Fixed Asset Policy - Findlay City Schools

Board of Education Policy Findlay City School District 4.19 Acquisitions New assets acquired by the District must be reported immediately to the Treasurer, using the prescribed form (Appendix B). This information should be provided to the Treasurer’s office at the time the purchase order is submitted for approval. If the order is for replacement equipment, the disposition portion of the form should also be completed. Upon approval for the purchase, a copy of the acquisition form with the tag affixed will be returned to the unit administrator and a copy will be retained in the Treasurer’s Office. Upon receipt of the asset, the inventory tag must be affixed. Any additional information such as serial numbers, etc., not available at the time the purchase order was issued, must be communicated to the Treasurer’s office on the receiving copy of the purchase order used for payment of the invoice. The Treasurer’s Office should be on the alert for fixed assets that appear to have been purchased out of expenditure codes not directly corresponding to the asset’s functional activity or not expended from a Capital Outlay (new or replacement object codes 6XX or 7XX) account code. These purchases may not properly report on the Equipment Inventory System (EIS) pending list for entry into the system. Corrective action may be needed to assure all assets are properly recorded. Dispositions District fixed assets are retired through several means, including sale, trade-­‐in, loss by theft, etc. All disposals, by any means, must be reported to the Treasurer using the prescribed form (Appendix C). The inventory tag should be attached to the form. Any acquisitions involving a trade-­‐in should also be thoroughly reviewed to properly record the disposal of the asset relinquished. Asset disposed of by sale with a current Book Value in excess of $10,000 must be sold at auction (pursuant to ORC Section 3313.41). The Superintendent according to Board Policy will dispose of assets with a current Book Value less than $10,000. All sale or trade-­‐in of assets, regardless of value, must have prior written approval of the District Superintendent or his designee, who will, based upon the asset records, establish a fair market value for sale purposes. Relocations Relocations are defined as asset transfers outside the operational unit or building. Operating unit administrators maintaining asset records at the departmental or classroom level must account for those transfers internally through a stand-­‐alone system. Policy Maintenance A significant aspect of fixed asset system maintenance involves maintaining the policies that dictate control of fixed asset records. The Treasurer’s Office is responsible for the ongoing maintenance and revisions of these policies. These fixed asset policies are intended to outline and explain the District’s handling of fixed assets. It may be necessary to schedule periodic review of the most important aspects of these policies to determine whether they are achieving their intended purpose. Some policies that should be reviewed periodically (annually) include: 1. The capitalization policy threshold – is it too high or low? 2. Maintaining records for Controlled Assets – is it effective? 12