It is important to track all new capital assets as well as disposals. We ask clients to track anything that is being replaced or thrown out that meets the client threshold. A common example that we see frequently is an addition of a scoreboard. These are mostly capital additions but most of the time the client does not put a scoreboard on the disposals list. Now we have to determine whether it is an addition only or contact the client to verify if it is a replacement. It can lead to assets being on the accounting report even after they have been disposed.
The best way to track disposals is to use our change form. The easiest and most important information is the asset tag number. If that is not available, then description of the asset, manufacturer, model, and serial number became important. Just having a count of computers or projectors is not enough information for us to dispose. There might be hundreds of computers and without an asset tag or serial number we can’t just dispose 100 computers. Another example is a disposal of a floor scrubber. Without an asset tag it makes it very difficult to figure out which one was removed if there are 5-20 scrubbers in the data. The more information we receive on disposals, the more accurate the report is.
Fixed assets like playground equipment, flagpoles, parking lights, fencing, and signs do not get asset tags. Make sure to include the location number and description when there are changes. Manufacturer, model, and serial number are not as important as these are very unique assets.