Policy 4040 Implementation Procedures - Fixed Assets

Implementation Procedures

I. Acquisitions

The Office of Accounting, using the Fixed Asset Management Database, will account for and record all new fixed assets.
The Office of Accounting will assign a fixed asset identification number to all fixed assets. Identifications numbers will also be assigned to leased assets, subscription assets, buildings, and improvements other than buildings.
The Office of Accounting will enter the following information for each addition into the Fixed Asset Management Database:
1. The year of acquisition
2. The cost of the acquisition
3. The assigned fixed asset identification number
4. A description of the item including make, model, and serial number if applicable
5. Location.

The principal/account manager/designee of each school or location is responsible for the physical accounting and reporting of the transfer of all fixed assets to/from another location.
Each time a fixed asset is transferred from one location to another, the following information will be reported on FIN-Form 240, Fixed Asset Transfer or Disposal Form:
1. The item’s fixed asset number
2. A description of the item, including make, model, and serial number.
A copy of FIN-Form 240 Fixed Asset Transfer or Disposal Form will be sent to the Office of Accounting.
The Office of Accounting will record the appropriate information in the Fixed Asset Management Database.

The principal/account manager/designee of each school or location is responsible for the physical accounting and recording of the disposal of all fixed assets. The principal/account manager/designee will:
1. Conduct an annual review of the fixed assets located in their school or location.
2. Notify the Office of Accounting and other appropriate Howard County Public School System (HCPSS) employees of any items that are either missing or not included in the Fixed Asset Management Database inventory.
3. Implement a process for safeguarding and monitoring the use of fixed assets by HCPSS employees and students.
The principal/account manager/designee of each school or location will provide to the Office of Accounting the following information for each disposal of a fixed asset from the Fixed Asset Management Database on FIN-Form 240, Fixed Asset Transfer or Disposal Form:
1. The item’s assigned fixed asset number
2. A description of the item, including make, model, and serial number
3. Location.
The Office of Accounting will calculate the appropriate depreciation for the item and record the information in the Fixed Asset Management Database.

At least annually the Office of Accounting will coordinate a review of all the HCPSS fixed assets.
At least once every three (3) years, the Office of Accounting will coordinate a physical inventory of all HCPSS fixed assets.
Information on the fixed assets of the school system will be incorporated into the annual audited financial statements and the Annual Comprehensive Financial Report (ACFR) provided to the Superintendent and the Board.

Policy 4040 implementation procedures will be overseen by the Division of Finance.

ADOPTED: November 26, 2002

REVIEWED: December 13, 2024

MODIFIED:

REVISED: May 12, 2011

Effective: May 19, 2026

Adopted-Original date the Board took action to approve a policy
Reviewed-The date the status of a policy was assessed by the Superintendent’s Standing Policy Group
Modified-The date the Board took action to alter a policy that based on the recommendation of the Superintendent/designee did not require a comprehensive examination
Revised-The date the Board took action on a that policy based on the recommendation of the Superintendent/designee needed a comprehensive examination
Effective-The date a policy is implemented throughout the HCPSS, typically July 1 following Board action.