Fixed assets are tangible items that typically have significant value.
Therefore, it is critical that districts establish controls and accountability over these items. Typically, school districts determine an appropriate unit cost to capitalize items as fixed assets. The capitalization threshold is the value that an item must have for it to be tracked for the fixed asset inventory system. MISD does not currently have written policies and procedures that define capitalization levels for the purpose of maintaining fixed assets records. According to the TEA's Financial Accountability System Resource Guide, the emphasis in governmental accounting for fixed assets is on control and accountability.