Parents Allied with Children and Teachers

Log in

Log in

PACT Charter School
7250 E. Ramsey Parkway
Ramsey, MN 55303

 313_Disposition of Fixed Assets

 Date created: 

 Committee Approval by: 

 Date Approved:

 Reviewed:

 20110715

 BFC

 20140626

  YYYY-YYYY

 BRD

 20140710


This Policy establishes guidelines for disposal of Fixed Assets.

Statement of Policy

It is the policy of the PACT Charter School Board to provide sound financial administration to safeguard the resources of PACT Charter School, the State of Minnesota and the constituencies we serve. It is important that PACT shall maintain current records of Fixed Assets and the disposition of those assets.

 

Purpose of this Policy and Procedure

  1. To maintain an accurate record of Fixed Assets in order to
    1. Comply with the requirements of GASB statement No. 34.
    2. Produce an accurate Annual Financial Statement.
    3. Complete the annual fixed asset inventory.
  2. To establish guidelines for disposition of surplus/unusable Fixed Assets

 

Definitions:

  1. Abbreviations
    1. PACT abbreviations apply, per the 317 - Master Financial Policy
    2. BAS refers to the Business Accounts Specialist
  2. Other definitions and references
    1. “Fixed Asset” means a tangible and intangible asset that has an initial Estimated Useful Life that extends beyond a single reporting period as defined in Policy: Fixed Assets Procedure (Procedure-FixedAssets-20110127-1c.doc).
    2. "Inventory" refers to the process of producing the Inventory as well as the Inventory itself.
    3. "Fiscal Year" runs from July 1 to June 30.

 

Responsible Parties

  1. The Facilities Coordinator will oversee the disposition of property (asset(s)) in accordance with PACT policy on disposition of fixed assets.
  2. Equipment that is surplus, damaged or broken beyond repair must be reported to the Facilities Coordinator by the accountable staff member so that proper procedures will be followed before the items disposal.
  3. The BAS is responsible to deposit any and all monies received in the sale of asset(s) as well as ensure the assets are removed from the fixed asset inventory list.

 

Process

  1. The Facilities Coordinator will notify the Administrator of asset(s) identified as no longer needed using the appropriate form (Property Disposition Request Form) stating the description of the item, condition, age and the value. (Attachment A). Value will be determined through an average of at least three (3) different sources, with each source identified on Attachment A. If the value of the asset exceeds $500 for an individual item or $1,000 aggregate (e.g. 10 laptops), the Facilities Coordinator will submit the information to BFC for approval and recommended disposal process. Once disposition is approved, the Facilities Coordinator will provide the signed form to the BAS through the HR & Finance Manager and proceed with the property disposal as outlined below.
  2. The Facilities Coordinator will seek other uses for the asset(s) within the PACT School District prior to requesting sale, trade-in, or disposal. Potential disposal options include posting the item(s) on Craigslist.com, PublicSurplus.com, an internal posting, and at MACS web site. If no other remedy is found, the Facilities Coordinator will offer asset(s) for sale to the general public using public online auctions, drawing or non-sale by consignment or donation.
    • All assets disposed of will have no implied warranty and will be disposed of in an "AS IS" condition at the time of purchase.
    • Disposed asset(s) that are on the fixed assets inventory list shall be removed from inventory and added to an archival database at the time of disposal.
    • Upon disposition of any asset(s), the Facilities Coordinator or assigned agent will remove fixed asset stickers and erase identifiable markings, engraving, or labeling.
    • All workstations and mobile computing devices will be routed through the Technology Coordinator for data removal prior to disposition.
    • Assets purchased with federal funds must be disposed of according to applicable federal procedures and are not covered within this policy.
    • If item is sold to other than a tax exempt entity, sales tax would need to be collected and paid and appropriate filings made.
  3. Any and all monies received in the sale of asset(s) will be submitted to the BAS through the HR & Finance Manager along with a copy of the Property Disposition Request Form outlining the entire transaction from inception to final disposition.
  4. Equipment that is stolen must be reported immediately to the Facilities Coordinator who will then complete the Property Disposition Request Form noting “stolen/missing” on the bottom of the form. The Ramsey Police Department may be called and a police report filed. Upon completion of any investigation, the form will be submitted to HR & Finance Manager and BAS for the audit files.