Fayette County Public Schools Fixed Asset Procedures

Transcription

1 Fayette County Public Schools Fixed Asset Procedures 1. Purpose and Scope. The purpose of these procedures is to state responsibilities and requirements for the receipt, transfer, and disposal of Fayette County Public Schools Fixed Assets within the MUNIS FIXED ASSET MODULE; it implements specific accountability procedures, and identifies basic procedures for operating a property management system. Periodic audits, as deemed necessary, shall be performed for reporting and control purpose. 2. Applicability. These Procedures apply to fixed assets of Fayette County Public Schools. An effective property management system is required to maintain accurate information in MUNIS. This data is maintained to provide management with information concerning property utilization, value, and accountability, and to meet requirements of GASB Statement No Responsibility. School principals, building budget managers and IAKSS Directors are responsible for the control, safeguarding, and proper use of assets/equipment within their immediate area of responsibility. This accountability is inherent to the position, and cannot be re-delegated. If the school cannot reasonably justify where the missing asset/assets are located after an annual inventory, the school will be billed for the replacement cost and expected to reimburse the board of education. Financial Services is responsible for property inventories, appraisals, establishing depreciation methodologies, maintenance of records in MUNIS, and reporting and assisting auditors. The Warehouse is responsible for receiving, tagging, transporting, and disposal of fixed assets, and providing Financial Services with information for entry into MUNIS. 4. Fixed Asset Definition. Fixed assets should be assigned a FCPS approved tag to assure proper use, protection, transfer, disposal and financial accounting. To be considered a fixed asset, one of the following criterions must be met: a. An item initially costing more than $ that is expected to last more than one year. As of December 15, 2011 Food service will no longer have a $300 initial cost threshold for fixed assets. The food service threshold will match that of the district. b. As of January 18, 2017 Portable technology equipment with an initial cost less than $500 and with a life greater than one year will no longer be tagged. c. Food Service Equipment with a cost of $ or more that is expected to last more than one year. d. Although the threshold has increased, assets that are currently tagged with a value will continue to be tracked during the annual inventory for the district and each location will continue to be held accountable for missing items. ***Please note*** any item that is considered a Technology Fixed Assets should be paid for out of the OBJECT code This only includes desktop computers and hand held devices with an initial cost more than $500 and has a useful life of more than one year. All technology equipment not meeting this criterion will be considered a supply effective January Hand held devices with an initial cost less that $500 will no longer require tagging due to auditing software that is deployed by FCPS, but if they were previously tagged, the school is still responsible for them at inventory time until they are removed from the inventory due to retirement or other reasons. Computer inventory information for desktops that have been joined to the Fayette domain will continue to be collected by Fayette and third party software solutions. The

2 auditing data will be an integral part of our inventory process for the school year in identifying currently tagged technology equipment; it can identify the last time such devices accessed the FCPS intranet to help confirm it is on one of our properties. 5. Acquisition of Fixed Assets. This section provides the different means and instructions for acquiring fixed assets within Fayette County Public Schools. Information on procedures to follow when equipment is acquired and transferred from one facility to another is included. a. Purchases. All Fixed Assets should be purchased using the MUNIS purchase order system including those bought from Grant Funds. Fixed Assets may NOT be purchased with school activity funds (Redbook pg 14). If School Activity Funds are the preferred means of acquisition, the school MUST purchase the assets with a MUNIS PO and can then reimburse the MUNIS account with a check from the school activity funds. Object codes related to fixed assets purchased through the MUNIS purchase order system are the Land and land improvements BuiIdings Machinery and equipment Vehicles Furniture and fixtures Computers and related equipment Technology software Instructional Equipment Other equipment-includes admin equipment Repairs and Maintenance of Building. In order for any repairs or maintenance to buildings to be considered a fixed asset it must meet the following criteria: 1. Have a cost of $ or more and 2. Have a BG1 issued for the project (which means it would have been paid for out of fund 360) 3. Must significantly extend the useful life of the asset b. Donations. A Fixed Asset Donation Form shall be completed for donated Fixed Assets received from private individuals and organizations. The form shall be completed by the receiving principal/budget manager IAKSS director and forwarded to financial services. Financial Services shall notify the warehouse inventory clerk, who shall assure that an asset tag is attached to the property, and then provide the tag number to Financial Services for recording into MUNIS. Careful screening must be conducted to ensure only usable property in obtained. Consideration should be given to the expense of acquiring the Fixed Asset (i.e. shipping and repair cost) compared to purchasing a new one. All donated Fixed Assets must have the approval of the Superintendent.

3 c. Transfer of Fixed Assets. When Fixed Assets are transferred between district facilities, the releasing location principal, building/budget manager or IAKSS director shall complete an original and two copies of the Fayette County School District Fixed Asset Transfer/Disposal Form. The releasing Principal, building/budget manager or IAKSS director will arrange, through an ACT 1000 job request for the warehouse to transport the equipment to the receiving location. The releasing location personal in charge will provide the warehouse moving crew with the appropriate forms. After the equipment is transported to the receiving facility, the warehouse crew will obtain the signature of the receiving personal in charge in the designated location on the forms. A copy of the signed form will be provided to both the releasing and the receiving locations for filing. The original will be provided to Financial Services to update MUNIS. 6. Receiving Fixed Assets. All Fixed Assets, except for large equipment that can only be economically delivered to the user facility, must be delivered to the Fayette County Public Schools Warehouse, 1126 Russell Cave Rd, Lexington, Kentucky a. Warehouse Delivery. The warehouse staff shall tag all Fixed Assets received at the Warehouse. The purchase order shall be annotated with the tag number, and forwarded to Financial Services. ***Please note*** Desktop computers no longer require tagging due to auditing software that is deployed by FCPS to track these items. Also, other portable technology equipment with a life greater than one year and an initial cost less than $500 will not be tagged either. b. End User Delivery.. All exceptions must be pre-approved by Financial Services and the warehouse notified immediately when the item has been delivered directly to its destination instead of the Warehouse, regardless of the funding source. Grants are included in this policy. It is the schools responsibility to notify the warehouse that the asset has been delivered so that the warehouse inventory clerk can come out and tag the asset. A copy of the purchase order, with the tag number annotated, shall be forwarded to Financial Services for recording into MUNIS. Financial Services shall maintain a file of the purchase order, or donation form, until the next scheduled yearly inventory is completed and reconciled. 7. Grant Management and Fixed Assets. Accountable equipment obtained with Federal Funding is subject to federal Office of Management and Budget (OMB) regulations as contained in OMB circular 102. From time to time the Federal government requires an accounting as to the manner in which funds were used and the disposition of items purchased. The school system may be subject to a detailed item inventory and audit at any time without advance notice. Failure to account for these Fixed Assets can jeopardize the approval of future project grant applications. This is the reason that it is very important for the facility to immediately notify the inventory warehouse clerk that the fixed assets were delivered to locations other than the warehouse so that it can be tagged. This is the receiving facilities responsibility. 8. Tagging Fixed Assets. The Warehouse staff tags each Fixed Asset on receipt. The Warehouse Inventory Clerk maintains the stock of property tags. The general rule for

4 applying bar code tags is to place the tag to an area for easy access during inventory scanning. Remember that most large equipment cannot easily be moved to access the rear. Suggested locations for tags are the following: 1. Shop Equipment: As close to the serial number as possible 2. Fireproof File Cabinet: Front lower left corner 4. Land, Buildings. Vehicles, Athletic Equipment, Playground Equipment. Band Equipment and other such assets shall be maintained on a property card. Contact the inventory clerk for guidance ( ). 5. Kitchen Equipment: Front lower left corner, or inside front cabinet door or drawer (cleaning solvents can strip the magnetic fields numbers on the bar code). 9. Fixed Assets Returned to Vendor for Replacement. When Fixed Assets are returned to a vendor for replacement, a Fayette County Public School District Fixed Asset Transfer/Disposal form shall be completed and forwarded to Financial Services. When the replacement is received, a copy of the original purchase order with all changes noted, i.e. serial number, price, model, etc. shall be forwarded to Financial Services. Financial Services shall dispose of the returned property record in the MUNIS system. Financial Services shall notify the warehouse of the receipt of the replacement property. The warehouse will tag the property and provide the tag number to Financial Services for recording in MUNIS. 10. Fixed Assets Temporarily Unavailable. Fixed Assets shall not be removed from schools/offices without proper documentation. Temporary removal is authorized under the following circumstances. a. Fixed Assets Removed for Repair. If repairs require that fixed assets be removed from a school or office, the school principal, budget manager or IAKSS director shall prepare a Fixed Asset Return/Repair Authorization form. The form shall be retained as a temporary receipt until the Fixed Asset is returned. b. Temporary Loan. A temporary loan in any Fixed Asset assigned to an employee of the school district for off site business. All temporary loans shall be documented using a temporary loan form. The form shall remain on file at the school or office until the property is returned in good condition. 11. Fixed Asset Disposal. Fixed Assets that are excess to the needs of the facility shall be transferred to the control of the warehouse. This is accomplished through an ACT 1000 Work Order submitted to the warehouse. School and or office personal shall not dispose of Fixed Assets. The Department of Warehouse personnel only are allowed to pick up all Fixed Assets being disposed of. In addition to the ACT 1000 Work Order, an original and two copies of the Fayette County School District Fixed Asset Disposal Form shall be completed by the releasing location. The releasing location will keep one copy on file. The warehouse will pick up the property and place it in storage to be used by other district locations. If the fixed Asset is determined to be surplus or is beyond repair, it will be disposed of using the following steps: a. Collect your surplus assets into one location if possible

5 b. Remove hard drives from computers and/or destroy all data on hard drives. c. Record serial numbers and place the property tags on the Fixed Asset Transfer/Disposal form. If you can't get the tag off make sure to write the tag number down instead. d. Request that the warehouse pick up the asset by completing an ACT 1000 Work Order form (make a job request for pick-up). e. When the warehouse personnel arrive to pick-up the assets give them the other two completed Transfer/Disposal forms. f. On final disposal a signed inventory list will be provided to Financial Services from the warehouse for final retirement of the Fixed Asset in MUNIS. Declaration of Surplus and Intent to Sell a. Financial Services must be notified in advance of any auction that is to take place, and must be sent a list of all items sold, tag # if available and sale price so that we can properly account for the items in MUNIS. b. Financial services must receive copies of all paper work (e-bay print outs) and copies of checks and/or money orders when any Transportation vehicle is sold or auctioned on E-Bay. 12. Inventory Procedures. GASB Statement No. 34 requires a complete physical inventory annually. The purpose of this inventory is to ensure the MUNIS Fixed Asset system agrees with the actual Fixed Assets on hand. After the inventory is complete a list of missing items will be generated and sent to the schools/offices for review and reconciliation. a. An annual inventory will be scheduled and performed on all Fixed Assets by Financial Services prior to July 31. The principal, building manager or IAKSS director will be notified of the schedule thirty (30) days prior to the date of the inventory. Financial Services will send out a memo explaining how and when the inventory will be done, it will also state that Financial Services will call each location to schedule your inventory date and what you will need to prepare for it. The principle, building manager or IAKSS director must notify all staff of when the inventory will take place so that there will be no surprises disruptions to class rooms. b. There are two options regarding access to rooms when the inventory takes place. 1. The first and most efficient is to give the scan team an all access key to every room in the school and a map. This way they can get the scanning done more efficiently and with less disruption to the staff. 2. Option two is to have the Principal, building manager, director or a custodian accompany the scan team who will be performing the inventory to assist in locating properly, accessing locked facilities and for informational purposes to help expedite the inventory process. c. The individuals performing the inventory will scan all tagged Fixed Assets located in the facility. Any untagged items except for food service

6 equipment that meet the definition of Fixed Assets (in bullet point #4) will be given a FCPS approved tag and entered by description and serial number and reported to financial services. After the inventory is conducted a report of inventory discrepancies (missing report) will be generated and submitted to the appropriate person for review and reconciliation. A memorandum from the principal, building manager or director will be provided to financial services providing detailed justification to support the removal of "missing" property, and the addition of "add" property to the facility. The principal, building manager or director has fifteen (15) days to respond after receiving the report of inventory discrepancies. d. The FCPS software Morocco will be an integral part of our inventory process for fixed assets to identify all FCPS registered Microsoft products that are located on the FCPS internet. It can also identify the last time such devices accessed the internet to help confirm it is on one of our properties. e. Any technology equipment that is not on the Morocco or Apple finding process will be done manually by Financial Services Analyst during the annual inventory. 13. Reconciliation. The reconciliation process is considered complete when Financial Services has received all facility inventories, approved all "missing" and "add" items, and updated the Fixed Asset Module in MUNIS. a. Starting with the fiscal year, each year, an analysis will be provided to the Cabinet, District Leadership and the Board of the total number of assets and percentage of missing assets by school/department. b. An invoice for the missing items will no longer be issued to the schools. Each principal/manager are responsible for their department assets therefore any replacement of the missing assets will be need to be utilized by schools/departmental funds instead of district level funds. c. The accountability of the process will be based on not falling into an acceptable % of missing fixed assets or a consistent record of assets missing annually as a pattern. d. Instead of the schools/departments reimbursing the Board by invoices. The principal/director over these assets who fall outside of the acceptable % or who have a consistently missing asset issue will receive letters from IAKSS on a progressive basis such as (1) First offense (LOWEST LEVEL) written warning not in file but listed on the cumulative report (2) Second offense (MODERATE LEVEL) written notice to the school file and principal file but not in the principal permanent file and listed on the cumulative report (3) Third offense (SEVERE LEVEL)-written notice to principal/director and their cabinet level director with it going in the principal s Human Resource File indicating a consistent lack of protection of the districts assets under their supervision. NOTE: Depending on the level of the offense of missing assets. The letter may skip first offense and proceed immediately to Moderate or Severe Level after

7 discussion with Senior Administrative Resources Director and Superintendent based on analysis in comparison to the rest of the district. 14. Transfer of Accountability. Accountability of Fixed Assets recorded in MUNIS will be transferred after both the current and successor principal, building manager or director perform a joint inventory. After both parties agree that all Fixed Assets are accounted for, the incoming principal, budget manager or director will sign and date a statement that indicates that property records have been verified. The Principal will be accountable for the Fixed Assets assigned to the facility on signing the statement. 15. Guidelines for Fixed Asset Inventory Team. a. Meet the contact at your scheduled location b. Obtain a current map of your scheduled location c. Ensure that scanners have been charged completely d. Never enter anything in the Department field of the scanner e. Obtain an all access key or have a staff member assist in the entire inventory, to unlock doors and locate other property. f. Ask to make sure that the principal has notified all staff that the inventory will take place that day, if they have not request that they do it immediately. g. Scan all Fixed Assets in every room that meet the Fixed Asset criteria. h. Find out if there is an outside storage facility that the team will need access to and also where the server and boiler rooms are located. (These rooms are not always on the map) i. When scanning the cafeterias a food service worker must be present to assist the team. (If you find assets that should be tagged and are not; write down the location, a description of the item and serial number to report to Financial services-do Not Tag These Fixed Assets. j. If rooms are found that have a surplus of old or broken inventory notify Financial Services with the location and room number. Financial Services will then notify the school to reconcile the problem. k. Fixed assets to look for during the inventory include but are not limited to: Computers. Laptops, Smart Boards, Digital Projectors that may he located on the ceilings, Laser Jet Printers, Large equipment items in the Science wings, Workshop areas, and Music Equipment I. Fixed Assets that are not old or broken that is found without tags must he tagged with the following information recorded: Location, room number, Description of the item and the serial number. m. If there are any rooms that you are unable to get into notify your contact person so that you can scan those rooms to complete the inventory. n. At the end of the day return to Financial Services so that the scanners can be uploaded, charged, and put up in a secure place. 16. Asset-Trak 2000 Instruction Summary. Asset Trak is the software used to reconcile the physical inventory with the Fixed Asset Module within MUNIS. The following is a list of instructions and then a check sheet to double check your reconciliation at the end of the inventory. The Instructions to reconcile asset trak with the MUNIS Fixed Asset Module are as follows: a. Delete all scanned assets from the prior year s inventory in asset trak b. Delete all master assets from the prior year s inventory in asset trak. c. After assets are scanned from a location upload the scanner information

8 into your computer using the AssetTrak 2000 software. d. View the data that was uploaded from the Scanner under the edit scanned assets lab. e. Download your master file of assets from MUNIS to asset trak; this is the main file that you use to reconcile with your scanned assets (See asset trak instruction hook for more detailed directions on downloading files). f. At this point to begin the actual reconciliation you go into master assets and hit the reconcile tab, this begins the process. g. Within AT2000 database, asset records will be updated based on the scanned file, for example if a location in MUNIS was different than what was actually scanned AT2000 will change the location, but you must manually change it in MUNIS. h. The user can now generate and print exception reports from the AT2000 database. The missing asset reports are records that were on the master file copied from MUNIS, but were not scanned at the location. This is the report that will be sent to all locations for reconciling. With our new scanning equipment reconciliation can now take place on site, immediately after the inventory is complete. Therefore all missing equipment reports can be accounted for before the scan team leaves the inventory site. i. Added Status Assets are assets that were scanned at the location, but were not resident on the master file downloaded from MUNIS. These records may need to have their status changed from "N" to "C" (see asset trak instructions book for more detailed descriptions on added and new assets). j. Change Detail by Assets shows what fields need to be updated in MUNIS. For example MUNIS shows an asset at school A. but it was scanned at school B so AT2000 will show you the pre and post location so it can be updated. This needs to be manually done in the MUNIS Fixed Asset Module. k. Tech Support Help Line: Website: Asset Trak Checklist. a. All codes in MUNIS must be in AT2000 b. Do not put anything in the dept. Held in scanner or AT2000 c. Edit all records marked as new "N" that are really moved records. Change status to "C". d. Print unstatused asset report and print duplicate serial number report. Both reports SHOULD be blank. e. Upon reconciliation, if additional scanning is required, you must delete master assets and re-import to re-reconcile. f. When downloading and when using file transfer software, you must choose ASCII file and not binary format. g. Upgrade your versions of AT2000 and remember to clear scanned assets and master tables before each inventory cycle.