FIXED ASSETS PROCEDURES

Transcription

1 SECTION XI - INVENTORY / FIXED ASSETS FIXED ASSETS PROCEDURES WHO IS RESPONSIBLE? A. Building principals and department managers are accountable for assets/equipment within their immediate area of responsibility. This accountability is inherent to the position. Accountability includes inventory, control, and maintenance of all equipment in their immediate area of responsibility. B. Responsibility lies with every individual utilizing district assets/equipment for the performance of their duties. C. All personnel are responsible to adhere to the following procedures in the procurement, movement and disposition of all district equipment. FIXED ASSETS A. Definition. A fixed asset is defined as real property costing $5, or more. This property is governed by audit requirements associated with control, accounting, and disposal of. B. Acquisition of Fixed Assets 1. All fixed assets will be purchased using the purchase order system. The object code relative to fixed assets is Equipment will be shipped to and received at the appropriate location. 2. Exception to the above procedures are those fixed assets received by donation (gifts) from organizations or private individuals and purchases using school level purchase orders. These assets will be reported in writing using Asset Form D-228 by the school principal, and department managers to the Inventory Control Clerk. C. Receiving Fixed Assets 40

2 1. The pink copy of all purchase orders utilizing object code will be forwarded to receiving location for receiving action. When a fixed asset arrives at the location the following steps will be accomplished: a. Packing Slip will be matched to pink copy of appropriate PO. b. Asset(s) will be opened and verified against PO for quantity, correctness, and condition. c. For each item received, that is not a component to another item, it will be tagged with a bar code. Only one item per bar code number. (Place the bar codes on the asset on the lower front or upper right side or as close to the serial number as possible.) Bar code and serial number if appropriate will be annotated by the line item on the pink copy of the PO. PO s will NOT be accepted for payment without this information. d. The pink copy of PO will be signed and dated. e. Pink with duplicate copy of PO and packing slip attached will be forwarded to accounts payable for payment processing. 2. When property is donated to a location or purchased using school level purchase orders it will be reported by the building administrator or department manager as appropriate using Asset Form D-228. For donated items include item description, make, model, serial number and estimated cost. A copy of the correspondence will be sent to the Inventory Control Clerk. D. Adjustments of Fixed Assets. Adjustments of all fixed assets will be supported with receipts and signatures providing an audit trail. There will be no deletions, additions or adjustments without written proof/explanation provided with the appropriate signature. 1. Transfer of all fixed assets will be coordinated with the Inventory Control Clerk. An Asset Form D-228 will be provided authorizing the transfer of fixed assets between locations. Examples of these transfers are: a. Transfer of equipment from school site/department to maintenance for sale/disposal. b. Transfer of equipment from one site to another for use. The paperwork will contain a complete description of each fixed asset being transferred to include bar code #, serial number, model number, losing location and gaining location. Upon completion of the transfer an original copy will be turned into the Inventory Control Clerk with original signatures for adjustment to property records, one copy to losing location and one copy to gaining. 2. Fixed assets with a current resale value of $5,000 or less will be disposed of in one of the following manners through the Inventory Control Clerk: 41

3 a. Sold at a District approved sale. b. Disposed of properly. c. Returned to Grant Agency. To determine the proper disposal of a piece of equipment the following procedures must be followed by the Principal/Director to determine if the equipment was purchased with Federal Fund dollars: a. Is the item a grant item i.e. Title I, Title IV etc.? For fixed assets purchased with grant dollars ensure appropriate disposition forms have been filed with the grant agency and disposition authority received. An example is that Title I items must be reported to the state level and authority to dispose of asset must be received. In some cases the grant agency may have equipment sent back to them. b. Is the equipment repairable and if so, is it cost effective? Usually if it costs more then 65% of replacement value to repair and the item is more then 2 years old it is not considered cost effective to repair. If it cannot be determined then the item should be sent to a repair shop for cost estimate. Based upon the estimate, a decision is made whether to repair or not. If the item is repairable it should be repaired and re-issued to a school with a need through a redistribution program. If there is no further need within the district then the item may be identified for sale. c. If an item is identified by a school as excess it will be transferred to the Sale inventory location. All equipment available for redistribution will be transferred to this inventory. The listing will then be provided to each principal/department manager on an as required basis for review. If a principal/ department manager identifies equipment they need from the listing then they will submit a request/memo asking that the equipment be delivered to their location. At that time a transfer form will be used to record the issue and delivery. Upon completion of the delivery the transfer form will be passed on to the Inventory Control Clerk for transfer of equipment from the Sale inventory listing to the school s inventory. If more than one site/department requests the same piece of equipment than the equipment will be issued on first come first serve basis unless otherwise directed by the Finance Director. 3. All property being held for a sale will be transferred to location code SALE. Maintenance department will hold all assets being held for sale. It will provide visibility of all assets available for sale. At such time as determined by the Finance Director, approved by the Board of Education and State Auditors Office, a sale of assets will be coordinated and conducted. Upon completion of the auction and final disposition of all assets a record of the sales and final dispositions will be provided to the Inventory Control Clerk for final adjustment of property records. 42

4 4. All dispositions of equipment having a current resale value in excess of $5,000 must be approved by the State Department prior to such disposition. The State Department must be provided with: a. the reason for the disposition. b. a complete description of the property including the inventory identification number and/or serial number, c. documentation that the local Board has approved the disposition, d. information indicating the current resale value of the property to be disposed of and in the event of the exchange of equipment, the resale value of the property to be received. If more than one item is being disposed of, the value must be determined by individual item. In those instances when the district is disposing of equipment to a non-state entity, the value to be received is to be comparable to the fair value of the property to be disposed. Consideration to be received by the district in the transaction must be expressly identified; e. the proposed method of disposition whether public auction, solicitations of proposals or bids; f. a copy of the proposed legal advertisement g. a copy of SDE-947 revised 8/89. h. written permission from the Federal Property Assistance Bureau to dispose of vehicles obtained from that agency is required if less than eighteen months from date of purchase, or tractors, and other heavy equipment, if less than two years from date of purchase, i. written permission to dispose of school buses (not activity buses) is also required from the State Transportation Director, State Department of Education; attach a copy of the approval to your request. 5. Temp loan of equipment to District personnel must be documented. All school principals and department managers are responsible to have personnel under their area of responsibility sign out equipment to provide visibility of district assets. Use form # D Any property that is disposed of without following proper procedures will be in direct violation of District Policy. FIXED ASSETS PROCEDURES A. Inventory will be accomplished annually on all fixed assets by appropriate personnel. Results of the inventory will be reconciled, coordinated and reported as required by the Inventory Control Clerk to the Finance Director. B. An inventory report will be distributed once a year. Each responsible individual, i.e. building administrators and department managers, will have 15 days in which to complete their validation of inventory. Each location will receive two (2) copies of their master inventory 43

5 list. Upon completion of the validation the responsible individual will annotate changes, sign, date and return one copy of their master inventory list. No adjustments to fixed assets 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 the Inventory Control Clerk. 44