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FIXED ASSETS
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PROCEDURES
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FOR
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CALCASIEU PARISH
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SCHOOL SYSTEM
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REVISED - 2001
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CALCASIEU PARISH SCHOOL BOARD
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FIXED ASSETS ACCOUNTING MANUAL
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I.
II.
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IV.
V.
VI.
VII.
TABLE OF CONTENTS
PAGE
Introduction............................................................ 3
Definition of Fixed Assets......................................... 3
Fixed Asset Inventory Procedures .............................. 4
A. Perpetual Inventory........................................ 4
B. Annual Physical Inventory............................... 5
C. Unrecorded Fixed Assets................................. 5
D. Additional Physical Inventories........................ 5
1. Immediately Following Burglary............. 5
2. During Change of Principal or
Department Head................................. 5
Acquisition of New Fixed Assets............................... 6
Removal or Loss of Assets From a Location.............. 6
A. Retirement of Obsolete or Broken Assets........ 6
B. Retirement of Stolen Assets........................... 8
C. Retirement of Missing Assets........................ 8
Transfer of Assets to Other Locations..................... 8
Use of CPSB Assets at Sites Other Than Assigned
Locations.. .. . .. ... . .. . .. . .. . ... .. . .. . .. . . . . .. . .. . .. . .. . .. . .. . .. .... .. 9
APPENDIXES
Procedures for Maintaining Perpetual Inventory
Records. ............ ...................... ............................ A
Procedures for Taking Annual Physical Inventory... B
Inventory Record Sheet........................................ C
Disposition of Surplus or Obsolete Assets............... D
Copy of Repair Tag ............................. '" ..... ........... E
Off-Site Usage of Fixed Assets............................... F
Property Incident Report....................................... G
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CALCASIEU PARISH SCHOOL BOARD
FIXED ASSETS PROCEDURE MANUAL
INTRODUCTION
The Calcasieu Parish School Board has approximately $250
million of land, buildings, furniture, equipment and vehicles
currently on the books. Of this amount, almost $51 million is
furniture, equipment and vehicles. Because of the vast
number of fIXed assets in the school system, it is extremely
important that each principal and department head assume an
active role in maintaining the accuracy of the fIXed asset
system. This handbook is a compilation of the procedures and
responsibilities related to the fIXed assets at your location.
Each section is as brief as possible, containing step-by-step
instructions, with sample copies of pertinent documents
included. Please read the information provided; if you have
questions, you may call the Fixed Assets Department.
DEFINITION OF FIXED ASSETS
Fixed assets are land, buildings, machinery, equipment and
furniture that have a cost of $1.000 or more and have a
useful life of more than one year. Fixed assets may be
purchased by a school or through the School Board or they
may be donated by individuals or organizations.
The School Board maintains records of land and buildings;
principals and department heads are responsible for
maintaining records of equipment, furniture and fIXtures.
Fixed assets should be listed at their historical cost.
The major characteristics of fIXed assets are as follows:
1. They possess physical substance such that they retain their
original shape and appearance with use.
2. They are long-term in nature and are expected to yield
services for longer than one year, as opposed to consumable
goods which are depleted as used.
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3. They are non-expendable, that is, if the article is damaged
or some of its parts are lost or worn out, it is usually more
feasible to repair it rather than replace it with an entirely
new unit (which is not true of supplies).
4. They do not lose their identity through incorporation into a
different or more complex unit or substance.
Examples of fIxed assets are:
(If valued ,1,000 or more)
Televisions
Sofas
Band Instruments
Typewriters
Washers and Dryers
Window Unit Air Conditioners
Copiers
Conference Tables
Video Cameras
Sewing Machines
Computers
Refrigerators and Stoves
Trucks
Buses
Tractors
Examples of items which are not fIXed assets are:
(Value less than '1,000)
Instructional Supplies
Glue
First Aid Items
Dishes
Pencil Sharpeners
Carpets
VCRs
Typewriters
Maps
Paper
Utensils
Books
Waste Baskets
Drapes
Student Desks
Sewing Machines
FIXED ASSET INVENTORY PROCEDURES
A. Perpetual Inventory
In order to ease the conducting of the annual physical
inventory of fIXed assets, a oerpetual inventory should be
maintained by each school and department (Appendix A).
The Fixed Assets Department should be notifIed promptly
whenever an asset is purchased or received, permanently
transferred to another location, lost, stolen or when its tag
is missing (whenever an adjustment to a school's or
department's inventory should be made). If this practice is
consistently implemented, the annual physical inventory
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will be a routine matter and the fIxed asset system will be
much more accurate.
B. Annual Physical Inventory
In order to maintain an accurate account of Calcasieu
Parish School Board possessions, an ann ual physical
inventory of fIXed assets is to be taken. School principals
and department heads are responsible for ensuring that
fixed asset records are up-to-date. See Appendix B for
instructions.
C. Unrecorded Fixed Assets
Some assets acquired prior to the implementation of the
centralized system are not recorded on the fIXed asset detail
reports. Additionally, some fIXed asset tags are missing
from the assets because they have fallen off or have been
removed. All fIXed assets without tags (either because they
were not previously recorded or because the tag is now
missing) must be included in the annual inventory. You
may write the tag number on the asset with a black
permanent marker.
D. Additional Physical Inventories
Some situations exist whereby an additional physical
inventory should be conducted:
1.
2.
Immediately Following Burglary
Prior to fIling a police report, a complete physical
inventory of the suspected areas should be taken.
In addition, teachers or office personnel housed
in surrounding areas should conduct a cursory
inventory of their equipment. The police report
should encompass all items discovered stolen
(Sec. V.B.).
During Change of Principal or Department Head
Two physical inventories should be conducted at
this time: one by the outgoing administrator and
one by the incoming one. This procedure is
essential for determining responsibility for the
fIxed assets at a particular location.
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IV.
V.
Missing assets must be reported to the Fixed Assets
Department by sending the assets inventory cards to
the Fixed Assets Department.
ACOUISITION OF NEW FIXED ASSETS
Newly acquired fIxed assets include items purchased by the
School Board or by a school and donations received from
individuals or organizations.
A. Items purchased by a Calcasieu Parish School Board
purchase order from the General, Capital Projects (Bond) or
Federal funds will be delivered to the Central warehouse,
tagged, added to the school's inventory on the fIXed asset
master me and then delivered directly to the property school
or location with an inventory card attached to the item. A
second card will be sent to verify that the asset has been
delivered to the school. That card must be returned to the
Fixed Assets Department with the proper sub-location to
update that school's inventory.
B. Items purchased from school activity accounts and items
donated to the School Board or to a school must be reported
to the Fixed Assets Department by sending a copy of the
Request lor CPSB Tags lor School Purchased Fixed
Assets form to the Fixed Assets Department. (See Appendix
C.) The Fixed Assets Department will assign a tag number
to each inventory item and will enter the pertinent data into
the master fue. The numbered tag along with an inventory
card will be returned to the proper location. It is the
responsibflitg 01 the school or department to alJix the
tag to the asset. Fixed asset tags should be attached to
items as quickly as possible and in an area where they are
least likely to be removed.
REMOVAL OR LOSS OF ASSETS FROM A LOCATION
A. Retirement of Obsolete or Broken Assets
In order to remove an obsolete, unnecessary, or broken
asset from your inventory, the following procedures must be
followed:
1. Fixed asset items determined by a principal or
department head to be obsolete or non-repairable
should be identifIed on a "Disposition of Surplus
or Obsolete Assets" form (Appendix Df. The list
must be signed by the principal or department
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2.
3.
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head certifying that the items are appropriate for
disposal.
The principal or department head should then
send the list to the Fixed Assets Department.
The Fixed Assets Department will determine
which items should be disposed of by the school
or department and which items should be picked
up by the warehouse.
The Fixed Assets Department has the authority to
divide the items on the list into the following
categories:
a. Obsolete and Disposable
b. Obsolete and Retained for Parts
c. Retained for Repair
Items identified as category "a" - "Obsolete and
Disposable" - may be disposed of in the most
feasible and economical fashion deemed
appropriate. Items declared surplus or unfit for
further use by the Board should be transferred to
the warehouse for temporary storage. Assets
should be stored in a manner commensurate
with disposition plans. Disposal of fixed assets
by sale or scrap method will be conducted as
necessary, based on volume, as determined by
the Chief Financial Officer. Surplus and/or
obsolete equipment can only be sold through
public auction or public bid process. They
cannot be sold or given to school board
employees. Surplus land and buildings will be
sold by bids approved by the Board. Disposition
of surplus assets will be in adherence with the
requirements in Louisiana State Law (Act 305 of
1980).
Items identified as category "b" - "Obsolete and
Retained for Parts" - shall be delivered to the
appropriate location in the school system
(warehouse, maintenance, etc.).
Items identified as category "c" - "Retained for
Repair" should be sent to the appropriate facility
for repair after the repair tag (Appendix E) has
been completed by the principal or department
head. The repair tag must be completely filled in
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with tag number, description of the item, serial
number, current location, and the reason for
repair. A copy of the repair tag should be kept on
file.
7. The Fixed Assets Department will write the
selected category - a, b or c (as indicated in #3
above) - by each item on the list. The original list
will be used to update the fIXed asset master file
and then will be filed by the Fixed Assets
Department. A copy of the fmallist will be sent
to the Accounting Department.
B. Retirement of Stolen Assets
In the event of the theft of fIXed assets, the following
procedures should be followed:
1.
2.
3.
4.
Conduct a thorough search of the premises for
the missing assets.
Review any sign-out logs (Appendix F) on
equipment and interview the person to whom
each item was assigned regarding the asset's
whereabouts.
Keep a copy of the inventory cards for the missing
assets. Send the original cards, with the Property
Incident Report, to the Fixed Assets Department.
Complete the "Property Incident Report"
(Appendix G) and submit it to the Fixed Assets
Department. Retain a copy for school records.
The white copy goes to the Risk Manager, the
yellow copy to the Maintenance Department and
the pink copy to the Fixed Assets Department.
These reports should be submitted within twenty-
four hours after discovery of the theft.
5. The Fixed Assets Department will delete the
stolen items listed on the report from the fIXed
asset master file.
C. Retirement of Missing Assets
In the event that assets cannot be located and there is no
evidence of a physical break-in, the inventory cards for
those assets should be sent to the Fixed Assets Department
along with an explanation.
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VI. TRANSFER OF ASSETS TO OTHER LOCATIONS
The ftxed asset system tracks assets by location; therefore, it is
imperative that transfers of assets be recorded. To transfer an
asset to a new location, the custodian of the asset should
record the transfer on the inventory card and make two copies
of the card, one copy to be sent to the Fixed Assets Department
and one copy to be retained in their fIles. The Fixed Assets
Department will update the ftxed asset master fIle to record the
transfer upon receipt of the copy of the inventory card. The
original inventory card for each asset transferred must be sent
to the new location with the fIXed asset.
VII. USE OF CPSB ASSETS AT SITES OTHER THAN ASSIGNED
LOCATIONS
Under no circumstances may Calcasieu Parish School Board
assets be removed or taken home for personal use. In the
event that an employee needs to use an asset for school-related
purposes at home or a site other than the assigned work
location of the asset, the employee must obtain written
permission from the principal or department head. A copy of
the form, "Off-Site Usage of Fixed Assets," Appendix F, must be
submitted to the appropriate assistant or associate
superintendent. The original must be maintained on fIle at the
school. This regulation applies to all Calcasieu Parish School
Board employees.
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APPENDIXES
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APPENDIX A
CALCASIEU PARISH SCHOOL BOARD
FIXED ASSETS PROCEDURES
FOR MAINTAINING PERPETUAL INVENTORY RECORDS
Principals are the designated custodians of fIXed assets at the school
level and are ultimately responsible for the safeguarding and record
maintenance of the fIXed assets in their school. However, principals
should designate fIXed asset custodians. The person selected as the
fIXed asset custodian should be the person using the fIXed assets or
should have physical custody of the assets. Each teacher should be
responsible for their classroom, the librarian for the assets in the
library, the band director for the assets in the band department. etc.
The following procedures are to be followed in order to set up perpetual
inventory records for fIXed assets:
1. The person designated by the principal/department head as the
fIXed asset custodian will be responsible for establishing perpetual
inventory records and for maintaining these records.
2. The Fixed Asset Department will provide a computer printout of
the fIXed assets in your school.
3. Your printout will list assets by sub-location (e.g. BAND, LIB, 102,
etc.). Each section should be given to the person responsible for
that sub-location.
4. Each person receiving a section should then verify the accuracy of
the printout. All changes (additions, deletions, and corrections)
should be written on the computer printouts.
5. The inventory cards should be checked against the printout to
make sure that there is a card for each asset on the list and to
verify that no assets on the cards have been left off the list. These
fIXed asset inventory cards must remain with a designated fIXed
asset custodian. These inventory cards will be used by the
auditors to verify room or department inventOIY during the Fixed
Asset audit.
6. Once completed, the computer printout sheets must be signed
and dated by the person performing the inventory and should
then be returned to the principal.
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7. Upon return of the computer printouts, the principal is to review
them for completeness, accuracy, and legibility and for the
signature of the responsible person.
8. The principal should also investigate any deletions or missing
items of which he was previously unaware.
9. The principal shall.ign each printout once he is satisfied as to its
completeness, accuracy and legibility.
10. Once the principal has reviewed and signed the computer
printouts and has made sure that all sublocations have been
accounted for, he should return the printouts to the Fixed Asset
Department.
11. The Fixed Asset Department will input the changes and send an
updated printout to the school. The school should keep the
updated printout for its records.
12. Additions to Fixed Assets - When a school acquires new assets
during the year either through purchases made by the school or
from donations (not assets that are purchased by the School
Board that are tagged at the School Board's warehouse) the
designated fixed asset custodian should fin in the Request for
CPSB Tags for Purchased Fixed Assets form. A copy of the
completed form should be sent to the Fixed Asset Department.
(See Appendix C). The Fixed Asset Department will issue a tag
number for the asset and return it to the school along with a
fixed asset card. It is the responsibility of the school to afJix
the tag to the asset or to the inventory card, if appropriate.
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APPENDIXB
CALCASIEU PARISH SCHOOL BOARD
FIXED ASSETS PROCEDURES
FOR TAKING ANNUAL PHYSICAL INVENTORY
1. Annual physical inventories are to be conducted by each school
and department as scheduled by the Fixed Assets Department.
Once the perpetual inventory system has been set up and
properly maintained, annual physical counts of flXed assets
inventory should be a routine matter of verifying the
information on the inventory cards.
2. The school or department heads will receive a printout of their
location and sublocations which are to be issued by the
principal or department head to each person designated as a
flXed asset custodian for their room or department. Some
departments will require several sheets.
3. The flXed asset custodians are to use the inventory cards to
verify the physical existence of each asset on their cards.
4. Once the physical existence of the asset has been verified, the
flXed asset custodian should list the required information on
the Fixed Asset Inventory printout.
5. For assets listed on the cards for which physical existence or
whereabouts cannot be determined, the flXed asset custodian
should write "asset not located" on the printout along with
justification as to WHY it can not be located. For example:
obsolete, broken or theft and if theft, a copy of the incident
report is required. See Appendix G. The principal or
department head should send the cards to the Fixed Assets
Department where the asset will be deleted from the Fixed
Asset Master File.
6. Inventory cards should have been completed for assets in
existence which were transferred in or purchased during the
year (Appendix A). However, if there are assets in existence for
which inventory cards have not been completed, they should be
filled in at this time. If tags are needed for assets not
purchased through the school board's Purchasing Department,
this should be noted at the bottom of the flXed asset inventory
printout. The Fixed Asset Department will reissue cards or
issue tag numbers for the above-mentioned assets.
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7. After the fIXed asset custodian has completed the fIXed asset
inventory printout, the printout should be returned to the
principal or department head. The inventory cards are to
remain with the fIXed asset custodian where they are to be
maintained in accordance with the "Procedures for Setting Up
and Maintaining Perpetual Inventory Records" (Appendix A).
8. The principal or department head should verify that the
inventory printout for the rooms and departments under their
responsibility have been submitted. These inventory printouts
should be signed and returned by the required date as
scheduled by the Fixed Asset Department.
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APPENDIXC
CALCASIEU PARISH SCHOOL BOARD
Request for CPSB Tags for School Purchased Fixed Assets
School/Location , __________ _ Date: __ _
ITEM SERIAL ,
PRICE SUBLOCATION
PRINCIPAL'S SIGNATURE, ___________ _
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APPENDIXD
CALCASIBU PARISH SCHOOL BOARD
DISPOSITION OF SURPLUS OR OBSOLETE ASSETS
FROM:
(School or Department)
DATE:
The following flXed asset(s) is/ are appropriate for disposal. Please adjust
my school/department's flXed asset records accordingly.
TAG NUMBER DESCRIPTION SERIAL NUMBER
Explanation:
APPROVED BY: _________ _
PRINCIPAL/DEPARTMENT HEAD ___________ _
(Signature) (Date)
FIXED ASSETS DEPARTMENT ____________ _
(Signature) (Date)
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APPENDIXE
ITEMS SUBMITTED FOR REPAIR
SCHOOL ______________________________ __
NAME OF UNIT _________________ _
_____________________________ _
INCOMING DATE ___ I __ I __ _
OUTGOING DATE I 1 __ _
NATURE OF REPAIRS:
PARTS NAME & #:
DATE PARTS ORDERED: __ I ___ I ___ _
SIGNATURE RECEMNG PARTY: __________ _
DATE: I 1 ___ _
NAME OF UNIT ________________ _
___________________ __
INCOMING DATE: ___ I ___ I ___ _
DELIVERED BY: ___________________ _
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APPENDIXII'
CALCASIEU PARISH SCHOOL BOARD
OFF-SITE USAGE OF FIXED ASSETS
School Name/Department: _______________ _
Asset Description: _____________________________ _
Tag No.: ______________________ _
Serial Number: _________________________________ _
Date Signed Out: ___________________ _
I accept full and complete responsibility for any damages due to abuse,
neglect, accidents or acts of nature. I will return the asset to the school
in working condition.
Check-In Information:
Signed Out By: __________ _
Approved By: __________ _
Principal/ Asst. Superintendent
Date Received: _____ _
Received By: ______ _
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CALCASIEU PARISH SCHOOLS
PROPERTY INCIDENT REPORT FORM
APPENDIXG
(Required Whenever Property Damage Occurs on a Schoolf Office Site)
SCHOOL: ___________ _
DATE: ____ _
Date and time ofincident: ___________________ _
Was entty made into any part of the building? ____________ _
Which Police Department was called? _______________ _
Does the school have a security system? ______________ _
Name of security system? ___________________ _
Did the system report the break-in or incident? ____________ _
Custodial hours necessary to clean up? ______________ _
Was maintenance called? ___________________ _
Check as many as apply:
___ ,Burglary
___ ,Larceny
__ -:Arson
___ Broken Windows/Doors
___ Other Vandalism
___ Carelessness
Specific details ofloss or damage (where, what, how, etc.):
MATERIAL AND EQUIPMENT STOLEN, DESTROYED, OR DAMAGED
(ATTACH ADDITIONAL SHEET IF NECESSARY)
No. Name of Description Stolen Destroyed Damaged Approx.
of Item (Model, Serial No., Purchase
Items Etc.) Price
Signature of Person Preparing Report Signature of Principal/Dept. Head
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