FILE:  DIC

FIXED ASSET ACCOUNTING

DEFINITION

The position of the Catahoula Parish School Board is to define a fixed asset as a specific piece of property:

1. which is tangible in nature
    

2. which has a useful life longer than one year and
    

3. which has a value of $5,000.00 or more.  Items valued at $300.00 to $4,999.00 shall continue to be listed as property.

It should be noted that a fixed asset can be acquired in a number of different ways. For instance, an asset may be acquired by purchase or it may be constructed by outside contractors, School Board personnel or both.  An asset can also be acquired by donation. The accounting for all fixed assets shall be in accordance with Bulletin 1929, Louisiana Accounting and Uniform Governmental Handbook.

All fixed assets acquired by the Catahoula Parish School Board fall into one of the following categories defined below:

• Land - Real property which generally includes both the surface and the contents of the land.  Land should be listed by parcel using assessor's reference numbers where available (i.e., parcel number and/or lot, block and tract), appropriate acreage, municipal address.
   

• Building and Improvements - A facility used to house and safeguard public property and personnel.  The building should be listed using municipal address, year built, type of construction, number of stories, approximate square footage.
   

• Equipment - Furniture, machinery, and fixtures which are not attached to land and building and which remain movable.  Equipment should be listed using Parish tag numbers, location codes, serial numbers where applicable, quantities, and estimated life.
   

• Vehicles - All cars, trucks, trailers, and busses licensed for use on public roads. Vehicles should be listed using year, make/model, and serial number.

PHYSICAL INVENTORIES AND INVENTORY RECORDS

A physical inventory of all general fixed assets shall be maintained utilizing a computerized data base of all applicable School Board general fixed assets.  School Board personnel at each Catahoula Parish location shall be responsible for reviewing inventory records and conducting annual physical inventories of their locations.

Data shall be submitted to the central office on a monthly basis to record assets added, improved, transferred, and/or disposed of.

General fixed assets records must note, as a minimum, the following information:

1. Date of acquisition (per state law)
    

2. Initial, cost (per state law)
    

3. Current replacement cost
    

4. Description of asset
    

5. Public identification numbers (per state law)

1. 1. Catahoula Parish inventory tag number, and
       

   2. Serial numbers, when applicable

6. Funding source
    

7. Location identification

1. 1. Location code
       

   2. Building code
       

   3. Room code

8. For disposition of assets (per state law)

1. 1. The purpose of such disposition
       

   2. The recipient of the property of equipment disposed of

DEPRECIATION

General fixed asset shall not be depreciated unless the fixed asset was purchased by a proprietary or similar fund type that requires depreciation.  The fixed asset may then be depreciated using the most recent standards set by the Governmental Accounting Standards Board (GASB).

UTILIZATION AND MAINTENANCE OF RECORDS

The general fixed asset records shall serve a dual purpose for the Catahoula Parish School Board:

1. The records will provide a subsidiary ledger for the general fixed asset account control ledger.
    

2. The records will provide necessary property records to be used for insurance purposes. These records will be relied on when purchasing insurance coverage and when submitting insurance claims.

The general fixed asset records shall be maintained on a computerized data base, designed specifically for such records.

Replacement values on assets shall be adjusted on an annual basis, so the insurance property records will reflect accurate valuation.

MISCELLANEOUS

Major construction or repairs to a building or equipment, which shall increase the useful life of the fixed asset, should be added to the value of that asset.  Routine maintenance performed on buildings or equipment does not increase the useful life of that asset and should not be added to the value of that asset.

There must be an annual reconciliation between the general records and the financial records, to be done by appointed personnel.

Revised:  June, 2001

Revised:  February, 2006

Revised:  June 3, 2008

Ref:    La. Rev. Stat. Ann. §24:515

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

Board minutes, 3-3-92, 10-2-01, 2-7-06, 6-3-08

Catahoula Parish School Board