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GASB (Governmental Accounting Standards Board) requires fixed asset reporting in order for a school district to be in compliance with the current GAAP/GASB34 requirements.

GAAP Required Fields

The EIS fields/programs listed below need to be completed in EIS before the GAAP flag in EISMNT/DATSCN can be set to "Y".

ITC STAFF: SSDT has a step-by-step procedure to assist ITCs with districts that have new inventories. Please refer to of the EISIX Chapter in the EIS System Manager's Manual. It contains a section entitled "Loading a New Inventory Tape".

Fields Necessary for GAAP Reporting

The fields listed in the following table need to be completed on the item records before the GAAP flag on the configuration record in EISMNT/DATSCN has been set to "Y". That is, the district is still in the pre-GAAP period.

Field Notes


Classification of asset by fund.

Fund Type

Stored in EISMNT/FNDSCN for each fund code defined. This defines the fund as Governmental, Proprietary, or Fiduciary.


Classification of asset by function/activity.

Asset Class

Classification of asset by class (type).


Only items coded as Active, New Items, Excess Asset Not in Use, or Excess Asset Held for Sale will be considered as active for the GAAP reports. Items with a status of Disposed Of, Inactive, or Old Tag Item will not be included (although disposed of items are included as a decrease on the GAAP change schedules.).

Original Cost

Historical cost of the item is reported on the GAAP reports.

Acquisition Method

Indicates if the item is purchased, donated, or leased. This is necessary for the GAAP schedule by source report (EIS101).

Lease Type

Capital or operating. Necessary for an item whose method is leased to determine whether it should be included on the GAAP reports (operating leases are excluded from GAAP reports).

Depreciation Information

Depreciation is required for assets of governmental, proprietary and fiduciary funds.

Acquisition Transaction Information

Acquisition transactions are necessary once on GAAP for the change schedule. Important fields for this schedule are the date, type, amount, fund, function, and class at time of acquisition, and the adjustment flag. Historical acquisition information is utilized for the GAAP schedule by source. It is recommended that historical acquisition transactions be entered for at least the larger assets of the district. However, the schedule by source will provide a line "Prior to System Startup" for items with insufficient acquisition information on file. Note, all that is really necessary when entering historical acquisition transactions is the date (approximate), type, amount, and fund portion of the account code.

Disposition Transaction Information

Disposition transactions are necessary once on GAAP reporting. Important fields for these transactions are the date, adjustment flag, and the fund, function, class, and original cost at the time of disposition.

Transfer Transaction Information

Transfer transactions are necessary once on GAAP reporting. Transfer transactions are used to change an item's fund, function, or asset class. All of the fields are necessary for the reports.

GASB34 Changes

Several years ago, GASB's Statement 34 changed the presentation for fixed asset reporting considerably. These changes had implications for EIS and the way inventory needed to be tracked and maintained. They included the following:

Update Function Codes: GASB34 relies on expenditures by function/activity. Assets should be classified by the function/activity they are being used for as opposed to where they were purchased from. Post a transfer transaction (TRNTRN) for any function code that needs to be changed on an item. Assets that are listed with a 5xxx function code (capital outlay) need to be moved to the function where the asset is being used. You cannot have assets or depreciation with a 5xxx function code.

Depreciation: Previously only proprietary fund type assets needed to be tracked for depreciation. GASB 34 rules require that depreciation be kept on all fund types and for all assets except construction-in-progress, land, and certain land improvements. The EISCHG Mass Change Depreciation option will automatically update all necessary deprecation information and calculate life to date depreciation

Multiple Functionality: Large cost assets such as buildings and vehicles utilized for multiple functions must have their costs broken out by the function/activity they are being used for. Here's an example of a typical list of functions used in breaking down the cost of large buildings:

  • 1100 - Regular Instruction Classrooms
  • 1200 - Special Instruction Classrooms
  • 1300 - Vocational Instruction Classrooms
  • 2100 - Pupil Related Classrooms/Space
  • 2200 - Instructional Staff
  • 2300 - Board of Education (offices/board room, if significant)
  • 2400 - Administrative Offices/Board Room
  • 2500 - Fiscal Offices
  • 2700 - Large Custodial Closets (if significant to the entire building)
  • 2800 - Bus Garage, etc.
  • 3000 - Cafeteria, Kitchen
  • 4000 - Gymnasium, etc.

Capitalization Threshold: districts may want to increase the dollar capitalization threshold in order to eliminate lower cost items from the GAAP schedules. The EISCAP program can be used to do this however it is advised to do this at the beginning of a new fiscal year. The main concern being that increasing the capitalization threshold will cause the capitalized balances at the end of one fiscal year to be greater than the beginning balances for the next fiscal year. Please keep the resulting EISCAP.TXT report as an audit trail in providing explanation for the differences between the balances.

80% Rule: It is suggested to use the "80% Rule" as set forth by the GFOA Recommended Practice - Establishing Appropriate Capitalization Thresholds for Tangible Capital Assets (1997). This procedure suggests raising the capitalization threshold so as to capture 80% of the prior year's reported net book value for all governmental type assets as well as 80% of the reported net book value for all business-type (called Proprietary in EIS) assets. Raising the capitalization limits is only a suggestion for GASB 34 reporting. The objective is to report a majority of the capital assets without having a large number of records for the lesser valued items.  Here's how you can do this in EIS:

  • Run an EIS305 Book Value Report choosing capitalized items only. The EIS305 is broken down by fund type and will give you separate totals for the governmental and proprietary funds types.
  • Next, set a new dollar capitalization threshold by changing it in EISCAP, choosing the UPDATE option. (This process is reversible. That is, if you update from $1000 to $5000, you can run EISCAP again and change the dollar threshold back to $1000.)
  • Now find the new total book value for capitalized items by running EIS305 again. If the resulting total is at least 80% of the previous total for the governmental-type items as well as for the proprietary-type items, then the threshold now meets the 80% rule. If this is not the case, repeat the above steps using EISCAP to set another dollar capitalization threshold.

Before making a permanent change to your dollar threshold you should contact your auditor's office to verify the change is acceptable.

Depreciated Land Improvements: Land improvements which are not permanent such as walks, outside walls, driveways, parking lots, and playground built-ins are to be depreciated.

Bulk Items: Bulk items, such as library books, uniforms, chairs, etc. may be left off of the GAAP schedules for GASB 34 reporting purposes as long as the removal of these items does not reduce the new net book value by more than 20% of the prior year's net book value. The theory behind this suggestion is to eliminate lesser valued items. According to the GFOA 1997 Recommended Practice, capitalization thresholds are best applied to individual items rather than groups or lots of similar items. The concern in reporting bulk items as capitalized assets is the ability to accurately track partial disposals. If choosing to report bulk items as capitalized, you will need to ensure that dispositions are being properly tracked and recorded. You may choose to remove the bulk items from the GAAP schedules but still keep them on the inventory as a lot for your own tracking purposes. To do this, you can code the bulk items with an entity id in EISSCN/ITMSCN. You can manually enter a code such as "NO GAAP" in the Entity ID field for each of the lots on file. The GAAP reports, EIS101, 102, 103, and 104, as well as the 304 (Brief Asset Listing) and the 305 (Book Value Report), prompt you for any specific entities to include or exclude. Choosing to exclude the entity "NO GAAP" when running these reports will then keep these items and their associated costs from being included on the reports.

Raising the capitalization limits and removing bulk items from the GAAP schedules combined should not reduce the net book value for the current year by more than 20% of the prior year's net book value.

Capitalized Interest: Net interest payments made for any business-type items should be included as a part of construction costs. When a building is under construction, all interest paid should be included as a building cost. Occasionally, a district may invest bond money until it is needed. All interest earned should be subtracted from the interest paid to give a net interest and capitalized as a part of the building cost. Capitalized interest does not need to be tracked for governmental-type assets.

5xx Object Codes: It is also suggested by the LGS auditors that all non-capitalized items kept on the inventory be coded with an object code of 5xx since they are not capital outlay. The purpose (from the auditor's perspective) is to make it easier to cross check all 6xx & 7xx items purchased by the district with all capitalized items on the inventory purchased during the current EIS fiscal year. This is not easy to do in the USAS files. It would be easier to do this if the district knew at the time of purchasing an item that it would end up on the inventory files as non-capitalized. This is one of the reasons why it is best to make capitalization changes at the beginning of an EIS fiscal year if possible.

This is not a required change for GASB 34, it is only a suggestion.

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