Accounting Procedures Handbook

CAPITAL ASSETS 11.5 ASSETS A. CAPITALIZATION POLICY At a minimum, capitalization guidelines will incorporate the procedures as outlined in the Maryland State Department of Education Financial Reporting Manual. The capitalization policy will contain a minimum dollar limitation regarding when an asset is to be capitalized. Annually, the minimum dollar limitation will be reviewed due to economic situations and may be adjusted. B. ADDITIONS TO GENERAL CAPITAL ASSETS Expenditures are made from various funds for the acquisition of capital assets and regardless of the source of funds; the assets must be accounted for. The guidelines to be established by the Superintendent will describe the method of accounting for all capital asset additions. They will ensure the preservation, conservation and safeguarding of each asset through its useful life. C. DISPOSALS OF CAPITAL ASSETS Because it is the intent of the WCBE to insure proper disposition of all capital assets, the guidelines prepared by the Superintendent will provide for prior approval of all capital asset disposals as follows: 1. Land and Buildings - Disposals must be approved by theWCBE. 2. Furniture and Equipment - Disposals must be approved by the Superintendent or (his/her) designee and can only be disposed of in one of four (4) ways: a. Sell the item via competitive bid b. Sell the item via public auction c. Donations to other public non-profit agencies d. Discard The Superintendent or (his/her) designee will be responsible for determining the proper method of disposal that will assure the maximum possible recovery from such disposal at the least possible D. ASSET REPORTING The guidelines will include a system that will provide a complete inventory of all capital assets. Reports will be of sufficient detail as to afford proper identification, location and cost.