FILE:  DIC

FIXED ASSETS ACCOUNTING

Louisiana Revised Statutes Annotated §24:515, Generally Accepted Accounting Principals (GAAP), and Governmental Accounting Standards Board (GASB) Statement No. 34 all establish fixed asset accounting requirements.  Proper fixed asset accounting also includes internal controls designed to safeguard the security of the Board’s investment in fixed assets.  This system is designed to provide reasonable assurance that all fixed assets are safeguarded and in compliance with all federal and state guidelines.

Louisiana statutory provisions mandate that all political subdivisions which are accountable for equipment purchased since January 1, 1975, include the date of purchase, the initial cost or estimated initial cost, the disposition and reason for the disposition.  GAAP requires the accountability of all assets of significant value with a useful life of more than one year.

GASB No. 34 requires all governmental fund types to utilize the full accrual method (as opposed to the current modified accrual method) for accounting for fixed assets.  This statement makes it necessary for the School Board to depreciate all capital assets and present them in ”Government-wide Financial Statements.”

Some provisions in specific federal and state grants may be different than these policies and their provisions shall supersede these local provisions.

Implementation of the fixed assets accounting system shall provide the School Board with the following benefits:

1. Proper accountability of all fixed assets,

2. An approved basis for determining insurable values,

3. Identifiability of lost or stolen assets, and

4. Proper accountability for statistical and financial reporting.

The School Board shall maintain a current computerized listing of all fixed assets sorted by site.  The principal, and/or site supervisor shall be responsible for all fixed assets assigned to his/her site and for the accuracy of his/her fixed asset listing.

The School Board shall provide fixed asset in-service to district administrators, principals, and site administrators with budget line item approval authority.

FURNITURE AND EQUIPMENT

For fixed asset purposes, furniture and equipment capitalized are defined as any individual item with a significant value of $5,000 or more and a useful life expectance of over two (2) years.  These items shall be accounted for as fixed assets and added to the fixed asset group.  Items purchased with funds identified by the state as 8(g) funds, valued at $250 or more, shall also be classified as fixed assets and included in the fixed asset records.

Identification of Equipment and Furniture as Fixed Assets

The Purchasing Agent shall identify all equipment and furniture as fixed assets when the requisition is submitted.  The requestor shall provide the purchasing agent documentation which verifies the requested item meets the definition of fixed asset.  He/she shall ensure that those capitalized items are properly coded to fixed asset expenditure accounts.  The School Board’s equipment and furniture expenditure accounts shall match the state’s keypunch codes.

Inputting Fixed Assets, Issuing and Assigning Tag Numbers

• On a monthly basis, the Purchasing Agent shall run a history of all equipment and furniture expenditure accounts and input all items into the computer system.
   

• The Purchasing Agent shall reconcile every month the expenditure history to the fixed asset listing.
   

• For each item on the list, the Purchasing Agent shall assign the fixed asset tag number, prepare a fixed asset input form and attach a copy of the invoice to the form.
   

• The fixed asset form with the invoice attached and the tag number shall be distributed to the supervisor.
   

• The supervisor shall tag the item, complete the form, fill in the room number in which the item was placed and return the form with signatures back to the Purchasing Agent.
   

• The Purchasing Agent shall complete the process by inputting the room number in which the item was placed.
   

• Employees preparing request for funds shall receive training on the Louisiana Accounting and Uniform Governmental Handbook (LAUGH), Bulletin 1929, Louisiana Department of Education.

TEXTBOOK INVENTORIES

The School Board and each school shall keep an inventory record of all textbooks on hand at the beginning of the session, as well as records of those textbooks added, worn out, and in need of replacement.  Textbook records should be kept on file for a minimum of three (3) years.

All lost or damaged books must be paid for by the student to which the books have been assigned.  Money received by a principal for lost or damaged books must be recorded and deposited into the school account.

Revised:  June, 2008

Approved:  October 15, 2009

Ref:     La. Rev. Stat. Ann. §§17:81, 24:515

Louisiana Accounting and Uniform Governmental Handbook, Bulletin 1929, Louisiana Department of Education

Board minutes, 2-16-06, 8-7-08, 10-15-09

St. John the Baptist Parish School Board