Fixed Asset System

Policy 501.22

1 Introduction

1.1 Responsibility

The responsibility for equipment control, or the Capital Assets System, has been assigned to the Fixed Assets Office, a Division of the Controller's Office. The telephone numbers for assistance and information are 262-2636 or 262-2500.

1.2 Function

The Fixed Asset System (FAS) was implemented at Appalachian State University July 1, 1979, in order to more effectively control those assets owned by the University. The function of this system is to:

• Account for lost or damaged property due to fire, flood or other disaster. This kind of information may be essential in obtaining replacement funds or collecting insurance coverage.
• Comply with requirements of the State of North Carolina that tangible, long lived assets be accounted for through an inventory control system.
• Deter theft and aid in tracking property which has disappeared.
• Facilitate transfer of equipment to fill a requirement on campus in lieu of procuring new equipment.
• Provide data to departments which will aid in better utilization of equipment.
• Determine the rate of depreciation on equipment for the purpose of calculating the University's overhead rate to Federal Agenc

3 Definitions

3.1 Fixed or Capital Assets

are defined as those tangible items generally costing $5,000 or more including taxes, shipping, and other costs to make the equipment operative and having an estimated useful life of more than one year. Additionally, purchased intangible assets such as computer software, patents, trademarks, copyrights, web sites, easements, and other intangibles costing more than $100,000 are also capitalized as assets according to policy set forth by the Governmental Accounting Standards Board (GASB) Statement 51 and Office of the State Controller (OSC) guidelines if the assets have a useful life of more than one year. Internally developed software is also considered a capital asset if applicable costs exceed the materiality threshold set by OSC.