PACT Charter School

Original Creation Date: July 15, 2011
Last Approved By: PACT Charter School Board of Directors
Last Approved Date: January 5, 2023
Year Reviewed: 2022-2023

This Policy establishes guidelines for the disposal of Fixed Assets.

Statement of Policy

The policy of the PACT Charter School Board of Directors is to provide sound financial administration to safeguard the resources of PACT Charter School, the state of Minnesota, and the constituencies we serve. PACT must 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 the disposition of surplus/unusable fixed assets.

Definitions:

1. Abbreviations
   1. GASB refers to Governmental Accounting Standards Board
   2. BAS refers to the Business Account Specialist
   3. BFC refers to the Budget and Finance Committee
2. Other definitions and references
   1. “Fixed Asset” means a tangible and intangible asset with an initial Estimated Useful Life that extends beyond a single reporting period as defined in Policy: Fixed Assets Procedure.
   2. "Inventory" refers to the process of producing the inventory and the inventory itself.
   3. "Fiscal Year" runs from July 1 to June 30.

Responsible Parties

1. The Facilities Director will oversee the disposition of property (asset(s)) following PACT policy on the disposition of fixed assets.
2. The accountable staff member must report the equipment that is surplus, damaged, or broken beyond repair to the Facilities Director so that proper procedures will be followed before the disposal of the item.
3. The BAS is responsible for depositing any and all monies received in the sale of an asset(s) and ensuring the assets are removed from the fixed asset inventory list.

Disposal Criteria

1. The value of an item will be determined through an average of at least three (3) different sources, with each source identified in Attachment A. If the value of the asset exceeds $1000 for an individual item. the Facilities Director will submit the information to BFC for approval and recommended disposal process. Once disposition is approved, the Facilities Director will provide the signed form to the BAS through the Superintendent of Schools and proceed with the property disposal as outlined below.
2. The Facilities Director will seek other uses for the asset(s) within the PACT School District before requesting sale, trade-in, or disposal. The Facilities Director will offer asset(s) for sale to the general public if no other remedy is found.
3. Equipment that is stolen must be reported immediately to the Facilities Director, who will complete the Property Disposition Request Form noting “stolen/missing” at 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 the Superintendent of Schools and BAS for the audit files.