6801 Procedure – Fixed Assets

GENERAL

School districts are required by state law to safeguard assets of the district. In addition, the terms of some federal grants and bond covenants require specific identification of assets acquired with those moneys, impose restrictions on disposing of such assets, and/or designate allowable uses of the proceeds from the sale of such assets.

DEFINITION

Fixed assets are defined as machinery and other equipment that under normal conditions of use, including reasonable care and maintenance, have an anticipated useful life of more than one year.

The district includes all fixed assets which have a unit cost of $5,000 or greater or are theft sensitive in its equipment inventory system. All equipment with a unit cost of $5,000 or greater or theft sensitive assets will be tagged with a bar-code tag.

“Theft sensitive” assets are defined as easily moveable, concealable, portable, or desirable items with a unit cost of $300.00 to $4,999.00. Concealable items are defined as small enough to fit into a pocket, bag, briefcase or backpack (calculators, cameras, camcorders, shop tools, etc.). Portable items are defined as medium sized assets that can be easily carried (LCD monitors, computers, printers, mowers, etc.). Inventory of theft sensitive assets, purchased five years ago or earlier, will be reviewed annually and removed from inventory if they no longer meet the criteria for “theft sensitive” assets.

PHYSICAL INVENTORY

A physical count of the fixed asset inventory shall be taken periodically, the frequency and scheduling of which is to be determined by the Business and Finance Manager. In accordance with federal requirements, all equipment purchased with federal funds with a cost exceeding $5,000 or greater per item will be inventoried at least every two years. The physical inventory will be compared to the equipment inventory records and discrepancies will be investigated.

RESPONSIBILITIES

Business and Finance Manager – It is the responsibility of the Business and Finance Manager to develop an equipment inventory system, which includes the conducting and reporting of a physical count, publishing instructions, and providing support tools for Building Administrators/Program Managers to maintain proper inventory control. Some of these responsibilities may be delegated by the Business and Finance Manager to the district’s Accounting Supervisor and/or Accountant.

Building Administrator/Program Manager – Each Building Administrator/Program Manager is responsible for the control of property assigned to his/her building/program and will designate an Inventory Representative to be responsible for monitoring and maintaining the inventory records of the building/program. Such delegation does not relieve the Building Administrator/Program Manager of responsibility for the accountability and control of inventoried items. Each Building Administrator/Program Manager must authorize all equipment transfers or disposals.

Inventory Control Technician (ICT) – The Inventory Control Technician will be responsible for tracking all equipment purchases, transfers and disposals. The ICT ensures that appropriate items are bar-coded, counted, and entered into the equipment inventory system. The ICT also maintains files of supporting documentation on all fixed asset purchases so that an adequate audit trail exists.

Inventory Representative (IR) – The Inventory Representative is assigned by each Building Administrator/Program Manager and will be responsible for monitoring and maintaining the inventory records of that building/program. The Inventory Representative will be responsible for ensuring that all equipment transfers and disposals are authorized by the Building Administrator/Program Manager, and coordinated through the Maintenance Department.

Maintenance Personnel – Maintenance personnel are responsible for the physical transfer of equipment from one location to another. The Maintenance Manager is responsible for ensuring that maintenance personnel do not transfer equipment unless the appropriate equipment transfer form is completed by the building/program or themselves.

Accounts Payable, Purchasing and Receiving/Warehouse Personnel – District personnel are responsible for ensuring that the items are received and that they applicable paperwork is completed and forwarded to the appropriate personnel.

 

Adopted: 03/17/98; 06/26/08
Revised: 12/11/08