Establish Fair Market Value a. The community school governing authority's treasurer or fiscal officer, or sponsor in the absence of the governing authority, must establish the fair market (initial and amortized) value following generally accepted business rules in a transparent manner. The Uniform Commercial Code offers guidelines for liquidating assets in a commercially reasonable manner for all state-purchased assets and federally purchased assets that have a value of less than $5,000 (ORC 1309.627).
Establish Fair Market Value a. The community school governing authority's treasurer or fiscal officer, or sponsor in the absence of the governing authority, must establish the fair market (initial and amortized) value following generally accepted business rules in a transparent manner. The Uniform Commercial Code offers guidelines for liquidating assets in a commercially reasonable manner for all state-purchased assets and federally purchased assets that have a value of less than $5,000 (ORC 1309.627).
i. Note: Essentially, the price should be at the current price in any recognized market at the time of disposition or otherwise consistent with reasonable practices among dealers in the type of property subject to disposition. The school’s governing authority’s capital assets policy also
ii. should be followed. If an asset has no market value and the school is planning to dispose of the asset at a public auction, the school should still place a minimal value on the item.
iii. As a best practice, sponsors are advised to periodically review schedule of assets and accompanying value to ensure that records are up to date.
b. In the case of a mid-year suspension or closure, the treasurer should complete the necessary review within seven days (7)
