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Fixed Asset Inventory Procedural Directive

Contents

Definitions
Dollar Threshold for Establishing Fixed Assets Control
Ownership of Fixed Assets
Fiscal Management of Fixed Assets
Inventory Lists and Accountability
Tagging and Recording New Fixed Assets

Property Label Categories
Responsibilities and Procedures of Tagging Assets
Recording Assets

Transfers/Trade-In/Casualty Losses of Fixed Assets

Transfer of Fixed Assets between Sites
Authorized Loan of Equipment
Trade-in of Fixed Assets
Casualty Losses
Inventory Deletions

Loaning Fixed Assets
Disposal of Fixed Assets
Physical Inventories
Missing Inventory
Transaction Reports, Reconciliations and Audits

Fixed Asset Inventory Procedural Directive

The purpose of this procedural directive is to define and outline district site responsibilities for management and control of the district’s fixed assets.  This procedure applies to all sites and personnel employed by Albuquerque Public Schools (APS).

Definitions

For purposes of this procedural directive, “fixed assets” include:

  • Fixed assets are items of personal (moveable) property with an estimated useful life of more than one year. Fixed assets include furniture, fixtures, equipment, computers, vehicles, and similar items of personal property.
  • A fixed asset retains its original shape or appearance with use, and is not consumed in operation.
  • A fixed asset does not lose its identity through incorporation into a different or more complex unit.
  • A fixed asset is considered non-expendable. If it is damaged, or parts are lost or worn out, it is more feasible to repair the item rather than replace it with an entirely new unit.
  • A fixed asset represents a significant investment of money, which makes it more feasible and advisable to capitalize the item. Capitalization is the process of tagging property, accounting for it in inventory, and charging the expenditure to a capital outlay budget category.

For purposes of this procedural directive, “capitalize” means to delay the recognition of expenses by recording the expense as a long term asset.  The assets are then reported on the year-end balance sheet.

For purposes of this procedural directive, “allocated funds” include, but are not limited to, funds for purchases when the funds originate from the operational budget, athletic funds, activity funds, booster clubs, Parent/Teacher Associations, gifts, fundraisers and/or donations.

For purposes of this procedural directive, a “qualifying asset” includes:

  • Fixed assets that are valued over $1000
  • Computer equipment with a memory; and
  • Trackable assets with a high theft possibility.

Dollar Threshold for Establishing Fixed Assets Control

New Mexico state statute and regulation require agencies to capitalize only chattels and equipment that cost over one-thousand dollars ($1,000) or more.  However, the Board of Education has determined the district shall track all fixed assets which have an initial unit cost of more than one-thousand dollars ($1,000) which shall be tagged and recorded in the district Asset Management System. 

New Mexico state statute and regulation require agencies to capitalize all computers, including towers, laptops and notebooks, regardless of unit cost.  The district shall track all computers and they shall be tagged and recorded in the district Asset Management System.  

The district may track “high-theft” items which may be tagged and recorded in the district Asset Management System.  If an item is tagged because it is considered a “high-theft” item it shall comply with all the requirements of this procedural directive.

All tagged assets shall remain recorded in the district Asset Management System until they are properly disposed.

For items donated to the district, or acquired by trade, the unit cost shall be determined at the fair market value at the date of acquisition.

Fixed asset items and computers shall be properly tagged (bar-coded) by the appropriate Albuquerque Public Schools personnel. Albuquerque Public Schools shall use a common software system, TipWebIT, to track and inventory all qualifying assets. 

For more detailed information related to the handling of assets, please refer to the Fixed Assets Procedures Manual.

 

Ownership of Fixed Assets

Upon receipt of a fixed asset and/or computer, the site administrator shall be responsible for maintaining control of the asset and/or computer and complying with all requirements outlined in this procedural directive.  Fixed assets purchased for Albuquerque Public Schools with public funds shall remain the property of Albuquerque Public Schools until formally and officially removed from the inventory.  Please refer to the Disposal of Fixed Assets section of this procedural directive for more information on disposal of fixed assets.

Qualifying assets purchased for the district by allocated funds shall be property of Albuquerque Public Schools and must be inventoried for accountability, security and repair purposes.  All assets acquired by donation or gift shall adhere to Board of Education policy.  The department obtaining donated and/or gifted assets shall be responsible for providing Capital Fiscal Services the information needed to ‘initialize’ the asset correctly in TipWebIT which uploads the information into the district Asset Management System. 

Materials Management shall reassign or dispose of assets identified as surplus.  Materials Management shall inform Capital Fiscal Services of any assets identified as surplus and if they were reassigned or disposed of.

 

Fiscal Management of Fixed Assets

The Equipment Inventory procedural directive outlines responsibility of management for Albuquerque Public Schools property.  Please refer to it for additional information regarding fiscal management of fixed assets.

The district shall maintain uniform accountability for fixed assets using the district Asset Management System.  Capital Fiscal Services, within the Finance Department, shall maintain the district Asset Management System, make inventory adjustments as required and provide appropriate reporting to the superintendent or his/her designee, and the Board of Education. Capital Fiscal Services, at the direction of the chief financial officer, shall ensure district compliance with Albuquerque Public Schools policies and procedural directives, federal and state laws and related rules and regulations, and Generally Accepted Accounting Principles and Auditing Standards for governments.

Inventory Lists and Accountability

Principals/department directors shall be responsible for maintaining an accurate inventory list for their site and shall remedy any discrepancies in the physical inventory by either finding assets or reporting them as lost or stolen.  With the TipWebIT software, a principal/department director may create a list of assets located at their site by room or by employee if it is checked out to them.    The principal/department director shall report information regarding any discrepancies to Capital Fiscal Services.  If the principal/department director suspects a theft, they shall report the suspected theft to Albuquerque Public Schools Police.

Principals/department directors shall be responsible for and shall be held accountable for the care, custody, use and accounting of all assets that are located at their site.  This includes, but is not limited to, safeguarding Albuquerque Public Schools property from damage or loss and ensuring that fixed assets are used in accordance with Albuquerque Public Schools policy and procedural directive.  Each principal/department director, or his/her designee, shall be responsible for receiving fixed assets, attaching bar codes, processing the asset into the site according to the guidelines of the fixed asset procedures manual (TipWebIT).

Tagging and Recording New Fixed Assets

Property Label Categories

Albuquerque Public Schools barcode labels shall be affixed in a noticeable place on each qualifying asset for security reasons and to facilitate physical inventories.  Capital Fiscal Services shall provide barcode labels for all qualifying assets, acquired by a site in the district.

All qualifying assets, regardless of the source of funding shall be labeled with a white barcode.    See the Responsibilities and Procedures subsection of this procedural directive for more information regarding requesting labels.  Principals/department directors, or his/her designee, shall be responsible for monitoring, record keeping and accounting for these items.

Responsibilities and Procedures of Tagging Assets

Capital Fiscal Services shall generate a report, utilizing the Lawson system, for assets that have been purchased.  Assets requiring tagging and recording shall be identified based on this report. 

Capital Fiscal Services shall send to the site tech/fixed asset designee

a copy of their purchase order, barcode labels and instructions for “receiving” and processing the new assets received by district sites.  Capital Fiscal Services shall monitor in TipWebIT the site completing the process which is finalized when they have transferred the asset from the virtual “receiving room” to an actual class or administrative room.

Principals/department directors, or his/her designee, shall be responsible for tagging, permanently marking/engraving and processing the appropriate documentation for fixed assets delivered by vendors.

*Note:  See the Casualty Losses subsection of this procedural directive for more information regarding lost, destroyed or stolen assets.  Please see the Missing Inventory section of this procedural directive for more information regarding missing assets.

Principals/department directors, or his/her designee, may request Albuquerque Public Schools brown labels by telephone or fax from Capital Fiscal  Services for any supply asset not required to be labeled and recorded in the district Asset Management System.  If necessary, the site may be asked to provide Capital Fiscal Services with an authenticated copy of the appropriate documentation to support proof of ownership for the asset.

Recording Assets

Once assets are created in TipWebIT and then uploaded into the district Asset Management System, assets shall be recorded and automatically given an asset number so that Capital Fiscal Services is able to track district assets.

One of the required fields in the district Asset Management System shall be the “room number” code. This field shall designate the room location of the asset within a site.   The “room number” field is designed to be ten (10) characters.

Capital Fiscal Services shall utilize follow-up procedures necessary to ensure that assets are tagged and recorded in TipWebIT and on the district Asset Management System in a timely manner.

Transfers/Trade-In/Casualty Losses of Fixed Assets

Transfer of Fixed Assets between Sites

All asset transfers shall be recorded and itemized using the TipWebIT system, which shall establish an audit trail. It is the responsibility of the “Releasing” site and the “Receiving” site involved to process their actions on the TipWebIT system.

Assets shall not be removed from a site’s inventory or the district Asset Management System without an authorizing signature.

Authorized Loan of Equipment

Albuquerque Public Schools personnel borrowing district equipment shall submit a request to the principal/department director, or the person designated as responsible for the equipment. The employee shall complete and sign the Fixed Asset "Hand Receipt for Loan of APS Equipment" (AD-70).  A copy of the completed form shall be provided to the individual borrowing the equipment.  All other copies shall be kept at the site loaning the equipment.  All appropriate parties shall follow the Loaning Equipment procedural directive.

Trade-in of Fixed Assets

Assets traded in, regardless of condition, shall be identified as the last line item(s) in the purchase requisition, as follows:

  • Asset description
  • Assigned Albuquerque Public Schools barcode (number)
  • Manufacturer’s serial number – when available
  • Manufacturer’s model number – when available

This documentation shall provide a mechanism that allows Capital Fiscal Services to remove the traded asset from the district Asset Management System.

Casualty Losses

If an item is lost, destroyed or stolen, principals/department directors, or his/her designee, shall notify the Albuquerque Public Schools Police Department immediately. Capital Fiscal Services may not automatically receive a copy of the completed report filed with the Albuquerque Public Schools Police Department, therefore, it shall be the responsibility of each principal/department director, or his/her designee, shall email “fixed.assets@aps.edu” of the theft and forward all documentation available to Capital Fiscal Services.

Once these electronic reports are received, all assets identified with Albuquerque Public Schools barcode tags shall be coded as stolen on TipWebIT and the district Asset Management System. Copies of all police reports will be scanned and attached to the TipWebIT asset record and shall be kept with site inventory records

Inventory Deletions

Capital Fiscal Services shall not perform inventory deletions without proper documentation (i.e. police report, purchase order documenting a trade-in, authorization of donation, salvage disposal, etc.). A list of assets shall be submitted to the Board of Education monthly for disposal and then a written notice sent to the New Mexico State Auditor.  Thirty days after the date of the letter, the district shall have authorization to dispose of them in accordance with state regulations.

District sites shall not have the authority to dispose of Albuquerque Public Schools property, due to statutory reporting and approval requirements.

Loaning Fixed Assets

Albuquerque Public Schools may loan district fixed assets to employees for Albuquerque Public Schools work related activities.  District qualified assets shall not be used for personal gain or activities.  An employee requesting to borrow a district fixed asset shall obtain approval from their site administrator prior to borrowing a district fixed asset.  Upon approval from the site supervisor, the employee requesting to borrow a district qualifying asset shall complete the "Hand Receipt for Loan of APS Equipment" (AD-70) make a copy of the document for the site and themselves.  The site tech/fixed asset designee shall thru TipWebIT process an “Issue Inventory” which will identify the asset as assigned to the specific employee. 

Disposal of Fixed Assets

Albuquerque Public Schools personnel shall dispose of district assets within the guidelines indicated by New Mexico state statute and regulation.  All fixed assets required to be labeled, including all qualifying assets, shall be disposed of in accordance with this procedural directive

Principals/department directors, or his/her designee, shall complete thru TipWebIT “Initiate Transfer” to the Materials Management Warehouse.  Materials Management shall “Receive Transfer” and pick up excess assets.  Once assets are transferred to Salvage, Materials Management shall submit a completed Fixed Asset Inventory Disposition Document electronically to Capital Fiscal Services.  Capital Fiscal Services shall utilize this information to prepare a Statement of Equipment to be taken out of service report for Board of Education review and approval.

Capital Fiscal Services shall not process any transfers of fixed assets to Salvage without a properly executed Fixed Asset Inventory Disposition Document signed by appropriate Salvage personnel.  All  qualifying assets shall be identified as being located at the site recorded on TipWebIT. 

Physical Inventories

The district is required by New Mexico statute to conduct annually, a physical inventory of assets maintained on the district Asset Management System.

Once physical inventories are completed and discrepancies are researched, Capital Fiscal Services shall perform appropriate file updates on TipWebIT to maintain an accurate district Management Asset System.

Missing Inventory

The site shall be granted ten (10) working days from the completion of the annual inventory to locate and identify assets that were not accounted for during the physical inventory process. After ten working days, Capital Fiscal Services shall transfer any remaining assets not located into the site Missing Asset Room.   

If an asset appears as missing on an inventory list, the principal/department director shall account for and/or provide Capital Fiscal Services with information regarding the asset within ten (10) business days of receiving the missing inventory list.  Once receiving information from the principal/department director, Capital Fiscal Services shall take appropriate action regarding the asset.

Missing assets coded as such shall remain on the assigned site’s inventory listings for two years.  The site shall be responsible and accountable for these missing assets until they are officially deleted from the inventory records. Capital Fiscal Services shall report missing assets that become excessive to the chief financial officer for further action.

After missing for two years, missing inventory shall be reported to the Board of Education and deleted from TipWebIT and the district’s Asset Management System.

If a missing asset is found during an annual physical inventory at a site other than the original site assigned, Capital Fiscal Services shall transfer the asset thru TipWebIT to the new site.  This process shall remove the missing asset from the original site’s inventory listings.

Transaction Reports, Reconciliations and Audits

Throughout the year, on a daily and monthly basis, Capital Fiscal Services shall reconcile and adjust the district inventory accounts on the district Asset Management System, according to the latest information available.

At the end of each fiscal year, Capital Fiscal Services shall compile the ending balances and total transactions by type for all fixed assets and computers for inclusion in the Annual Financial Report and testing by the district’s external auditors.

The Chief Financial Officer may be alerted if Capital Fiscal Services suspects suspicious behavior regarding missing, lost, destroyed or stolen assets.  For more information regarding the Internal Auditor’s responsibilities, please refer to the “Internal Audit Procedural Directive”.

 

Administrative Position:    Chief Financial Officer
Department Director:          Executive Director of Accounting/Director of Capital Fiscal Program Services

References:

Legal Cross Ref.:

  • §12-6-10 NMSA 1978
  • §13-6-1 NMSA 1978
  • §13-6-2 NMSA 1978
  • 2.2.2 NMAC – Audit Rule 2009
  • 2.20.1.1-18 NMAC
  • Governmental Accounting Standards Board #34

Board Policy Cross Ref.:

  • DA – Fiscal Management Goals
  • DI1 - Inventories
  • KG1 Acceptance and Approval of Gifts, Grants and Donations 

Procedural Directive Cross Ref.:

Forms:

  • Fixed Asset Certification Form

*Note: please contact Capital Fiscal Program Services to obtain these forms.

Procedural Manuals:

  • Fixed Asset Procedure Manual - TipWebIT

NSBA/NEPN Classification: DN

Revised: May 1995
Revised: April 1996
Revised: June 1997
Revised: January 1, 2001
Reviewed: June 25, 2010
Revised: June 28, 2010
Reviewed: May 6, 2016
Revised: May 27, 2016

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