-- 4200 -- OCAG Fixed Asset Control

Proper control procedures will be followed for all capital asset acquisitions, transfers and dispositions in order to provide internal control of capital equipment and to assist in reporting. The school operations manager is responsible and accountable for furniture, equipment, machinery and any other capital assets and will maintain some type of control over capital assets. The school operations manager or designee will assist and evaluate the capital asset control procedures.

A.  Acquisitions

All purchases of assets costing more than $1,000 and authorized within the annual operating budget must be approved by the school operations manager, principal, or executive director. Assets that are over budget by 30% require board approval.

All purchases for items over $1,000 must include a completed purchase order, with the form indicating that the item is a capital purchase. When the bookkeeper is entering the records into the accounting system, the item will be recorded in the official school inventory documentation as well.

Any internally constructed or donated equipment will be reported to the bookkeeper if the item cost or has a FMV of $100 or more. A complete description of the property, date manufactured or received, number of items, cost or estimated value and a statement that it was internally constructed or donated will be included on the organization’s in-kind contributions log/records.

B.  Dispositions

Capital assets may be sold or traded-in on new equipment. An Asset Disposition Form is to be completed and approved by the school operations manager. Any assets with an original value greater than $1,000 will also require the board of director’s approval.

C.  Asset Records

Upon any asset acquisition, the school operations manager or designee is responsible for assigning and attaching asset number labels to the property where it can be readily located. The school operations manager or designee will then maintain a detailed inventory of school assets.

On an annual basis, the inventory should be reviewed by the school operations manager or designee to verify the accuracy of the log. Any discrepancies noted should be reported to the business manager to be resolved.

D.  Inventory of CSP Grant Purchases

All items purchased with Charter School Programs (CSP) grant funds must be logged and inventoried upon receipt, and then at least twice annually. All capital outlay purchases (all line items with 600 series object codes) must be labeled with an inventory label that includes the following wording:

Property of the School District of [School District]
[School Name]
[Inventory ID/Serial Number]
Purchased with Federal CSP Funds

The school shall institute an inventory system to tag and track all capitalized materials and items purchased with federal funds as well as other specific grant sources. The items identified on the inventory label must match the identification number of the inventory system, and each item must be listed individually. The inventory must also include the following information for each item:
  • Item/ID Serial Number
  • Funding Source
  • Item Description
  • Location/Room Number
  • Date Acquired
  • Date Inventoried
  • Item Condition (new, used, damaged, lost/stolen, sold, etc.)
In the event the school wishes to dispose of any items purchased with CSP funds, the school will also notify the sponsor. All proceeds from the sale of CSP-funded items must go towards the purchase of like items. The proceeds cannot go into the general fund. This provision remains in effect throughout the life of the equipment even after the CSP grant expires.

When the school enters into a lease agreement, the school shall ensure that the lease does not include provisions for the landlord confiscating capital outlay items purchased with CSP funds in the event of a default of the agreement.

Adopted: 02/06/2024