LOGAN CITY SCHOOL DISTRICT
POLICIES AND PROCEDURES

TitleFixed AssetsNumber214
Section200 FinanceApproval DateJune 20, 2017
Subsection210 AccountingReplacesDID Adopted 2017


1. PURPOSE
1.1 To provide the requisite guidelines necessary to determine which items are to be capitalized and how they are to be maintained as part of the Fixed Assets Accounting System.
1.2 The District has a substantial financial investment in capital assets, and by law, a physical inventory must be maintained for auditing as well as reimbursement for loss due to theft, fire, or natural disaster.
1.3 A complete and accurate inventory is absolutely essential for district financial accounting, planning and budgeting, purchasing, maintenance, insurance, etc.
2. REFERENCES
2.1 GASB Statement 34 and Related Pronouncements
3. DEFINITIONS
3.1 Capital Assets: land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond one (1) year.
3.2 Capital Purchase: All purchases of equipment, supplies, materials, and other assets, which are to be capitalized.
3.3 Fixed Assets: Equipment and property that cannot easily be converted into cash.
4. POLICY
4.1 Capital Purchases
4.1.A All purchases of equipment, supplies, materials, and other assets, which are to be capitalized according to provisions of this policy, must be purchased through the District Purchase Order System.
4.1.B All electronic supplies and equipment including copiers must be purchased through the Informational Technology Department.
4.1.C All motorized equipment assets must be purchased by the Maintenance Department, i.e. cars, vans, trucks, trailers, riding lawnmowers, tractors, etc.
4.2 Capitalization of Assets
4.2.A All assets, with a purchase price or appraised value of $5,000.00 or more per item will be capitalized.
4.2.B The Business Administrator shall have the authority to determine whether or not an asset with a value less than $5,000 should be capitalized.
4.3 Fixed Assets Inventory
4.3.A A complete physical inventory of all capital assets will be conducted annually.
4.3.A.1 The Business Administrator must approve any variation of the Fixed Assets Inventory Procedures.
4.4 Disposal of Surplus Property
4.4.A The Board of Education or its designee must declare an asset as surplus before it can be disposed of in any manner.
4.4.A.1 The designee may declare an asset as surplus if valued under $50,000.
4.4.A.2 The Board must make the declaration if an asset is valued over $50,000.
4.4.B An asset designated as surplus, must then be offered to the public at either a public auction or sealed bid sale, unless a Technology Purchasing Agreement is in place that meets the requirements of the Technology Partner Purchasing Policy (333 or 533).
4.4.C After these steps have been followed the asset can de disposed of in any manner approved by the Board or its designee, as long as the best interests of the District are protected.
5. PROCEDURES
5.1 Fixed Asset Accounting Procedures
5.1.A Fixed Assets with a value or cost of less than $5,000.00
5.1.A.1 All assets with a cost of less than $5,000.00 and specified by the Business Administrator will be identified by district numbered barcodes.
5.1.A.1.a It will be the responsibility of the building administrator or designee to maintain controls and records at the building level.
5.1.B Fixed Assets with a value or cost of more than $5,000.00
5.1.B.1 A requisition of all new asset purchases must be submitted through the purchase order process in the district accounting system for approval.
5.1.B.2 When new assets arrive, the person receiving the equipment will indicate receipt in the district accounting system.
5.1.B.3 A form will be sent out with the District Asset Number on it requesting other information such as room number, serial number, model, etc.
5.1.B.4 The person receiving the equipment is responsible for completing the form and also identifying the equipment with the District Asset Number provided on the form.
5.1.B.5 The form, with the appropriate information, will be immediately returned to the District Accountant.
5.1.B.6 On approximately April 1 of each year, a computer printout of the school inventory listing will be forwarded to each school.
5.1.B.6.a This listing will be reviewed, corrected, and updated as needed to more accurately represent the school's actual fixed assets.
5.1.B.6.B Principals will return the completed school inventory listing to the District Accountant by June 15 each year to update the district fixed asset inventory list.
5.2 Annual Inventory Responsibility
5.2.A The Business Administrator has the supervisory responsibility for the District Inventory System.
5.2.B. Building administrators are responsible for maintaining an up-to-date and accurate inventory for their buildings, by item, of all assets in the following categories:
5.2.B.1. Instructional and Office Equipment
5.2.B.2 Athletic Equipment
5.2.B.3 Maintenance/Custodial Equipment
5.2.B.4 Works of Art
5.2.B.5 Media Equipment
5.2.C Employees responsible for inventories in other categories are:
5.2.C.1 Facilities Manager: vehicles, warehouse equipment, district maintenance equipment
5.2.C.2 Business Administrator: real property/buildings
5.2.C.3 Food Service Manager: kitchen equipment
5.2.C.4 Information Technology Director: all electronic supplies and equipment including copiers