Policy on Policies and Fixed Asset System: Difference between pages

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== 1. Introduction ==
Policy 501.17


The Appalachian State University Resource Manual provides (1) a single site to facilitate the location of policies and procedures (“policies”) that govern university personnel and operations and (2) a uniform format and reference system to make access and reference to policies convenient. The Office of General Counsel maintains copies of approved policies and assigns a number and subject heading to all policies once they have been approved by the Chancellor or Board of Trustees. The website has a powerful search engine to enable any user to easily locate subject matter of interest in the Resource Manual. A policy template provides a standardized format for creation and revision of policies. This policy describes the elements of the template and provides guidance on how to draft clear and user-friendly policies.
== Introduction ==


== 2. Scope ==
=== Function ===
1.2.1 The Fixed Asset System (FAS) was implemented at Appalachian State University on 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 Agency.


This policy applies to all policies published in the Resource Manual.
== Scope ==
=== Responsibility ===
2.1.1 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.


== 3. Definitions  ==
== Definitions  ==


''' 3.1 ''' “Board of Trustees” or “Board” means the Board of Trustees of Appalachian State University.
=== 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.


'''3.2''' “Chancellor’s Cabinet” means the Provost and Executive Vice Chancellor, the Vice Chancellor Business Affairs, the Vice Chancellor for Student Development, the Vice Chancellor for University Advancement, the Chief of Staff, the Director of External Affairs and Community Relations, the Director of Human Resource Services, the Director of Athletics and the General Counsel.
=== Non-Capital Assets ===
:are defined as those tangible items purchased for under $5,000 and having an estimated useful life of more than one year.  Although these items are not tracked in the Fixed Assets System, they are still University owned assets subject to this Policy.


== 4. Policy and Procedure Statements  ==
== Policy and Procedure Statements  ==
=== New Equipment ===
4.1.1 The Purchasing Office routes all purchase orders of applicable assets to the Fixed Assets Office, where an equipment control record is prepared and sent along with a numbered decal to the Central Warehouse. Warehouse personnel apply the decal before forwarding the equipment to the department which placed the order, or in some cases will tag the items after they are assembled by departmental personnel. Maintaining a positive identification of assets is the primary purpose of tagging. Tagging is important to:
#Provide an accurate method of identifying individual assets,
#Aid in the taking of physical inventory,
#Control the location of all physical assets,
#Aid in maintenance of fixed assets, and
#Provide a common ground of communication for both the accounting department and the assets' users.


'''4.1'''  Uniform Template. A uniform policy template has been established to provide guidance to drafters of policies and uniformity to the policy website. The title is written at the top of the template along with a number and general subject category assigned by the Office of General Counsel.  
4.1.2 Generally, all capital assets (capitalized and inventory) are tagged. The tag number is kept in the asset record in the Capital Asset Management System.


'''4.2'''  Format. New policies should be drafted in numerical outline format, using _________________ font and left justified margins, following the policy template. Section titles and subtitles should be used in the body of the text where appropriate. Policies should be written in active voice. In general, every sentence should have meaning and relate to the heading or sub-heading under which it is found.
4.1.3 Some assets are not tagged. The asset number is still recorded in the system, but not physically attached to the asset. A description of the property is recorded, including address and plat location found in the Register of Deeds. Items not needing a tag are:
#Buildings (record legal description in asset record),
#Land (record legal description in asset record),
#Mainframe Software (record description in asset record).


'''4.3'''  Headings and Sub-headings. Use headings and sub-headings that let the reader know the content of each section. Policies can be either simple or complex, depending upon the substantive matters that are addressed. The following section headings should be included in a proposed policy:
4.1.4 Tags are generally placed in the same location on each similar type asset. If possible, the tags should be accessible for viewing. Tags should be placed where the number can be seen easily and identified without disturbing the operation of the item. This aids in taking inventory.


# Introduction
4.1.5. The Department Head is responsible for the management and oversight of non-capital equipment assets to ensure that they are properly used and maintained for the intended business purposes.
# Scope
# Definitions
# Policy and Procedure Statements
# Additional References
# Authority
# Contact Information
# Effective Date
# Revision Dates


Some headings may not be applicable, depending upon the subject matter and scope of the policy. If so, the section heading should be set out in the policy and annotated as “Not applicable” or “N/A,” or “None.”  Further explanation of the substance of each section is set forth below, unless the heading is self-explanatory:
=== Use of Assets ===
4.2.1 University assets, both capital and non-capital, are property of Appalachian State University. Custody, control, and use of this equipment must be in accordance with University policy. As a general rule, removal of University equipment, furnishings, and similar property from campus is not permitted. Specific exceptions may be made when all of the following conditions are met:
#Relocation is temporary
#Relocation purpose is for the conduct of University business by a University employee
#Property, while relocated, will be adequately protected from loss and damage
#Head of the administrative unit to which the property is assigned must approve the relocation
#Absence of the property, while relocated, will not hinder normal, on-campus operations


4.3.1  Introduction:  Describes the relevant background and reasons for the policy, and a brief statement about what the policy will address. Some examples of the purpose or reason for a policy are the following:
4.2.2 Lending of University property for personal or organizational use by private parties is prohibited.


a. To comply, or explain how to comply, with State or federal law or University of North Carolina (“UNC”) policy;
=== Safeguarding Assets ===
b. To ensure accountability and/or explain or describe expected behavior; and
4.3.1 Management is responsible for implementing procedures for maintaining control over and the safeguarding of both capital and non-capital assets. Physical security measures over facilities and authorized personnel must be established and documented.
c. To recognize and/or balance the legitimate interests/expectations of various university administrative/academic units or constituencies;


4.3.2  Scope:  Addresses who or what is covered by the policy. For example, who must observe the policy and follow its procedure; who must understand the policy to do their jobs. Most policies have a primary audience and a secondary audience. The policy should focus directly on the primary audience in writing the policy. If there are two primary audiences, the policy should be clear in each section which audience is being addressed. Any locations, persons, or organizations that are excluded or excepted from application of the policy or any funding sources or job classifications that are excluded from the policy should be identified. This provision may also include information about special circumstances that affect only a few people or circumstances that occur infrequently.
=== Yearly Inventory ===
4.4.1 Each year, the Fixed Assets Office will send to each department a listing of all capital assets for which that department is responsible. The department will be required to make a physical count of those assets, noting any differences. Also, in case of any disposition of assets; i.e., transferred, traded, stolen, or destroyed, the proper procedures should be followed in notifying the Fixed Assets Office.  


4.3.3 Definitions:  Defines any technical language or words used in a special sense.  
4.4.2 The Department Head is responsible for the management and inventory control over non-capital equipment assets.  It is recommended that departments maintain internal inventories and conduct annual inspections for non-capital assets, especially for those that are susceptible to being lost or stolen. Methods for tracking items may vary in substance and form for each department.


4.3.4  Policy and Procedure Statement(s): Policies create administrative structures, set priorities, assign responsibility, delegate authority, establish accountability, and define reporting requirements.  Policy statements contain substantive provisions that create rights, privileges or duties. They essentially state what conduct and activities are prescribed or prohibited, and why.  Depending upon the complexity of the subject matter, this may be a simple paragraph or may contain various numbered sections with subtitles.  Procedures identify the “who, how, when, and where” of university operations.
=== Significant Change of Events ===
4.5.1 If a significant change of events take place such as change in a department head, moving a department or function from one building to another, moving equipment from one location to an offsite location, the transfer of significant assets from a third party, or a natural disaster such as a fire or flood, consideration should be made to perform interim physical inventories at the time of the change event. This is a management decision at the departmental level and should be based on risk factors such as likelihood of assets becoming misplaced, not transferred, or stolen. Fixed Assets personnel will provide an inventory report upon request for this type of change event.


4.3.5  Additional References: Other information relevant to the policies, such as guidelines, forms, charts, and handbooks
=== Separation of Duties ===
4.6.1 Fixed asset responsibilities should be distributed among several positions. This separation is necessary for adequate internal control. The Controller has the custodial and supervisory duties of the system. He/she assigns both supervisory and clerical positions to control the assets. The Fixed Asset Officer makes the entries in the system. He/she also issues tags for assets and records the assets in the system. A separate employee in the Purchasing area receives the assets and checks them in and personnel in this area also affix the fixed assets tag to the items. Departmental personnel, who are separate from the above mentioned positions perform the annual inventory. After inventory, these positions research any missing assets. The responsible departmental supervisor approves the Physical Inventory Worksheets before the Fixed Asset Officer makes any changes to the Capital Assets Management System (see Transferring Assets).


4.3.6  Authority: Relevant statute, regulation, UNC Policy Manual provision or other authority
=== Depreciation ===
4.7.1 The University uses the straight-line method of depreciation for capital assets using the half-year convention and an assumed salvage value of zero. Straight-line is a time-based method used when the service life of an asset is affected primarily by the passage of time. A useful life is assigned to each asset class based on historical information, industry data, and/or other factors and falls within a range set forth by the Office of the State Controller. The useful life assigned to each class is assessed annually and adjusted as needed to more accurately reflect actual useful lives of each asset class.


4.3.7  Contact Information: Title and phone number of official or office responsible for implementation of or monitoring compliance with policy
=== Fixed Asset ===
4.8.1 Inventory of Fixed Assets


4.3.8  Effective Date
4.8.1.1 Annual Physical Inventory - The Fixed Asset System (FAS) is a system of control over the location, condition, and disposition of fixed assets. Therefore, the State Auditor's Office requires each agency to take an annual physical inventory of those assets.


4.3.9  Revision Dates
4.8.1.2 University Department Inventory - Each University department is responsible for completing a yearly inventory of those assets assigned to that department. At an appointed time, worksheets listing each department's assets will be distributed (Fixed Asset System Form 090.)


'''4.4'''  Consistency with Governing Authority. Policies must be consistent with all applicable governing authority. If a policy is to implement a federal or state law, a policy of the Board of Governors or the Board of Trustees, or a directive from the Office of the President, the introduction should note this and the remainder of the policy should be consistent with the higher governing authority.  
4.8.1.3 Inventory Procedure - The following is the procedure for conducting the department inventory with the FAS worksheet:
#For each item on the FAS worksheet which is on hand, enter a checkmark in the comments column. Any changes for the building room number location should be entered in the comments column.
#If items on the worksheet cannot be located, enter "missing" in the comments column and prepare a Movable Equipment - Notice of Disposal or Change in Location form for each missing item.
#Items not on the inventory list should be added, noting the FAS number (if available), description, location, manufacturer, serial number, and condition.


'''4.5'''  Essential Subject Matter. Policies should be concise, understandable and contain only material essential to the policy. Brevity and clarity should be sought whenever possible.  
4.8.1.4 The FAS worksheet and disposal forms should be returned no later than May 31 of the year of the inventory to the Fixed Asset Office, located in the Business Affairs Annex Building, on State Farm Road. Questions concerning inventory should be directed to the Fixed Asset System Officer, telephone number 262-2636.


4.5.1 Historical Information. Historical information may be useful, but it should not be in the policy. Such information may be in a task force report or other explanatory material that can be hyperlinked in the Additional References section of the template to provide the reader with additional information.  
4.8.1.5 Assets Traded or Sold - Assets traded or sold between departments must be reported to the FAS Office through the use of the Movable Equipment - Notice of Disposal or Change in Location form. Assets traded or sold to other agencies must have prior approval from the FAS Office and the State Surplus Property Officer.


4.5.2  Statutes, Regulations, UNC Policy Manual or Board of Trustees Policies. Do not repeat language from statutes, regulations, Board of Governors’ policies or Board of Trustees’ policies unless it is necessary. Instead, reference the law, regulation or policy (with a hyperlink when appropriate) and include it in the “Authority” section.  
4.8.1.6 Missing Assets - For each asset on the FAS worksheet which cannot be located, enter "missing" in the comments column and prepare a Movable Equipment - Notice of Disposal or Change in Location form for each missing item.  If there is suspicion that an asset was stolen, see policy 4.8.1.8.


4.5.3 Webpages, Forms, Handbooks and other References. Unit webpage or other information relating to the policies, such as guidelines, forms, charts, and handbooks, should not be incorporated into the body of the policy, but should be listed and hyperlinked in the Additional References section following the text of the policy. ASU policies and forms and policies in the UNC Policy Manual may be hyperlinked within the body of the policy. References and hyperlinks to policies within the body of the policy should be to the title of the policy (not the http address). References to forms should be to the title of the form and the office or title of the person from whom they can be obtained since all forms may not be available electronically. No other hyperlinks may be made within the body of the policy. Other hyperlinks may be inserted in the Additional References section. References to persons to contact within the body of the policy should be by official title only.
4.8.1.7 The form must be signed by the department head. Even though an item is reported missing, it will remain on that department's inventory listing until found or for two years. Items not located at the end of this two year period will be written off after obtaining approval from the Vice Chancellor for Business Affairs (Chief Financial Officer).
'''4.6'''  Official Policies.  Official policies of Appalachian State University are those approved by the Board of Trustees and certified by the Secretary or Assistant Secretary of the Board, or approved by the Chancellor.  Copies of official policies are maintained in the Office of General Counsel.  The Board of Trustees may adopt policies on subject matter within its purview on its own initiative or upon the recommendation of the Chancellor. In the absence of an express delegation of authority by the Chancellor, all other policies must be approved by the Chancellor or the Chancellor’s designee.


'''4.7'''  Proposals. Any person may propose a new policy or revision of an existing policy by submitting a proposal in accordance with the uniform template linked to this policy.  The proposal may be submitted to the contact identified in an existing policy; an employee’s supervisor; a vice chancellor or other member of the Chancellor’s Cabinet. The recipient of the proposal shall review the proposal and make a recommendation concerning its approval to the recipient’s next-level supervisor.
4.8.1.8 Stolen Assets - If items are suspected or known to be stolen, notify the University Police to report the theft and request a copy of their investigation report. Then notify the FAS Office by completing the Movable Equipment - Notice of Disposal or Change in Location form. The form must be signed by the department head and appropriate Vice Chancellor, accompanied by an investigation report and forwarded to the FAS Office.


'''4.8'''  Review. A Cabinet member who receives a proposal for a new or revised policy may consult with individual personnel and one or more advisory bodies for recommendations on adoption or revision.  Following review at the Cabinet member’s discretion, the Cabinet member will submit the proposal and that official’s recommendation to the Chancellor for action on the proposal.  
4.8.1.9 Damaged Or Destroyed Assets - Assets damaged beyond use should be reported to the FAS Office through the use of the Movable Equipment - Notice Of Disposal Or Change In Location Form. Two persons from the Physical Plant and/or the Central Warehouse and/or the FAS Office will verify that the item is damaged beyond repair and should be scrapped.


'''4.9'''  Approval. If the Chancellor approves a policy proposal within the Chancellor’s purview, the Office of General Counsel will prepare a copy of the policy for the Chancellor’s signature. If the subject matter of the policy requires Board of Trustees approval, the Chancellor may present the proposal to the Board at the Chancellor’s discretion together with the Chancellor’s recommendation on the proposal.  Upon approval by the Board of Trustees, the Board’s Secretary or Assistant Secretary shall certify a true and accurate copy of the policy and transmit it to the Office of General Counsel for filing and publication. The General Counsel is authorized to revise approved policies to correct typographical and grammatical errors, update webpage links, and otherwise make policies consistent with State and federal laws and regulations, and policies adopted by the Board of Governors of The University of North Carolina.  
4.8.1.10 Disposal Forms Filed - The FAS Officer photocopies each lost/stolen disposal form and accompanying reports. The forms are then filed numerically by the department's assigned department number (org code).


'''4.10'''  Publication. Upon receipt of a certified copy or original signed by the Chancellor, the Office of General Counsel shall assign a number and subject matter title, if needed, and publish the text of the policy in the Resource Manual.
4.8.1.11 Yearly Report - The FAS Officer sends a report to the Chancellor, all Vice Chancellors, Associate Vice Chancellor for Fiscal Operations, Director of Purchasing, Director of Office of Internal Audits, and Controller, indicating total assets lost/stolen for the year.


== 5. Additional References: ==
4.8.1.12 Fixed Asset System Questions - Any questions concerning the FAS should be directed to the FAS Office, telephone number 262-2636.


== 6. Authority: ==
=== Capital Assets Management System Procedures ===
G.S. 116-11(13) and (14), G.S. 116-33 and 116-34; The UNC Policy Manual, Chapter 100.1, Sections 403, 502C and 502D, and Appendix 1 - Delegations of Duty and Authority to Boards of the Trustees
4.9.2.1 Recording Fixed Assets - All additions and disposals of fixed assets must be recorded in the Capital Asset Management System by the end of the accrual period each year. Detailed instructions on these and other system procedures are included in the Capital Assets Manual. This manual is primarily used by the Fixed Assets Officer, who is responsible for all changes to the Capital Asset Management System. The Capital Asset Management System is balanced to Banner Finance by the end of the accrual period and before the submission of the CAFR reports and Financial statements. This is important in order to maintain accuracy of reporting.


== 7. Contact Information:==
== Additional References ==
Office of General Counsel (828.262.2751)


== 8. Effective Date: ==
== Authority ==


== 9. Revision Dates: ==
 
(None)
== Contact Information ==
:Fixed Assets Office: 262-2636 or 262-2500.
 
== Original Effective Date ==
 
== Revision Dates ==
:January 5, 2010
:January 5, 2011
:February 17, 2012
:May 31, 2016
:April 11, 2017
 
[[Category:Contents]]
[[Category:Business Operations]]
[[Category:Accounting]]

Revision as of 16:24, 8 January 2018

Policy 501.17

Introduction

Function

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

  1. 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.
  2. Comply with requirements of the State of North Carolina that tangible, long lived assets be accounted for through an inventory control system.
  3. Deter theft and aid in tracking property which has disappeared.
  4. Facilitate transfer of equipment to fill a requirement on campus in lieu of procuring new equipment.
  5. Provide data to departments which will aid in better utilization of equipment.
  6. Determine the rate of depreciation on equipment for the purpose of calculating the University's overhead rate to Federal Agency.

Scope

Responsibility

2.1.1 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.

Definitions

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.

Non-Capital Assets

are defined as those tangible items purchased for under $5,000 and having an estimated useful life of more than one year. Although these items are not tracked in the Fixed Assets System, they are still University owned assets subject to this Policy.

Policy and Procedure Statements

New Equipment

4.1.1 The Purchasing Office routes all purchase orders of applicable assets to the Fixed Assets Office, where an equipment control record is prepared and sent along with a numbered decal to the Central Warehouse. Warehouse personnel apply the decal before forwarding the equipment to the department which placed the order, or in some cases will tag the items after they are assembled by departmental personnel. Maintaining a positive identification of assets is the primary purpose of tagging. Tagging is important to:

  1. Provide an accurate method of identifying individual assets,
  2. Aid in the taking of physical inventory,
  3. Control the location of all physical assets,
  4. Aid in maintenance of fixed assets, and
  5. Provide a common ground of communication for both the accounting department and the assets' users.

4.1.2 Generally, all capital assets (capitalized and inventory) are tagged. The tag number is kept in the asset record in the Capital Asset Management System.

4.1.3 Some assets are not tagged. The asset number is still recorded in the system, but not physically attached to the asset. A description of the property is recorded, including address and plat location found in the Register of Deeds. Items not needing a tag are:

  1. Buildings (record legal description in asset record),
  2. Land (record legal description in asset record),
  3. Mainframe Software (record description in asset record).

4.1.4 Tags are generally placed in the same location on each similar type asset. If possible, the tags should be accessible for viewing. Tags should be placed where the number can be seen easily and identified without disturbing the operation of the item. This aids in taking inventory.

4.1.5. The Department Head is responsible for the management and oversight of non-capital equipment assets to ensure that they are properly used and maintained for the intended business purposes.

Use of Assets

4.2.1 University assets, both capital and non-capital, are property of Appalachian State University. Custody, control, and use of this equipment must be in accordance with University policy. As a general rule, removal of University equipment, furnishings, and similar property from campus is not permitted. Specific exceptions may be made when all of the following conditions are met:

  1. Relocation is temporary
  2. Relocation purpose is for the conduct of University business by a University employee
  3. Property, while relocated, will be adequately protected from loss and damage
  4. Head of the administrative unit to which the property is assigned must approve the relocation
  5. Absence of the property, while relocated, will not hinder normal, on-campus operations

4.2.2 Lending of University property for personal or organizational use by private parties is prohibited.

Safeguarding Assets

4.3.1 Management is responsible for implementing procedures for maintaining control over and the safeguarding of both capital and non-capital assets. Physical security measures over facilities and authorized personnel must be established and documented.

Yearly Inventory

4.4.1 Each year, the Fixed Assets Office will send to each department a listing of all capital assets for which that department is responsible. The department will be required to make a physical count of those assets, noting any differences. Also, in case of any disposition of assets; i.e., transferred, traded, stolen, or destroyed, the proper procedures should be followed in notifying the Fixed Assets Office.

4.4.2 The Department Head is responsible for the management and inventory control over non-capital equipment assets. It is recommended that departments maintain internal inventories and conduct annual inspections for non-capital assets, especially for those that are susceptible to being lost or stolen. Methods for tracking items may vary in substance and form for each department.

Significant Change of Events

4.5.1 If a significant change of events take place such as change in a department head, moving a department or function from one building to another, moving equipment from one location to an offsite location, the transfer of significant assets from a third party, or a natural disaster such as a fire or flood, consideration should be made to perform interim physical inventories at the time of the change event. This is a management decision at the departmental level and should be based on risk factors such as likelihood of assets becoming misplaced, not transferred, or stolen. Fixed Assets personnel will provide an inventory report upon request for this type of change event.

Separation of Duties

4.6.1 Fixed asset responsibilities should be distributed among several positions. This separation is necessary for adequate internal control. The Controller has the custodial and supervisory duties of the system. He/she assigns both supervisory and clerical positions to control the assets. The Fixed Asset Officer makes the entries in the system. He/she also issues tags for assets and records the assets in the system. A separate employee in the Purchasing area receives the assets and checks them in and personnel in this area also affix the fixed assets tag to the items. Departmental personnel, who are separate from the above mentioned positions perform the annual inventory. After inventory, these positions research any missing assets. The responsible departmental supervisor approves the Physical Inventory Worksheets before the Fixed Asset Officer makes any changes to the Capital Assets Management System (see Transferring Assets).

Depreciation

4.7.1 The University uses the straight-line method of depreciation for capital assets using the half-year convention and an assumed salvage value of zero. Straight-line is a time-based method used when the service life of an asset is affected primarily by the passage of time. A useful life is assigned to each asset class based on historical information, industry data, and/or other factors and falls within a range set forth by the Office of the State Controller. The useful life assigned to each class is assessed annually and adjusted as needed to more accurately reflect actual useful lives of each asset class.

Fixed Asset

4.8.1 Inventory of Fixed Assets

4.8.1.1 Annual Physical Inventory - The Fixed Asset System (FAS) is a system of control over the location, condition, and disposition of fixed assets. Therefore, the State Auditor's Office requires each agency to take an annual physical inventory of those assets.

4.8.1.2 University Department Inventory - Each University department is responsible for completing a yearly inventory of those assets assigned to that department. At an appointed time, worksheets listing each department's assets will be distributed (Fixed Asset System Form 090.)

4.8.1.3 Inventory Procedure - The following is the procedure for conducting the department inventory with the FAS worksheet:

  1. For each item on the FAS worksheet which is on hand, enter a checkmark in the comments column. Any changes for the building room number location should be entered in the comments column.
  2. If items on the worksheet cannot be located, enter "missing" in the comments column and prepare a Movable Equipment - Notice of Disposal or Change in Location form for each missing item.
  3. Items not on the inventory list should be added, noting the FAS number (if available), description, location, manufacturer, serial number, and condition.

4.8.1.4 The FAS worksheet and disposal forms should be returned no later than May 31 of the year of the inventory to the Fixed Asset Office, located in the Business Affairs Annex Building, on State Farm Road. Questions concerning inventory should be directed to the Fixed Asset System Officer, telephone number 262-2636.

4.8.1.5 Assets Traded or Sold - Assets traded or sold between departments must be reported to the FAS Office through the use of the Movable Equipment - Notice of Disposal or Change in Location form. Assets traded or sold to other agencies must have prior approval from the FAS Office and the State Surplus Property Officer.

4.8.1.6 Missing Assets - For each asset on the FAS worksheet which cannot be located, enter "missing" in the comments column and prepare a Movable Equipment - Notice of Disposal or Change in Location form for each missing item. If there is suspicion that an asset was stolen, see policy 4.8.1.8.

4.8.1.7 The form must be signed by the department head. Even though an item is reported missing, it will remain on that department's inventory listing until found or for two years. Items not located at the end of this two year period will be written off after obtaining approval from the Vice Chancellor for Business Affairs (Chief Financial Officer).

4.8.1.8 Stolen Assets - If items are suspected or known to be stolen, notify the University Police to report the theft and request a copy of their investigation report. Then notify the FAS Office by completing the Movable Equipment - Notice of Disposal or Change in Location form. The form must be signed by the department head and appropriate Vice Chancellor, accompanied by an investigation report and forwarded to the FAS Office.

4.8.1.9 Damaged Or Destroyed Assets - Assets damaged beyond use should be reported to the FAS Office through the use of the Movable Equipment - Notice Of Disposal Or Change In Location Form. Two persons from the Physical Plant and/or the Central Warehouse and/or the FAS Office will verify that the item is damaged beyond repair and should be scrapped.

4.8.1.10 Disposal Forms Filed - The FAS Officer photocopies each lost/stolen disposal form and accompanying reports. The forms are then filed numerically by the department's assigned department number (org code).

4.8.1.11 Yearly Report - The FAS Officer sends a report to the Chancellor, all Vice Chancellors, Associate Vice Chancellor for Fiscal Operations, Director of Purchasing, Director of Office of Internal Audits, and Controller, indicating total assets lost/stolen for the year.

4.8.1.12 Fixed Asset System Questions - Any questions concerning the FAS should be directed to the FAS Office, telephone number 262-2636.

Capital Assets Management System Procedures

4.9.2.1 Recording Fixed Assets - All additions and disposals of fixed assets must be recorded in the Capital Asset Management System by the end of the accrual period each year. Detailed instructions on these and other system procedures are included in the Capital Assets Manual. This manual is primarily used by the Fixed Assets Officer, who is responsible for all changes to the Capital Asset Management System. The Capital Asset Management System is balanced to Banner Finance by the end of the accrual period and before the submission of the CAFR reports and Financial statements. This is important in order to maintain accuracy of reporting.

Additional References

Authority

Contact Information

Fixed Assets Office: 262-2636 or 262-2500.

Original Effective Date

Revision Dates

January 5, 2010
January 5, 2011
February 17, 2012
May 31, 2016
April 11, 2017
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