School Legal Obligations for Asset Management

School asset management isn't just good practice — it's the law

Every school in the Czech Republic — primary, secondary or nursery — manages assets belonging to its school authority. And because public funds are involved, the law precisely defines how these assets must be recorded, inventoried and reported.

Many school administrators and principals are uncertain about exactly what the law requires. In this article we summarize all key obligations in one place — clearly and comprehensibly.

Act No. 563/1991 Coll. on Accounting

The Accounting Act is the primary legal framework governing schools' obligations as accounting entities. The most relevant provisions for asset management are Sections 29 and 30, which establish the mandatory inventory requirement.

Key provisions for schools

§ 29 — Accounting entities determine the actual state of all assets and liabilities through inventory and verify that it matches accounting records
§ 30 — Accounting entities conduct inventory at the date they prepare financial statements (both regular and extraordinary)
For tangible assets, physical inventory is required — actual counting, measuring or weighing
Inventory discrepancies must be investigated and recorded in the period the inventory covers

Decree No. 270/2010 Coll. on Inventory

This decree details the inventory procedure for assets and liabilities. It is binding for schools and sets out specific rules:

The school principal is responsible for ensuring inventory takes place and appoints an inventory committee
The inventory committee must have at least 2 members who are not responsible for the assets being recorded
An inventory report with signatures of all committee members must be prepared
Discovered inventory discrepancies (shortages and surpluses) must be reviewed and resolved

What exactly must a school record

A school must keep records of all assets it manages. Records must be verifiable, complete and accurate.

Long-term tangible assets (LTA)

Assets with an acquisition cost over CZK 80,000 and useful life exceeding 1 year.

Buildings, land, structures
Machinery, instruments, capital improvements
Vehicles

Minor long-term tangible assets (MLTA)

Assets with an acquisition cost from CZK 3,000 to 80,000 (threshold set by the school authority).

Furniture, school supplies, sports equipment
Computers, tablets, printers
Kitchen equipment, tools

Long-term intangible assets (LIA)

Software, licences and rights with an acquisition cost over CZK 60,000.

Software licences (Office, antivirus, educational programs)
Valuable rights

Inventory

Consumable materials and supplies.

Office supplies, cleaning products
Food in the school canteen

Inventory deadlines and timelines

The law distinguishes several types of inventory with different timelines. The most important is the regular inventory at balance sheet date.

Type of inventory	Frequency	Deadline
Regular inventory	Once a year (as of 31 December)	Start max. 4 months before, complete max. 2 months after balance sheet date
Extraordinary inventory	In case of theft, natural disaster, change of responsible person	Immediately after the event
Ongoing inventory	As needed (especially for supplies)	At any time during the accounting period

Consequences of non-compliance

Failure to conduct inventory or incorrect asset records can have serious consequences for a school. It's not just about fines — it's about the school's credibility with the school authority.

Possible consequences

Fine from the tax authority of up to 3% of asset value (Accounting Act, § 37a)
Reprimands and measures from the school authority — may affect school funding
Problems during Supreme Audit Office or regional authority inspections — negative audit finding
Personal liability of the principal for damage to school authority property (Labour Code, § 250)

How to comply efficiently and without stress

Meeting legal obligations doesn't have to be an administrative nightmare. The right records system will automate most of the work for you.

Keep records continuously, not once a year

Record changes (purchases, disposals, transfers) immediately as they occur. Annual inventory then becomes just a quick check, not a frantic catch-up.

Use QR codes and mobile scanning

Label assets with QR codes and scan them with a mobile phone during inventory. A classroom takes 5 minutes instead of 30.

Generate reports automatically

Asset Manager can generate an annual change summary for the school authority with one click — inventory report, list of shortages and surpluses, overview of disposed assets.

Set up automatic reminders

Get reminded of revision, inspection and inventory deadlines. Never miss a legal deadline again.

Comply with legal obligations without stress

Asset Manager helps dozens of schools in the Czech Republic with asset records and inventory. Try it free and see how easy it is.

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Summary of obligations

Asset management at school is a legal obligation that cannot be avoided. The Accounting Act requires at least one inventory per year, Decree 270/2010 sets out the exact procedure. Non-compliance can lead to fines and personal liability for the principal. The good news is that with modern tools — such as QR codes and specialized asset management apps — all obligations can be met efficiently, quickly and without unnecessary administrative burden.

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School Legal Obligations for Asset Management — What the Law Says