Fixed Assets are classified into two categories: Capital Outlay or Inventory.
Capital Outlay Assets are defined as:
1. Having a unit cost of $5,000 or more
2. Will last two years or more
3. Retain its original shape and appearance with use
4. Is Non-Expendable (i.e., if the asset is damaged or some of its parts are lost or worn out, it is usually more feasible to repair it than to replace it with a new one)
5. Does not lose its identity through incorporation into a different or more complex unit or substance
6. Purchased with Account have an Object Code of 663X
Inventory Assets are defined as:
1. Having a unit cost between $200 and $4999
2. Will last one year or more
3. Purchased with Account have an Object Code of 6397
Other items with a unit cost less than $200 will also be classified as inventory such as:
1. Technology related equipment (i.e., monitors, tablets, printers)
2. Audio/Visual related equipment (i.e., digital/video cameras, projectors, TVs, DVD players)
If several parts or components are purchased to assemble into one item or unit, the Total Cost determines if the item is a Fixed Asset.
All Assets will be Tagged with a label showing the following information:
PROPERTY OF EDINBURG C.I.S.D.
(DO NOT REMOVE TAG)
Barcoded ECISD Number
Purchase Order Number
Acquired Month and Year
All Fixed Assets are subject to Internal and External Audits.