Series: Series6000     Sub Series: 6600 FISCAL ACCOUNTING AND REPORTING     Policy Number: 6610
          Printer Friendly (opens in new window/tab)


INVENTORY & CONTROL OF FIXED ASSETS


The Board of Education recognizes the importance of clearly established procedures for inventory control of the district's fixed assets. 

 

Fixed assets shall include land, buildings & equipment. This accounting will serve to:

(a)    maintain a physical inventory of assets

(b)   establish accountability

(c)    determine replacement cost

(d)   provide appropriate insurance coverage

 

For purposes of this policy, "fixed assets" shall mean a unit of furniture or furnishings, an instrument, a machine, an apparatus or a set of articles which retains its shape and appearance with use, is nonexpendable, and does not lose its identity when incorporated into a more complex unit, is valued above $5,000 in the aggregate or is defined as theft-sensitive. For the purposes of this policy, "theft-sensitive" are those items identified by the Purchasing Agent which have a value of $200 or more, such as PDAs, camcorders, desktop and laptop computers, photographic equipment, instruments and tools.

 

A.     PROPERTY CONTROL

 

The Assistant Superintendent for Support Services is designated as property control manager for the school district.  He or she is responsible for the development of the initial inventory and the subsequent reporting of fixed assets, for the annual inventory and appraisal of school district property, equipment and material and to resolve discrepancies that arise.

 

In addition, he or she will:

 

(a)    Develop a system for the inventory of equipment to conform to the state's requirements for fixed assets accounting

(b)   Be responsible for ensuring that all current and new fixed asset items are bar-coded and for maintaining the inventory of equipment;

(c)    Periodically review the inventory records and make personal inspections of all district storage spaces to ascertain surplus or shortage of materials and equipment;

(d)   Authorize the transfer of equipment in accordance with established procedures; and

(e)    Engage a New York State licensed appraisal firm to prepare a certified report of the school district’s fixed assets once every five years to provide insurable values of such assets and to become the basis for a sound insurance program.

 

B.     VALUATION

 

All assets will be recorded at cost, based on invoice price, and will include all necessary costs incurred to place the asset in service. Incidental costs may include, but are not limited to, shipping, handling, freight, duties, registration fees, installation costs or insurance during transit. All gifts of capital assets will be recorded at fair value at the time they are received.

C.  CAPITALIZATION (Dollar Threshold)

 

Assets with a useful life of greater than three (3) years will be considered for capitalization using the following thresholds:

                                          Physical & Insurance    Financial Reporting

                                                  Purposes             Purposes GASB #34

      Land Improvements                        $10,000                                   $25,000

Building Improvements                    $10,000                                   $50,000

Furniture & Equipment                    $     500                                   $  5,000

 

 

D.  DEPRECIATION METHODS & USEFUL LIFE

 

All assets will be depreciated using GASB #34 guidelines. Useful life will be estimated in the year of purchase. Depreciation expense will be calculated beginning in the year after acquisition

 

E.  PROPERTY RECORDS & INVENTORY

 

Property records will contain, where possible, the following information.

 

(a)    Asset number

(b)   Description

(c)    Model number

(d)   Serial number

(e)    Original cost or value

(f)     Date of purchase

(g)    Estimated life of asset

(h)    Location

 

(i)      Asset Type



District Reference:
,

General Reference:

Adoption Date:
2009-01-27

Last Revised: