Fixed Assets Procedures Manual

Transcription

1 Fixed Assets Procedures Manual Prepared by Fixed Assets Department Revised September 2015 Page 1 of 16

2 TABLE OF CONTENTS Organizational Chart.. 4 Fixed Assets Policy Objectives. 5 Fixed Assets Defined. 5 Fixed Assets Staff.. 6 Fixed Assets Designee... 7 Account Coding. 7 Purchase Order Review Process (New Approval Group).. 8 Transfer Disposal Form. 8 Disposal Form Process.. 9 Transfer Form Process... 9 Transfer/Disposal Form Control Number.. 10 Tagging Process. 10 Student Activity and Donated Assets 11 Reporting Stolen Fixed Assets Surplus Sales.. 12 Fixed Assets Physical Inventory 12 Personal Equipment Request For Used Furniture Support Services 13 Authorization to borrow computer equipment.. 14 Returned Equipment-Fixed Assets 14 Musical Instrument Inventory 14 Appendix 17 Transfer/Disposal Form. A Miscellaneous Change Form. B Campus/Department Checkout Form C Page 2 of 16

3 ORGANIZATIONAL CHART FIXED ASSETS DEPARTMENT Mike Garza Assistant Superintendent for Administration Hector G. Cavazos Director of Fixed Assets Armando Torres Fixed Assets Officer Daisy Almanza Fixed Assets Accountant Mario Gonzalez Fixed Assets Officer Humberto Reyes Fixed Assets Clerk Kayla Rodriguez Fixed Assets Clerk Lauren Villarreal Fixed Assets Clerk Page 3 of 16

4 Fixed Assets Policy Objectives The fixed assets policy of the District is established to safeguard the assets of the District by establishing perpetual inventory records and affixing inventory numbers to furniture and equipment. In the event that any policy statement contained herein conflicts with that required by TEA Financial Accountability System Resource Guide (FASRG), as amended, or applicable federal regulations, the FASRG and/or federal regulations shall be followed. The fixed asset policy of the District shall be to: 1. Comply with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB) and as required by TEA FASRG. 2. Maintain appropriated stewardship of the location and value of fixed assets. Fixed Assets Defined For purposes of the District s financial statement, fixed assets shall be accounted for at cost or, if the cost cannot be practicably determined, at estimated cost. Donated fixed assets shall be recorded at their estimated fair value at the time received. Student activity purchases of fixed assets shall be accounted for at cost. Fixed assets shall include land, buildings, improvements, furniture and equipment, and vehicles that: 1. Are not consumed as a result of use. 2. Have a useful life of at least one year and have, for capital assets, a per unit cost of $5,000 or more, and for inventoried assets a per unit cost of less than $5,000 and are high risk in nature. For enterprise funds, capital assets shall be defined as having a useful life of at least one year and a per unit cost of at least $1, Have a useful life of at least one year and are classified as follows: a. Capital assets shall have a per unit cost of over $5,000 and be accounted, inventoried, and depreciated. b. Inventoried technology assets shall have a per unit cost of less than $5,000, shall be accounted and inventoried, and shall be computerized in nature and composed of intricate circuitry. c. Other inventoried assets shall have a per unit cost of over $500 but less than $5,000 and be accounted. Page 4 of 16

5 Fixed Assets Staff The Fixed Assets Accountant will assist in maintaining the Fixed Assets Inventory of the School District and promote accurate accountability of capital outlay expenditures. Their duties include: 1. Maintain timely and accurate recording of the District s fixed assets in the subsidiary ledger, and insure a strong system of internal control to insure safeguarding of the District s fixed assets, and reconcile the fixed assets subsidiary ledger to the District general ledger. 2. Assist in the developing a plan to include replacement and new construction procedures, review the District s capitalization policy and recommend modifications as necessary, as well as to develop and maintain prototypes for capital asset needs of campuses and departments. 3. Assist in the disposal of District s assets, reconcile the fixed assets subsidiary ledger to the District general ledger, will provide external and internal reports for CAFR and annual financials, and will coordinate with the District s Director of Risk Management to insure appropriate and adequate insurance coverage to safeguard the assets of the District. The Fixed Assets Officer will assist in maintaining the inventory of the School District and to promote accurate accountability of capital outlay expenditures. Their duties include: 1. Supervise all movements of fixed assets, the disposal of all surplus, and inventory locations and its assets, assign control numbers for all fixed asset request forms, enter date on fixed assets additions, deletions and transfers, perform fiscal inventories. 2. Maintain inventory of all fixed assets for all campuses and departments, maintain work order files, tag assets, prepare weekly vandalism/loss reports and develop and maintain prototypes for capital asset needs for campuses and departments. 3. Safeguard supplies and equipment against theft and damage, establish a strong system of internal control to insure safeguarding of the District s fixed assets, plan to include replacement and new construction procedures, and assist coordinating with the District s Director of Risk Management to insure appropriate and adequate insurance coverage to safeguard the assets of the District. The Fixed Assets Clerk will promote accurate accountability of capital outlay expenditures. Their duties include the following: 1. Enter date on Fixed Assets additions, deletions, and transfers on a daily basis, balance and reconcile monthly Fixed Assets to the General Ledger, maintain work order files and historical data, and prepare weekly vandalism reports Page 5 of 16

6 2. Assist in performing physical inventories, assist in the preparation of monthly financial reports, maintain and submit times sheets, assist in the preparation of the annual Fixed Assets audit. 3. Safeguard supplies and equipment against theft and damage, and work closely with the Support Services Staff and Accounting Staff to maintain accurate Fixed Assets records. Fixed Assets Designee Every campus and department must have an appointed Fixed Assets Designee. The Designee will be responsible for the supervising all fixed assets for their designated location. All transfer and disposals will require the approval of the designee. Note: Transfer and Disposal forms where the designee is not available will require the approval of the Director of the department or the Principal of the school. Make sure to contact the Fixed Assets Department if you are a new appointed designee for your campus. Account Coding Texas Education Agency Financial Accountability Resource Guide requires that Texas Schools account for fixed assets. This includes Land, Furniture, buildings, improvements and equipment. Capital Outlays purchases. The unit cost of the item purchased and the type of item to be purchased will determine the fixed assets category and subsequently coding to be used. The following are the three (3) types of expenditure coding to be used: 1. Unit cost $5,000 or more The purchase shall be classified as capital outlay (663X-XX). Tagged and controlled through the annual inventory process on the Fixed Assets subsidiary ledger. Classified as State Defined Accounted for on the District s General Fixed Assets Account Group Examples of Account Expenditure Object codes: a (vehicles) b (data processing equipment) c (all other equipment not classified elsewhere) 2. Unit cost <$5, and Electronic Classified as operating expense (6641-XX) - (6649-XX) Computing equipment with a unit cost of $.01 to less than $5,000 (6645-XX) Computing equipment is computerized in nature is composed of intricate circuitry Examples include: a. communication equipment (fax machine, mobile and hand held radios, etc.) (6645) Page 6 of 16

7 b. Stereo system components (boom box, speaker, mixer, DVD play, etc.) (6649) c. Computer equipment (monitor, printer, CPU, external peripheral equipment, (DVD/CD, Disk Drive), IPOD s, PDA s etc.) (6645) d. Video processing equipment (camcorders, cameras, television combos and televisions, etc.) (6649) e. Eikis, Elmos (6645) 3. Unit cost more than $ to less than $5,000 Classified as Capital Outlay (6649-XX) Tagged and controlled through the annual physical inventory process on the Fixed Assets Subsidiary Ledger Classified as locally defined and will not be accounted for on the District s General Fixed Assets Account Group Examples include: Secondary Musical instruments (6649) Secondary Athletic equipment (6649) Machinery/tools (6649) Purchase Order Review Process (New Approval Group) The Fixed Assets Accountant will review requisitions submitted to make sure that they have the correct budget account numbers. If the requisition is correct, it will be approved and continue thru the approval process. If incorrect, the requisition will be send for corrections in finance plus. The Purchasing Department will process the Purchase Orders. Transfer Disposal Form The Transfer Disposal Form allows us to update the status of an asset in our inventory software. This form allows us to maintain record of where the asset is currently located. The form serves two purposes: 1. Transfer-The form is used to transfer items from one department/campus to another. For example, a computer is being transferred from a campus to technology for repairs or a table being moved for a department changing locations. (Transfers Only: The Transfers Only section will require the printed name and signature of the person receiving the assets.) 2. Disposal-The form is used to dispose of items that are good/bad condition that are no longer needed. Items that are good will be separated by Support Services. For example, the disposal of desks, computers, chairs, printers, vehicles, etc. Page 7 of 16

8 The form applies to all Furniture and Equipment. In order to process the request, the form must be completely filled out by computer. Handwritten forms will not be accepted. Once the form has been filled out in it will need to be printed and signed by individual requesting the form. The second signature will be by the Fixed Assets Designee or Principal/Director. Transfer and Disposal forms containing technology items require a technician s approval. Technology equipment includes Monitors, CPUs, Printers, EIKI, Projectors, Scanners, IPADS, or the like. Consult with your Technician if you have questions on any asset that could possibly be technology related. All form(s) need to be ed to: fixedassetsform@uisd.net. Please contact the Fixed Assets Department if you have any questions on any of the procedures. Disposal Form Process 1. A disposal form is submitted by to fixedassetsform@uisd.net 2. Form is received by and is reviewed for accuracy. If inaccurate, form will be returned. If the disposal form contains technology items, the tag and serial number are also reviewed to locate the Asset I.D. 3. If form is complete a control number will be assigned. 4. Form is scanned and ed to Support Services supervisor to schedule for pickup. 5. After items are picked up, Support Services returns the form and s a report of any assets that were physically scanned at the pickup site to document the tag and serial. The scans are reconciled to the items listed on the disposal form. Note: Scans are only available if technology equipment is disposed. 6. After the reconciliation is complete, the assets listed on the disposal form that were picked up are moved to surplus in our fixed assets software if they contain an Asset I.D. 7. Disposed items are added to the surplus report. 8. Disposal form is scanned into the fixed assets software. 9. Hard copy of the form is filed. Transfer Form Process 1. A transfer form is submitted by to fixedassetsform@uisd.net 2. Form is received by and is reviewed for accuracy. If inaccurate, form will be returned. If the transfer form contains technology items, the tag and serial number are also reviewed to locate the Asset I.D. 3. If form is complete a control number will be assigned. 4. Form is scanned and ed to Support Services supervisor to schedule transfer. Page 8 of 16

9 5. After items are transferred, Support Services returns the form and s a report of any assets that were physically scanned at the pickup site to document the tag and serial. The scans are reconciled to the items listed on the transfer form. Note: Scans are only available if technology equipment is transferred. 6. After the reconciliation is complete, the assets listed on the transfer form are moved to the new department in our fixed assets software if they contain an Asset I.D. 7. Transfer form is scanned into the fixed assets software. 8. Hard copy of the form is filed. Transfer/Disposal Form Control Number Each Transfer/Disposal form received is assigned a unique control number. An example of a control number is as follows: Example: 001 TN Identifies the department number of the campus/department submitting the Transfer/Disposal. TN Identifies if the request contains technology related items. TN stands for Technology North and TS stands for Technology South. If the Transfer Disposal number does not contain any technology related items, the control number would read Identifies where the assets is being moved. If the asset is being sent to disposal, the control number will read 999. If the asset is not a disposal and is being moved to a campus/department, it would read the campus/department number. 03 Identifies the month the Transfer Disposal Form control number was assigned. 04 Identifies the day the Transfer Disposal Form control number was assigned. 15 Identifies the year the Transfer Disposal Form control number was assigned. 145 Identifies the sequential number the Transfer Disposal Form control number is assigned. Tagging Process All equipment paid with budget funds or discretionary funds shall follow the purchasing process and be delivered to the Central Warehouse for tagging. Under special circumstances, the Purchasing Department may arrange for items to be delivered to the user site. If authorized, the Fixed Assets Department should be NOTIFIED IMMEDIATELY to coordinate the tagging of the items. Page 9 of 16

10 Student Activity and Donated Assets All donations of items must have the approval of the Board of Trustees. Assets donated or purchased with Student Activity Funds in excess of $500 are required to be tagged. The recipient receiving the donation must contact the Fixed Assets department in order to tag the asset. For Student Activity purchases, the check request and invoice need to be provided. The Fixed Assets Accountant should be ed to request the tagging of any donations or student activity assets. The Fixed Assets staff will schedule with campus/department to tag the purchased assets. Once tagged, the asset will be posted to the campus/department s inventory. Example of student activity and donated assets consist of cameras, printer, scanners, computers, IPADS, or the like. Reporting Stolen Fixed Assets If furniture/equipment is stolen, report the items stolen to your supervisor, UISD Police Department ( ); open 24 hours a day. Call your Directors: Secondary Director Elementary Director Loss group (type in loss@uisd.net) Provide the following information: 1. Date of reporting to Police Department 2. Investigation/Case # (if available from Police Department) 3. Description of items stolen 4. Model/Serial # s (if available) 5. Replacement cost 6. will trigger several individuals in the district to start reporting and recovering from the district s insurance company so that items can be replaced in timely fashion. 7. The Fixed Assets Department will update the campus/department s inventory once the police report is received. If the Police report is not available when you are reporting the item lost, make sure that you include the case #. The person filing the police report is responsible to acquire the original report from the police department. Note. Remember to also the loss group on any police reports filed outside of the District and make sure you scan and attach the police report. Items that have not been reported stolen will continue to appear in the campus/department inventory. Page 10 of 16

11 Surplus Sales The board shall approve disposal of unnecessary property with a value greater than $1,000. The Superintendent or designee is authorized to dispose of all other unnecessary property 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. (CI Local) School Properties Disposal requires that the District follow proper procedures to account for the disposal of school properties. The disposal process is the use of Surplus Sales. These Surplus Sales are done by the Fixed Assets Department throughout the school year. Fixed Assets Physical Inventory The Fixed Assets Department will perform a fixed assets inventory on all capital outlay items at each campus/department periodically. This inventory will be conducted during the school year and the process will be a component on the administrator end-of year checkout list. Items not accounted for during the inventory process will be reported to the principal and/or administrator. The principal shall appoint a fixed assets designee. The designee will be responsible for keeping a strict account of all the fixed assets at the campus. Any items not found after the inventory will be addressed to the designee for further review. Procedures: 1. Technology equipment inventory will be conducted biennially or as requested by the Fixed Assets Director. 2. The Fixed Assets Dept. will provide a list to the campus principals once a year in September of the items at their campus. 3. The Fixed Assets Dept. will the campuses on their scheduled dates of inventory at least 3 days in advance. We will require a: a. Master key. b. Campus map. 4. Inventory First Draft After the assets at the department/campus have been scan, they scan files will be submitted to the IT department to generate the Fixed Assets inventory reports. Once the report are received and reconciled by the Fixed Assets Department an Inventory First Draft will be submitted by to the campus/department. The campus/department will have 7 working days from receiving the FIRST DRAFT to resolve any differences, locate any missing assets, file any Police reports. See REPORTING STOLEN FIXED ASSETS for more information. Page 11 of 16

12 5. Inventory Final Draft-No later than 7 working or regular days from issuing the FIRST DRAFT, and with the a Second and Final Draft including the most current inventory results indicating which if any instrument and equipment are still considered not found. 6. Within 5 working days, once all the changes and corrections from each campus inventory count have been completed by the Fixed Assets Dept., the file will be sent to the IT Dept. to upload and update the inventory in Finance Plus System. Personal Equipment If possible, personal equipment should be removed from the campus/department during the inventory or marked as PERSONAL. If the equipment cannot be removed, make sure to label your equipment as personal. The label should be clearly visible. We recommend that a letter size paper is used and the word PERSONAL is written in uppercase letters and taped to the asset. Assets that belong to different departments, other than the one being inventoried, should also be labeled with the department campus organization to avoid the scanning of the asset. If your personal equipment was tagged, make sure that you notify the Fixed Assets Department to remove the asset from your campus inventory. Request For Used Furniture Mr. Mike Barron (mbarron@uisd.net), Supervisor of Support Services, to request furniture. Include the reason for the request. (for example: growth, new additions, replacement, etc.) and copy your Principal and/or Director. Support Services Once a Control Number has been assigned to the Transfer/Disposal request, the inventory will be moved by the Fixed Assets Department in our inventory software. The form will then be transferred to the Support Services department for the actual physical pickup of the assets. A campus/department staff is required to be present during the transfer and disposal of items to verify that all items were disposed/transferred properly. A signed copy of the Transfer Disposal request should be obtained from the Support Services staff after the completion of the request. For documentation purposes, the copy of the signed request form from Support Services should be provided to the Fixed Assets Designee. Note: Support Services will not pick up any items that were not listed on the Transfer Disposal form. A new request will be required if additional items need to be transferred or disposed. Page 12 of 16

13 Authorization to Borrow Computer Equipment When an employee authorized by campus/department administrator borrows computer equipment for off-site schoolwork, a Campus/Deparment Equipment Check-Out Form (See Exhibit D) needs to be filled-out. The Equipment Check-Out Form is also to be used when issuing teachers equipment, issuing equipment to student and when administrator takes laptops off campus. Sign and complete documentation, which should include district tag number, serial number, description, name of person borrowing the computer equipment, and date borrowed. This information should be filed on campus. When the computer equipment is returned, the documentation should show the date the computer equipment is received and signature of person receiving the computer equipment. Returned Equipment-Fixed Assets When equipment, which already has district tags, is returned for replacement or credit: 1. Remove and attach the district tag to a Transfer/Disposal Form with its corresponding serial number and campus/department information to remove the serial number and update campus/department s inventory. 2. the Transfer/Disposal Form to to have an assigned control number 3. When replacement is received, notify Fixed Assets Department at to retag the equipment and update the campus/department s inventory with the new serial number and Tag number. Musical Instrument Inventory Purpose: These guidelines are to be adhered to when conducting a Musical Instruments Inventory. Defined: Per Board Policy CFB Local, fixed assets include inventoried assets with a per unit cost of less than $5,000 and are high risk in nature. Based on this, musical instruments would fall under this category. Procedures: 1. Musical Instrument Inventories will be conducted twice a year, once in the fall and once in the spring. 2. The Fixed Assets Dept. will provide a musical inventory list to the band directors twice a year, in September and January, thru the Fine Arts Director. Page 13 of 16

14 3. The Fixed Assets Dept. will work with the Fine Arts Dept. to determine which dates are available for conducting inventories. Final dates will be shared with the Fine Arts Director and campuses will be notified as noted below. 4. The Fixed Assets Dept. will determine the dates for the physical inventory and notify the campuses at least 3 days in advance. 5. On the day of the inventory, the following should be available: a. All instruments should be on hand for inventory check as noted in the Fine Arts Dept. Inventory Control Procedures Instructions for Inventory Checks conducted in the fall and Spring Semesters. b. All paperwork for the period from the last inventory to the present should be available for review, including, but not limited to, Student Loan Agreements, Fixed Assets Transfer Forms, Purchase Orders, Police Reports, and Vendor Receipt for instruments out for repair. c. A copy of the campus instrument list from the Fixed Assets Dept. as of the last inventory taken. This should include a notation of those assigned to students and those in storage. d. The band director must be present during the physical count to assist the Fixed Assets Dept. If possible, one additional campus staff member should also be present. 6. PRELIMINARY REPORT - At the end of the inventory day, the Fixed Assets Dept. will leave with the band director the preliminary status report of the inventory deemed not found and other un-reconciled items (i.e. additions, disposals, transfers not posted to Fixed Asset Dept. ledger, wrong serial numbers, wrong tag numbers, etc.). This will be dated and initialed by the band director and Fixed Assets staff. a. If an instrument not found is assigned to a student, efforts to confirm this with the student will be done by the band director and Fine Arts on the day of the count. b. If an instrument not found was in storage, the Fine Arts Director will inquire of the band director as to their access and safeguarding procedures. c. INCIDENT REPORTS - The band director will be responsible for filing an incident report with the UISD Campus Police Officer based on the items deemed as not found on the preliminary inventory count report. The serial number (not tag number) should always be included as this is the main identification for the instrument. The UISD Police Dept. will be responsible for tracking the instruments not found on the preliminary count report on the LEADS System. d. If the band director is able to locate not found or unreconciled items, these should be stored or noted separately until the FIRST DRAFT is received as noted below. The Fixed Assets Dept. should not be contacted until then. 7. FIRST DRAFT No later than 5 working days following the inventory count, an with FIRST DRAFT of the current inventory results will be sent to the band director, assistant band directors, the principal, and the Fine Arts Director. FIRST Page 14 of 16

15 DRAFT will be the report that the Fixed Assets Dept. has revised from the preliminary inventory count report for any minor corrections. 8. The campus band director will be given 3 working days from receiving the FIRST DRAFT to resolve the differences by contacting the Fixed Assets Dept. The Fixed Assets Dept. must physically see and confirm the serial number of the instrument to clear the not found instrument. a. If there are 5 or less instruments, the band director will take to the Fixed Assets Dept. b. If there are 6 or more instruments, the Fixed Assets Dept. will go to the campus band hall. c. POLICE REPORTS In conjunction with the Principal and Fine Arts Director, the band director will be responsible for filing a police report with the UISD Campus Police Officer based on instruments and other equipment identified as not found up to this point. A copy should be sent to the Fixed Assets Dept. and the Fine Arts Dept. The Police Report will reference any changes to the items, with serial number, initially identified in the Incident Report. The contact person at the Police Dept. for police reports is the Chief of Police. 9. SECOND AND FINAL DRAFT No later than 7 working or regular days from issuing the FIRST DRAFT, an with the a SECOND AND FINAL DRAFT including the most current inventory results indicating which, if any, instruments and equipment are still considered not found will be sent to the band director, assistant band directors, the principal, the Fine Arts Director and the UISD Police. This report should include the date acquired, the tag number, serial number, description, model, last inventory date and cost/value. 10. Within 5 working days, once all changes and corrections from each campus inventory count have been completed by the Fixed Assets Dept., the file will be sent to the IT Dept. to upload and update the Finance Plus System. Summarized Musical Timeline: 1. Fixed Assets conducts inventory and provides a preliminary report on same day. Band director files incident report with UISD Police. Band director works to locate instruments not found, if any. 2. Within 5 working days, Fixed Assets provides first draft. 3. Within 3 working days, band director contacts Fixed Assets for any instruments found, Band director files police report for instruments not found as of yet. 4. Within 7 working days, Fixed Assets provides second and final draft. 5. Within 5 working days, Fixed Assets provides all changes and corrections to IT. Page 15 of 16

16 Appendix Fixed Assets Forms Appendices Fixed Assets Forms Appendix Dept No. A Transfer/Disposal Form B Miscellaneous Change Form C Campus/Department Checkout Form Page 16 of 16

17 For the most recent form, log into the Fixed Assets web link at A

18 For the most recent form, log into the Fixed Assets web link at B

19 For the most recent form, log into the Fixed Assets web link at C