Inventory/Fixed Assets


Assets in our Inventory System are broken down into three groups:

Capital AssetsInventory Assets and Technology Assets

Capital Assets are identified according to the guidelines set forth in the Financial Accounting Resource Guide (FAR). The requirements are as follows: 

  • is tangible in substances and nature
  • has an estimated useful life of one (1) year or more
  • is physically separate and identifiable from other assets
  • has a dollar cost of $5,000 or more and is controllable through a physical inventory
  • has a dollar cost of less than $5000 but is paid from 6XX Fund Code
  • For federal Stimulus Funds, a purchase of a complete computer lab of computers or a mobile cart with laptop computers will be considered as a Capital Asset if the total cost is over $5,000.


Technology Assets are assets that the district does not currently track on the Inventory or Capital Asset Catalog List.  The Technology Catalog List contain purchases under $500.00 that will be part of the District Wide Refresher Plans to equally distribute the Technology Standardization of Technology/Dependent Applications.


In accordance with GASB 87, the District is required to report a right to use asset and related lease liability for any lessee lease positions the District maintains. Similarly, the District is required to report a lease receivable and related deferred inflow of resources for any lessor lease positions maintained by the District. Lease Threshold – Intangible right-to-use lease assets (a capital asset category) associated with leases of the District should be capitalized according to the following threshold: $100,000 or greater in future lease payment through the lease term. If the District is a lessee in a leasing arrangement, the intangible right-to-use lease asset should be capitalized if greater than or equal to the threshold above. Assets with remaining lease payments below the threshold should be expensed as payments are made. This threshold should only be applied once upon entering into a lease agreement as defined by GASB 87.


In accordance with GASB 96, a subscription-based information technology arrangement (SBITA) is defined as a contract that conveys control of the right to use another entity's software, alone or in combination with tangible capital assets (the underlying IT asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of underlying IT assets include printers, devices, and equipment. Any contract that meets this definition should be accounted for under the GASB SBITA Guidance, unless specifically excluded in this Statement.

School Districts may establish a liability threshold for reporting SBITAs that are deemed de minimis when compared to the district’s financial capacity. This threshold defines the dollar amount at which a SBITA with a maximum possible term of more than one year will be classified as a liability.

Effective 9/1/2022, based on the above guidelines, the district has determined an individual SBITA liability threshold of $100,000 of prior year expenditures. This individual capitalization threshold applies to all SBITAs with a maximum possible term of more than one year.