LAREDO INDEPENDENT SCHOOL DISTRICT FIXED ASSETS GUIDELINES AND PROCEDURES AUGUST 2011 SUBJECT: PROCEDURES NO.: Fixed Assets Guidelines and Procedures FA.1 OBJECTIVE: The objective of this section is to establish guidelines and procedures for the operations of the Fixed Assets Department. RESPONSIBILITY: 1. The jurisdiction of each independent school district rests with the Board of Trustees and the Superintendent. 2. The superintendent has designated the Executive Director for Plant Facilities and Support Services as the coordinator of all actions necessary to ensure that campuses and departments adhere to the established fixed assets guidelines and procedures. ACCOUNTABILITY: 1. The fixed asset director in charge of fixed assets inventory is responsible for establishing an accountability system for the operation of the Fixed Assets Department. 2. The fixed asset coordinator in charge of fixed assets is responsible for the accountability of fixed assets inventory in district storage. 3. Each campus principal/department head is responsible for the accountability of fixed assets inventory assigned to his/her school/department. 4. Each school principal may assign an assistant principal, curriculum specialist or other personnel to oversee his/her fixed asset inventory; however, the principal remains accountable for all fixed assets inventory operations. 5. Each department head may assign a professional staff member to oversee his/her fixed asset inventory; however, the department head remains accountable for all fixed assets inventory operations. 6. The Procurement Director shall ensure that purchase orders for capital outlay state that they are to be delivered to Division of Operations. 7. Exceptions to #6 are to be communicated to the Division of Operations Director.
8. If delivery of assets is to be made directly to a school or department, the Director of Division of Operations shall ensure that the Receiving Department receives and tags all equipment at the designated location. 9. If technology equipment and/or other technology equipment are delivered directly to a school or department, the Director of Operations shall ensure that the equipment received is bar coded. A distribution list shall be provided to the Fixed Asset Department on a timely basis. 10. Each principal and department head shall conduct scheduled inventory verifications of all fixed assets assigned to his school/department. 11. The Fixed Assets Department staff shall conduct an annual physical inventory of all fixed assets inventory. 12. The results of the inventory shall be submitted to the Executive Director for Plant Facilities and Support Services. 13. Burglary/Vandalism/Loss report shall be made for all fixed asset inventories determined to be lost during the course of the year and/or through the physical inventory. INVENTORY SECURITY: 1. The district s fixed assets storage facilities shall be secure facilities. Daily traffic shall be limited to department personnel. 2. Departments and schools shall keep their assets in a secure manner. All facilities shall be locked and alarm activated at the end of the day. 3. Accessibility to facilities shall be determined by the department head/principal. INVENTORY PROTOCOL: 1. The Fixed Asset Director shall send out an inventory schedule to each school or department. 2. The Fixed Assets Department staff may accept inventory schedule changes only if their deadlines allow. 3. Prior to the fixed assets inventory, the fixed assets designee shall compile copies of all purchase orders for fixed assets inventory or capital outlay (acquisitions and leases) for the current year. 4. Prior to the fixed asset inventory, each school or department administrator in charge of fixed assets shall make sure that an inventory of each room including storage rooms has been taken. Any differences between the inventory report and the inventory count shall be resolved prior to the Fixed Assets Department count. 2
5. The Fixed Asset Department staff shall conduct a physical inventory of each room. 6. The principal or administrator in charge of fixed assets shall be present during the inventory. 7. At the conclusion of the inventory, the principal/department head or administrator in charge of fixed assets shall submit Burglary/Vandalism/Loss report or documentation for all inventories not accounted for. 8. The principal/department head or administrator in charge of fixed assets shall certify the accuracy of the inventory by affixing his/her signature and date on the inventory report. 9. The fixed asset director shall prepare a district wide inventory report for submission to the Executive Director for Plant Facilities and Support Services. RECEIVING: 1. District accountability for fixed assets inventory begins when purchase orders issued for capital outlay are received. 2. All purchase orders issued for capital outlay shall be delivered to Division of Operations. 3. Division of Operations shall determine whether fixed asset inventory or capital outlay purchased is bar-coded. 4. The following criteria will be used to bar code assets. 1. Any equipment with a unit price greater than $500.00. 2. Televisions with a unit price less than $500.00. 3. VCR s, DVD s with a unit price less than 500.00. 4. Scanners with a unit price less than $500.00. 5. Hand Held Computer with a unit price less than $500.00. 6. Printers with a unit price less than $500.00. 7. Digital Cameras with a unit price less than $500.00. 5. Division of Operations delivers the fixed asset inventory or capital outlay to the campus or department. 6. Division of Operations shall call the Fixed Assets Department to pickup pink copy of purchase orders received for the purchase of fixed asset inventory or capital outlay. 7. Procurement department shall provide a copy of all capital outlay purchases to the fixed assets department. 3
8. The Fixed Assets Department inputs the information into the campus/department inventory and shall record the inventory to the room for which the fixed asset inventory was intended. 9. If information in not available on the purchase order to determine which room the fixed asset inventory is assigned to, then the Fixed Assets Department will call the administrator in charge of fixed assets for the information regarding the distribution of fixed asset inventory. DISTRIBUTION: 1. The Division of Operations staff shall deliver fixed assets inventory or capital outlay to the schools or departments. 2. The campus or department receives the fixed asset inventory or capital outlay from Division of Operations and verifies against their copy of purchase order for accurateness. 3. The principal/department head or designee shall assign the room or rooms for which the equipment is intended. TRANSFERS AND DISPOSALS: 1. WITHIN SCHOOL/DEPT. Prior to the permanent transfer of any fixed asset inventory from one room to another, the principal/department head or administrator in charge of fixed assets must submit the Inventory Transfer/Disposal Form to the Fixed Assets Department. (Note: The room numbers from and to must be reflected on the form.) 2. FROM ONE SCHOOL/ DEPT. TO ANOTHER Prior to a permanent transfer from one campus/department to another, the principal/department head or administrator in charge of fixed assets must submit the Inventory Transfer/Disposal Form to the Fixed Assets Department. (Note: The room number to where the asset was assigned must be reflected on the form and the new number will be assigned when the permanent transfer is done.) The fixed assets department will move the fixed asset inventory or make the necessary arrangements for their transfer. 3. INTO SURPLUS Prior to the removal of fixed asset inventory, the principal/department head or administrator in charge of fixed assets must submit the Inventory Transfer/Disposal Form to the Fixed Assets Department. (Note: The room number where the asset was assigned to must be reflected on the form.) The fixed assets department will remove the fixed asset inventory from the campus or department. 4. SURPLUS INVENTORY All surplus inventories removed from the campuses or departments are transferred to the Fixed Assets Department Inventory. 4
5. TEMPORARY STORAGE: Campuses and departments needing assets may make arrangements to examine inventory in storage. The Request for Inventory Form must be used to request any inventory in storage. Periodically, Surplus Inventory will be sold to the public via auction or sale. AUCTIONS/SALES: The Superintendent or designee is authorized to declare District materials, equipment, and supplies to be unnecessary and shall dispose of unnecessary material, equipment and supplies for fair market value. If the unnecessary property has no value, the superintendent or designee may dispose of such property according to administrative discretion. Items obtained as federal surplus shall be managed according to federal regulations. See CI (LOCAL) AUCTION PROCEDURES: 1. The Fixed Asset Director shall request a list of inventory no longer in use from the Transportation Department and the Food Service Department. 2. The Fixed Asset Director prepares list of unneeded inventory in storage to be auctioned. 3. The Procurement Department will secure quotes from auctioneers. 4. The Fixed Asset Director shall coordinate the auction with auctioneer awarded contract. 5. The Procurement Department will advertise the auction in the newspaper. 6. The auction is held and proceeds are deposited into Bank. 7. The Fixed Assets Department staff shall delete items sold at an auction from the inventory database on a timely manner. 8. Proceeds from the Auction will be presented to the Board of Trustees on the Surplus Inventory Report. 5
SALES PROCEDURES: 1. The Fixed Asset Director shall on a periodic or daily basis will conduct a sale of surplus inventory no longer in use. 2. The Fixed Asset Director will sell surplus inventory at fair market value or 10% of acquired cost. 3. Stale or damaged surplus inventory will be sold at price determined by the Fixed Asset Director. 4. Bill of Sale will be issued to the public wishing to purchase surplus inventory. 5. The public purchasing surplus inventory will make payment with the District Cashier. 6. The sale is completed and proceeds are deposited into Bank by District Cashier. 7. The Fixed Assets Department staff shall delete items sold from the inventory database on a timely manner. 8. Proceeds from the sales will be presented to the Board of Trustees on the Surplus Inventory Report. CRITERIA FOR INVENTORY ADJUSTMENTS Fixed Assets Department will analyze inventory items to determine whether the asset meets criteria for deletion from database. All of the following criteria must be met for an inventory item to be considered for deletion are as follows: Fixed Assets Department will verify the purchase date of the inventory item to determine if item is older than five years. Fixed Assets Department will verify if item has not been scanned during physical inventory within the last five years. Fixed Assets Department will determine if the inventory s useful life is fully depreciated with no residual value left. If the inventory item does not meet any of the above stated criteria, the item will not be adjusted from the inventory database. Fixed Assets will inform principal or department head of items that qualify for removal from database. Principal or Department head will make decision on the asset removal. Fixed Assets Department will determine whether the inventory item meets policy to catalogue or capitalize the asset. If item does not meet policy, the item will be removed from the database. 6
INVENTORY CHECKS: 1. The principal/department head or administrator in charge of fixed assets shall schedule and make sure that random inventory room checks are conducted. 2. The principal/department head or administrator in charge of fixed assets shall make sure that staff notifies him/her immediately when inventory is detected missing or lost. 3. After being notified of inventory missing or lost, the principal/department head or administrator in charge of fixed assets shall have five working days to notify the Fixed Assets Department by submitting the Burglary/Vandalism/Loss Report. STAFF RESPONSIBLITIES: 1. Keep a record of fixed asset inventory assigned to your room. 2. Make sure that the fixed asset inventory assigned to your room is not missing by conducting periodic checks. 3. Report any missing inventory immediately to your principal/department head or administrator in charge of fixed assets and submit the Burglary/Vandalism/Loss Report. 4. Verify the inventory of your room at year-end to be ready for the beginning of next year. 5. Request an updated inventory report from your principal/department head or administrator in charge of fixed assets whenever fixed asset inventory is added to your room. 7