Fixed Assets Procedures

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FIXED ASSETSPROCEDURES

MANUALFOR

CALCASIEU PARISHSCHOOL SYSTEM

REVISED - 2001


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CALCASIEU PARISH SCHOOL BOARDFIXED ASSETS ACCOUNTING MANUAL

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I.II.III.

IV.V.

VI.VII.

TABLE OF CONTENTSPAGE

Introduction............................................................ 3Definition of Fixed Assets......................................... 3Fixed Asset Inventory Procedures ............................. 4A. Perpetual Inventory........................................ 4B. Annual Physical Inventory............. .................. 5C. Unrecorded Fixed Assets................................. 5D. Additional Physical Inventories.... .................... 5

1. Immediately Following Burglary... ....... ... 52. During Change of Principal or

Department Head................................. 5Acquisition of New Fixed Assets............................... 6Removal or Loss of Assets From a Location. ............. 6A. Retirement of Obsolete or Broken Assets........ 6B. Retirement of Stolen Assets........................... 8C. Retirement of Missing Assets........................ 8Transfer of Assets to Other Locations..................... 8Use of CPSB Assets at Sites Other Than AssignedLocations.. .. . .. ... . .. . .. . .. . ... .. . .. . .. . . . . . . .. . .. . .. . .. . .. . .. .. .. .. 9

APPENDIXESProcedures for Maintaining Perpetual InventoryRecords. ....... ..... ...................... ................... ......... AProcedures for Taking Annual Physical Inventory... BInventory Record Sheet........................................ CDisposition of Surplus or Obsolete Assets............... DCopy of Repair Tag ............................ " ..... ........... EOff-Site Usage of Fixed Assets............................... FProperty Incident Report....................................... G

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I.

II.

CALCASIEU PARISH SCHOOL BOARDFIXED ASSETS PROCEDURE MANUAL

INTRODUCTIONThe Calcasieu Parish School Board has approximately $250million of land, buildings, furniture, equipment and vehiclescurrently on the books. Of this amount, almost $51 million isfurniture, equipment and vehicles. Because of the vastnumber of fIXed assets in the school system, it is extremelyimportant that each principal and department head assume anactive role in maintaining the accuracy of the fIXed assetsystem. This handbook is a compilation of the procedures andresponsibilities related to the fIXed assets at your location.Each section is as brief as possible, containing step-by-stepinstructions, with sample copies of pertinent documentsincluded. Please read the information provided; if you havequestions, you may call the Fixed Assets Department.DEFINITION OF FIXED ASSETSFixed assets are land, buildings, machinery, equipment andfurniture that have a cost of $1.000 or more and have auseful life of more than one year. Fixed assets may bepurchased by a school or through the School Board or theymay be donated by individuals or organizations.The School Board maintains records of land and buildings;principals and department heads are responsible formaintaining records of equipment, furniture and fIXtures.Fixed assets should be listed at their historical cost.The major characteristics of fIXed assets are as follows:1. They possess physical substance such that they retain their

original shape and appearance with use.2. They are long-term in nature and are expected to yieldservices for longer than one year, as opposed to consumablegoods which are depleted as used.

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;.

III.

3. They are non-expendable, that is, if the article is damagedor some of it s parts are lost or worn out, it is usually morefeasible to repair it rather than replace it with an entirelynew unit (which is not true of supplies).4. They do not lose their identity through incorporation into a

different or more complex unit or substance.Examples of fIxed assets are:(I f valued ,1 ,000 or more)

TelevisionsSofasBand InstrumentsTypewritersWashers and DryersWindow Unit Air ConditionersCopiersConference Tables

Video CamerasSewing MachinesComputersRefrigerators and StovesTrucksBusesTractors

Examples of items which are not fIXed assets are:(Value less than '1,000)

Instructional SuppliesGlueFirst Aid ItemsDishesPencil SharpenersCarpetsVCRsTypewriters

MapsPaperUtensilsBooksWaste BasketsDrapesStudent DesksSewing Machines

FIXED ASSET INVENTORY PROCEDURESA. Perpetual Inventory

In order to ease the conducting of the annual physicalinventory of fIXed assets, a oerpetual inventory should bemaintained by each school and department (Appendix A).The Fixed Assets Department should be notifIed promptlywhenever an asset is purchased or received, permanentlytransferred to another location, lost, stolen or when its tagis missing (whenever an adjustment to a school's ordepartment's inventory should be made). I f this practice isconsistently implemented, the annual physical inventory

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will be a routine matter and the fIxed asset system will bemuch more accurate.B. Annual Physical Inventory

In order to maintain an accurate account of CalcasieuParish School Board possessions, an annual physicalinventory of fIXed assets is to be taken. School principalsand department heads are responsible for ensuring thatfixed asset records are up-to-date. See Appendix B forinstructions.

C. Unrecorded Fixed AssetsSome assets acquired prior to the implementation of thecentralized system are not recorded on the fIXed asset detailreports. Additionally, some fIXed asset tags are missingfrom the assets because they have fallen off or have beenremoved. All fIXed assets without tags (either because theywere not previously recorded or because the tag is nowmissing) must be included in the annual inventory. Youmay write the tag number on the asset with a blackpermanent marker.

D. Additional Physical InventoriesSome situations exist whereby an additional physicalinventory should be conducted:

1.

2.

Immediately Following BurglaryPrior to fIling a police report, a complete physicalinventory of the suspected areas should be taken.In addition, teachers or office personnel housedin surrounding areas should conduct a cursoryinventory of their equipment. The police reportshould encompass all items discovered stolen(Sec. V.B.).During Change of Principal or Department HeadTwo physical inventories should be conducted atthis time: one by the outgoing administrator andone by the incoming one. This procedure isessential for determining responsibility for thefIxed assets at a particular location.

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IV.

V.

Missing assets must be reported to the Fixed AssetsDepartment by sending the assets inventory cards tothe Fixed Assets Department.ACOUISITION OF NEW FIXED ASSETSNewly acquired fIxed assets include items purchased by theSchool Board or by a school and donations received fromindividuals or organizations.A. Items purchased by a Calcasieu Parish School Boardpurchase order from the General, Capital Projects (Bond) orFederal funds will be delivered to the Central warehouse,tagged, added to the school's inventory on the fIXed assetmaster me and then delivered directly to the property schoolor location with an inventory card attached to the item. Asecond card will be sent to verify that the asset has beendelivered to the school. That card must be returned to theFixed Assets Department with the proper sub-location to

update that school's inventory.B. Items purchased from school activity accounts and itemsdonated to the School Board or to a school must be reportedto the Fixed Assets Department by sending a copy of the

Request lor CPSB Tags lor School Purchased FixedAssets form to the Fixed Assets Department. (See AppendixC.) The Fixed Assets Department will assign a tag numberto each inventory item and will enter the pertinent data intothe master fue. The numbered tag along with an inventorycard will be returned to the proper location. It is theresponsibflitg 01 the school or department to alJix thetag to the asset. Fixed asset tags should be attached toitems as quickly as possible and in an area where they areleast likely to be removed.

REMOVAL OR LOSS OF ASSETS FROM A LOCATIONA. Retirement of Obsolete or Broken Assets

In order to remove an obsolete, unnecessary, or brokenasset from your inventory, the following procedures must befollowed:1. Fixed asset items determined by a principal ordepartment head to be obsolete or non-repairableshould be identifIed on a "Disposition of Surplusor Obsolete Assets" form (Appendix Df. The listmust be signed by the principal or department

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2.

3.

4.

5.

6.

head certifying that the items are appropriate fordisposal.The principal or department head should thensend the list to the Fixed Assets Department.The Fixed Assets Department will determinewhich items should be disposed of by the schoolor department and which items should be pickedup by the warehouse.The Fixed Assets Department has the authority todivide the items on the list into the followingcategories:a. Obsolete and Disposableb. Obsolete and Retained for Partsc. Retained for RepairItems identified as category "a" - "Obsolete andDisposable" - may be disposed of in the mostfeasible and economical fashion deemedappropriate. Items declared surplus or unfit forfurther use by the Board should be transferred tothe warehouse for temporary storage. Assetsshould be stored in a manner commensuratewith disposition plans. Disposal of fixed assetsby sale or scrap method will be conducted asnecessary, based on volume, as determined bythe Chief Financial Officer. Surplus and/orobsolete equipment can only be sold throughpublic auction or public bid process. Theycannot be sold or given to school boardemployees. Surplus land and buildings will besold by bids approved by the Board. Dispositionof surplus assets will be in adherence with therequirements in Louisiana State Law (Act 305 of1980).Items identified as category "b" - "Obsolete andRetained for Parts" - shall be delivered to theappropriate location in the school system(warehouse, maintenance, etc.).Items identified as category "c" - "Retained forRepair" should be sent to the appropriate facilityfor repair after the repair tag (Appendix E) hasbeen completed by the principal or departmenthead. The repair tag must be completely filled in

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with tag number, description of the item, serialnumber, current location, and the reason forrepair. A copy of the repair tag should be kept onfile.7. The Fixed Assets Department will write theselected category - a, b or c (as indicated in #3above) - by each item on the list. The original listwill be used to update the fIXed asset master fileand then will be filed by the Fixed AssetsDepartment. A copy of the fmallist will be sent

to the Accounting Department.B. Retirement of Stolen Assets

In the event of the theft of fIXed assets, the followingprocedures should be followed:1.

2.

3.

4.

Conduct a thorough search of the premises forthe missing assets.Review any sign-out logs (Appendix F) onequipment and interview the person to whomeach item was assigned regarding the asset'swhereabouts.Keep a copy of the inventory cards for the missingassets. Send the original cards, with the PropertyIncident Report, to the Fixed Assets Department.Complete the "Property Incident Report"(Appendix G) and submit it to the Fixed AssetsDepartment. Retain a copy for school records.The white copy goes to the Risk Manager, theyellow copy to the Maintenance Department andthe pink copy to the Fixed Assets Department.These reports should be submitted within twentyfour hours after discovery of the theft.

5. The Fixed Assets Department will delete thestolen items listed on the report from the fIXedasset master file.C. Retirement of Missing Assets

In the event that assets cannot be located and there is noevidence of a physical break-in, the inventory cards forthose assets should be sent to the Fixed Assets Departmentalong with an explanation.- 8 -


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VI. TRANSFER OF ASSETS TO OTHER LOCATIONSThe ftxed asset system tracks assets by location; therefore, it isimperative that transfers of assets be recorded. To transfer anasset to a new location, the custodian of the asset shouldrecord the transfer on the inventory card and make two copiesof the card, one copy to be sent to the Fixed Assets Departmentand one copy to be retained in their fIles. The Fixed AssetsDepartment will update the ftxed asset master fIle to record thetransfer upon receipt of the copy of the inventory card. Theoriginal inventory card for each asset transferred must be sentto the new location with the fIXed asset.

VII. USE OF CPSB ASSETS AT SITES OTHER THAN ASSIGNEDLOCATIONSUnder no circumstances may Calcasieu Parish School Boardassets be removed or taken home for personal use. In theevent that an employee needs to use an asset for school-relatedpurposes at home or a site other than the assigned worklocation of the asset, the employee must obtain writtenpermission from the principal or department head. A copy ofthe form, "Off-Site Usage of Fixed Assets," Appendix F, must besubmitted to the appropriate assistant or associatesuperintendent. The original must be maintained on fIle at theschool. This regulat ion applies to all Calcasieu Parish SchoolBoard employees.

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APPENDIXES

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APPENDIX ACALCASIEU PARISH SCHOOL BOARDFIXED ASSETS PROCEDURESFOR MAINTAINING PERPETUAL INVENTORY RECORDS

Principals are the designated custodians of fIXed assets at the schoollevel and are ultimately responsible for the safeguarding and recordmaintenance of the fIXed assets in their school. However, principalsshould designate fIXed asset custodians. The person selected as thefIXed asset custodian should be the person using the fIXed assets orshould have physical custody of the assets. Each teacher should beresponsible for their classroom, the librarian for the assets in thelibrary, the band director for the assets in the band department. etc.The following procedures are to be followed in order to set up perpetualinventory records for fIXed assets:

1. The person designated by the principal/department head as thefIXed asset custodian will be responsible for establishing perpetualinventory records and for maintaining these records.2. The Fixed Asset Department will provide a computer printout ofthe fIXed assets in your school.3. Your printout will list assets by sub-location (e.g. BAND, LIB, 102,etc.). Each section should be given to the person responsible forthat sub-location.4. Each person receiving a section should then verify the accuracy ofthe printout. All changes (additions, deletions, and corrections)should be written on the computer printouts.5. The inventory cards should be checked against the printout tomake sure that there is a card for each asset on the list and toverify that no assets on the cards have been left off the list. ThesefIXed asset inventory cards must remain with a designated fIXedasset custodian. These inventory cards will be used by theauditors to verify room or department inventOIY during the Fixed

Asset audit.6. Once completed, the computer printout sheets must be signedand dated by the person performing the inventory and shouldthen be returned to the principal.

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7. Upon return of the computer printouts, the principal is to reviewthem for completeness, accuracy, and legibility and for thesignature of the responsible person.8. The principal should also investigate any deletions or missingitems of which he was previously unaware.9. The principal shall.ign each printout once he is satisfied as to it scompleteness, accuracy and legibility.10. Once the principal has reviewed and signed the computerprintouts and has made sure that all sublocations have beenaccounted for, he should return the printouts to the Fixed AssetDepartment.11. The Fixed Asset Department will input the changes and send anupdated printout to the school. The school should keep theupdated printout for it s records.12. Additions to Fixed Assets - When a school acquires new assetsduring the year either through purchases made by the school orfrom donations (not assets that are purchased by the SchoolBoard that are tagged at the School Board's warehouse) thedesignated fixed asset custodian should fin in the Request for

CPSB Tags for Purchased Fixed Assets form. A copy of thecompleted form should be sent to the Fixed Asset Department.(See Appendix C). The Fixed Asset Department will issue a tagnumber for the asset and return it to the school along with afixed asset card. It is the responsibility of the school to afJixthe tag to the asset or to the inventory card, if appropriate.

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APPENDIXBCALCASIEU PARISH SCHOOL BOARDFIXED ASSETS PROCEDURESFOR TAKING ANNUAL PHYSICAL INVENTORY

1. Annual physical inventories are to be conducted by each schooland department as scheduled by the Fixed Assets Department.Once the perpetual inventory system has been set up andproperly maintained, annual physical counts of flXed assetsinventory should be a routine matter of verifying theinformation on the inventory cards.2. The school or department heads will receive a printout of theirlocation and sublocations which are to be issued by the

principal or department head to each person designated as aflXed asset custodian for their room or department. Somedepartments will require several sheets.3. The flXed asset custodians are to use the inventory cards toverify the physical existence of each asset on their cards.4. Once the physical existence of the asset has been verified, theflXed asset custodian should list the required information onthe Fixed Asset Inventory printout.5. For assets listed on the cards for which physical existence orwhereabouts cannot be determined, the flXed asset custodianshould write "asset not located" on the printout along with

justification as to WHY it can not be located. For example:obsolete, broken or theft and if theft, a copy of the incidentreport is required. See Appendix G. The principal ordepartment head should send the cards to the Fixed AssetsDepartment where the asset will be deleted from the FixedAsset Master File.6. Inventory cards should have been completed for assets inexistence which were transferred in or purchased during theyear (Appendix A). However, i f there are assets in existence forwhich inventory cards have not been completed, they should befilled in at this time. I f tags are needed for assets notpurchased through the school board's Purchasing Department,this should be noted at the bottom of the flXed asset inventoryprintout. The Fixed Asset Department will reissue cards orissue tag numbers for the above-mentioned assets.

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7. After the fIXed asset custodian has completed the fIXed assetinventory printout, the printout should be returned to theprincipal or department head. The inventory cards are toremain with the fIXed asset custodian where they are to bemaintained in accordance with the "Procedures for Setting Upand Maintaining Perpetual Inventory Records" (Appendix A).8. The principal or department head should verify that theinventory printout for the rooms and departments under theirresponsibility have been submitted. These inventory printoutsshould be signed and returned by the required date asscheduled by the Fixed Asset Department.

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APPENDIXCCALCASIEU PARISH SCHOOL BOARD

Request for CPSB Tags for School Purchased Fixed Assets

School/Location ,__________ Date:__ITEM SERIAL , PRICE SUBLOCATION

PRINCIPAL'S SIGNATURE,___________

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APPENDIXDCALCASIBU PARISH SCHOOL BOARD

DISPOSITION OF SURPLUS OR OBSOLETE ASSETS

FROM: (School or Department)DATE:

The following flXed asset(s) is/ are appropriate for disposal. Please adjustmy school/department's flXed asset records accordingly.TAG NUMBER DESCRIPTION SERIAL NUMBER

Explanation:

APPROVED BY:_________PRINCIPAL/DEPARTMENT HEAD___________

(Signature) (Date)FIXED ASSETS DEPARTMENT____________

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APPENDIXE

ITEMS SUBMITTED FOR REPAIRSCHOOL________________________________NAME OF UNIT_________________

S E R ~ L # ______________________________INCOMING DATE___ __ __OUTGOING DATE I 1__NATURE OF REPAIRS:

PARTS NAME & #:

DATE PARTS ORDERED:__ ___ ___SIGNATURE RECEMNG PARTY:__________DATE: I 1___NAME OF UNIT________________S E ~ L N U M B E R . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___INCOMING DATE:___ ___ ___DELIVERED BY:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

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APPENDIXII'CALCASIEU PARISH SCHOOL BOARDOFF-SITE USAGE OF FIXED ASSETS

School Name/Department:_______________Asset Description:______________________________Tag No.:______________________Serial Number:__________________________________Date Signed Out:___________________I accept full and complete responsibility for any damages due to abuse,neglect, accidents or acts of nature. I will return the asset to the schoolin working condition.

Check-In Information:

Signed Out By:__________Approved By:__________

Principal/Asst. Superintendent

Date Received:_____Received By:______

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CALCASIEU PARISH SCHOOLSPROPERTY INCIDENT REPORT FORM

APPENDIXG

(Required Whenever Property Damage Occurs on a Schoolf Office Site)SCHOOL:___________ DATE:____Date and time ofincident:___________________Wa s entty made into an y part of the building?____________Which Police Department was called?_______________Does th e school have a security system?______________Name of security system?___________________Did the system report the break-in or incident?____________Custodial hours necessary to clean up?______________Was maintenance called?___________________Check as many as apply: ___ Burglary

___ Larceny__ :Arson___Broken Windows/Doors___Other Vandalism___Carelessness

Specific details ofloss or damage (where, what, how, etc.):

MATERIAL AND EQUIPMENT STOLEN, DESTROYED, OR DAMAGED(ATTACH ADDITIONAL SHEET IF NECESSARY)

No. Name of Description Stolen Destroyed Damaged Approx.of Item (Model, Serial No., PurchaseItems Etc.) Price

Signature of Person Preparing Report Signature of Principal/Dept. Head- 19 -
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Fixed Assets Procedures