ARRA Real-Personal

ARRA Real-Personal

The purchase of Real or Personal Property must be aligned with the appropriate Campus/District Plan.

Real and Personal Property Assets in our Lawson System are broken down into two groups:

Capital Assets and Inventory Assets

Capital Assets are identified according to the guidelines set forth in the Financial Accounting Resource Guide (FAR). The requirements are as follows:

· is tangible in substances and nature

· has an estimated useful life of one (1) year or more

· is physically separate and identifiable from other assets

· has a dollar cost of $5,000 or more and is controllable through a physical inventory

· has a dollar cost of less than $5000 but is paid from 6XX Fund Code

· For federal Stimulus Funds, a purchase of a complete computer lab of computers or a mobile cart with laptop computers will be considered as a Capital Asset if the total cost is over $5,000.

Inventory Assets are assets that the district has designated to capture for internal control purposes. Those assets are between $500 - $4999 and are included on the Inventory Asset Catalog Report.

Asset Categories

There are fours (4) categories of Assets.

1. Land costs would include, in addition to the purchase price, such ancillary costs as legal and title fees, surveying fees, appraisal and negotiation fees, damage payments, site preparation costs (clearing, filling and leveling) and demolition of unwanted structures.

2. Buildings and Improvements costs include purchase price, contract price, professional fees of architects, attorneys, appraisers, financial advisors, etc. damage claims; cost of fixtures attached to a building or other structure; construction insurance premiums, interest, and related costs incurred during the period of construction; and any other expenditures necessary to put a building or structure into its intended state of operation.

3. Furniture and Equipment costs should include the total purchase price. Other costs, which should be capitalized as equipment, include transportation charges, installation costs or any other expenditure required to place the asset in its intended state of operation. Furniture & Equipment items valued at $5,000 or more should be coded to object code 6600s, or if items are valued less than $5,000, then use the object code 6398.

4. Vehicles costs should included the total purchase price. Other costs, which should be capitalized is any added cost to the vehicle, include transportation charges, installation costs or any other expenditure required to place the vehicle in its intended state of operation.

New Acquisitions of Asset (Capital/Inventory) are now captured into the Asset Management System when you enter a RQ10 or a Non Standard PO. When attempting to order new purchase on a RQ10 or paying for items already received on NS PO you will need to enter an Asset Template on each line that meets the requirements to be an asset. The RQ10 turns into a PO then information is entered from the Accounts Payable System (invoice information) and it is matched up to be paid. Accounting runs a report to verify information is correct and the item qualifies to be an Asset. Asset information is uploaded into the AM System and then Barcodes, Serial numbers and Warranty Information will be added by the appropriate departments.

Procedures for Inputting Assets into the AM System

Secretary/Bookkeeper will create a Non Standard at their location to request payment for an Inventory or Fixed Asset depending on Dollar Amount