The School Board recognizes the need to plan for the cyclical replacement of capital assets and the impact such replacement has on the operating budget. The School Board, has therefore, authorized the creation and maintenance of a special revenue fund that is dedicated to the acquisition and/or replacement of such capital equipment.

(cf. 3000 – Concepts and Roles)
(cf. 3300 – Expenditures/Expending Authority)

In order to comply with GASB 54 regulations on special revenue funds, the School Board will annually commit a percentage of the District's interest income to the Equipment Reserve Fund to be spent solely on the purchase or replacement of capital equipment.

Access to funds in the Equipment Reserve Fund will be limited to capital purchases in excess of five hundred dollars ($500). All expenditures drawn from the Equipment Reserve Fund will be assigned to the appropriate expenditure account as necessary to record the purchase within the Equipment Reserve Fund.

(cf. 3110 – Transfer of Funds)
(cf. 3310 – Purchasing Procedures)
(cf. 3311 – Bids)

In order to protect the integrity of the fund, the Superintendent will supervise or determine an annual application process that will determine need within the District and award funds for the purchase or replacement of capital equipment as warranted.

The District will provide the board with a detailed report on prior year expenditures, as well as a report of any anticipated needs to support the annual appropriation of interest income.

(cf.3400 – Management of District Assets/Accounts
(cf. 3460 – Periodic Financial Reports)