According to the TEA's Financial Accountability System Resource Guide, the emphasis in governmental accounting for fixed assets is on control and accountability. Accordingly, a school district must accumulate a variety of data relating to fixed assets to maintain control and ensure accountability. These data include quantity, location, condition and life expectancy. Fixed asset records are necessary to designate who is accountable for the custody and maintenance of individual items and to assist in estimating future requirements. School districts generally control capital transactions that are used when acquiring fixed assets by using a well-defined authorization procedure.
Many federal programs require separate accountability for fixed assets.
School districts should maintain detailed subsidiary records to maximize the control of fixed assets. The subsidiary record, regardless of its physical form, should describe an item to permit positive identification, and to determine its cost, purchase data and its location. Adequate accounting procedures and records for fixed assets are essential to protecting school property. Designates responsibility for custody and proper use. Provides data for managing fixed assets.