3440.2 - Fixed Assets Management - Procedure

 The Superintendent or designee shall develop a system to accurately identify and value county office assets in order to help ensure financial accountability and to minimize the risk of loss or misuse. The Superintendent’s capital threshold is $5,000 whereby all assets with an initial acquisition cost of $5,000 or more shall be considered capital assets.

In addition, the Superintendent or designee shall develop a system to accurately identify the value added to any owned facility to help ensure financial accountability and provide historical data of facilities through various Capital Improvement Projects (CIP) exceeding $15,000.

The Fixed Assets Management application of Financial 2000, a complete asset tracking system, will be used to calculate and produce the GASB 34/35 required Capital Asset Activity Report. The Superintendent or designee shall determine the estimated useful life of each capital asset and shall calculate and report the estimated loss of value or depreciation annually for all capital assets.

Maintenance of the Fixed Assets Management records shall be the responsibility of the Business Support Services department. Data shall be entered in the system annually, using the following definitions and in a manner to ensure the annual financial reports can be completed by the required deadline.

Definitions and Instructions: (The following fields must be completed on the Fixed Assets Management System)

Asset/Tag Numbers

All items will be assigned a tag number from the Inventory and Repair Specialist. Building projects will use the same asset number with an extension to denote land (L), site improvement (S), and construction in progress(C).

Building

Only use for SBCSS administrative buildings and ROP programs

Categories

1.Building: Any building constructed or purchased by SBCSS. May be considered permanent (built on site) or portable/relocatable (partially built in a factory and assembled on site).

a. Building improvements will be added as New Improvements to the Building asset. A New Improvement is any construction related project performed after the building has been put in service, totalling over $15,000 and increasing the value of the building.

Maintenance Operations and Transportation (MOT) will initiate any CIP using the below noted procedure when the entire cost for the project is anticipated to exceed $15,000. A CIP project is defined as new construction, alteration or major improvement to an existing building or structure, including major deferred maintenance projects, or other fixed assets as defined by GASB 34. Routine maintenance, portable classroom leases, and installation/removal costs for leased portable classrooms are not considered a CIP.

Examples of a CIP include interior remodels, installation of lunch shelters, new technology, additional electrical outlets, security lighting, fencing, and new play structures and parking lots. Examples of a major alteration/upgrade/deferred maintenance project includes replacing/upgrading of a site’s communication system, replacing all doors, frames and/or window systems, replacing plumbing/gas/electrical infrastructure, and replacing existing asphalt, roofing, or heating, ventilation and air conditioning (HVAC) systems.

2. Construction in Progress: Any new construction project for which a Notice to Proceed has been issued, but the Notice of Completion has not been filed by the end of the fiscal year.

3. Furniture/Equipment: Any non-building capital outlay item including vehicles. The value is the amount paid for the individual item cost to include invoice cost, applicable sales tax, freight, and installation charges.

a. Software, even if it exceeds the capital threshold level, is not considered an asset and should not be reported.
b. Equipment purchased through a lease purchase plan must be analyzed individually as to the terms of the lease and any options to purchase. Value at the beginning and end of the lease term as well as the party holding title at the end of the lease will determine if the item is an asset.

4. Land: Purchase of property with or without a structure. If there is a structure that is to be demolished, full value is considered land. If the structure is to be maintained and used, with or without improvements, then cost needs to be separated between land and building.
5. Improvements of Buildings: An addition or betterment exceeding the capital threshold amount.

6. ROP Furniture/Equipment: Any non-building capital outlay item purchased by ROP.

7. Site Improvement: Any improvements done to a SBCSS owned property or State School Facility Project, other than to the buildings, that are completed after the building has been put in service, and where the value of the work is greater than $5,000.

Date In Service

1. Building: Date of Notice of Completion that allows for occupancy
2. Construction in Progress: Date of Notice to Proceed
3. Furniture/Equipment: Date of Receipt of item
4. Land: Date final payment made to Seller
5. Improvement of Buildings: Date of Notice of Completion
6. ROP Furniture/Equipment: Date of Receipt of item
7. Site Improvement: Date of Notice of Completion.

Date Inventoried

Do not use.

Funding Source

Include fund and resource number

General Class Codes, Specific Class Codes, Life Spans, and Item Descriptions

These items shall be defined by the managers of the Business Support Services department and approved by the Director, Internal Business.

Initial Value

1. Building: All costs associated with purchase of a building or construction of a new building, except purchase of land and furniture and equipment
2. Construction in Progress: Expenses incurred as of the end of the fiscal year
3. Furniture/Equipment: Actual cost to include invoice cost, applicable sales tax, freight, and installation charges.
4. Land: Value paid to the Seller
5. Improvement of Buildings: All costs associated with an addition or betterment totalling $15,000 or more after construction is complete.
6. ROP Furniture/Equipment: Actual cost
7. Site Improvement: All costs associated with the site improvement, if $5,000 or greater

Insured Replacement Value

Do not use

Location

Either the School District name or SBCSS (administrative sites only) where the building or item is located.

Manufacturer

Information will be provided for all furniture, equipment, and portable/relocatable buildings.

Model and Serial Numbers

Complete only for furniture and equipment

Purchase Order Number

Furniture, Equipment, and any CIP.

Quantity

Always one

Responsible Person

Shall be the Facilities Planning Analyst or Inventory and Repair Specialist unless an alternate is approved by the Director, Business Support Services.

Room

Complete for furniture and equipment only

Site

Either the School Name or SBCSS department

Fixed Asset Management Report

Internal Business Services and Business Support Services staff shall be responsible for maintaining the Fixed Asset Management Report.

Approved: July 22, 2008
Revised: January 4, 2012
Revised: March 3, 2015