Definitions

Capital Equipment
Component Parts
Equipment Tagging
Fixed Asset Inventory

Capital Equipment

• Effective fiscal year 1996-1997, the capitalization thresholds are $1,000 for equipment and $5,000 for land, buildings, and improvements.  Exceptions to the previously stated policy are as follows:
  
  • Firearms, regardless of cost/value, will be tagged and tracked as capital.
  • All desktops, computer tablet devices, i.e. laptops, netbooks, iPads and servers, regardless of cost, will be tagged as capital.
  • All computer equipment other than desktop computers, computer tablet devices, i.e.laptops, netbooks, iPads or servers with a cost less than $1,000 may be tagged as non-inventoriable, for repair and warranty purposes.
  • All licensed vehicles, regardless of cost, will be tagged as capital.
  • Any other inventoriable tagging at the discretion of the individual campuses.
  • Library books added to the permanent collection.
    
    Top

Component Parts

• A component part can be defined as any item which cannot stand alone, and is considered an integral part and/or an enhancement to an existing piece of equipment. The cost of the component part is included in or added to the total cost of the asset.
  
  Top

Equipment Tagging

• The tagging of assets begins when the Requisitioner submits the Requisition for approval. Any item purchased with capital dollars is forwarded to the Capital Asset Accounting Department for approval. Capital Asset Accounting then forwards the Requisition to the Purchasing Department to be turned into a Purchase Order. Purchasing then sends the completed Purchase Order to the Vendor.
• When the merchandise is delivered to the campus, it is the responsibility of the campus Receiving Agent to verify the shipment. The Receiving Agent should count the items delivered and compare the total counted against the bill of lading, making note of any discrepancies in the order, and/or any damage to the merchandise or packaging.
• The Receiving Agent should identify the capital equipment - which will need a tag number - by a dollar amount of over $1,000, and the account code. Each piece of equipment should be tagged if possible. The item is then received on-line in the CFS system. When receiving on-line, a tag information form will appear if capital information is required. The 1000 and 5000 sub-object account coding triggers this form. At this point, the Receiving Agent enters the required tag information: tag number, serial number, and location into the online receiving module.
• Once Accounts Payable has paid the invoice for the capital equipment item, the information is fed into the Fixed Asset System, into the Mass Additions file. Capital Assets Accounting Staff then goes through each entry in Mass Additions to check for correct tag information, including: tag number, description, category, building and room number, account code, and dollar amount. When all information has been verified, the asset is then posted to the Fixed Asset System for inventory tracking.
  
  Top

Fixed Asset Inventory

• A physical inventory of assets provides control and accountability for inventoriable land, buildings, furnishings, and equipment.  The purpose of the controls are to protect fixed assets, preserve the life expectancy of assets, avoid unnecessary duplication of assets on campuses, and provide itemized listings to support reported Fixed Asset Additions.  The record keeping of assets provides a guide for the future replacement of assets, more accurate cost figures for disposal of assets, and a basis for the amount of insurance coverage required.
• A complete physical inventory of assets is taken at least once every two years.
  
  Top