Accounting for Fixed Assets & Equipment Inventories

Transcription

1 POLICIES AND PROCEDURES Accounting for Fixed Assets & Equipment Inventories Generally accepted accounting principles and the Texas Education Agency s Financial Accountability System Resource Guide (FASRG) require the Socorro Independent School District to maintain accurate fixed asset records. In order to properly maintain these records, the following fixed asset and equipment inventory procedures have been established. These procedures should be referred to prior to adding, removing, or transferring an asset from any campus or department. A fixed asset is defined as a tangible item with a value of $ or more with a useful life in excess of two years. The Department of Financial Services is responsible for tracking and reporting all fixed assets with a few exceptions. An asset may or may not be capitalized for financial reporting purposes. The District will track and account for two types of assets. 1) Capitalized assets - An asset that has an estimated life extending beyond a single reporting period and a value equal to or greater than the capitalization threshold of $5,000 established for that asset type. Budget Account numbers 6619 Land Purchases and Improvements 6629 Building Purchases and Improvements 6631 Vehicles (Unit cost of $ 5, or more) 6635 Technology Equipment (Unit cost of $ 5, or more) 6639 Equipment (Unit cost of $ 5, or more) 2) Locally defined controlled assets - An asset that is not capitalized or 1

2 on the Controller s controlled asset list but is tracked and accounted for. Budget Account numbers 6395 Technology equipment $0.01 to $4, Furniture and equipment (excluding technology) valued at $0.01 to $4, Assets valued under the established controller controlled asset amount. The Department of Financial Services will track and account for assets valued under the established amount of $5,000 as part of a general inventory. The campuses or departments are required to maintain an inventory roster for all equipment, especially equipment considered high-risk such as DVD/CD players, disk drives, Ipod s, PDA s, camcorders, cameras, televisions, Elmos, IWB s, mobile and hand held radios, etc. During an inventory audit these items will also be subject to review. PURCHASE OF ASSETS Campus principals or department directors/coordinators review asset purchase requisitions and authorize asset purchases. All asset items acquired through purchase orders must specify the Warehouse as the delivery location. Warehouse personnel will barcode and scan the items into Communicator for internal tracking by the Department of Financial Services. It is imperative that the procurement of any item considered an asset or inventory item be purchased using the correct budget object code account. By using the proper object code accounts, an efinance+ module creates a record of the items purchased in the fixed asset interface module. The following are technology items that should always ship to the SISD Warehouse: Digital cameras Digital Camcorders ipods Laptops Desktop Computers Video Mixers Audio Mixers Scan converters Docking Stations (both laptops & digital cameras) Printers External Hard Drives Fax Machines Video Converters Document Cameras Monitors Scanners 2

3 IWBs ActiVotes ActiSlates Data projectors Graphing calculators Surround Sound Speakers Speakers Palm Pilots Video Presenters Audio Equalizers Ignite COWS (8 th grade Science) Switches TVs Audio amplifiers CD Burners CD players Use the designated (object) codes to procure an item that falls within the description provided. NOTE: Departments/Campuses should purchase only the necessary quantity of assets or inventory items. Warehouse should not have to store new items for more than 3 weeks. Assets that can easily become obsolete (e.g. computers) should be delivered by Warehouse to campuses or departments and be put to use in a prompt manner. FIXED ASSETS RECEIVING AND TAGGING All assets valued at $5,000 or above should be tagged physically or at the P.O. level. Items with a value under $5,000 are not capitalized but are tracked. The District tracks those items by issuing tags and entering in the fixed asset module. District-wide inventories completed by departments/campuses, which are to be submitted electronically to the fixed asset accountants, will be conducted annually. Periodic physical inventory audits are conducted for musical instruments to verify existence of these items. Technology items are tracked by tech pilots at the campuses and district technology personnel. The items that fall in the following range are tagged: Technology All items considered Musical Instruments/Equipment - All items considered Furniture & Equipment (not including any of the above) $500 and above By using account object codes 6395 for technology items and 6396 for furniture, equipment, and machinery (excluding technology) under $5,000, we are able to track the expenditure of these items. Warehouse personnel are responsible for tagging of assets with a Socorro Independent School District fixed asset number and scanning the tag into Communicator. Again, in order for this procedure to be accomplished, it is 3

4 imperative that the requisition for fixed assets designate the District Warehouse as the Ship to location. Exceptions to this rule are: New school start-up when quantities surpass the capacity of the Warehouse Exceptionally large items/furniture that require vendor installation If an exception is claimed, the Department of District Operations and Fixed Asset Staff need to be contacted to assure asset(s) will be tagged and scanned into Communicator. There are few exceptions for not physically tagging an asset. Assets that will not be physically tagged include but are not limited to buildings, certain sports equipment, large items placed in inaccessible locations (e.g. scoreboards), district wide systems, and software that has an estimated life extending beyond a single reporting period and a value equal to or greater than the capitalization threshold of $5,000. These items will be included as part of fixed assets. The purchase order for the untagged asset will be kept at the Department of Financial Services and will hold the asset s actual tag. FEDERAL FUNDS It is important that all equipment purchased with federal funds remain in their designated location and used as specified in the grant guidelines. Under no circumstances can equipment purchased with federal funds be used in a manner that is not in accordance with grant guidelines. Equipment purchased with federal funds must be disposed according to District policy. Proceeds realized for the disposal must be used according to the grant regulations. All individual federally funded assets with a cost of $5,000 or more shall be capitalized in accordance with local policies. Only COWS (computers on wheels), computer labs, or Web-based software purchased with federal funds shall be capitalized if the following criteria are met: Computers and accessories for a computer lab are housed in the same location; The aggregate cost of the like items is equal to or exceeds $5,000; and The useful life is greater than one year. Assets not listed above shall not be capitalized. 4

5 ASSET TRANSFERS An Asset Transfer Form (ATF) must be completed for the transfer of assets between campuses/departments (including transfers to the warehouse). If the transfer is only temporary, an Asset Usage Form should be completed. If the asset is transferred to another location for repairs, use the Asset Repair Log and state where the asset is being repaired. Transfer of Non Technology Assets Form: Asset Transfer Form 1. The school or department initiating the transfer completes and faxes the Asset Transfer Form-Non Technology to the Fixed Assets (915) Campuses/Departments should indicate on the Asset Transfer Form the asset number, description, serial number, receiving campus/department, reason for transfer, working condition, and note any defects, damages, etc. The Fixed Asset Coordinator s (assistant principal/director) signature is required before faxing. 3. Fixed Asset staff will assign a control number and return ATF via fax. No assets should be added to ATF once control number has been assigned. No transfers will take place without the control number. 4. A work-order will then be generated by the department or campus to coordinate transfers with Warehouse. The control number along with a brief description of the equipment should be included in the work-order. Fixed Asset staff is not involved in scheduling or transferring assets. 5. The faxed copy of the ATF corresponding to the work-order should be presented to the Warehouse Distributor who will verify and sign off on the assets listed. A copy of the completed form is to be kept at the campus/department level. 6. Warehouse will provide the Fixed Asset staff the final copy of the ATF once the transfer has been completed. The following Disposition codes should be used on the ATF: 111-Repairs 222-Computer Loaner 333-Surplus 444-Recycle 5

6 999-Auction 7. The Fixed Asset staff will review the ATF and update the Fixed Asset module. Transfer of Technology Assets Form: Asset Transfer Form 1. The school or department initiating the transfer completes and faxes the Asset Transfer Form-Technology to the Fixed Assets (915) Only audio visual/technology items such as those that ship to Warehouse should be on this form. 2. Campuses/Departments should indicate on the Asset Transfer Form the asset number, description, serial number, receiving campus/department, reason for transfer, working condition, and note any defects, damages, etc. The Fixed Asset Coordinator s (assistant principal/director) signature is required before faxing. 3. Fixed Asset staff will assign a control number and return ATF via fax to the campus/department contact and copy Technology (David Akers). No assets should be added to ATF once control number has been assigned. No transfers will take place without the control number. 4. A work-order will then be generated by the department or campus to coordinate transfers with Warehouse. The control number along with a brief description of the equipment should be included in the work-order. Fixed Asset staff is not involved in scheduling or transferring assets. 5. The faxed copy of the ATF corresponding to the work-order should be presented to the Warehouse Distributor who will verify and sign off on the assets listed. A copy of the completed form is to be kept at the campus/department level. 6. Technology and audio/visual equipment with location Surplus Warehouse- 999 will be received at the Technology Department. 7. A technician will assess whether the assets still work and can be recycled or remove data and hard drives for assets that will be sent to surplus. All information will be documented on the ATF for that equipment. The following Disposition codes should be used on the ATF: 111-Repairs 222-Computer Loaner 333-Surplus 444-Recycle 999-Auction 6

7 8. Assets that are in working condition must be secured at Technology until they are transferred to another location. 9. Technology will provide the Fixed Asset staff the final copy of the ATF once the transfer has been completed. OBSOLETE/SURPLUS PROPERTY Assets that are no longer needed by a campus or department become surplus property. District property can only be disposed of according to policy. Equipment cannot be given, donated or discarded. All surplus property will be stored at the Surplus Warehouse. An Asset Transfer Form (ATF) must be completed for all District property. It is important that the condition of the equipment be indicated on the form. Warehouse will maintain separate storage areas for equipment that is damaged/obsolete or usable. Equipment that is in working condition must be kept in an area protected from the environment, rain, dust, and extreme changes in temperature. The Department of Technology will be responsible for determining the condition of all computer equipment. This will allow other schools or departments to view and request the use of the equipment that is usable. The equipment will be kept in a safe secure locked area with access to only authorized personnel. Assets or inventory found in the surplus warehouse should be recorded on efinance+ as location 999 to help fixed asset personnel determine the location of those assets that are no longer in use by the campuses or departments. Transfers of computer equipment and telecommunication equipment require approval from the Department of Technology. Property Disposal All property no longer of use to the District will be sent to the Warehouse for storage. An Asset Transfer Form (ATF) must be completed for all District property. Items determined to be no longer of use will be sold through a public sale auction upon approval by the Board. Fixed assets or inventory items must be removed from District inventory reports prior to disposal. Prior to the auction, all items to be sold must be verified by the Department of Financial Services. Under no circumstances can campus or departments dispose of property. Items 7

8 should not be discarded at the campus or department level. Items must be sent to the Warehouse where they can properly be disposed of through a public auction. Proceeds from the disposal sale All proceeds realized from the sale will be allocated back to the Districts general fund balance, except for revenue realized from the sale of items purchased by Child Nutrition Services or grants if required. Form: Equipment Usage Agreement EQUIPMENT USAGE AGREEMENT An employee may request to utilize equipment for school or instructional purposes by completing an Equipment Usage Agreement. The use of school property for personal use is prohibited. The approved Equipment Usage Agreement must be completed and approved by the Fixed Asset Coordinator and retained by the Fixed Asset Coordinator until the item is returned. The employee must be aware and understand that by signing the receipt to check out the equipment they are solely responsible for the repairs or the replacement if the equipment is damaged or stolen. The equipment must be returned within the specified period of time as stated on the agreement form. Equipment with a unit cost of $5, or more can only be loaned out after receiving approval from the Department of Financial Services. Also, equipment belonging to the Departments of Technology, Telecommunications, and Child Nutrition Services can only be used with their written approval. THEFTS OF EQUIPMENT & INVENTORY ITEMS Report all thefts of equipment to the Department of Security and Internal Auditor. Form: Fixed Asset Loss Report A police report must be completed for all items reported stolen from school property. A loss report must be completed and attached to the police report in order for the items to be removed from the Districts records. The school or department is responsible for completing a loss report when an item is stolen, damaged or vandalized. The loss report must be forwarded to the Department of Financial Services. The Department of Financial Services will determine if an insurance claim can be filed. Property losses due to negligence will become the responsibility of the 8

9 individual. Replacement of a lost item is the responsibility of the school/department. CAMPUS/DEPARTMENT INVENTORY The Department of Financial Services will conduct annual inventories of fixed assets and inventory items. Random samples of equipment will be selected for review on an annual basis. Helpful hints: To maintain accurate fixed assets and inventory records by campus and department: 1.) Items should not be removed from their designated location. 2.) Report all lost and stolen items. 3.) Assign equipment to specific locations either by room number or employee names. 4.) Make sure that all individuals are aware that they are responsible for equipment assigned to them. 5.) Provide all individuals with a print out of equipment under their supervision. 6.) Require staff to take a physical inventory at the beginning and end of the school year. 7.) Conduct actual physical inventory of selected items at end of year during check out. (Examples: Laptops, musical instruments, movable items valued over $ , etc.) 8.) Keep signed inventory verification form on file. 9

10 FIXED ASSET COORDINATORS Campus/ Department Contact Ext High Schools 001 Socorro HS Bernadette Ochoa bochoa 002 Montwood HS Derrick Brown dbrown Keys Academy Bruce Mooy bmooy 004 Americas HS Donna Baca dbaca El Dorado HS Options Iris Jimenez ijimen Mission Early College Ivette Savina isavin Middle Schools 041 Socorro MS Earl Sanchez esanch Salvador H Sanchez MS Jan Farnam jfarnam 043 William D. Slider MS Norma Ayala nayala 044 Walter E. Clark MS Sieglinde Fleenor sfleen 045 Montwood MS Hector Rivas hrivas John O. Ensor MS Thomas Redlinger/Alberto Chavez achave Sun Ridge MS Rosa Jimenez (Interim) rjimen Raphael Hernando III MS Luis Reyes lreyes Elementary Schools 101 Robert R. Rojas H.D. Hilley Estevan Alvarez O'Shea Kelleher Ray Granado bchaco Campestre Donna Smith dsmith Horizon Heights Frances Gonzalez fgonza Vista del Sol Kathy Sprinkle ksprin 107 Hueco rgrana Myrtle Cooper Escontrias EECC Felipe Arenas farena 111 Escontrias ES Diane E. Duncan ddunca Benito Martinez Belen Castillo bsegov Sierra Vista Jesus Mendez jmende Helen Ball Jesse Sepulveda cdelac Elfida Chavez Norma Myers nmyers 116 Jane Hambric Jesus Beltran jbeltran 117 Ernesto Serna Jesus Fuentes jfuent Lujan Chavez Jaime Hernandez jherna Desert Wind School Jose Pedroza jpedro 121 Loma Verde Jesse Aguirre rcarreon 10

11 122 Bill Sybert Gloria C. Holguin gcontreras 123 Paso Del Norte Donna Tylor dtyler John Drugan Veronica Candelaria vcande 125 Hurshel Antwine France Godfrey fgodfr 126 Dr. Sue Shook Dennise Strong astron 127 Roberto Ituarte Martha Crespo mcresp 128 Chester E. Jordan Maribel Macias mmacia02 Departments Contact/Director Ext 580 Aquatics Jaime Escalera/Dan Ferguson jescalera 600 Intrastructure Services Raul Rodriguez/Hector Reyna 204- rrodri Instructional Technology Gloria Aguirre Information Systems Lou Aguilar/Michele Wyndham laguil 640 Print Shop Armando Lopez/Jose Chacon alopez Library Services Veronica Contreras/Sue Thompson vcontr 670 Community Ed. Services 690 Bilingual Cynthia Salazar/Jennifer Quintana cysalazar 695 Advanced Academics Belen Segovia Castillo Technology Services Oscar Dominguez/Hector Reyna odomin 750 Fine Arts Donald Rominsky/Nellie Ponikvar dromin 780 Public Relations Francis Duran/Toni Cordova fduran Special Programs Jessica Rodriguez/Maria Arias jrodri Instructional Svcs- Araceli Rubio/Cynthia Lopez arubio11 Secondary Education 810 Research & Evaluation Mary Ernewayn/Kelly Mendoza mernewayne 830 Special Ed Irma Gonzalez/Susan Kelch igonza Elementary Education Rachel Bernal/Rebecca O Neill mberna 850 CATE Lilia Aguilar/George Thomas laguil Superintendent s Office Yvette Castelo-Rommes/Dr. Xavier ycaste de la Torre Internal Auditor Joe San Miguel jsanmiguel 880 Mail Room Alma Rangel/Jose Chacon arange 890 Human Resources Benefits Lisa Gomez/Lorena Rios lgomez05 Certification Frances Munoz/Rudy Montoya fmunoz Reception & Other Martha Rios/Barbara Brewer mrios10 Records Ernesto Alonso/Joyce Zariwski ealonz01 Risk Management Guillermo Narro/Rudy Campoya Salary Officers & Monica Tapia/Rudy Campoya mtapia07 Subfinder 900 Administrative Services Caryn Leon/Lupe Lujan cleon Nurse DSC Sandra Beckford sbeckf 915 Guidance & Counseling Kim Dunlap-Flores/Elizabeth Jane kdunla Johns 920 Athletics/SAC Johanna Redlinger/Paula Gonzalez jredli 930 Financial Services Ayleen Gonzalez/Tony Reza agonza95 11

12 Budget/Payroll Jesus Armas/Susan Olson jarmas 940 Operational Services Gracie Tovar/Thomas Eyeington gtovar Maintenance Anel Carreon/Hugo Hernandez acarre Warehouse Juan Natividad/Jose Chacon jnatividad 960 Purchasing Department Maria Calderon/Mark Vechione mcalde Child Nutrition Services Gilbert Melendez/Deborah Devine gmelen Transportation Tony Holguin/Manuel Rubio aholgu Security Bonnie Leon/Luis Vega yleon For questions or suggestions, below are the District Service Center Contacts Department Contact Phone No. Financial Services/Fixed Assets Edna Garcia (915) Adriana Aguirre (915) Juanita Perez (915) Internal Audit Jose San Miguel (915)