Administrative Rules

Value Statement

The equipment inventory system provides control and accountability over capitalized equipment, and gathers and maintains information needed for the preparation of financial statements.

Rule

Physical equipment inventories will be performed in accordance with Generally Accepted Accounting Principles (GAAP).

Definitions

Fixed assets are defined as items that are tangible in nature, have a useful life of more than one year and are reasonably identifiable and controllable.  They may include land, buildings, machinery, furniture and other equipment that are held or used over a period of time more than one year.   

Equipment is a general term referring to fixed assets that are not land or buildings. Land and buildings are referred to as real property.  Equipment includes machinery, furniture, instructional equipment, and other such fixed assets

Capitalized fixed assets are those fixed assets having an acquisition cost over an established threshold dollar amount and are recorded in the financial records as fixed assets.   The College has established capitalization thresholds of $500 for equipment and $100,000 for real property.

Responsibilities

The Vice President for Business Services will ensure that a system of internal controls is maintained for safeguarding equipment of the College.  The system will provide for adequate identification of these assets, properly recording the assets in the college accounting system and timely reconciling the two systems.  To enhance this process, physical equipment inventories will be performed.

All organizational units at each college site will appoint a property custodian for the purpose of safeguarding and tracking the equipment under their control.  Property custodians will use the Property Management Form for reporting or requesting property/equipment movements, updates of status codes, and dispositions such as lost, stolen, damaged, traded, salvaged, cannibalized or destroyed.

The ACC Foundation will maintain a system for the proper processing of assets donated to the college.  All assets donated to the college must be processed through the ACC Foundation using their prescribed process and form.