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  • DISPOSITION OF FIXED ASSETS
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According to the Ohio Revised Code 3313.41 when a board of education decides to dispose of property that it owns, and exceeds a value of two thousand dollars, it shall sell the property at public auction, after giving at least thirty days notice of the auction. The auction must be publicized in a newspaper of general circulation or by posting notices in five of the most public places in the school district. After the board of education has twice offered the property for sale at public auction and the property has not been sold, the board may sell it at a private sale.

If a board of education decides to dispose of property that it owns, and exceeds two thousand dollars in value, it may sell the property to any municipal corporation, county or township, to a wholly or partially tax-supported university, university branch, or college, to any board of education, or to the board of trustees of a school district library, upon sale terms as are agreed upon.

When a board of education decides to trade as a part or a entire consideration, an item of property on the purchase price of an item of similar property, it may trade the same upon such terms as are agreed upon by the parties to the trade.

The president and the treasurer of the board of education shall execute and deliver the necessary instruments of conveyance to complete any sale or trade.

Regardless of the time of disposal, depreciation expense for fund fixed assets should be taken up to the date of disposition and all amounts related to the retired asset should be removed from the accounts. Ideally, the book value of the specific asset would be equal to its disposal value. This is generally not the case, however, and a resulting gain or loss occurs.

Gains or losses on the retirement of assets should be shown in the income statements along with other non-operating revenues/expenses that arise from ordinary business activities.

Retirement of fixed assets by sale, trade or scrapping will require approval by the board of education to guard against illegal unauthorized disposition.

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