7455 - ASSET ACQUISITION, TRANSFER, AND DISPOSAL

School District of Adams Friendship

Administrative Guidelines

7455 - ASSET ACQUISITION, TRANSFER, AND DISPOSAL
Acquisition

	A.	A purchase order shall be completed and submitted to the District Administrator for approval. Prior to approval, the business manager shall review the excess asset list to determine if the same or similar asset is available from a different building or department. If the purchase order is approved, a copy of the approved purchase order will be returned to the originating principal.
		If certified, the initial information from the purchase order will be entered into the accounting system as a pending item. The business manager shall send the transmittal form to the principal.
		When the asset is received, the transmittal form shall be returned to the originator. Information from the form shall be used to complete the fixed asset pending file and the asset will be recorded in the system.

Transfer and/or Disposal

	A.	A request for asset disposal (transfer) (Form 7455 F1) is to be submitted to the District Administrator for approval. The Business Manager is to keep a copy of the request and return the remaining copies to the principal.
		After approval has been received and upon disposition or transfer of an asset, the principal shall sign and date the approved request for fixed asset disposal and shall send a copy to the business manager and, if the asset is to be transferred, a copy to the principal receiving the asset.
		Assets approved for auction shall be transferred to the central office for storage prior to sale. An approved copy of the request for disposal is to be sent to the District Administrator. (This procedure has been established to facilitate the auction process by accumulating all assets for sale in one (1) place and to enhance internal control by segregating duties.)

	Monthly, the business manager shall prepare a report listing all assets held for sale. A copy of the report shall be forwarded to the District Administrator who shall compare the list to the approved requests for disposal and also compare the list to the actual assets stored for sale at the central office. Any discrepancies shall be reported to the Board for resolution.

	The requested disposal list shall then be approved by Board resolution prior to sale.

	When an auction has taken place, the business manager shall prepare a list of assets sold and the amount of money received for each. Upon receipt of the list of assets sold, the business manager shall update the list of assets held for sale and the master asset list.

B. Annually, the business manager shall prepare a master list of all entity assets, a report of assets purchased, and a report of assets disposed of or transferred. Each principal shall receive that portion of each report which relates to that building or department. It is the responsibility of the principal to review and compare the reports to the fixed assets maintained in his/her area of responsibility. Any discrepancies are to be reported to the business manager and/or District Administrator for resolution.

	C.	All principals shall regularly identify and report to the business manager all assets not in use. The business manager shall prepare a quarterly report listing assets not in use for distribution to the District Administrator and principals. The District Administrator and Board shall review the report to identify assets that can be transferred to respond to a requisition for purchase and assets that should be sold.
	D.	As needed, but not less than quarterly, the business manager shall review asset acquisitions and dispositions for the purpose of updating insurance coverage. Insurance coverage for new vehicles shall be updated before the vehicle is used.
	E.	Any evidence of lost, stolen, or damaged assets shall be immediately reported to the District Administrator. The District Administrator shall investigate the matter and determine the appropriate action.
	F.	Periodic physical inventories shall be conducted to ensure accountability for the assets of the entity. The District shall adopt inventory guidelines to become a part of these procedures.