The guidelines below are provided for distinguishing the appropriate charging to the supplies, equipment, and purchased services accounts. Criteria for determination of appropriate accounts are given.

    1. Supplies – a supply item is an article or material which meets any one or more of the following criteria.
      1. It is consumed in use
      2. It loses its original shape or appearance with use.
      3. It is expendable (that is, if the article is damaged or so some of its parts are lost or worn out; it is usually more feasible or economical to replace it with an entirely new unit rather than repair it).
      4. It loses its identity through incorporation into a part of a larger piece indistinguishable as a stand-alone unit.
      5. It costs less than $2,000.00 including shipping and installation charges.
      6. It does not meet all of the stated equipment criteria.
    1. Equipment (Non-Built-In) – an equipment item is a material item which meets all of the following criteria:
      1. It retains its original shape, appearance, and character with use.
      2. It is non-expendable (that is, if the article is damaged or some of its parts are worn out, it is more feasible to repair it rather than to replace it with an entirely new unit).
      3. It does not lose its identity through incorporation into a different or more complex unit or substance.
      4. Under normal conditions of use, including reasonable care and maintenance, it can be expected to serve its principal purpose for at least one year.
      5. The item cost is $2,000.00 or more including shipping, installation and set up costs.
    1. Equipment (built-in) – capital outlay equipment is that which is built-in and will consist of two types: (a) equipment that is built-in to buildings and (b) equipment that is built-in to grounds. Built-in equipment would be new (improvements) or replacement (maintenance).
      1. Built-in equipment to buildings are integral parts of the building, permanently fastened, functioning as part of the building, with a useful life approximately equal to that of the building and causing appreciable damage to the building if removed. Example include bulletin boards, counters, shelving, stage curtains, and service systems such as air conditioning, heating, lighting, intercommunication systems, alarms, etc.
      2. Built-in equipment to grounds is permanently attached to the ground and function as part of the grounds. Examples would include flagpoles, gates, goal posts, lawn sprinkling systems, under-ground storage tanks, etc.
      3. Improvements versus Maintenance – Improvements would consist of new installations never before existent. Maintenance would consist of the replacement of an existing installation.

    The determination of an item as part of the Capital Outlay budget rest with the District Administration and would be provided for in the appropriation by the Business Office. Requests for capital outlay allocations must be directed to the Business Office. Capital Outlay expenditures must adhere to the state requirements and all equipment falls into this category.

    Purchased services – Includes services that by their nature can be performed only by persons or firms with specialized skills and knowledge. Included are the services of architects, engineers, auditors, medical doctors, lawyers, consultants, teacher, etc. It is critical that the purchased services account be properly used, as payments to the vendors providing labor services will receive a statement of their compensation from the District each calendar year for income tax purpose (Form 1099 Non-employee compensation)