FIXED ASSET CAPITALIZATION POLICY

Transcription

1 FIXED ASSET CAPITALIZATION POLICY I. Who is responsible II. IV. Fixed Assets A. Definition B. Acquiring Fixed Assets C. Receiving Fixed Assets D. Adjustmens of Fixed Assets E. Temp Loans F. Repairs Inventory procedures Points of Contact 1 of 5

2 I. WHO IS RESPONSIBLE? A. Management personnel, i.e., school principals, and department directors are accountable for all assets within their immediate area of responsibility. This accountability is inherent to the position. Accountability includes inventory control and maintenance of all assets in their immediate area of responsibility. This responsibility should be assigned to an appropriate individual at the building site or department. B Responsibility lies with every individual utilizing district assets for the performance of his or her duties. C. All personnel are responsible to adhere to the following procedures in the procurement, movement and disposition of all district equipment. II. FIXED ASSETS A. Definition: Fixed asset property is governed by audit requirements associated with control, accounting, and disposal. A fixed asset is real property costing $1, or more; all computer suites, laptops and LCD projectors and has a useful life or more than 1 year. B. Acquisition of Fixed Assets 1. All fixed assets will be purchased using the purchase order system. Object codes relative to fixed assets are 0734/0739 assets with a unit cost of $5, or more and 0735 for assets with a unit cost of less $1, to $4,999.00, all computers suites, laptops and LCD projectors. All other equipment will be purchase using Assets will be shipped to and receive at the District warehouse. 3. Exceptions to the above procedures are those fixed assets received by donation (gifts) from individuals or organizations. The school principal or department director will report these assets in writing to the Fixed Asset Coordinator. If assets meet the reporting criteria, it will be tagged with a barcode tag and recorded as a donation. C. Receiving Fixed Assets: The below steps are for central warehouse receiving. 1. The green and blue copy of all purchase orders for assets purchased using object code 0734 or 0735 will be forwarded to the District Warehouse for tagging and receiving action. When a fixed asset arrives at the warehouse, Page 2 of 5

3 the following steps will be accomplished: a) Packing slip will be matched to a copy of appropriate PO. b) Asset(s) will be opened and verified for quantity and condition. c) Tag assets with a barcode; record manufacture, model and serial numbers on asset record sheet. d) Forward asset record sheet along with signed and dated green copy of the purchase order to Accounts Payable for receiving on CIMs and payment processing. 2. Fixed Asset Coordinator will complete data entry of the appropriate Suspense Record for the asset and transfer to the master file. D. Fixed Asset Transactions: Fixed Asset Coordinator will not retire, add or transfer without written proof/explanation. 1. Transfer of all fixed assets will be coordinated with district warehouse. Fixed Assets/Property Adjustment Form ( ) and Warehouse Pick-up & Delivery Form ( ) will be prepared and used identifying the transfer of fixed assets and general property between locations. See attachment I and II. Examples of these transfers are: a) Transfer of equipment from school site/department to warehouse for sale/disposal. b) Transfer of equipment from one site to another. Upon completion of the transfer actions, warehouse personnel will forward the white copy of the Fixed Assets/Property Adjustment form to the District Business Office, Fixed Asset Coordinator for record updating on CIMs FAS. 2. Disposal: District Warehouse and technology personnel are the only ones authorized to dispose of district equipment. All equipment, less computers will be handled by the District Warehouse and all technology related equipment specifically computers, will be handled by the District Technology Department. a) Staff at each school or department will report all assets for disposal to Page 3 of 5

4 the appropriate district department for disposition action. b) Once it is determined that an asset or equipment is obsolete, unserviceable, or surplus the school or department representative will complete the appropriate documents as identified in paragraph II.D.1 above, and coordinate for final disposition. c) When the District Warehouse or Technology Department have completed final disposition of assets, forward the white copy of the Fixed Assets/Property Adjustment Form to the District Business Office, Fixed Asset Coordinator. d) Fixed Asset Coordinator will retire the asset on the CIMs FAS as required. E. A temporary loan is any district asset assigned to an employee or student of the district for off site, district use. All temporary loans must be documented. School principals and department directors are required to have personnel and students under their area of responsibility sign for and check out equipment to provide accountability of all off site district assets. At a minimum the asset tag number, description, and serial number must be recorded as well as personnel name, SSN, department and address. This can be accomplished by using a logbook or a temporary loan form. All records must be made available during physical inventories. See Attachment F. When equipment is turned in for repair a receipt is required. At a minimum the receipt must show asset tag number, brief description and serial number. The receipt will provide accountability of the asset in the hands of a repair shop. Original copies of all receipts should be maintained in the Principals/Director s Office. G. Any property that is disposed of without following proper procedures will be in direct violation of District Policy. INVENTORY PROCEDURES A. Appropriate personnel will accomplish inventories annually on all fixed assets. Results of these inventories will be reconciled, coordinated and reported as required by the Director of Business Services and the Assistant Superintendent. 4 of 5

5 B. Annually inventory reports will be distributed. Each responsible individual, i.e., school principals and department directors, will have 30 days to complete their inventory validation. No adjustments to fixed asset records will be accomplished without supporting documentation. C. Each responsible individual may conduct their actual reconciliation, as they deem appropriate with their personnel. Any questions and/or assistance required should be directed to District Business Office. POINTS OF CONTACT A. Business Office Representative : B. Warehouse Representative: C. Technology Representative: Adopted: June 20, 1995 Amended: May 15, 2001 Approved: July 23, 2001 Amended: September 20, 2005 LEGAL REFS.: C.R.S School District No. 70, Pueblo, Colorado 5 of 5