Fixed Assets (PDF)

Topic: Fixed Assets

Reference or Contact:          Purchasing and Contract Services

The purpose of the Fixed Asset Inventory Control Program is to establish and administer a system that is in accordance with TEA regulations.  This program should enable a smooth audit procedure on items purchased with school funds.  Primarily fixed asset control is an ongoing program of identifying and documenting all items purchased within the fixed asset criteria as follows:

• Any item of furniture, technology-related equipment, software, other equipment, and vehicles with a cost per unit valued at $1000 or more and a useful life of one year or more is considered a “fixed asset inventory.”
• Generally, fixed assets are acquired by several methods: purchase, lease-purchase, construction, donation, and club purchases. Fixed assets acquired by gift or donation are recorded at their fair market value at the time of receipt.  All other fixed assets are recorded at cost.  All fixed assets are retained on the Fixed Asset ledger without depreciation until the assets are finally liquidated.
• The purchasing/contract services department will review all requisitions for proper account coding. Adequate accounting procedures and records for fixed assets are essential for the protection of and accountability for school property.  The objectives of the fixed asset accounting system are to track responsibility for the custody and proper use of fixed assets, to provide data for effective management of fixed assets, and to provide data for financial control, financial reporting, and insurance coverage.

All assets meeting the District’s fixed asset criteria will be bar coded. The bar code label and the method of tracking the asset will be determined by the value of the item.

Bar Code Labels are applied according to the following situations:

• Per unit cost between $1,000 and $4,999 will be bar-coded with a green label with a starting number of 3XXXXXXXX. These asset items are recorded and tracked only at the campus/department level. 
• Per unit cost of $5,000 or more will be bar-coded with a red label with a starting number of 5XXXXXXXX. These asset items will be recorded and tracked by the purchasing/contract services department.

All fixed asset items with a value less than $5,000 are the responsibility of each campus/department.  Each campus/department shall maintain a fixed asset inventory to insure accountability and to discourage theft.  A physical inventory may be performed conveniently anytime during the year.  Each campus/department will be required to submit an inventory copy to the purchasing/contract services department by May 31 of each year. 

All fixed asset items with a value of $5,000 or more will be inventoried and recorded each year by the purchasing/contract services department. 

The transfer and disposition form is used for the permanent transfer, temporary loan, or for the deletion of a fixed asset from the inventory.  This form should be sent to the distribution center where pick up will be scheduled.