PACT Charter School
Original Creation Date: April 4, 2024
Last Approved By: PACT Charter School Board of Directors
Last Approved Date: April 4, 2024
Year Reviewed: 2023-2024
Purpose
The purpose of this policy is to ensure proper financial reporting for capital assets. This policy outlines the steps involved in the process in determining which expenditures would be considered to be a capital expenditure that would be considered a capital asset.
General Requirements
The School considers any expenditure, which are capital in nature, with a grouped initial cost of more than $5,000, and an estimated useful life in excess of one year, to be a capitalized asset. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Where applicable, assets purchased together and for a common purpose should be grouped and capitalized as one asset. Donated capital assets are recorded at estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Capital assets are depreciated using the straight-line method over its estimated useful life.