- land and land improvements; 221-site improvements; 222-accumulated depreciation on site improvements; 231-buildings and building improvements; 232-accumulated depreciation on buildings and building improvements; 241-machinery and equipment; 242-accumulated depreciation on machinery and equipment, 251-works of art and historical treasures; 252-accumulated depreciation on works of art and historical treasures, 261-infrastructure, 262-accumulated depreciation on infrastructure, and 271-construction in progress.
Book value - the value of capital assets on the records of the school district, which can be the cost or, the cost less the appropriate allowances, such as depreciation.
Buildings and building improvements - a capital assets account reflecting the addition/acquisition cost of permanent structures owned or held by a government and the improvements thereon.
Business-type activities – one of two classes of activities reported in the government-wide financial statements. Business-type activities are financed in the whole or in part by fees charged to external parties for goods or services. These activities are usually reported in enterprise funds.
Capital expenditures/expenses - expenditures/expenses resulting in the addition/acquisition of or addition/acquisition to the school district's capital assets.
Capital assets - Capital assets with a value of equal to or greater than $25,000 based on the historical cost include: long-lived assets obtained or controlled as a result of past transactions, events or circumstances. Capital assets include buildings, construction in progress, improvements other than facilities, land, machinery and equipment, and intangible assets.
Capitalization policy - the criteria used by the school district to determine which capital assets will be reported as capital assets on the school district’s financial statements and records
Capitalization threshold - The dollar value at which a government elects to capitalize tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period.
Capitalized interest - interest accrued and reported as part of the cost of the capital assets during the construction phase of a capital project. The construction phase extends from the initiation of pre-construction activities until the time the asset is placed in service.
Construction in progress - buildings in the process of being constructed other than infrastructure.
Cost - the amount of money or other consideration exchanged for goods or services.
Depreciation/Amortization - expiration in the service life of capital assets, other than wasting assets, attributable to wear and tear, deterioration, action of the physical elements, inadequacy and obsolescence. In accounting for depreciation/amortization, the cost of a capital asset, less any salvage value, is prorated over the estimated service life of such an asset, and each period is charged with a portion of such cost.
Fixtures - attachments to buildings that are not intended to be removed and cannot be removed without damage to the buildings. Those fixtures with a useful life presumed to be as long as that of the building itself are considered a part of the building. Other fixtures are classified as machinery and equipment.
General capital assets - capital assets that are not capital assets of any fund, but of the governmental unit as a whole. Most often these capital assets arise from the expenditure of the financial resources of governmental funds.
General capital assets account group (GFAAG) - a self-balancing group of accounts established to account for capital assets of the school district, not accounted for through specific proprietary funds.
Government activities – activities generally financed through taxes, intergovernmental revenues, and other non-exchange revenues. These activities are usually reported in governmental funds and internal service funds.
Government-wide financial statements – Financial statements that incorporate all of a government's governmental and business-type activities, as well as its nonfiduciary component units. There are two basic government-wide financial statements the statement of net assets and the statement of activities. Both basic government-wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting.
Historical (acquisition) cost - the actual costs expended to place a capital asset into service. For land and buildings, costs such as legal fees, recording fees, surveying fees, architect fees and similar fees are included in the historical cost. For machinery and equipment, costs such as freight and installation fees and similar fees are included in the historical cost.
Improvements – In addition made to, or change made in, a capital asset, other than maintenance, to prolong its life or to increase the efficiency or capacity. The cost of the addition or change is added to the book value of the asset.
Improvements other than buildings - attachments or annexation to land that are intended to remain so attached or annexed, such as sidewalks, trees, drives, tunnels, drains and sewers. Sidewalks, curbing, sewers and highways are sometimes referred to as "betterments," but the term "improvements" is preferred.
Infrastructure – long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include; roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems.
Investment in general capital assets - an account in the GFAAG representing the school district's investment in general capital assets. The balance in this account generally is subdivided according to the source of the monies that finance the capital assets addition/acquisition, such as general fund revenues and special assessments.
Land and buildings - real property owned by the school district.
Machinery and equipment - capital assets which maintain their identity when removed from their location and are not changed materially or consumed immediately (e.g., within one year) by use. Machinery and equipment are often divided into specific categories such as: transportation machinery and equipment which includes school buses and school district owned automobiles, trucks and vans; other motor machinery and equipment which includes lawn maintenance machinery and equipment, tractors, motorized carts, maintenance machinery and equipment, etc.; other machinery and equipment which includes furniture and machinery and equipment contained in the buildings whose original cost is equal to or greater than $25,000, and capital assets under capital leases and capital assets being acquired under a lease/purchase agreement.
Proprietary funds – Funds that focus on the determination of operating income, changes in net assets (or cost recovery), financial position, and cash flows. There are two different types of proprietary funds: enterprise funds and internal service funds.
Replacement cost - the amount of cash or other consideration required today to obtain the same capital assets or its equivalent.
| I.C. Iowa Code | Description |
|---|---|
| Iowa Code § 257.31 | Finance Program - Committee |
| Iowa Code § 279.8 | Directors - General Rules - Bonds of Employees |
| Iowa Code § 297 | School Houses/Sites |
| Iowa Code § 298A | School District Fund Structure |
| Code | Description |
|---|---|
| 701.03 | Financial Records |
| 709 | Insurance Program |
BUILDINGS & SITES
802.5 - BUILDINGS & SITES ADAPTATION FOR PERSONS WITH DISABILITIES
The board recognizes the need for access to its buildings and sites by persons with disabilities. School district buildings and sites currently in use will be altered to be accessible to persons with disabilities unless the alteration would cause an undue hardship for the school district. Renovated and new buildings and sites shall be accessible to persons with disabilities.
It is the responsibility of the superintendent, upon board approval, to take the necessary action to ensure school district buildings and sites are accessible to persons with disabilities.
NOTE: This policy reflects disability law as it relates to physical facilities. School districts are required to have a physical facilities transition plan that outlines when physical facilities will become accessible to persons with disabilities.
Legal Reference: 29 U.S.C. §§ 621-634 (1988).
42 U.S.C. §§ 12101 et seq. (Supp. 1990).
Iowa Code chs. 104A; 216 (1995).
281 I.A.C. 41.27.
Cross Reference: 102 Equal Educational Opportunity
603.3 Special Education
Approved: 3/16/00
Reviewed: 2/15/16, 6/20/22
Revised:
BUILDINGS & SITES
802.6 - VANDALISM
The board believes everyone should treat school district buildings and sites and property with respect for the benefit of the education program. Users of school district property shall treat it with care. Employees discovering vandalism should report it to the building principal as soon as possible.
Persons suspected, found or proven to have destroyed or otherwise harmed school district property may be subject to discipline by the school district, if the person is under the jurisdiction of the school district, and may be reported to local law enforcement officials. Persons who are not under the jurisdiction of the school district and who are suspected, found or proven to have destroyed or otherwise harmed school district property shall be reported to the local law enforcement authorities.
Legal Reference: Iowa Code § 279.8 (1995).
Cross Reference: 502 Students Rights and Responsibilities
903.4 Public Conduct on School District Premises
Approved: 3/16/00
Reviewed: 2/15/16, 6/20/22
Revised:
BUILDINGS & SITES
802.7 - ENERGY CONSERVATION
In concert with the board's goal to utilize public funds in an effective and efficient manner, employees and students shall practice energy conservation methods when utilizing the school district's buildings and sites. These methods may include, but are not limited to, turning off lights and equipment when not in use, reducing the temperature of the facility, particularly when it is not in use, and keeping windows and doors properly closed or open, depending upon the weather.
It is the responsibility of the superintendent to develop energy conservation guidelines for employees and students. Employees and students will abide by these guidelines
Legal Reference: Iowa Code §§ 279.44; 473.19-.20 (1995).
Cross Reference: 700 Purpose of Noninstructional and Business Services
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 6/20/22
Buildings and Sites
802.8 - Fixed Assets
RESCINDED 6/20/22
General Fixed Assets/Capital Assets
All assets purchased by the WACO Community School District are subject to the following policy:
General Fixed Assets/Capital Assets
Capital Assets are recorded as expenditures in the Government Funds and are capitalized in the General Fixed Assets Account Group. Assets in this account group are recorded at a historical cost and must have a useful life greater than one reporting period and have a value of at least $5,000.00. This district will not utilize salvage value.
In accordance with Standard 34, set forth by the Government Accounting Standards Board, depreciation will be recorded for general fixed assets, utilizing the straight-line method with a half-year convention over the following lives
Asset Class
Examples
Estimated Useful Life in Years
Site Improvement
Paving, flagpoles, retaining walls, sidewalks, fencing, outdoor lighting
20
School Buildings
50
Equipment
Classroom and office furniture, fax, copiers, computer hardware, grounds equipment
5
Licensed Vehicles
Buses, other on-road vehicles
7
Enterprise Fund Assets or Business-Type
Enterprise fund type property and equipment is accounted for at historical cost for assets with a useful life greater than one reporting period with a value of at least $500. Depreciation is recorded over 12 years, using the straight-line method.
Approved: July 26, 2004
Reviewed: 2/15/16
Revised:
BUILDINGS AND SITES
802.9 - INTANGIBLE ASSETS POLICY
RESCINDED, 6/20/22
I. Definition of Intangible Assets
A. Intangible Assets
Intangible assets are assets that are:
(1) Identifiable – Either the assets:
(a) Can be separated or divided from the District and sold,
transferred, licensed, rented or exchanged; or
(b) Arose from some legal right (i.e., a contractual right),
regardless of whether those rights are separable or
dividable;
(2) Lacking physical substance;
(3) Non-financial in nature – The assets are not in a monetary form,
such as cash or investment securities; and
(4) Possessing a useful life that extends beyond a single financial
reporting period.1
Examples of intangible assets include the following:
(1) Easements or land use rights (i.e., water rights, timber rights and
mineral rights);
(2) Patents, trademarks and copyrights; and
(3) Computer software or websites that are purchased, licensed or
internally generated.
Examples of assets that are not intangible assets for purposes of this Policy
include only the following:
(1) Assets acquired or created primarily for purposes of obtaining
income or profit, as these are considered investment assets;
(2) Assets from capital lease transactions reported by lessees, except
licensing agreements to lease commercially available computer
software; and
(3) Goodwill established or created between the District and another
entity.
B. Outlays Associated with Internally Generated Intangible Assets
Intangible assets that are generated or created internally likely have outlay
expenses associated with the generation or creation. Intangible assets are
considered to be generated or created internally if they are:
1This requirement also applies to an intangible asset in the form of a computer software license purchased or renewed, and the useful life must extend beyond a single reporting period in order for the computer software license to be capitalized.
(1) Created by the District;
(2) Created by a third-party contracted by the District; or
(3) Acquired by the District from a third-party and require more than
minimal incremental effort on the part of the District to begin to
achieve the expected level of service capacity.
C. Outlays Associated with Internally Generated Computer Software
Computer software that is generated or created internally likely has outlay
expenses associated with the generation or creation. Computer software is
considered to be generated or created internally if it is:
(1) Developed by the District;
(2) Developed by a third-party contracted by the District; or
(3) Commercially available software acquired, purchased or licensed
by the District from a third-party that is modified using more than
minimal incremental effort before being put into operation.
II. Measuring of Intangible Assets
A. Threshold for Capitalization of Intangible Assets
All intangible assets at or above $50,000 must be reported for the audit and Certified Annual Report (CAR), all other intangible assets are excluded. The threshold is to be applied to individual intangible assets and shall prohibit the aggregation of item, including intangible assets and outlays, to meet the threshold.2
B. Recognition of Intangible Assets
The District shall record individual intangible assets exceeding the threshold
amount outlined in the District’s intangible asset capitalization threshold policy as
follows:
(1)Intangible assets received in an exchange transaction or purchased
shall be recorded at actual historical cost, which includes direct
costs, and excludes indirect costs;
2 With intangible assets in the form of computer software licenses purchased or renewed, each individual license much be accounted fo separately and all licenses cannot be aggregated for purposes of measuring whether the assets have exceeded the threshold.
(2) Intangible assets in the form of business activities and enterprise
funds received in an exchange transaction or purchased shall be
recorded at actual historical cost, which includes direct costs,
specifically capitalized interest and ancillary charges, and excludes
indirect costs; and
(3) Intangible assets received in a non-exchange transaction or
donated shall be recorded at estimated fair market value at the time
of acquisition, which requires implementation of a rational method
to determine or estimate the value at which the asset could be
exchanged between willing parties not involved in a forced sale.
(4) Intangible assets reported retroactively3 shall be recorded at actual
historical cost,4 regardless of whether the asset is fully amortized
prior to June 30, 2009. If an intangible asset reported retroactively
is fully amortized prior to June 30, 2009, the District shall record the
value of the intangible asset separately from the value of the
amortization.
III. Accounting for Intangible Assets
A. Intangible Assets
Intangible assets exceeding the threshold shall be accounted for as capital
assets. Therefore, all financial requirements concerning capital assets, including,
but not limited to, all accounting and reporting requirements, such as those
associated with recognition, measurement, presentation and disclosure, shall be
followed.
B. Outlays Associated with Internally Generated Intangible Assets
Outlays from internally generated intangible assets exceeding the threshold shall
not be accounted for as capital assets until they are identifiable and the
“specified conditions criteria” have occurred (see below). Outlays exceeding the
threshold not meeting these requirements and/or incurred prior to these criteria
occurring shall be accounted for as an expense when the expense is incurred.
Outlays from internally generated intangible assets exceeding the threshold shall
be accounted for as capital assets if they occur after such time as:
(1) The assets are identifiable – See the definition outlined in Section I
of this Policy; and
(2) The “specified conditions criteria” have occurred, as follows
3 Reference Section VI of this Policy for the retroactive reporting of intangible assets.
4 If actual historical cost cannot be determined for intangible assets acquired prior to June 30,
2009, due to lack of sufficient records, estimated historical cost shall be used
(a) Determination of the specific objective of the project and the
nature of the service capacity that is expected to be provided
by the intangible asset upon completion of the project;
(b) Demonstration of the technical or technological feasibility for
completing the project so that the intangible asset will
provide its expected service capacity; and
(c) Demonstration of the current intention, ability, and presence
of effort to complete or, in the case of a multiyear project,
continue development of the intangible asset.
C. Outlays Associated with Internally Generated Computer Software
Outlays from internally generated computer software developed by the District or
by a third-party contracted by the District exceeding the threshold shall be
accounted for as follows:
(1) During the preliminary project stage, all outlays exceeding the
threshold shall be accounted for as an expense when the expense
is incurred. The preliminary project stage involves the conceptual
formulation and evaluation of alternatives, the determination of the
existence of needed technology and the final selection of
alternatives for development of the software.
(2) During the application development stage, outlays that occur before
the specified conditions criteria have occurred and exceed the
threshold shall be accounted for as an expense when the expense
is incurred; outlays that occur after the specified conditions criteria
have occurred5 and exceed the threshold6 shall be accounted for as
capital assets; and outlays that occur after the computer software is
substantially complete and operational and exceed the threshold
shall be accounted for as an expense when the expense is
incurred. The application development stage involves the design of
the chosen path, including, but not limited to the purchase of the
5 The specified conditions criteria are considered to be met for internally generated computer
software developed by the District or a third-party contracted by the District when the preliminary
project stage is complete and the Board authorizes and/or commits to funding the development of
new computer software.
6 In determining whether the outlays exceed the threshold, each outlay shall be accounted for
separately and no outlay shall be aggregated with any other outlay for purposes of measuring
wither the outlays have exceeded the threshold. For example, the initial purchase of the
computer software or license and the modifications made to the computer software or license
should be accounted for separately and should not be aggregated for purposes of measuring
wither the outlays have exceeded the threshold.
software or license;7 the software configuration and the software
interfaces; the coding; the installation to hardware; the testing; any
minor modifications made to the software before it is placed into
operation;8 and the data conversion, if such was deemed necessary
in order to make the software operational.
(3) During the post-implementation and operation stage, all outlays
exceeding the threshold shall be accounted for as an expense
when the expense is incurred. The post-implementation and
operation stage includes the data conversion, if such was not
deemed necessary during the application development stage in
order to make the software operational; the application training; and
the software maintenance.
Outlays from internally generated computer software extensively modified by the
District or by a third-party contracted by the District exceeding the threshold shall
be accounted for as follows:
(1) All outlays from the modification of computer software exceeding
the threshold shall be accounted for as capital assets if the one of
the following conditions exist:
(a) The modification causes an increase in the functionality of
The software (the software is able to perform tasks that it was
previously incapable of performing);
(b) The modification causes an increase in the efficiency of the
software (the software offers an increased level of service
without the need for an increased performance of tasks); or
(c) The modification extends the estimated useful life of the
software.
(2) All outlays from the modification of computer software exceeding
the threshold shall be accounted for as an expense when the
expense is incurred if none of the above conditions exists.
IV. Amortization of Intangible Assets
In amortizing an intangible asset that is capitalized because it exceeds the
threshold and meets the requirements above,9 the following general rules shall
apply:
(1) The useful life of an intangible asset generally shall be estimated.
Therefore, the intangible asset has a determinable useful life, even
if it must be estimated, and shall be amortized using the straightline
method.
7 The purchase of the computer software or license shall be treated as an outlay that shall be capitalized.
8 Making minor modifications to the computer software or license shall be treated as an outlay
that shall be capitalized.
9 This includes intangible assets that were in existence from July 1, 1980, through June 30, 2009,
and must be retroactively reported
(2) The useful life of an intangible asset that arises from and is limited
by contractual or other legal rights shall not exceed the period of
the intangible asset’s service capacity provided under the contract
or other legal provision. Therefore, the intangible asset has a
determinable useful life, even if it must be estimated, and shall be
amortized using the straight-line method.
(3) The useful life of an intangible asset that is not limited by any legal,
contractual, regulatory, technological or other factors shall be
indefinite. Therefore, the intangible asset has no determinable
useful life and shall not be amortized.
In considering changes in circumstances that affect the amortization of an
Intangible asset, the following rules shall apply:
(1) An intangible asset that arises from and is limited by contractual or
other legal rights shall take into consideration contract renewal
periods for purposes of determining its useful life and its
amortization schedule only if the following requirements are met.
(a) There is evidence that the District will seek and be able to
achieve contract renewal; and
(b) The anticipated outlay for contract renewal is nominal in
relation to the level of service capacity obtained by the
contract renewal.
(2) An intangible asset that was once not limited by any legal,
contractual, regulatory, technological or other factors, but now is
limited by such factors due to changes in conditions, shall be tested
for impairment10 because the expected duration of the useful life of
the asset has changed, and then the following rules shall apply:
(a) If an impairment is determined not to exist, the intangible
asset has a determinable useful life and shall be amortized
using the straight-line method.
(b) If an impairment is determined to exist, the following must
occur:
(i) The loss due to the impairment shall be accounted for
as a loss;
(ii) The intangible asset has a useful life that must be
estimated and is determinable; and
(iii) The carrying value, or the value remaining after
accounting for the impairment, shall be amortized
using the straight-line method over the remaining
estimated useful life.
10 Internally generated intangible assets and computer software commonly experience impairment with development stoppage, including, but not limited to, stoppage of development of computer software due to changes in the priorities of manage
V. Selling or Disposing of Intangible Assets
In selling or disposing of intangible assets, the District shall calculate and report a
gain or loss on the sale or disposal. The gain or loss shall be calculated by
subtracting the net book value, which consists of the historical cost less any
accumulated amortization, from the net amount realized on the sale or disposal.
VI. Application of Policy
The requirements of this Policy shall apply to all financial statements covering
periods beginning after June 30, 2009. Consequently,
The requirements of this Policy shall apply retroactively to intangible assets that
were in existence from July 1, 1980, through June 30, 2009.11 However, the
following intangible assets shall not be retroactively reported as capital assets:
(1) Intangible assets considered to have an indefinite useful life as of
June 30, 2009;
(2) Intangible assets considered to be internally generated as of June
30, 2009;
(3) Outlays from internally generated computer software incurred in the
application development stage on or prior to June 30, 2009;12
(4) Any intangible asset held by a “Phase 3” District, characterized as
such for purposes of implementing GASB Statement 34.
11 This includes computer software purchased prior to June 30, 2009, that is currently still in use.
12 Reference Section III, Subsection C of this Policy for the accounting of outlays from internally generated computer software incurred in the application development state after June 30, 2009.
13 For the purposes of implementing GASB Statement 34, WACO is considered a Phase III District.
Approved:
Reviewed: 2/15/16
Revised:
BUILDINGS & SITES
803.1 - DISPOSITION OF OBSOLETE EQUIPMENT
School property, such as equipment, furnishings, equipment and/or supplies (hereafter equipment), will be disposed of when it is determined to be of no further use to the school district. It is the objective of the school district in disposing of the equipment to achieve the best available price or most economical disposal.
Obsolete equipment or property other than real property having a value of no more than $25,000 will be sold or disposed of in a manner determined by the board. However, the sale or disposition of equipment, furnishings or supplies disposed of in this manner will be published in a newspaper of general circulation. If any obsolete equipment or property has a value above $500 then the board will ask for bids. If any obsolete equipment has a value of less than $500 then those items may be auctioned off by either bids or best offer.
A public hearing shall be held regarding the disposal of the equipment with a value of $25,000 or more prior to the board's final decision.The board will adopt a resolution announcing the proposed sale or disposition and will publish notice of the time and place of the public hearing and the description of the property will be in the resolution. Notice of the public hearing will be published at least once, but not less than 10 days and not more then 20 days, prior to the hearing date unless otherwise required by law. Upon completion of the public hearing, the boad may dispose of the equipment.
It will be the responsibility of the superintendent to make a recommendation to the board regarding the method for disposing of equipment no longer useful to the school district.
Legal Reference: Iowa Code §§ 297.22-.25 (1995).
Cross Reference: 704 Revenue
705.1 Purchasing - Bidding
803 Selling and Leasing
Approved: 12/17/98
Reviewed: 2/15/16
Revised: 3/16/00, 7/18/2022
BUILDINGS & SITES
803.2 - LEASE, SALE OR DISPOSAL OF SCHOOL DISTRICT BUILDINGS & SITES
Decisions regarding the lease, sale, or disposal of school district real property shall be made by the board. In making its decision the board will consider the needs of the education program and the efficient use of public funds.
Prior to the board's final decision regarding real property, a public hearing will be held. The board will adopt a resolution announcing the proposed sale which will contain notice of the time and place of the public hearing and the description of the property or locally known address. Notice of the time and place of the public hearing will be published at least once, but not less than 10 days and not more than 20 days, prior to the hearing date. Upon completion of the public hearing, the board may dispose of the property.
If the real property contains less than two acres, is located outside of a city, is not adjacent to a city and was previously used as a schoolhouse site, the property may revert to the owner of the tract from whom the property was taken following the procedures set forth in IOWA CODE §§ 297.15-.25.
In the case of a sale or lease of school district real property not being used for the education program, unless otherwise exempted, advertisements for bids will be taken. If the bids received by the board are deemed inadequate, the board may decline to sell or lease the property and re-advertise.
In the case of the razing of a school district facility, in an amount in excess of the statutory minimum required by law, the board will advertise and take bids for the purpose of awarding the contract for the project.
The superintendent is responsible for coordinating the action necessary for the board to accomplish the lease, sale, or disposal of school district real property, including student-constructed buildings. It will also be the responsibility of the superintendent to make a recommendation to the board regarding the use of school district real property not being utilized for the education program.
NOTE: The language in the second and third paragraph reflect Iowa law regarding the sale of real property.
Legal Reference: Iowa Code §§ 297.15-.25 (1995).
Cross Reference: 704 Revenue
705.1 Purchasing - Bidding
803 Selling and Leasing
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 7/18/2022
BUILDINGS & SITES
804.1 - FACILITIES INSPECTIONS
A program for annual inspection, in addition to those conducted by authorized agencies, of the equipment, facilities, and grounds shall be conducted as part of the maintenance schedule for school district buildings and sites. The results of this inspection shall be reported to the board on an annual basis. Further, the board may conduct its own inspection of the school district buildings and sites annually.
Legal Reference: Iowa Code § 279.8 (1995).
Cross Reference: 802 Maintenance, Operation and Management
Approved: 3/16/00
Reviewed: 2/15/16, 7/18/2022
Revised:
BUILDINGS & SITES
804.2 - DISTRICT EMERGENCY OPERATIONS PLANS
The safety and security of the school community is paramount to the WACO Community School District. While there is no absolute guarantee of safety, it is the goal of the district to encourage and support a physically secure learning and working environment within its buildings. The district shall work in conjunction with community stakeholders including local emergency management coordinators and local law enforcement agencies to create emergency operations plans for all district buildings and school buildings where students are educated.
The superintendent, or designee, shall be responsible for the development, review and implementation of the district emergency operations plan. The plan shall include procedures for transmitting alerts regarding emergency situations to school personnel, students, and employers for non-school employees whose presence is regularly required in the school building. The emergency operations plan shall be updated and reviewed annually by the Board and shall address responses to natural disasters, active shooter scenarios and other emergencies as determined by the district. The emergency operations plans are confidential and shall not be subject to disclosure under Iowa Code Chapter 22. However, the district shall publish procedures for students, school personnel, parents, and family members to report possible safety threats on school grounds and at school activities.
The administration shall hold annual emergency operations drills at each district building covered by an emergency operations plan in accordance with law. The district shall determine which school personnel shall participate and whether local law enforcement and students participate in annual drills.
NOTE: This is not a mandatory policy, but all school districts are required to have emergency operations plans in place for their districts no later than June 30, 2019.
Legal Reference: Iowa Code § 100.31 (1995). Iowa Code § 280.30
Cross Reference: 507 Student Health and Well-Being
711.7 School Bus Safety Instruction
804 Safety Program
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 7/18/2022
BUILDINGS & SITES
804.3 - BOMB THREATS
No longer needed. It is part of 804.2
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 10/19/09, 7/18/2022
BUILDINGS & SITES
804.4 - ASBESTOS CONTAINING MATERIAL
Friable and nonfriable asbestos containing materials will be maintained in good condition and appropriate precautions will be followed when the material is disturbed. If there is a need to replace asbestos it will be replaced with nonasbestos containing materials. Each school building will maintain a copy of the asbestos management plan.
The school district will annually notify, appoint and train appropriate employees as necessary.
Legal Reference: 20 U.S.C. §§ 3601 et seq. (1988).
40 C.F.R. Pt. 763 (1993).
Iowa Code §§ 279.52-.54 (1995).
Cross Reference: 403.4 Hazardous Chemical Disclosure
802 Maintenance, Operation and Management
Approved: 3/16/00
Reviewed: 2/15/16
Revised: 7/18/2022
BUILDINGS & SITES
804.6 - USE OF RECORDING DEVICES ON SCHOOL PROPERTY
District-Generated Recordings
The district believes in the importance of providing a safe and enriching learning environment possible for its students. The district uses digital recording devices on school property including school transportation vehicles to help protect the safety of district students, employees and community members; and to safeguard district property which is funded using public resources. Additionally, district-generated recordings of students engaging in the district’s educational and extracurricular programs can be essential to engage positively with the school community and promote the value of public education.
In order to balance privacy and safety interests, no recording devices will be utilized on district property where individuals maintain a reasonable expectation of privacy. These areas include but are not limited to: the school nurse’s office, restrooms, locker rooms, changing areas, lactation spaces and employee break areas.
Recordings of students have the potential to be considered education records. Any recordings will be maintained and accessed in compliance with the requirements of the Family Education Rights and Privacy Act and the district’s policy on student records.
Recordings will be digitally maintained and stored for an appropriate amount of time to maintain the safety of the educational environment and to safeguard district property, after which they will be destroyed. The superintendent or superintendent’s designee will establish any necessary regulations related to the secure storage, maintenance, viewing and destruction of digital recordings.
Non-District Generated Recordings
The use of non-district owned recording devices on school property and at school events will be regulated. Students, parents and community members will not be permitted to take recordings of other students or employees during school hours unless the recording is authorized in advance by building administration. Students and employees found to violate this policy will be subject to disciplinary measures consistent with board policy and applicable student and employee handbooks. This policy will not be construed or enforced in a way that infringes on employee activity otherwise protected by law.
It is important to foster a community spirit and sense of unity within the district. However, the district acknowledges that not every student or staff member feels comfortable or safe being recorded. At district-sponsored extracurricular events and activities, the use of non-district owned recording devices by the public may be monitored by administration if a concern is made known to district administration by a student, employee or parent. Any individuals determined to be making recordings considered bothersome to students or staff may be asked to stop or destroy their recording and may be asked to leave the event.
Adopted: 7/18/2022
Reviewed:
Revised:
| Legal Reference: | 20 USC 1232 Iowa Code §§ 279.8 |
| I.C. Iowa Code | Description |
|---|---|
| Iowa Code § 279.8 | Directors - General Rules - Bonds of Employees |
BUILDINGS & SITES
804.6R1 - USE OF RECORDING DEVICES ON SCHOOL PROPERTY REGULATION
The board supports the use of recording devices on district property as a means to monitor and maintain a safe environment for students and employees. District property includes district-owned land, buildings, vehicles, buses and any other property as needed. The contents of the recordings may be used as evidence in a student or employee disciplinary proceeding.
Student Records
The content of the recordings may be a student record subject to federal and state law, board policy and administrative regulations regarding confidential student records. Generally, surveillance video that does not capture any specific incident is not a student record or personnel record and may be disclosed as a public record upon request. Only those persons with a legal basis or legitimate educational purpose may view the recordings. In most instances, individuals with a legitimate educational purpose may be the superintendent, building principal, classroom teacher, transportation director, bus driver, HR director and special education staffing team. A parent may inspect, review or be informed of the content of the recording without consent from any student or parent of a minor student also shown in the recording, whether the student is a bystander to an incident or directly involved. The district may, but is not obligated by law to provide a copy of a recording to a parent or student upon request.
A recording during a school-sponsored trip, such as an athletic event, may also be accessible to the sponsor or coach of the activity. If the content of the recording becomes the subject of a student disciplinary proceeding, it will be treated like other evidence in the proceeding.
Notice
The school district will annually provide the following notice to students, employees, and parents: The WACO Community School District Board of Directors has authorized the use of recording devices on school district owned property. The recording devices will be used to enhance safety and security within the educational environment. Students, employees, and parents are hereby notified that the content of the recording may be used in a student or employee disciplinary proceeding. The content of the recordings may be considered confidential student records and will be retained with other student records. Recordings will only be retained if necessary for use in a student or employee disciplinary proceeding or other matter as determined necessary by the administration. Parents may request to view the recording of their child.
The following notice will also be placed on all school buses equipped with recording devices:
This building/bus is equipped with a recording /audio monitoring system.
Review of Recording Devices
The school district will review the recordings:
Option 1--when necessary, as a result of an incident reported by an employee or student. The recordings may be re-circulated for erasure after 30 days.
If not public records, the viewing of the recordings is limited to the individuals having a legitimate educational purpose. A written log, as appropriate, may be kept of those individuals viewing the recordings stating the time, name of individual viewing and the date the recordings was viewed.
Student Conduct
Students are prohibited from tampering with the recording devices on the school property. Students found in violation of this regulation will be disciplined in accordance with the school district discipline policy and Good Conduct Rule and will reimburse the school district for any repairs or replacement necessary as a result of the tampering.
Employee Conduct
District-generated recordings may be used as evidence in employee disciplinary matters, as appropriate. Employees are prohibited from tampering with recording devices on school property. Employees found to be in violation of this regulation will be subject to disciplinary action as outlined in the employee handbook and relevant board policies.
Adopted: 7/18/2022
Reviewed:
Revised:
|
I.C. Iowa Code |
Description |
|
Iowa Code § 279.8 |
Cross References
|
Code |
Description |
|
506.01 |
|
|
506.01-R(1) |
|
|
506.01-E(1) |
Education Records Access - Request of Nonparent for Examination or Copies of Education Records |
|
506.01-E(2) |
Education Records Access - Authorization for Release of Education Records |
|
506.01-E(3) |
Education Records Access - Request for Hearing on Correction of Education Records |
|
506.01-E(4) |
Education Records Access - Request for Examination of Education Records |
|
506.01-E(5) |
Education Records Access - Notification of Transfer of Education Records |
|
506.01-E(6) |
Education Records Access - Letter to Parent Regarding Receipt of a Subpoena |
|
506.01-E(7) |
Education Records Access - Juvenile Justice Agency Information Sharing Agreement |
|
506.01-E(8) |
|
|
711.02 |
|
|
711.02-R(1) |