Lewisburg Area School District Policies	Printable version
620 GASB Statement 620. GASB STATEMENT The Board recognizes the need to implement the required accounting and financial reporting standards stipulated by the PA Department of Education. The primary objectives of implementing the Governmental Accounting Standards Board Statement 34 (GASB) are to assure compliance with state requirements, and properly account for both the financial and economic resources of the district. Participation of the school district in any such activity shall be in accordance with Board policy. The responsibility to coordinate the compilation and preparation of all information necessary to implement this policy is delegated to the Business Administrator or designated employee. The Business Administrator or designated employee shall be responsible for the implementing of the necessary procedures to establish and maintain a fixed asset inventory, including depreciation schedules. Depreciation shall be computed on a straight-line basis over the useful life of the asset. Normal maintenance and repairs shall be charged as an expense, major renewals and improvements that materially extend the useful life, or increase the value of an asset shall be capitalized. A schedule of accumulated depreciation shall be consistent from year to year. The basis for depreciation shall be submitted annually to the district’s independent auditors for review. The Superintendent and the Business Administrator shall prepare the required Management Discussion and Analysis (MD&A) in accordance with GASB No. 52 “Required Supplementary Information.” The MD&A shall be in the form required by GASB Statement 34. In order to associate debt with acquired assets, and to avoid net asset deficit, any asset that has been acquired with debt proceeds shall be capitalized, regardless of the cost of the asset. The asset life of these assets shall be considered relative to the time of the respective debt amortization. For all other assets not acquired by debt proceeds, the dollar value of any single item for inclusion in the fixed assets accounts shall be not less that $1,500 and have an estimated useful life of one year or more. Any assets should: 1. Retain its original shape, appearance and character with use. 2. Not lose its identity through incorporation or fabrication into a different or more complex unit or substance. 3. Be more feasible to repair than replace when a failure occurs. The capitalization threshold shall be set at a level that will capture at least 80% of all fixed assets. The assets listed below as individual items will not normally meet the capitalization threshold criteria: 1. Library books.2. Classroom texts.3. Computer equipment.4. Classroom furniture. However, these asset category costs can be capitalized and depreciated as groups when that group’s acquisition cost exceeds the capitalization threshold in any given year. To estimate useful life, the members of the group may be based on the average life of the group as a whole. Periodically the district shall review the estimated life of groups of assets and adjust the remaining depreciation life of the group.