802 Maintenance, Operation and Management

802.1 Maintenance Schedule

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:                     

802.2 Requests for Improvements

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

802.3 Emergency Repairs

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

802.4 Capital Assets

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

709
Insurance Program

Approved:                   3/16/00

Reviewed:                  2/15/16

Revised:                     6/20/22

 

802.4R1 - Capital Assets Regulation

BUILDINGS AND SITES

802.4R1 - CAPITAL ASSETS REGULATION

  1. Capital Assets Management System 
    The superintendent, and/or other designated staff, shall:
    1. Conduct the capital assets physical count;
    2. Develop the capital assets listing;
    3. Tag capital assets included in the capital assets management system with a bar code identification number;  
    4. Make a recommendation of a computer software program for managing the capital assets management system;
    5. Enter the necessary data into the capital assets management system and compile the appropriate reports;
    6. Develop forms and procedures for maintaining the integrity of the capital assets management system; and,
    7. Maintain responsibility for an accurate capital assets management system.  
  2. Determining historical cost
    1. The historical cost of a capital asset is based on the actual costs expended in making the capital assets serviceable.      
    2. Gifts of capital assets are valued at the estimated fair market value at the addition/acquisition date.  
    3. Capital assets purchased under a capital lease are valued at historical cost of their net present value of the minimum lease payments on the addition/acquisition date.    
    4. The historical cost of capital assets must include capitalized interest.
       
  3. Annual capital assets listing reconciliation
    ​​​​​​​
    1. The superintendent, and/or other designated staff, in conjunction with the capital assets management team, will conduct an annual capital assets physical count to develop the annual capital assets listing in a manner similar to the initial capital assets listing process in B above.  At least every three years, someone other than the person in custody of the capital assets in the building/department/room will perform the capital assets physical count for the building/department/room. 
    2. Upon completion of the annual capital assets listing, the capital assets listing is reconciled to the capital assets management system data base.    
    3. Capital assets found to have been excluded from the data base are added to the capital assets management system.  The capital assets management system process should be reviewed to prevent future incidents of excluding a capital asset. 
    4. Capital assets unaccounted for are reported to the superintendent who contacts the supervisor of and the individual in charge/control/custody of the capital asset.  The individual in charge/control/custody of the capital asset has thirty days to account for the capital asset.     
    5. Capital assets unaccounted for after thirty days are reported to the superintendent for appropriate action and documentation.  "Appropriate action" may include discipline, up to and including discharge, and may require the employee/person in charge/control/custody of the capital asset to replace the asset.
    6. The superintendent is responsible for documenting the reasons each asset was not reconciled to the capital assets management system.  
      ​​​​​​​
  4. Addition/acquisition of capital assets.  
    ​​​​​​​
    1. The school district's purchasing policy and administrative regulations must be followed when acquiring capital assets.  The school district's policy and administrative regulations must be followed for receiving a gift of capital assets.   
       
    2. The capital assets addition/acquisition documentation must be completed for each additional capital assets with an addition/acquisition cost of equal to or greater than $5,000.  The following information should be collected, if applicable:
      1. Name of location-building/department/room;
      2. Location-building/department/room code;
      3. Balance sheet accounting/class code;
      4. Government or BTA program;
      5.  Addition/acquisition date;
      6. Check/purchase order number or gift;
      7. Bar code identification number assigned to and placed on the capital asset;
      8. Serial/model number;                    
      9. Cost-historical;
      10. Fair market value on acquisition date (donated assets only);
      11. Estimated useful life;
      12. Vendor;
      13. Purchasing fund and function;
      14. Description of capital asset;
      15. Department/person charged with custody, 
      16. Method of addition/acquisition-purchase, trade, gift etc., 
      17. Quantity;
      18. Replacement cost; 
      19. Addition/acquisition authorization; and,
      20. Function for depreciation.
        ​​​​​​​
    3. Capital assets acquired in a month must be entered into the capital assets management system in the same month.
    4. The actual costs of construction in progress, other than infrastructure, is entered into the capital assets management system in the month in which costs are incurred until the total cost of addition/acquisition is entered.  Upon completion of construction, the total costs accumulated over the period of construction are reclassified to buildings. 
    5. Capital assets acquired in a month must be entered into the capital assets management system in the same month.
      ​​​​​​​
  5. Relocation/transfer of machinery and equipment capital assets.
    ​​​​​​​
    1. A capital assets relocation/transfer documentation must be completed prior to removing machinery and equipment capital assets from their current location.  The following information must be collected:
      1. Relocation/transfer date;
      2. Quantity;
      3. Bar code identification number; 
      4. Current location-building/department/room code;
      5. Name of current location-building/department/room;
      6. New location-building/department/room code;
      7. Name of new location-building/department/room;
      8. Date placed at new location-building/department/room;
      9. Department/person charged with custody; and
      10. Relocation/transfer authorization.
        ​​​​​​​
    2. Capital assets relocated/transferred in a month must be entered into the capital assets management system in the same month.
      ​​​​​​​
  6. Disposal of capital assets
    ​​​​​​​
    1. A Capital Assets disposal documentation must be completed prior to disposing of real property.  The following information must be collected:
      1. Disposal date;
      2. Quantity;
      3. Bar code tag identification number;
      4. Legal description, 
      5. Location/Address;
      6. Purchaser;
      7. Disposal methods for real property trade, sale, stolen, etc.; and,
      8. Disposal authorization.
        ​​​​​​​
    2. Capital assets disposed of in a month must be entered into the capital assets management system in the same month.
    3. When assets are sold or disposed of, it is necessary to calculate and report a gain or loss in the statement of activities.  The gain/loss is calculated by subtracting the net book value (historical cost less any accumulated amortization) from the net amount realized on the sale or disposal.
      ​​​​​​​
  7. Lost, damaged or stolen capital assets. 
    ​​​​​​​
    1. A Lost, Damaged or Stolen Capital Assets Report must be completed when a capital asset has been lost, damaged or stolen. The following information must be collected:
      1. Date of loss, damage or theft;
      2. Employee/person discovering; 
      3. Quantity;
      4. Description of capital asset;
      5. Bar code tag identification number; 
      6. Location-building/department/room;
      7. Description of loss, damage, etc.;
      8. Filing of police report-yes or no;
      9. Filing of insurance report-yes or no;
      10. Sent for repair-yes or no;
      11. Date returned from repair;
      12. Date returned to location-building/department/room; 
      13. Department/person charged with custody; and,
      14. Authorization.    
        ​​​​​​​
    2. Capital assets damaged, lost or stolen in a month must be entered into the capital assets management system in the same month.
      ​​​​​​​
  8. Capital assets reports
    ​​​​​​​
    1. Annual reports for June 30 each year.      
      1. Capital assets listing including the following items:
        1. Balance sheet accounting/class code;
        2. Purchasing fund, function and depreciation function;
        3. Bar code tag identification number;
        4. Description of the capital asset;
        5. Historical cost or other;
        6. Location;
        7. Current year depreciation/expense; and,
        8. Accumulated depreciation/amortization.
      2. Capital assets listing by location/building;
      3. Capital assets listing by department/employee/person charged with custody; and,
      4. Capital assets listing by replacement cost.  

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
Cross References
Code Description
701.03 Financial Records
709 Insurance Program
 

 

802.4R2 - Capital Assets Management System Definitions

BUILDINGS AND SITES

802.4R2 - CAPITAL ASSETS MANAGEMENT SYSTEM DEFINITIONS

Back trending/standard costing - an estimate of the historical original cost using a known average installed cost for like units as of the estimated addition/ acquisition date.  This cost is only applied to the capital assets initially counted upon implementation of the capital assets management system when the historical original cost cannot be determined.  It is inappropriate to apply the back trending/standard costing method to any capital assets acquired after the assets management system implementation date.

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
Cross References
Code Description
701.03 Financial Records
709 Insurance Program

802.5 Buildings & Sites Adaptation for Persons with Disabilities

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:                     

802.6 Vandalism

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:                     

802.7 Energy Conservation

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

802.8 General Fixed Assets/Capital Assets

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:              

802.9 Intangible Assets Policy

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: