Article 28. Detailed Listing of Capital Assets by Location

This report lists all asset detail by asset classification/sensitive items by location on an as needed basis for use in control and accountability by the school heads and directors. This is an internal document used for purposes of asset control.

This report lists all asset detail procured and funded under project by donor agency as of a certain date.

All capital assets must be tagged including: those whose historical cost meets the capitalization level; donated items whose fair market value at the time of donation meets the capitalization level; and assets identified by an AMD as sensitive items. Asset that does not meet the capitalization level will be tagged as non-capital asset.

Tags must have a human readable identification number, property code number and be pre-numbered. School boards may use numbered sticker tags in addition to the identification number.

Consistency of placement is a primary consideration in the tagging process. The placement of the tag should facilitate its usefulness during the annual inventory process without hindering the operation of the asset. Generally, property tags are placed in one of two locations, (1) near the serial number plate or (2) near the upper right-hand corner of the item which is fully visible without movement of the asset. The first location is easy to determine. The second location requires the judgment of the school head.

A portable numbering machine (stamper) can be used to mark the book copies in the librarian’s care with the school code and sequence number so that every copy can be easily tracked.

The teacher–in-charge will have a list of student in her/his class/sections that will be issued a copy. The code of that particular copy will be listed beside the student name and the student must affix his/her signature as proof of receipt.

One copy of the list may be left with the custodian and another will be with the school’s librarian/property custodian. At the end of school year, during clearance period, students must return the books on the assigned time and date for that section/level or subject. Please see sample equipment tag.

The School Headmaster (thru the chief school business official) classifies all costs related to the building account by sub-classification for entry into the property record. Land and building retirements will be completed by the chief school business official. When a building is improved, the chief school business official will retire the appropriate portion of the building and add the cost of the improvement to the property record.

The chief school business official, or other authorized individual, is responsible for inputting information related to land, building, and construction-in-progress to the property record. This information must be added to the property record in sufficient time to meet the accounting period cutoff dates.

Article 32. Equipment

The school needs to establish their own procedures concerning how the equipment is to be acquired and identified for entry into the capital asset management system. Some of the issues that should be addressed in the procedures include:

1. Requisition and Purchase

All requisitions for purchase of equipment should be processed in accordance with each entity’s established procurement procedures.

Procedures should be established to ensure that all items to be recorded in the capital asset management system are identified. The procedures should also ensure that, at the time the purchase order is issued, all costs related to the acquisition of the equipment, such as installation, warranty and freight charges, are included on the original purchase order. Cost of service agreements related to the asset should be presented on a separate purchase order. If software is purchased with computer hardware, the value of the software should be identified separately and coded as expensed unless over the capitalization threshold. The value of a trade-in should be clearly itemized on the purchase order.

2. Receipt of Equipment

Upon acceptance of the equipment or properties, Memorandum Receipt (MR) must be signed by the receiver/end user as acknowledgement to equipment or properties issued by the school agency. By signing of MR, the receiver/end user has accepted the full accountability and liability for the received equipment or properties. A sample form is presented in Appendix C

When the asset is received, the equipment detailed information is to be entered into the capital asset management system. The information also needs to be conveyed to the accounts payable clerk for payment of the invoice.

Information that needs to be entered when the equipment is received includes: the date received; the purchase order number; the vendor; quantity; asset description; location; model number; serial number; and tag number. A tag is to be affixed to each asset at the time of receipt. This can be done at the central office, central warehouse, or other locations, such as the schools, if goods are delivered to these locations.

The same procedure should be followed whether receiving full or partial shipments. Special attention should be paid to monthly accounting cut-off dates. All asset additions received on the last day of an accounting month should be entered in the capital asset management system on that day.

3. Control of Property Tags

The procedures should specify the controls that are to be used to maintain control of the property tags.

4. Transfer and Retirement Advice

A form should be developed for use in reporting when a usable item is transferred to another location for continued use or when an item is retired from service, so that the information can be entered into the capital asset management system. A sample form is presented in Appendix C.

5. Report of Lost, Damaged or Stolen Property

If an item is retired due to loss, damage or theft, the school head needs to be notified so that the incident can be reported to DEB and PES for proof of loss and replacement if appropriate. A sample form is presented in Appendix C.

6. Borrowing Government Assets

Borrowing government property for personal use has to be approved by the Head of AMD. A requisition letter should be prepared by the borrower stating the purpose, duration of use and date of return for approval. Once the request had been approved by the AMD Head, AMD will issue a Letter of Authority in the name of the “borrower” authorising the borrower to use the MOE property subject to AMD condition and existing government regulation.

In any case of loss, minor or major damages to the borrowed assets, borrowers will be responsible for the repair of damage assets until they are back in the same condition when they were borrowed.

In the case of loss or unrepairable damages to the property and the property had been declared by AMD as non-functional item, Finance Department will assess the cost of the damages according to Government Accounting Procedures for the amount to pay by the borrower.

7. Leasing/Renting on Government Property

Leasing commercial unit for private business, under MOE property must be agreed and approved by the Head of Asset Management Division or from higher authority. A contract shall be prepared by the Finance Department between MOE-AMD and the Lessee clearly stating in the Terms of Contract the lease cost per year, mode of payments and other condition that will be required by the DOF and AMD Head. Income derived from leasing or renting will go to DOF as national budget per Government regulation.

The transportation head is responsible for all transportation assets. All other vehicles are the responsibility of the individual(s) assigned by the school headmaster. The transportation director advises the school head that vehicle is delivered. The school head must issue Memorandum Receipt and ensures the Vehicle Identification Number and date of acquisition are input into the property record. A property tag is not affixed to transportation equipment. The annual inventory of transportation assets is completed by the transportation director through physical count and matched to the Vehicle Identification Number.

The AMD personnel calculates the original cost of the asset as the present value of the minimum monthly payments at a rate equal to the county’s current incremental cost of borrowing and applies the appropriate cost. The asset must then add to the property record in sufficient time to meet the accounting period cut-off dates.

The transfer of ownership for assets purchased under project will be done upon completion of the project. A Deed of Donation shall be issued by the project agency to the Ministry of Education to legalized the transfer of ownership of all physical assets under the project. Donated assets will be transferred to MOE-AMD for registration to Computerised Asset Inventory System as asset of the education sector. Upon completing the registration process, the AMD can now assigned the received assets to different school agencies for use of education sector. With the issuance of Memorandum Receipt, the right in management and use of the assets of Education Sector will be transferred to school organizations or individual who will receive the assets as follows:

• 
  With Ministry of Education by authorizing the Department of Finance to record and register of donated assets at the Ministry level and other sectors depending on MOE;
  
• 
  With Asset Management Unit/Office of Provincial Education Department, by authorizing the Provincial Education Service (PES) to record and register assets for Provincial level and schools under his or her supervision; and,
  
• 
  With Asset Management Unit of District Education Bureau, by authorizing the DEB to record and register assets for District level and schools under his supervision.
  

In the case of building demolition, repair or replacement for new building construction, a Transfer or Retirement Advice Form must be issued by the concerned school agency for submission to DEB, PES then to AMD-Central. The demolition/repair activity will be bid-out according to applicable Government Regulation and any proceeds of sale of demolished/scrap materials belonging to the demolished property shall be given back to the Ministry of Finance.

To assure the accuracy of the capital asset management system, a physical inventory should be performed annually of all land, buildings, equipment and vehicles recorded in the capital asset management system. The inventory shall be performed every 25^th of September of each year by every education sector under the Ministry of Education either by school personnel or by an outside company.

Report shall be submitted to MOE-AMD using the inventory form in hard copy accompanied by electronic copy save in Compact Disc (CD) or attachment to electronic mail sent to AMD not later than first week of the month of January of each year.

If it is performed by school personnel, a work plan should be developed to serve as a guide for the inventory taking process. A training session may need to be held to instruct personnel in inventory procedures.

Reconciliation between the physical count and the capital asset records should also be completed. A listing should be printed of all discrepancies noted between the inventory records and the actual inventory by location or administrative unit. All discrepancies should be resolved within thirty days. This process is known as the location accounting.

The school head or school assigned personnel is responsible for coordinating this activity and reconciling the asset records during the location accounting by (1) correcting the file for the assets located during the location accounting, (2) recording the assets that are identified during the physical inventory that are not listed in the inventory system, and (3) retiring the assets which cannot be located following the location accounting.

Assets which are still missing at the end of the thirty days should be reported to the PES, DEB or school head for appropriate action.

PART XII. RECOMMENDED STANDARD USEFUL LIFE TABLE

Annex D lists the useful life of various capital assets owned by school districts. The table is provided as a guide in determining the anticipated useful life of a capital asset at the time of acquisition, however, the useful life of a particular asset may vary depending on that asset’s intended use, its condition at the time of acquisition, policies and practices of a school district relating to the frequency in which assets are replaced, and a variety of other variables that may affect an asset’s utility. In determining a particular asset’s useful life, capital asset managers must take all of these factors into consideration at the time a capital asset is entered into the Capital Asset Management System.

ANNEX A. ASSET MANAGEMENT FORMS

Ministry of Education

A
MR. No.:_______________

Name of School / Agency

School/Location/Department
The following person is responsible for the property inventory for the school/location/department named above and is responsible for all inventory items during the school year:

Name Title: ­­­­­      

Accepted:

Signature

Printed Name

Title

Date

Two part form routed to: School Official (Original)

Signor

TRANSFER AND RETIREMENT ADVICE FORM

Name of School / Agency

(Report on Arson, Burglary, Vandalism, Theft, Unexplained Loss, and Failure to Return)

School/Department

Date loss discovered

Who discovered the loss

Reported to the Police: Yes No

Police Department

Date of Report Police Complaint No

Briefly explain circumstances:

Quantity	Asset Description	Serial No.	Code Number

Signature Date

ANNEX B. ASSET MANAGEMENT

DOCUMENT FLOW CHART