School districts are required by state law to safeguard assets of the district. In addition, the terms of some Federal grants and bond covenants require specific identification of assets acquired with those moneys, impose restrictions on disposing of such assets and/or designate allowable uses of the proceeds from the sale of such assets.
To properly safeguard the district’s assets and comply with other legal requirements, a comprehensive capital asset system must be established and maintained.
• To provide for accountability of district assets through effective planning and utilization of district resources in the recording, transferring, safeguarding, inventorying and disposing of district assets.
• To provide information for capital planning, budgeting and replacement decisions.
• To comply with requirements set forth by state and federal governments.
District Office Staff
• Executive Director of Business Services
• Capital Asset Technician (ICT)
• Accounts Payable Personnel
• District Courier, Surpluser and Maintenance Personnel
• Purchasing Personnel
• Technology Personnel
Building Staff
• Building Administrator/Program Supervisor
• Inventory Representative (IR)
Capital Assets
Capital assets” shall mean land, buildings, personal property that are used in operations and that have initial useful lives extending beyond a single reporting period which:
A. Retains its shape and appearance with use;
B. Is nonexpendable, meaning if the item is damaged or some of its parts are lost or worn out, it may be more feasible to repair it than to replace it with an entirely new item.
C. It does not lose its identity when incorporated into a more complex unit;
D. Is valued no less than $5,000; and
E. Has a life expectancy of at least one year.
The district’s capitalization policy states that all capital assets which have a unit cost greater than $5,000 are included in its equipment inventory system. The district recognizes the need to track capital assets and theft sensitive capital assets using a barcode tag system.
Theft-Sensitive Assets
For purposes of this policy, “theft-sensitive assets” are those items identified by the business department as easily portable, desirable for personal use or easily marketable and are valued between $1,000 and $5,000.
Transfers
A transfer is the moving of an inventory item from one location to another, with the originating building/program relinquishing ownership of the item.
The capital asset inventory system has the capability of recording the following specific information for each item:
• Item Description –.
• Manufacturer –
• Model Number –
• Serial Number –
• Barcode Tag Number –(Assigned by the District)
• Unit Cost –
• Campus (Location) Number –
• Room Number –(Bar Code Number assigned to a room-located on inside hinge)
• Disposition (& Disposition Date) –
• Funding Code –
• P.O. Number –
• Invoice Number –
• Purchase Date –
• Vendor Name –.
Adding capital assets and theft sensitive assets to inventory
1. The purchaser in the building or department is responsible for identifying whether an item is a capital asset or theft sensitive asset at the time of purchase. The purchaser shall use an object code to identify the type of equipment being purchased. This also applies to items purchased via employee reimbursement. These items are identified as follows:
a. Capital Assets over $5,000 each are coded to object code 9XXX.
b. Computers are coded to object code 5926.
c. Computer Peripherals are coded to object code 5960.
d. Other Theft Sensitive Assets are coded to object code 59XX.
2. Once a purchase order has been issued, the ICT in Accounting issues a ‘Barcode Assignment’ form and assigns a barcode tag to the item.
3. If items are donated, they need to be pre-approved using the “Approval of Item or Cash Donation” form. At that time the Accounting Department will determine if the item should be tagged.
4. The barcode tag is then forwarded, along with the ‘Barcode Assignment’ form to the person scheduled to receive the order, either the Inventory Representative at the building or Technology department.
5. The Inventory Representative or Technology Department will returned the completed form to the ICT within five days of receiving the item. All information, including manufacturer, model number and serial number, if applicable, should be entered on the form.
6. The ICT maintains copies of the ‘Barcode Assignment’ form and the PO in a pending file until the original documents are completed and returned.
Tagging Equipment
The barcode tag is applied to the right side of the furniture or equipment, or on the faceplate of larger equipment.
Entering Data into the Capital Asset Inventory System (FAMP)
1. When the ICT receives the completed ‘Barcode Assignment’ form he/she checks to be sure what was ordered was actually received.
2. Accounts Payable sends a copy of the invoice to the ICT.
3. When the ICT receives the invoice copy he/she attaches it to the completed ‘Barcode Assignment’ form and enters the item information into the FAMP system.
4. The ICT files all documents.
Transfers
A transfer is the moving of an inventory item from one location to another, with the originating building/program relinquishing ownership of the item. When an item is to be moved from one location to another the following procedures are to be followed:
1. The individual requesting the transfer of equipment completes a ‘Request for Transfer/Discard of Equipment’ form. The Building Administrator/Program Supervisor must authorize the ‘Request for Transfer/Discard of Equipment’ form.
2. The original ‘Request for Transfer/Discard of Equipment’ form is then submitted to the Inventory Control Technician (ICT) in Accounting. The ICT will keep the original form and forward a copy to the District Surpluser, District Courier or Maintenance Department.
3. The Inventory Representative at the location making the transfer should retain a copy of the ‘Request for Transfer/Discard of Equipment’ form to document the changes in their inventory. A copy of the form shall be attached to the items being transferred or discarded. District staff will not pick up equipment without the form attached.
4. The location receiving the equipment must also sign the ‘Request for Transfer/ Discard of Equipment’ form and should retain a copy for their records.
5. The District Surpluser, District Courier or Maintenance Department will sign and forward their copy of the form to the Inventory Control Technician after the items are moved.
6. When the signed copy of the ‘Request for Transfer/Discard of Equipment’ form is received by the ICT from the District Courier or Maintenance Department, he/she will attach it to the original form and record the change in location in the inventory database.
Storage
When an item is no longer needed by a location/program and if it is in a condition that would allow it to be used by another location, it may be transferred to the district’s warehouse. The location relinquishes their claim on an item when it is placed in storage. Another location/program may subsequently request and receive the item for their use.
When an item is to be placed in storage, the same procedures utilized for transfers, as described above, are followed.
Loans
A loan is a temporary transfer of an inventory item from one location to another for a specific period of time without the originating building/program relinquishing ownership. It will be the responsibility of each custodial location (the location the item belongs to) to maintain some form of internal record keeping, such as a log sheet, to track items that have been loaned out to another location. The internal record will be used to reconcile the physical count. The ICT does not track items that are loaned.
The disposal of equipment is the process of removing an item from inventory that has been lost, stolen, discarded, traded-in, surplused or salvaged.
Discarded
When an item is to be discarded, the following procedures are to be followed:
1. The Building Administrator/Program Supervisor or the Inventory Representative completes a ‘Request for Transfer/Discard of Equipment’ form. Tag numbers of bar-coded equipment must be included on this form. For furniture or fixtures, only the type of furniture/fixture and the quantities need to be noted on the form.
2. The Building Administrator/Program Supervisor MUST authorize the ‘Request for Transfer/ Discard of Equipment’ form.
3. Items purchased using Federal monies have various disposal requirements; contact the grant manager or provide a copy of those requirements with the ‘Request for Transfer/Discard of Equipment’ form.
4. If the item (other than computer equipment or hazardous materials) is broken and needs to be discarded, once the paperwork has been processed, please discard the item on-site and forward the “Request for Transfer/Discard of Equipment” form to the ICT.
5. For items that need to be physically removed from a location the original copy of the ‘Request for Transfer/Discard of Equipment’ form is to be submitted to the Inventory Control Technician (ICT) in Accounting. The ICT will keep the original form and forward a copy to the District Surpluser, District Courier or Maintenance Department.
6. The Inventory Representative at the location making the disposal should retain a copy of the ‘Request for Transfer/Discard of Equipment’ form to document the changes in their inventory. A copy of the form shall be attached to the items being transferred or discarded. Items will not be picked up without this form attached.
7. The District Courier or Maintenance Department should sign and forward their copy of the form to the Inventory Control Technician after the items are moved.
8. When the signed original of the ‘Request for Transfer/Discard of Equipment’ form is received by the ICT, he/she will attach it to the original form and record the change in the equipment inventory system.
Lost or Stolen Items
1. The same process and form for discarding an item above should be used for lost and stolen items,
2. Lost items should include an explanation of what happened (as available).
3. A police report, report number or official statement and a Property Loss report must accompany ‘Request for Transfer/Discard ‘forms that contain stolen items. (See Risk Management section of Business Services handbook for more detail on reporting and replacing stolen assets).
Salvage Items
1. The same process and form used for discarding an item above shall be used for all assets that will be salvaged.
2. Maintenance, computer technicians and AV technicians will be the primary individuals responsible for salvaging parts on equipment that have been surplused.
Trade-In Items
1. Individuals wishing to trade in capital equipment must
a. Obtain a written agreement or quote for the item to be traded-in. Click here to obtain the Trade-In Form.
b. Ensure that the trade-in value is the best value obtainable (either by multiple vendor quotes or using a price evaluation tool (i.e., Kelley Blue Book).
c. Send Trade In Form to Purchasing for approval prior to trade in.
d. Items purchased using federal monies have additional requirements; contact the grant manager for those requirements.
2. Once the trade-in has been approved by Purchasing, the employee should use the following process to complete the trade-in
a. Verify the vendor will issue two invoices for the process
i. one for the full purchase amount to establish the actual value of the product
ii. A credit memo for the value of the trade-in
b. Issue a PO for the full purchase price; indicate in the body of the PO that the item was obtained through trade-in
c. Obtain a signature from the vendor representative indicating that the vendor has possession of the old item
d. Send the completed, original ‘Capital Equipment Trade-In” form to the ICT in accounting.
Click here to view the Request for Surplus/Transfer of Equipment Form.
Surplus Books
1. The Building Administrator/Program Supervisor or the Inventory Representative completes a ‘Request for Surplus of Books’ form.
2. The Building Administrator/Program Supervisor signs and dates the form.
3. A copy of the form is attached to the box(es) of surplus books.
4. The original form is sent to the Teaching and Learning Department for approval.
5. Teaching and Learning keeps a copy of the form and forwards the original to the Inventory Control Technician (ICT) in Accounting.
6. The ICT will take a copy of the form and request the District Surpluser, District Courier or Maintenance Department to schedule pick-up.
7. After pick-up occurs, the District Surpluser, District Courier or Maintenance Department signs their form and sends it to the ICT to enter into a spreadsheet for surplus.
Click here to view Request for Surplus of Books Form
Capitalized Assets
1. A physical count of the capital asset inventory shall be taken periodically, the frequency and scheduling of which is to be determined by the Executive Director of Business Services or designee.
2. In accordance with federal grant requirements, all equipment with a cost exceeding $5,000 per item will be inventoried at least every two years.
3. The physical count will be conducted with the assistance of the building/program.
4. The individuals taking the physical inventory will utilize a barcode reader and current inventory lists by location and tag number order and attempt to locate all items at that location.
5. If any untagged items are located which meet the criteria, they will be tagged and the information collected for entry into the equipment inventory system.
6. The physical inventory is to be reconciled to the equipment inventory records and discrepancies will be sent to the Inventory Representative at each building. The Inventory Representative for the building will follow up on all exceptions and explain what happened to each item listed (as information is available).
Theft Sensitive Assets
1. Theft sensitive items are inventoried in conjunction with capital assets. In some cases, the teacher responsible for a program may maintain a list of theft sensitive items and turn the list into the Inventory Representative at the end of each school year.
2. The Inventory Representative for the will follow up on all missing items and explain what happened to each item listed (as information is available).
3. Any items listed as missing, lost or stolen will be removed from the inventory list upon approval of the Executive Director of Business and Operations.
Inventory records will be retained by the Inventory Control Technician and by the Inventory Representatives at each building/program in accordance with the Records Retention Manual. The manual currently requires:
1. Year-end inventory reports and change forms used to update the capital assets inventory to be retained for a minimum of three years.
2. Surplus property inventory records are to be retained by the business services office for a minimum of six years.
(Items tagged when the unit cost is in excess of $5,000)
(Items are tagged when unit cost is in excess of $1,000 per unit and less than $5,000)
(Items are not tagged unless unit cost is at least $5,000.)
“Property of Snohomish School District” tags are available upon request.
Campus (Location) Numbers
111 Central Primary Center
112 Emerson Elementary
113 Riverview Elementary
114 Machias Elementary
115 Cathcart Elementary
116 Seattle Hill Elementary
117 Dutch Hill Elementary
118 Cascade View Elementary
119 Totem Falls Elementary
120 Little Cedars
208 Valley View Middle School
224 Centennial Middle School
307 Maple Avenue Campus
409 Snohomish High School
411 Glacier Peak High School
500 Parkway Campus (Aim High School, Transition Center)
543 Parent Partnership Program
545 ECEAP
073 Veteran’s Memorial Stadium
092 Capital Projects
095 Warehouse/Surplus
096 Maintenance and Operations Center
097 Resource and Service Center
099 Transportation Center
Funding Codes
21 State Special Education
24 Federal Special Education
31/34 State Vocational Education
38 Federal Vocational Education
51 Federal Disadvantaged Title I
52 Federal School Improvement
55 State LAP
58 State Special & Pilot Programs
64 Federal Limited English Proficiency
65 State Transitional Bilingual
66 State Student Achievement (I-728)
71 Traffic Safety Education
74 State Highly Capable
75 State Professional Development
79 Other Instructional Programs
98 Food Services