Jerome Joint School District No. 261

FINANCIAL MANAGEMENT 7210

GASB Statement 34 (Accounting System)

1. Purpose

The Board recognizes the need to implement the required accounting and financial reporting standards set out in

Governmental Accounting Standards Board Statement 34 (“GASB 34”)

The primary objectives of implementing the GASB 34 are to assure compliance with state requirements, and to

properly account for both the financial and economic resources and to provide new and additional information to

users of District financial statements.

2. Authority

Participation of and reporting shall be in accordance with Board policy, State of Idaho Fiscal Policies manuals as

prepared by the office of the State of Idaho Controller’s Office, and GASB 34.

3. Delegation of Responsibility

The responsibility to coordinate the compilation and preparations of all information necessary to implement this

policy is delegated to the Superintendent or designee

The designated individual shall be responsible for implementing 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 lives of the assets, using an averaging convention. Normal maintenance and repairs shall

be charged to expense as incurred; major renewals and betterments that materially extend the life or increase the

value of the asset shall be capitalized. A schedule of accumulated depreciation shall be consistent from year to

year. The basis for depreciation, including groups of assets and useful lives, shall be in writing and submitted for

review to the Board of Trustees.

The Superintendent or designee shall prepare the required Management Discussion and Analysis (MD&A). The

MD&A shall be in the form required by GASB Statement 34 and shall be submitted to the board for approval, prior

to publication.

Prior to submission of the MD&A for Board approval, the independent auditors shall review the MD&A, in

accordance with SAS No. 52, “Required Supplementary Information.”

4. Guidelines

In order to associate debt with acquired assets, and to avoid net asset deficits, 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 amortizations.

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 than $5,000. Annual physical inventory of these items will occur and compared to

the general ledger for differences. A list of equipment will be provided the auditors for their review in preparation

of the districts annual audit.

Assets that fall below the capitalization threshold for GASB 34 reporting purposes may still be significant for

insurance, warranty service, and obsolescence/replacement policy tracking purposes. The intermediate unit may

record and maintain these non‐GASB 34 asset inventories in subsidiary ledges.

Fixed assets purchased with federal funds must be accounted for in that fund to satisfy federal regulations. Tags

provided by the division of Vocational Education will be affixed to items purchased with vocational funding and

may require their surrender to the Department of Vocational Education if a vocational program ceases to exist

within the district.

Policy History:

Adopted on: 11/21/2006

Revised on: