FIXED ASSETS INVENTORY CONTROL
ServiceNet is required, by state and federal regulation and as part of sound business practice, to keep detailed records of all physical assets owned by the agency. In order to comply with this requirement, the Fiscal Department must be aware of any acquisitions, disposals, or transfers of fixed assets.
The preceding section on "Capital Assets Management" describes the review and approval process for purchases of capital assets, as well as defining what is considered a capital asset.
Once approval has been properly obtained for purchase, according to the "Capital Assets Management" guidelines, the following procedures should be followed:Purchases of Capital Assets (once approved) are generally made by central administrative staff as follows:
Vehicles and Copiers – Business Manager
Computer Equipment – Director of Information Technology
Building Projects – Maintenance Supervisor
The only capital purchases generally made by Program Directors would be major furnishings to furnish a new residential site. In this case the Business Manager should be consulted regarding purchasing procedures and appropriate vendors.
2) Once the purchase has been made, all documents related to the purchase should be submitted, as usual, to the Fiscal Department, accompanied by the original, approved "Request for Capital Purchase." At the same time, a "Fixed Assets Inventory Form" must be completed and submitted to the Fixed Assets Accountant in the Fiscal Department.
3) The Fixed Assets Accountant will contact the Program Director within one week of receiving the Inventory Form to arrange for an Inventory Tag to be assigned and affixed to the new asset. The tag number will be listed on the Inventory Form and a copy of the form will be returned to the program for their records.
It is important for purposes of asset control, and for the proper assigning of depreciation expenses, that the Fiscal Department be notified of any transfers of assets from one program to another. If an asset is moved, the "Change in Location" section of the Fixed Assets Inventory Form must be completed and submitted to the Fiscal Department within one week of the transfer.
The Fiscal Department must also be notified of any asset disposals. If an asset is to be disposed of, the following procedures must be followed:
1. The Disposal of Inventory section of the Fixed Assets Inventory Form must be completed and submitted to the Fiscal Department, indicating the asset, method of disposal, and reason for disposal.
2. If it is possible to remove the inventory tag from the asset, this should be done and the tag should be submitted with the inventory form.
3. If the asset is to be sold, the terms of the sale must be approved in advance, in writing by the Chief Financial Officer. A copy of the memo approving the terms of the sale should be attached to the Inventory Form.
PERIODIC PHYSICAL INVENTORY
On an annual basis, at a time determined by the Chief Financial Office in consultation with Division Managers, Program Directors will be asked to conduct a physical inventory of assets in their program, to ensure that the written records accurately represent the assets located in the programs. Instructions and forms needed for this process will be distributed at the time of the inventory.