1. Fixed Assets Internal Procedures 2008-2009 Fixed Assets Department 1

2. OVERVIEW.. Texas Education Agency Financial Accountability Resource Guide requires that Texas Schools account for fixed assets. This includes Land, Furniture, buildings, improvements and equipments. Capital Outlays purchases classified: State Defined a)Items with unit cost over $ 5,000 b)Tagged and controlled through the annual inventory process c)Listed in Fixed Assets Subsidiary Ledger - 663X’s objective code d)Accounted for in the General Fixed Assets Account Group e)Audited by the Internal and External Auditors Locally Defined a)Items with unit cost over $500 less than $ 5,000 b)Tagged and controlled through the annual inventory process c)Listed in Fixed Assets Subsidiary Ledger – 664X’s objective code d)Include electronics equipment with a unit cost of $.01 cents less than $ 5,000 e)Audited by District’s Internal Auditors 2

3. Account Coding Unit cost of the items purchased or to be purchased will determined the fixed asset category and subsequently coding to be used. Three types of Expenditure Coding a)Unit cost $ 5000 or more b)Unit cost Less than $ 5000 and Electronics c)Unit cost more than $ 500 to less than $ 5000. 3

4. Units Cost $ 5,000 or more Purchase classified as capital outlay (663X-XX) Tagged and controlled through the annual inventory process Classified as State Defined and accounted on District’s General Fixed Asset Account Group. Examples include: a)6631 (vehicles) b)6635 (Data processing Equipment) c)6639 (all other equipment not classified elsewhere) 4

5. Unit Costs Less $ 5,000 and Electronics Purchase Classified as capital outlay (6645-XX) Electronic equipment with a unit cost of $.01 to less than $5,000 Electronic equipment is computerized in nature is composed of intricate circuitry. Examples include: a)Communication Equipment ( fax machines, mobile, hand held radios, etc) b)Stereo Systems Components (boom box, speaker, mixer, DVD play, etc) c)Computer Equipment (monitor, printer, CPU, external peripheral equipment (DVD/CD, Disk Drive), IPOD’s, PDA’s, etc.) d)Video Processing Equipment (camcorders, cameras, DVD/VCR combo, television combos, and televisions) Eikis, Elmos. 5

6. Unit Costs more than $500 less than $5,000 Classified as Capital Outlay (6649-XX) Tagged and controlled by annual physical inventory process Classified as Locally defined but not accounted on District’s General Fixed Assets Account Group. Examples Include: a)Secondary Musical Instruments b)Secondary Athletic Equipment c)Machinery/ Tools d)Furniture 6

7. Tagging Process All equipment shall follow the purchasing process and be delivered to the Central Warehouse for tagging. Under special circumstances, Purchasing may arrange items to be deliver to user site, if authorized, Fixed Assets should be NOTIFIED IMMEDIATELY to coordinate the tagging of these items by the campus/department. Purchasing of Fixed Assets from local vendors will require that purchase order will be faxed to Fixed Assets Dept. for tagging and post to the campus/Department. TAGS 7

8. Stolen Fixed Assets If furniture/equipment is stolen a)Report it to supervisor b)Report to UISD Police Dept. (956-473-6361) To report after 5pm and weekends a)Officer on call in South of Highway 59 (956-473-4384) b)Officer on Call on North of Highway 59 (956-763-4386) Email “Loss” group (type in loss@uisd.net)loss@uisd.net a)Date of Reporting to Police b)Investigation Number (if available from Police Dept.) c)Description of Stolen Items d)Model/Serial Numbers (if available) e)Replacement Cost f)Email will trigger several individuals in district. 8

9. Surplus Sales, Sales of Scraps, Vehicle Loss due to Collision School Properties Disposal requires for District to follow proper procedures to account for disposal of school properties. Surplus Sales are done by Support Services throughout the year. Vehicles sold for “scrap” requires for receipt be sent to Fixed Assets Dept. to have vehicle inventory updated and remove from inventory. Receipts need to identify identification number (VIN) and license plates. Reimbursements from insurance claims for “total loss” of vehicle requires receipt to identify VIN and license plates to be sent to Fixed Assets Dept. 9

10. Fixed Assets Physical Inventory Audit Purpose: Fixed Assets Dept. will perform a fixed assets inventory/audit on all capital outlay items at each campus/department annually. Inventory will be conducted during school year and process will be a component of the administrators end-of-year checkout list. Items not accounted during inventory will be reported to principal/administrator. Principal shall appoint a Fixed Assets contact person who will be responsible for keeping a strict account of all the fixed assets at the campus. 10

11. Fixed Assets Physical Inventory Audits Pre-audit Process 1. Audit will be scheduled with the respective administrator. a)A campus map will be requested b)Fixed Asset person will be contacted 2.A package will be prepared for each location containing: a)Tips of the Fixed Assets Process b)Fixed Assets Procedures Manual c)Fixed Assets Miscellaneous Change Forms d)Authorization Form to Borrow Computer Equipment Forms e)Fixed Assets Transfer/Disposal Form 11

12. Fixed Assets Physical Inventory Audits Follow-up to Campus/Department Inventory Audits 1)Campus/Department will be provided and Excel Worksheet file of the items scanned after the inventory audit has been completed for their records. 2)Fixed Assets Department will reconcile the scanned file to the campus/department’s Fin Plus Fixed Assets Database. 3)Fixed Assets Contact Person will be provided a file of the items not found to locate and/or provide documentation for the final determination of items not found. (Reflects Principals Evaluation) 4)The finalized report will be provided to the Principal, Superintendent, and Board of Trustees. 12

13. Transfer/Disposal Form 13

14. Process to Transfer/Disposal of Equipment. Initiating campus/department completes and faxes the Fixed Assets Transfer/Disposal form to the Fixed Assets Department at 473-7992. Any Fixed Assets Transfer/Disposal form containing Technology will faxed to Technology Supervisor for signatures. The Fixed Asset Department assigns a control number (**) to the Fixed Assets Transfer/Disposal Form Tech. Dept. will send technician to evaluate computer equipment for usage, once disposition, Tech. Dept will fax Transfer/Disposal form to Fixed Assets which in turn will send to Support Services for pick up. Support Services will provide copies of Transfer/Disposal Form to Fixed Assets Dept. once all pickups have been completed. 14

15. Process to Transfer/Disposal of Equipment. The Fixed Assets Department will verify all items retrieved against the Transfer/Disposal Form Items will be updated from the Fixed Assets Subsidiary Ledger of the campus/departments Fixed Assets Department is NOT involve in scheduling and picking up of Fixed Assets Transfer/Disposal equipment. Any Temporary transfer of equipment will require a Transfer/Disposal Form to be completed. Any Radio, Eiki/Elmo transfer/disposal will require the signature of the Technicians and Executive Director of Information Technology. 15

16. Transfer/Disposal Form Control Number (**) Control Number Consists of: Exp. 880TN-913-08-14-111 or 913-08-14-112 880TN OR 880TS – identifies Fixed Assets Transfer/disposal Form containing technology equipment, Control Numbers that don’t contain 880TN OR 880TS identified as containing Furniture/Equipment. 913 – Identifies campus or department 08 – Identifies the month control number was assigned 14 – Identifies the date control number was assigned 111 – Identifies the sequential number the control number is assigned. 16

17. Fixed Assets Miscellaneous Change Form It is used when transferring fixed assets from one room to another within a campus/department. It must be thoroughly completed Must be sign by the campus/department Administrator. It should be faxed to Fixed Assets Department to update the change on the campus/department’s Fixed Assets inventory database. 17

18. Authorization to Borrow Computer Equipment When borrowing computers off-site schoolwork, Equipment Check- Out Form needs to be completed. It is also used when issuing teachers, students equipment. When administrator takes laptops off campus. It must be thoroughly completed (district tag number, serial number, description, name of person borrowing computer, and date borrowed) When equipment is received, form should show date the computer equipment was received and signature of person receiving the computer equipment. 18

19. Donated Items/Student Activity Purchases Donated Fixed Assets will be recorded at their fair market value at the time of receipt Receipt of donated items/Student Activity should be faxed to Fixed Assets Department Tagged and posted on campus/department’s inventory Student Activity monetary donations used for purchase of equipment must be submitted in writing to the Area Administrator and be approve by the Superintendent or designee. All Student Activity donations must be approve by Board of Trustees. 19

20. Returned Equipment-Fixed Assets When equipment, which already has district tags, is returned for replacement or credit: 1)Remove and attach the district tag to the Transfer/Disposal Form with its corresponding serial number and campus/department information to remove the serial number and update campus/department inventory. (See Exhibit G) 2)Fax the Transfer/Disposal Form to 956-473-7992 (Fixed Assets Dept.) to have an assigned control number. 3)When replacement is received, notify Fixed Assets Dept. To retag the equipment and update the campus/department’s inventory with the new serial number and tag number. 20

21. Contact Information Consuelo Gonzalez, Director of Fixed Assets E-mail: cgonzal@uisd.netcgonzal@uisd.net Phone: (956) 473-7991 David Hernandez, Fixed Assets Accountant E-mail: E-mail: davidh@uisd.net Phone: (956)473-7943 Cynthia Urbano, Fixed Assets Officer, E-mail: curban@uisd.net Phone: (956)473-7936 Rolando Rubio, Fixed Assets Clerk E-mail: rubio@uisd.net Phone: (956) 473-7990 Humberto Reyes, Fixed Assets Clerk E-mail: hreyes@uisd.net Phone: (956) 473-7988 Jesus Flores, Fixed Assets Clerk E-mail: E-mail: jflore46@uisd.net Phone: (956)473-7988 21