Vehicles include all school buses, cars, trucks, vans and motorcycles whose original cost equals or exceeds the capitalization threshold of $2,000, including vehicles acquired through a capital lease.
PART V. ACCOUNTING POLICIES
The accounting and reporting of capital assets is to be done in accordance with the procedures approved by the Department of Finance of the Ministry of Education.
Article 11. Valuation
All capital assets are valued using historical cost which is defined as all costs expended by the country to place the asset into service. All hard and soft costs related to the acquisition of land and building should be included. Freight and installation costs related to equipment should also be added to the invoiced cost of the asset.
Article 12. Assets Purchased Directly by the Government and Other Donated Assets
All donated assets are valued at fair market value as of the date of donation. The donating organization should provide the MOE with this valuation. For assets purchased directly by the Ministry of Education for PES, DEB and Government Schools, the MOE will report the value of the assets at the time the assets are delivered.
Article 13. Capitalization Level
A purchased asset other than buildings (see p.3) whose original cost exceeds $2,000 on an individual basis or a donated asset whose fair market value exceeds $2,000 on an individual basis must be included in the property record as a capital asset. Material purchases of like assets must be considered as one individual asset for the purposes of applying the capitalization threshold.
Both the control level and capitalization level may be $2,000. Neither level may be defined at greater than $2,000.
All financial statements and reports, including those submitted to the Ministry of Education, must utilize the capitalization level of $2,000 for consistency.
Article 14. Equipment vs. Supply The purchase of any item which meets the definition of an equipment item, as described in Section V of this manual, is to be coded for financial statement reporting purposes as an equipment purchase, regardless of whether the cost exceeds the control level established by the AMD, or not. If an item does not meet the definition for an equipment item or its original cost falls below both the capitalization and control thresholds, it is to be coded as a supply item.
Article 15. Depreciation
Capital assets should be depreciated over their estimated useful lives unless they are inexhaustible. PES and DEB and other school agency must use the straight-line depreciation method (historical cost less salvage value, divided by useful life) to compute depreciation of capital assets.
Article 16. Fixed Asset
Asset that is a durable nature (nonexpendable) with an expected useful life of at least 1 year, will retain its individual identity (including all component parts) throughout its useful life and, costs $2,000 or more, such items are land, buildings, vehicles, furniture, school equipment and office equipment.
Article 17. Inexhaustible
Items that cannot be entirely consumed or used up.
PART VI. REQUIRED CODES
Coding of physical asset is the process of giving identity code number to specific asset for recording and tracking activities for easy management, monitoring and control. Code will describe the asset location, category, classification, description and property number.
Article 18. Code Standardization
For standardization, the following codes must be used for easy tracking and identification of assets. All capital assets must be classified according to category and classification codes. In addition, for application of computerized assets management, the following list of description codes will be used.
A list of physical asset description codes is provided in Annex C for other types of assets. AMD may use these codes or other codes which they wish to create.
First:Code of province, District code then school code (official code of statistic section)
Second: Category code, Classification code and Description code
Third: Generated item number of property
Example: 1: 040105740000301
Meaning :0401057 (04 : Oudomxay province ; 01 : Xay district ; 057 : Komoy complete primary school.
400003 - Description code for Workstation Compaq
01 - 1st Computer Workstation of the Kornoy school.
THE CODING OF ASSET WILL BE AUTOMATICALLY GENERATED BY THE COMPUTERIZED ASSET INVENTORY SYSTEM BASED ON THE ABOVE CODING PROCEDURE. Please see Annex C for the classification codes.
PART VII. ENCODING OF DATA
To encode and register capital asset with useful life of more than one year such as: land, buildings, vehicles, furnitures and equipment, whether they are purchased or donation from donor organisations, asset detailed information should be encoded into the computerized asset inventory system.
To encode and register non-capital asset with useful life of more than one year such as vehicles, furnitures and equipment, whether they are purchased or donation from donor organisations, asset detailed information should be encoded into the computerized asset inventory system under the non-capital asset category for recording and tracking purposes.
The information also needs to be conveyed to the accounts payable clerk for payment of the invoice.
Article 19. LAND DATA
Land as capital asset has to be included in the capital asset management system. Land detailed information should be encoded in the computerized inventory system as follows:
This report lists the capital assets within each major asset category. The report can be ran either monthly or annually. For the capital assets whose original acquisition costs are less than the $2,000 capitalization threshold, it should not be reported on the schools balance sheet of capital asset but to be included in the non-capital asset balance sheet for recording and tracking purposes.
Article 25. Capital Asset Additions
This report lists all asset additions to the property record by asset classification, as well as sensitive items occurring during the preceding month. This is an accounting document and provides an itemized audit trail.
Article 26. Capital Asset Retirements/Removal
This report lists all retirements/removed from the property record due to abandonment, defective, loss or sale for each asset classification, as well as sensitive items, during the month and provides an itemized audit trail.
Article 27. Detailed Listing of Capital Assets by Asset Class
This report lists all asset detail by asset classification as of a certain date.