815 – Fixed Assets Management System

FIXED ASSETS MANAGEMENT SYSTEM

The District shall maintain a fixed assets management system in its financial reports in accordance with generally accepted accounting principles (GAAP) as required by law for reporting capitalized fixed assets owned or under the jurisdiction of the District.

A separate fixed assets listing shall be prepared for fixed assets in the governmental long-term fixed assets fund (GLTFAF) and for the fixed assets of each proprietary and fiduciary fund. Fixed assets in the GLTFAF shall include District buildings and sites, construction in progress, improvements other than buildings and sites, land, and machinery and equipment. Fixed assets in the proprietary funds shall include District buildings and sites, construction in progress, improvements other than buildings and sites, capitalized interest, infrastructure, land, and machinery and equipment. Fixed assets reported in the financial reports shall include individual fixed assets with an historical cost equal to or greater than five thousand dollars although the District shall inventory fixed assets with an historical cost equal to or greater than one hundred dollars. Fixed assets accounted for and reported in the proprietary funds shall be depreciated over the useful life of each fixed asset.

The fixed assets management system shall be updated monthly to account for the addition/acquisition, disposal, and relocation/transfers of fixed assets. It shall be the responsibility of the Director of Business Services or his/her designee to reconcile the fixed assets listing for the general fixed assets account group and for each proprietary and fiduciary fund with the fixed assets management system on June 30 each year.

Date of Revision: February 12, 2007

Legal References: 11.6, 256.9(18), 257.31(4), 279.8, Chapter 298A, Code of Iowa; 281 I.A.C. 12.3(1)

URBANDALE COMMUNITY SCHOOL DISTRICT BOARD OF DIRECTORS

A. Fixed Assets Management

The Director of Business Services shall:

1. Oversee the entry of the necessary data into the fixed assets management system and compile the appropriate reports.
2. Develop forms and procedures for maintaining the integrity of the fixed assets management system.
3. Maintain responsibility for an accurate fixed assets management system.
4. Update the computer software program for managing the fixed assets management system.

B. Initial Fixed Assets Listing Process.

1. The District has completed an initial machinery and equipment fixed assets listing process which shows:

a. Name and location-building and room;
b. Balance sheet accounting/class code;
c. General fixed assets account group or proprietary fund assets (stating proprietary fund);
d. Addition/acquisition date;
e. Check/purchase order number or gift;
f. Serial/model number;v
g. Cost-historical/addition/acquisition or estimated cost;
h. Estimated useful life (proprietary funds only);v
i. Vendor;
j. Purchasing fund;
k. Description of fixed asset;
l. Fair market value on acquisition date (donated fixed assets only);
m. Department/person charged with custody;
n. Method of addition/acquisition-purchase, trade, gift, etc.;
o. Quantity; and
p. Replacement cost.

2. The District has completed an initial real property fixed assets listing process which shows:

a. Acquisition date;
b. Seller;
c. Cost-historical/addition/acquisition, including legal, architectural, surveying and other related fees;
d. Fair market value on acquisition date (donated fixed assets only);
e. Estimated useful life of buildings (proprietary funds only);
f. Balance sheet accounting/class code;
g. Legal description or location/address;
h. Addition/acquisition authorization.

C. Determining Historical cost.

1. The historical cost of a fixed asset is based on the actual costs expended in making the fixed assets serviceable. For the initial fixed assets listing of currently owned fixed assets, records indicating the actual costs expended in making the fixed assets serviceable may be available in the central administrative office.

2. Gifts of fixed assets are given an “historical cost” of the estimated fair market value on the addition/acquisition date.

3. Fixed assets purchased under a capital lease are given an historical cost of their net present value of the minimum lease payments on the addition/acquisition date.

4. The historical cost of fixed assets in the proprietary funds include capitalized interest and infrastructure.

5. If no records can be found to determine the actual costs expended in making the fixed assets serviceable, the District estimates the historical cost using back trending/standard costing after consulting with the school auditor.

D. Annual Fixed Assets Listing Reconciliation.

1. The Director of Business Services shall conduct an annual fixed assets physical count to develop the annual fixed assets listing. Some one other than the person in custody of the fixed assets in the building/room may perform the fixed assets physical count for the building/room as determined by the Director of Business Services.

2. Upon completion of the annual fixed assets listing, the fixed assets listing is reconciled to the fixed assets management data base.

3. Fixed assets found to have been excluded from the data base are added to the fixed assets management system. The fixed assets management system process is reviewed to prevent future incidents of excluding a fixed asset.

4. Fixed assets unaccounted for are reported to the Director of Business Services who contacts the supervisor of the person in charge/control/custody of the fixed asset. The person in charge/control/custody of the fixed asset has thirty days to account for the fixed asset.

5. Fixed assets unaccounted for after thirty days are reported to the Superintendent for appropriate action and documentation. “Appropriate action” may include discipline, up to and including discharge, and may require the person in charge/control/custody of the fixed asset to replace the fixed asset.

6. The Director of Business Services is responsible for documenting the reasons each fixed asset was not reconciled to the fixed assets management system.

E. Addition/Acquisition of Machinery and Equipment Fixed Assets.

1. The District’s required purchasing regulations and procedures must be followed to acquire machinery and equipment fixed assets, including by gift.

2. The machinery and equipment fixed assets addition/acquisition form must be completed for each additional machinery and equipment fixed asset with an addition/acquisition cost equal to or greater than one hundred dollars. The following information must be collected:

a. Name of location-building/room;
b. Balance sheet accounting/class code;
c. General fixed assets account group or proprietary fund asset (name proprietary fund);
d. Addition/acquisition date;
e. Check/purchase order number or gift;
f. Serial/model number;
g. Cost-historical;
h. Fair market value on acquisition date (donated fixed assets only);
i. Estimated useful life (for proprietary funds only);
j. Vendor;
k. Purchasing fund;
l. Description of fixed assets;
m. Method of addition/acquisition-purchase, trade, gift, etc;
n. Quantity;
o. Addition/acquisition authorization.

3. Machinery and equipment fixed assets acquired must be entered into the fixed assets management system in the same month as acquired.

F. Addition/Acquisition of Real Property Fixed Assets.

1. The District’s required purchasing regulations and procedures must be followed to acquire a real property fixed asset, including by gift.

2. The real property fixed assets addition/acquisition form must be completed for each additional real property fixed asset. The following information must be collected:

a. Addition/acquisition date;
b. Seller;
c. Cost-historical/addition/acquisition, cost including legal, architectural, surveying and related fees;
d. Balance sheet accounting/class code;
e. Fair market value on acquisition date (donated fixed assets only;
f. Estimated useful life of buildings (for proprietary funds only);
g. Legal description;
h. Location/address; and
i. Addition/acquisition authorization.

3. For real property fixed assets in the general fixed assets account group, the actual costs of construction in progress, other than infrastructure, is entered into the fixed assets management system in the month in which costs are incurred until the total cost of addition/acquisition is entered. Upon completion of construction, the total costs accumulated over the period of construction are reclassified to buildings.

4. For real property fixed assets in the proprietary funds, the actual costs of construction in progress, including infrastructure construction, is entered into the fixed assets management system in the month in which costs are incurred until the total cost of addition/acquisition is entered. Upon completion of construction, the total costs accumulated over the period of construction are reclassified to buildings.

5. Real property fixed assets acquired must be entered into the fixed assets management system in the same month as acquired.

G. Relocation/Transfer of Machinery and Equipment Fixed Assets.

1. A fixed assets relocation/transfer form must be completed prior to moving machinery and equipment fixed assets from their current building location. The following information must be collected:

a. Quantity;
b. Current location-building code;
c. New location-building code;
d. Date placed at new location-building;
e. Department/person charged with custody;
f. Relocation/transfer authorization.

2. Machinery and equipment fixed assets relocated/transferred must be entered into the fixed assets management system in the same month as relocated/transferred.

H. Disposal of Machinery and Equipment and Real Property Fixed Assets.

1. A machinery and equipment fixed assets disposal form must be completed prior to disposing of machinery and equipment fixed assets. The following information must be collected:

a. Disposal date;
b. Quantity;
c. Disposal method;
d. Disposal authorization.

2. A real property fixed assets disposal form must be completed prior to disposing of real property fixed assets. The following information must be collected:

a. Disposal date;
b. Legal description;
c. Location/Address;
d. Purchaser;
e. Disposal method;
f. Disposal authorization.

3. Machinery and equipment/real property fixed assets disposed of must be entered into the fixed assets management system in the same month as disposed of.

I. Lost, Damaged or Stolen Machinery and Equipment Fixed Assets.

1. A lost, damaged or stolen fixed assets report must be completed when a fixed asset has been lost, damaged or stolen. The following information must be collected:

a. Date of loss, damage or theft;
b. Employee/person discovering;
c. Quantity;
d. Description of fixed asset;
e. Location-building/room;
f. Description of loss, damage, etc;
g. Filing of police report if stolen;
h. Filing of insurance report – yes or no;
i. Sent for repair – yes or no.
J. Fixed Assets Reports.

The annual reports for June 30 of each year shall include a fixed assets listing including the following items for the school auditor:

a. Balance sheet accounting/class code;
b. Purchasing fund;
c. Description of the fixed asset;
d. Historical cost;
e. Location.

Adopted: February 12, 2007

URBANDALE COMMUNITY SCHOOL DISTRICT BOARD OF DIRECTORS

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