6.05 – Capital & Fixed Assets
A. Purpose
To establish requirements to protect and safeguard college-owned capital and fixed assets.
B. Policy
To ensure all college-owned fixed assets are acquired, safeguarded, controlled, disposed and accounted for in accordance with state and federal regulations, audit requirements and generally accepted accounting principles.
C. Procedures
Acquisition or Donation of Fixed Assets
Fixed assets with a purchase price of $5,000 or more and donations with an estimated or appraised market value of $5,000 or more shall be capitalized. The capitalized value shall include the purchase price as well as any shipping, installation, and other costs necessary to place the asset into service. If assets purchased with restricted (e.g., external grant) funds have a more restrictive threshold, the more restrictive threshold will apply.
Depreciation of Fixed Assets
The college uses the straight-line method of depreciation for all depreciable fixed assets over the estimated useful life of the asset in accordance with generally accepted accounting principles. Asset useful life is based on Internal Revenue Service depreciation tables.
Inventory of Fixed Assets
The fixed assets inventory schedule will be reconciled at least annually to the college’s general financial records and monitored appropriately.
Transfer or Disposal of Fixed Assets
When equipment is transferred or disposed, the Surplus Property Disposal/Equipment Transfer Form must be completed by the transferring department and forwarded to Fixed Assets in the Finance Office. Equipment disposals or trade-ins must be approved in advance by the Finance Office and follow procedures as outlined in Policy 6.36 Surplus Property Disposal and Property Transfer.
Federal Awards
Accountability for equipment acquired under a federal award will be processed in accordance with 2 CFR Part 200 Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards 200.313 and 200.439. Unless college procedures are more restrictive in which case we will follow the more restrictive of the two.
D. Responsibilities
N/A
E. Definitions
Capitalization is an accounting method in which a cost is included in an asset’s value and expensed over the asset’s useful life, rather than expensed in the period the cost was incurred.
Fixed Assets are defined as tangible real or personal property with a useful life of at least two years. Fixed assets include land, land improvements, buildings, equipment, and additions and betterments to property.
Transfers refer to moving or re-locating fixed assets from one department, location and/or classroom to another.
F. Authority
This policy is maintained under the authority of the chief financial officer.
G. Related Policies
6.36 – Surplus Property Disposal and Property Transfer
H. Implementation
Policy approved and adopted by the Board of Trustees on September 9, 2002, and revised on March 13, 2006, August 12, 2019, and November 13, 2024
Procedures, Responsibilities, Definitions, Authority and Related Policies sections approved and adopted by the Cabinet on June 18, 2019; revised April 20, 2021; revised August 6, 2024
Set for review August 2027