Policy Statement:

Lakeway Christian Schools (LCS) acknowledges the importance of managing fixed assets effectively to support its mission and educational objectives. This policy outlines the principles and procedures for the acquisition, recording, maintenance, and disposal of fixed assets within the organization.

Definition of Fixed Assets:

Fixed assets, also known as capital assets, are tangible items of significant value that are owned by LCS and used in its educational operations. These assets have a useful life extending beyond one fiscal year.

Capitalization Threshold:

The capitalization threshold for fixed assets at LCS is set at $5,000 and above. Fixed assets with a cost equal to or exceeding this threshold are considered capital assets and should be recorded and managed accordingly.

Acquisition of Fixed Assets:

The acquisition of fixed assets must align with the educational mission and goals of LCS and adhere to applicable legal and regulatory requirements.
Prior to acquiring fixed assets, proper authorization must be obtained from the appropriate authority, which may include the Board of Directors, Superintendent, or other designated individuals or committees.

Recording and Documentation:

• All fixed assets must be recorded in the school's asset register or accounting system. This record should include essential information such as the asset's description, cost, date of acquisition, location, and any relevant identifying details.
• Proper documentation, including invoices, purchase orders, and receipts, should be maintained to support the acquisition and cost of fixed assets.

Depreciation:

• Fixed assets with a finite useful life, such as buildings, vehicles, and equipment, should be subject to depreciation. Depreciation is recorded as an expense over the asset's estimated useful life.
• Depreciation methods and rates should be applied consistently and in accordance with generally accepted accounting principles (GAAP) or other applicable accounting standards.

Maintenance and Care:

• LCS is responsible for maintaining and safeguarding fixed assets to ensure their continued functionality and value.
• Routine maintenance, repairs, and necessary upgrades should be performed as needed to extend the useful life of fixed assets.

Inventory and Physical Verification:

• Periodic physical verification and reconciliation of fixed assets should be conducted to ensure accuracy and compliance with the asset register.
• Discrepancies or losses of fixed assets should be promptly investigated and reported to the appropriate authority.

Disposal of Fixed Assets:

• The disposal of fixed assets should follow established procedures and adhere to applicable legal and regulatory requirements.
• Assets that are no longer needed or have reached the end of their useful life may be sold, donated, or otherwise disposed of in a manner consistent with the school's policies and mission.

Reporting and Accountability:

• Fixed asset records and related financial information should be accurately reported in financial statements and made available to relevant stakeholders as required.
• Responsibility for the management and oversight of fixed assets should be clearly assigned within the organization.
• LCS is committed to responsible and transparent management of its fixed assets to support its educational mission. This policy provides guidance on the acquisition, recording, maintenance, and disposal of fixed assets, ensuring compliance with legal and regulatory standards.