Fayette County Public Schools Fixed Asset Procedures

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Fayette County Public SchoolsFixed Asset
Procedures
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INVENTORY OTHER NIGHTMARESPresented by

• Rodney O. Jackson, M.B.A., C.S.F.O. -Director of
  Finance
• Becky Riley, C.S.F.M. Associate Director of
  Finance
• Jill Page-MIS User Support Analyst
• Quoya Shegog-Fixed Assets Accounts Specialist

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• F.C.P.S. FIXED ASSET PROCEDURES
• Purpose Scope
• State responsibility /requirements for receipt,
  transfer, disposal of assets within MUNIS
• Applicability
• Applies to the assets of FCPS property
  management is required to maintain accurate
  information in MUNIS
• Information concerning utilization, value
  accountability meet GASB 34 requirements.
• Responsibility
• Warehouse is responsible for receiving, tagging,
  transporting, disposing equipment providing
  Financial Services with the documents to enter
  into MUNIS
• Principals, building/budget managers, Directors
  are responsible for equipment in their immediate
  area(s)-accountability can not be re-delegated
• Financial Services is responsible for
  inventories, appraisals, depreciation, MUNIS
  records, audit reports

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• Definition
• cost gt than 1000.00 life gtthan 1 Year
• Most tech equipment with a life gtthan 1 year
  regardless of cost
• Food service equipment costing gtthan 300.00 life
  gt 1 year
• Acquisition
• Purchases
• MUNIS P.O.s (exceptions are for school activity
  funds)
• Object codes related to fixed assets are in the
  700 series
• 0739 exclusion
• Donations
• Fixed Asset Donation Form
• Written approval from superintendant
• Transfers
• Fixed Asset Transfer/Disposal Form

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Fixed Asset Object Codes

• 0710-Land land improvements
• 0720-Buildings
• 0731-machinery equipment
• 0732-vehicles
• 0733-Furniture fixtures
• 0734-Computer related equipment
• Note Printers monitors not bundled with
  hard-drive are not fixed assets by our
  definition. The hard-drive must be included.
• 0735-Instructional equipment
• 0736-Other administrative equipment
• 0737-KISTA

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• Receiving
• Must go through the warehouse
• unless the equipment is too large
• Warehouse delivery
• Warehouse staff tags asset
• annotates tag info on P.O. and forwards
• End user delivery
• All exceptions must be pre-approved by Financial
  Services warehouse notified immediately
• grant purchases, school activity funds, and
  donations included
• warehouse staff will go to the location to tag
  the asset
• Warehouse will send the paperwork to Financial
  Services
• Grant Management/Fixed Asset
• Accountable equipment obtained with Federal
  Funding
• is subject to federal Office of Management and
  Budget (OMB) regulations as contained in OMB
  circular 102.
• Failure to do so may jeopardize future funding

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• Tagging Fixed Assets
• Warehouse staff tags each asset on receipt
• Warehouse inventory clerk maintains stock of
  property tags
• Assets returned to vendor for replacement
• all changes shall be made by warehouse staff
• Then communicated to Financial Services
• Assets temporarily unavailable
• Assets shall not be removed without proper
  documentation
• Fixed Asset Return/Repair Authorization Form
• Temporary Loan Form

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• Fixed Asset Disposal
• Assets in excess of needs shall be transferred to
  warehouse
• An ACT1000 work order
• Schools/offices shall NOT dispose of fixed assets
• Warehouse personnel only
• Disposal Process
• Collect surplus assets in one location
• Remove/destroy info on hard drive
• Document serial numbers and tag numbers on
  disposal form
• Request pick up via ACT 1000 work order
• Give forms to warehouse personnel picking up
  assets
• A signed inventory list will be provided to
  Financial Services from the warehouse upon final
  disposal for data entry into MUNIS

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• Inventory procedure
• GASB 34 requires a complete physical inventory
  annually
• The facility receives a list to review and
  reconcile.
• Inventory scheduled for January March
  locations notified 30 days
• Access to rooms
• list of missing assets to locate and a deadline
  to respond.
• Reconciliation
• Reconciliation is complete when Financial
  Services has
• received all facility inventories,
• approved all missing add items
• and update the Fixed Asset Module in MUNIS

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• Transfer of accountability
• Accountability will be transferred after both the
  current and successor principal, building manager
  or director perform a joint inventory.
• Example Documents
• Fayette County Public Schools Fixed Asset
  Procedures
• F.C.P.S. Year End Inventory Memo to Principals,
  Bookkeepers, Directors, and Budget Managers.

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Inventory Team Timeline

• November December Hire/prepare scan team
• December( 1st week) send memo to directors,
  principals, bookkeepers concerning upcoming
  inventory steps for preparation
• December (2nd week)- send schedule to schools for
  verification of inventory dates.
• December (3rd week)-send reminder to schools
  scheduled for inventory at the beginning of
  January
• Jan-March inventory of schools, IAKSS, support
  services
• Jan-March missing reports sent to respective
  locations to locate items that were not scanned.
• Jan-March reconcile inventory results and
  follow-up with schools/locations, which have not
  returned reconciliation
• April Process finalized and reported to
  Associate Director of Finance that audit
  preparation for step 1 of roll is complete.

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Fixed Asset Roll Forward Schedule
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A-133 Audit Guidelines

• A-133 audit guidelines related to property (fixed
  assets) requires the following
• Definition of property classifications
• Federal standards that govern property
  management and
• Standards outlined in cost principals
• The Federal Standards Sources under OMB-Circulars
• State, local, tribal governments (A-102, 2CFR
  225A-87)
• Universities (2CFR Part 215, 2 CFR 220 A-21)
• Non Profits (2CFR Part 215, 2CFR 230 A-122)
• Commercial Organizations (2CFR part 215, FAR
  31.2)

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School Districts A-133

• As a school district, our standards fall under
• Cost Principals 2 CFR225 (A87)
• Biannual inventories support use allowances and
  depreciation charges for
• Buildings
• Capital improvements
• Equipment
• Every other year inventory to ensure that assets
  exist an are in use
• Administrative principals A-102
• Annual inventory of federally owned property
• Biannual inventory of property purchased with
  federal grant funds

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School Districts A-133 continued

• Federal Standards for Property Management
• Insurance coverage
• Real property
• Federally owned/exempt property
• Equipment
• Equipment records
• Inventory and control requirements
• Maintenance procedures
• Disposition procedures
• Supplies and other expendable property
• Intangible Property
• Property Trust Relationship

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School Districts A-133 continued

• Real Property important features
• Ability to track items purchased with federal
  funds
• Property must be for original purpose, even after
  the grant ends.
• Note-you can transfer the fixed asset to another
  federal grant program
• as long as its intended purpose
• Definition of Equipment (5,000 threshold)
• Your organizations definition overrides federal
  definition
• if it is less restrictive
• NOTE less than 5,000 considered a supply

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School Districts A-133 continued

• Property Management System Internal Controls
• Maintain accurate records on all acquisitions and
  dispositions.
• Attach property tags
• Take physical inventory
• Maintain property records
• Establish a disposition procedure
• Establish a formal recordkeeping disposition
  policies and procedures manual

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School Districts A-133 continued

• Benefits of an Adequate Property Management
  System
• Ensures Internal Control
• Proves abilities to awarding agencies and
  auditors
• Efficient use of resources
• Prevents audit findings
• Summary
• You should have a formal written Fixed Assets
  policies procedures guide
• This guide should have Federal Standards of
  Property for A-133 audit
• This guide should have Property Management System
  of Internal Control for A-133 audit.

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