School Legal Obligations for Asset Management — What the Law Says
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
Decree No. 410/2009 Coll. — how a school classifies its assets
Schools are public-funded organisations and therefore selected accounting units. Their accounting is not governed by Decree No. 500/2002 Coll., which applies to businesses, but by Decree No. 410/2009 Coll. That decree sets the thresholds used to classify assets:
- Section 14(6) — small long-term tangible assets: valuation from CZK 3,000 to CZK 40,000
- Section 11 — small long-term intangible assets: valuation from CZK 7,000 to CZK 60,000
- An accounting unit may lower the bottom limit by internal regulation; the upper limit is fixed by the decree
- Depreciation of long-term assets of selected accounting units is governed by Czech Accounting Standard No. 708
Do not confuse this with the tax threshold: the CZK 80,000 figure comes from the Income Tax Act and applies to tax depreciation. Accounting classification in a school follows the thresholds in Decree No. 410/2009 Coll.
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 a useful life of more than 1 year and a valuation above CZK 40,000 (Section 14(6) of Decree No. 410/2009 Coll.).
- Buildings, land, structures
- Machinery, instruments, capital improvements
- Vehicles
Minor long-term tangible assets (MLTA)
Assets with a useful life of more than 1 year and a valuation from CZK 3,000 to CZK 40,000 (Section 14(6) of Decree No. 410/2009 Coll.). A school may lower the bottom limit by internal regulation; the upper limit is set by the decree.
- Furniture, school supplies, sports equipment
- Computers, tablets, printers
- Kitchen equipment, tools
Long-term intangible assets (LIA)
Software, licences and valuable rights with a valuation above CZK 60,000. Small long-term intangible assets fall between CZK 7,000 and CZK 60,000 (Section 11 of Decree No. 410/2009 Coll.).
- 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 hundreds of schools in the Czech Republic with asset records and inventory. Try it free and see how easy it is.
Try for freeSummary 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.