The College seeks to comply with the Office of Financial Management’s (OFM’s) accounting regulations, as found in its State Administrative & Accounting Manual (SAAM). Regarding inventories, these include chapter 30.40 (Capital Asset Inventory Records Policy) and chapter 35 (Inventories). The College shall maintain an accurate accounting of its fixed assets for purposes of financial reporting and proper stewardship over State property.
1. Fixed Asset: Fixed assets (also referred to as property, plant, and equipment) include all items purchased in support of the college's continued and long-term mission. Fixed assets include land and equipment with an initial expected useful life extending beyond one reporting period. Investments, cash, certain intangible assets, items held for resale and inventories are not considered fixed assets.
2. Capital Asset or Capitalized Fixed Asset: A fixed asset which costs in excess of the minimum threshold established by OFM for capitalizable assets in the year of purchase. Such assets are depreciated over their useful lifetimes. Land is not included in this category since the useful lifetime is not calculable.
3. Small and Attractive Asset: This type of fixed asset is characterized by its portability, desirability, and therefore its vulnerability to loss. Such assets have a significant value outside the program and could easily be resold. Finally, the loss of such assets would impact the department/division's ability to provide educational or college support services.
The College, in compliance with OFM guidelines, will identify as small and attractive those fixed assets which, in the year of purchase, cost less than the minimum threshold established by OFM for capitalizable assets and more than the minimum unit cost required in Section 30.40.20 for Small and Attractive assets. These include:
And other equipment not listed above, as determined by Purchasing.
4. Inventory: Refers to the process of verifying the location and counts of fixed assets. The term "inventory" is often used to describe fixed assets, so this should not be confused with traditional inventories of merchandise held for resale.
5. Custodian: The individual or department responsible for each fixed asset.
In the remainder of this Procedure, "fixed assets" refers to the fixed assets described in A.2 (capital/capitalized) and A.3 (small and attractive) above. Only these fixed assets are tagged and tracked in the Finance department's college-wide accounting system. Other fixed assets are not necessarily tagged but are monitored and safeguarded separately, such as technology purchases (under procedures developed by the Information Technology department) and assets purchased by or for specific departments (by those departments under their procedures).
C. Roles and Responsibilities:
1. The Office of Finance will:
2. The Office of Information Technology will:
3. The Custodian will:
1. Comparison of fixed assets and additions/deletions to records in the inventory management system: All fixed assets will be identified upon purchase by the Purchasing Coordinator, who assigns and keeps records of the asset tag number(s). The receiving department records all necessary information on the "Inventory Add Sheet' and places the asset tag per guidelines. Finance staff reviews the "Inventory Add Sheet" and records the item into the system.
2. Donated Assets: All items donated to the College must be received through the Foundation. See Chapter 1, Section 5, Gift Acceptance Policy.
3. Removal/disposal/transfer/surplus of fixed assets to FMS: When a fixed asset is moved, lost, transferred, or surplused, the custodian of the asset must complete a 101 Form and forward it to Finance no more than five (S) working days from item movement or recognized loss. Finance records information on the 101 Form in the system.
4. Stolen Assets: When it appears that a fixed asset has been stolen, Security must be notified. Security will then contact local law enforcement to file a crime report and complete an internal incident report. Both reports are then forwarded to Finance. The custodian of the asset prior to the suspected theft must then complete a 101 Form and forward it to Finance no more than five (S) working days after the theft was noticed. Finance will contact the State Auditor's Office (SAO) and provide them with all necessary information and then remove the item from the inventory system.
5. Physical Counts, Reconciliation and Adjustment to Asset Records: Upon request from Finance, departments/division will submit physical count sheets. Any discrepancies between the count and the inventory management system will need to be resolved between the two parties. Updates and corrections will be made to the system by Finance.
Revised: 2012, 2017