7455 - GAAP FIXED ASSET PROCEDURES

Montgomery County Educational Service Center

Administrative Guidelines

7455 - GAAP FIXED ASSET PROCEDURES

Fixed Asset Initial Inventory/Personnel:

The initial fixed asset inventory has been done by Industrial Appraisal Company. The update of the fixed asset inventory will be maintained through the School Asset Accounting System Equipment Inventory Subsystem (EIS). The Treasurer and staff will be responsible for maintenance of said system.

Permanent Transfers:

The permanent transfer of fixed assets between departments/rooms will require the proper written approval (permanent transfer form must be completed at time of permanent transfer between buildings) by the Superintendent/designee as follows:

	A.	Permanent transfer forms must be completed by the Director or department head and forwarded to the Superintendent for approval.
	B.	After approval by the Superintendent, the completed form is forwarded to the Treasurer.
	C.	The Treasurer and staff are responsible for making necessary changes through the School Asset Accounting System Equipment Inventory Subsystem.

Purchasing Fixed Assets:

Fixed assets purchased will require approval from the Superintendent/designee. All fixed asset purchase orders are to designate purchase price, purchase order number, and location. The person initiating the purchase is responsible for this information.

After fixed assets have been received, inventory addition forms MUST be completed as follows:

	A.	Inventory addition forms will be completed and tags will be applied by the personnel requesting item. (The tag with number will be issued by the Treasurer's office.)
	B.	Completed form will be returned and signed by the Director and returned to the Treasurer's office.
	C.	The Treasurer and staff will be responsible for adding new items to the inventory.

Disposal of Fixed Assets:

Fixed asset form is completed by Director and forwarded to the Superintendent for approval. FIXED ASSETS ARE NOT TO BE DELETED, SOLD, SCRAPPED, ETC., UNTIL AFTER APPROVAL. Form is then forwarded to Treasurer, and information is entered into computer.

Personal Fixed Assets:

Personal fixed assets of employees or students WILL NOT be part of the District fixed asset inventory. "PERSONAL PROPERTY" labels or some sort of identification should be placed on all personal property.

Grouping of Fixed Assets:

Grouping of fixed assets (i.e., student desks, chairs, texts all in the same room) will be identified by one (1) tag number and the actual number of items in the group. The individual items in the group will not have physical tags attached.

Verification of Fixed Assets by Department/Employees:

Fixed asset print-outs will be given to each Director or supervisor for their department or building for verification of fixed assets assigned to their department or building and returned to the Director. The verification form is filed with the Treasurer for audit purposes. Distribution of print-outs will be done prior to September 15th each fiscal year.

After audit is reviewed by the Treasurer, any material discrepancy of fixed assets found will be reported to the Superintendent and reconciliation of differences that exist will be done by the Director or supervisor.

Lost or Stolen Fixed Assets:

When a fixed asset over the $5,000 threshold is found to be lost or stolen, an internal investigation will be done by the Superintendent and Director. The insurance company and police or sheriff's department will also do their own investigation. The inventory will be adjusted after the item(s) remains "lost or stolen" for a minimum of one (1) year.

Capital Improvement/Ordinary Repairs:

A capital improvement extends useful potential life of asset or increases future service potential.

Ordinary repair is that repair made to maintain asset in current operating condition.

If an item is determined to be a capitalized item, remove cost of previous amount; replace with new cost associated with it; complete an "addition" form.

The Treasurer will discuss with the Superintendent and reach a final decision to determine if it is a capital improvement.