MIDLAND INDEPENDENT SCHOOL DISTRICT PROCEDURES: Fixed Asset Tracking

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1 MIDLAND INDEPENDENT SCHOOL DISTRICT PROCEDURES: Fixed Asset Tracking Goal An up-to-date inventory of all equipment, vehicles, and buildings with an original unit value greater than $5,000 shall be maintained for audit purposes. In addition, an up-to-date inventory of all equipment with an original unit value between $1,000 and $4, shall be maintained for insurance purposes by the Procurement Services department (Procurement). An inventory of other small equipment shall be tracked by the respective campus and/or department; i.e. Technology department. Types of Assets Capital Asset: An asset that is tangible; life is greater than one year; significant value (original unit value greater than $5,000); and identified and controlled through the inventory system. Controlled Asset: An asset that is tangible; life is greater than one year; original unit value between $1,000 and $4,999.99; identified and controlled through the district s fixed assets system. Inventory: An asset that is tangible; life is greater than one year; original unit value between $100 and $999.99; identified and controlled through the campus and/or department inventory system. Procurement Fixed Assets Functions Procurement shall maintain an up-to-date database of all Capital and Controlled Assets (Fixed Assets). The database shall include the following information, at a minimum: A description of the fixed asset or controlled asset Serial number or other ID number Funding source Title information Original acquisition date Original cost Percent of federal funding Location Disposition description and date

2 Campus/Department will complete a transfer form in the Fixed Assets system. This form will be submitted to Procurement/Warehouse. Procurement shall post the change to the database and file the form for audit purposes. All items transferred to the Warehouse as surplus or salvage shall be tracked on the database. A list of all salvage items shall be submitted to the Superintendent or designee for approval prior to a public sale, auction or disposal. The signed list shall be maintained for audit purposes. All items sold via a public sale, auction or disposal shall be removed from the fixed assets database. Fixed Asset Transfer Form A Fixed Asset/Inventory transfer form is required whenever equipment is moved from one location to another. This shall include one classroom to another, one campus to another, or from a location to the warehouse. Procedures Surplus fixed assets/inventory (Database and Paper Form) o Campus or department completes the form and sends to Warehouse. o Warehouse will pick up the surplus items. o Procurement will enter transfer in database Non-surplus fixed asset internal campus changes. o Campus will enter changes in the database. Fixed assets/inventory campus change. o Campus or department completes the form and sends to Warehouse. o Warehouse will pick up and deliver to new campus/department. o Procurement will enter transfer in database Monthly Reconciliation Capital Asset shall be defined as: All equipment with a unit cost over $5,000 (account code 663X) tagged, posted in the Fixed Asset Database and posted to the general ledger and are considered fixed assets for audit purposes.

3 Controlled Asset shall be defined as: All equipment with a unit cost between $1,000 and $4, (account code 6398) should be tagged and posted in the Fixed Assets database for inventory and audit purposes. All Capital Assets and Controlled Assets shall be tagged by the Procurement warehouse at time of delivery or by the campus/department. Procurement will send the tags to the warehouse or campus/department after entry of the items have been entered in the fixed assets database. A capital outlay report will be generated after the monthly closing by the Accounting Department. This report will be reconciled with the new equipment tagged during the month by Procurement. Transportation shall prepare all Application for Vehicle, Title, and License Plate forms for all new vehicles purchased by the district. The forms shall be submitted Chief Finance Officer (CFO) for approval and signature of all forms. Transportation shall submit the forms to the Midland County Tax Assessor s Office for processing. The Business Office shall notify the auto insurance carrier of the new vehicles. All transfer forms shall be entered in the fixed asset database upon receipt. All fixed asset items purchased with federal grants shall be tagged with the appropriate tag and the fund will be entered in the fixed asset database. The disposal of assets via surplus sales (auction), stolen or lost assets shall be recorded in the fixed asset system. The fixed asset schedules maintained in the fixed asset database should be used to purchase property and casualty insurance. Annual Reconciliation By April 1 st, a list (sorted by room #) of all fixed assets items will be sent to each campus and department for reconciliation purposes. The reconciliation process should be completed by May 15 TH and sent to Procurement. Procurement will compile a summary of all discrepancies and/or missing items and forwarded to the appropriate campus/department administrators.

4 The staff (teachers) should not be released for the summer until all missing items have been accounted for or reported to the district police department. A list of all Capital Assets will be prepared by September 15 th for audit purposes. o Assets o All assets will be posted to the general ledger by the appropriate object code. o The date of the final payment shall be used to determine the acquisition date. If the asset was on hand less than the full fiscal year, the depreciation shall be pro-rated over the appropriate number of months. o The useful life of assets shall be: o Buildings range between 5 and 30 years depending upon whether the asset is a new building, improvement or upgrade to building systems. o Equipment range between 3 and 10 years depending on the type and cost of the asset. o Vehicles range between 5 and 10 years depending on the type and cost of the vehicle. Fixed Asset Disposal o All fixed assets will be picked up and delivered to the warehouse. The district will utilize an on-line auction service to sale the assets. o Auctions will take place twice a year. o Damaged or unusable property that has no value and cannot be sold or donated will be disposed of in the dumpster located at the warehouse. Superintendent or designee must approve before disposal of items. o Receipts from auction sale will go in the general revenue except for Federal funds purchases. Use of Federally Funded Assets o All federally funded equipment shall be used, as long as needed, for the original grant project, whether or not the project continues to be federally funded. o Assets shall be made available for other projects as long as the use does not interfere with the project under which it was originally acquired.

5 o When no longer needed for the original grant project, equipment may be used in other federally supported activities. Disposal of Federally Funded Assets o When equipment is no longer needed for the original project or other federally funded project, MISD shall dispose of the equipment in the following manner: o Equipment with current fail market value of less than $5,000 may be retained, sold, or otherwise disposed of with no further obligations to TEA. o Equipment with current fail market value of $5,000 or more may be retained or sold but TEA shall have the right to the proceeds. o TEA reserves the right to transfer title to another grantee for noncompliance or as needed after the project ends (regardless of how equipment is classified). o At the conclusion of a local grant project, TEA may request a list of equipment purchased with grant funds. The grantee must request disposition instructions from TEA. For most TEA discretionary grants, if a local project is ending and the grantee no longer needs equipment purchased with grant funds, and if the equipment is relatively up-to-date and in good working order, TEA, at its discretion, may instruct the grantee to transfer the equipment to another viable grantee. o Disposal of all federally funded assets shall be tracked in the fixed assets database, including a disposition date and method for audit purposes.