6.05 CAPITAL & FIXED ASSETS
To protect and safeguard college-owned assets.
The college shall ensure fixed assets are properly recorded, tracked, capitalized and depreciated in accordance with generally accepted accounting principles.
- All property items costing $1,000 or more, acquired by the college, shall be classified and maintained as fixed assets inventory and inspected annually. In the event that property purchased with external grant funds has a more restrictive threshold policy, the more restrictive threshold will apply for those grant-funded items.
- All fixed assets costing $5,000 or more shall be capitalized and depreciated over the estimated useful life of the asset, in accordance with generally accepted accounting principles. Internal Revenue Service depreciation tables shall be used in determining asset classes and estimated useful life.
- For internal control purposes, the fixed assets inventory schedule will be reconciled at least annually to the college’s general financial records and monitored appropriately.
- Transfer of equipment between departments and/or locations require completion of an Equipment Transfer Form to be submitted to the Finance Office.
- Equipment disposals or trade-ins require completion of an Equipment Disposal Form, must be approved in advance by the Finance Office and follow procedures as outlined in Policy 6.36 Surplus Property Disposal.
- FEDERAL AWARDS: Accountability for equipment acquired under a federal award will be processed in accordance with 2 CRF Part 200 Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards 200.313 (unless more restrictive by college procedures).
Transfers: Moving or re-locating tagged equipment or furniture from one department, location and/or classroom to another.
This policy is maintained under the authority of the Vice Chancellor for Finance.
G. Related Policies
- Policy approved and adopted by the Board of Trustees on September 9, 2002, and revised on March 13, 2006, August 12, 2019.
- Procedures, Responsibilities, Definitions, Authority and Related Policies sections approved and adopted by the Cabinet on June 18, 2019; revised April 20, 2021.
- Set for review August 2022