Fixed Asset Procedure

Please refer to the procedures listed below when identifying, recording, and controlling fixed assests within The University Corporation, SF State. This policy was approved on February 16, 2011.

Capitalization and Depreciation

Capitalization 

A fixed asset is an item that has a cost value of $5000 or more.  All assets purchased with a value of $5,000 or greater and useful life of greater than three years will be capitalized and tracked on a depreciation schedule.

Sensitive Electronic Equipment

Sensitive electronic equipment is any piece of electronic portable device. Equipment that is sensitive in nature or subject to theft must be separately tracked by the responsible department through the use of an Equipment List. Sensitive electronic equipment will not be capitalized nor depreciated, however, these items will be tracked on the equipment list for tracking and location purposes. The following items are examples of sensitive electronic equipment:

  • cameras
  • cell phones
  • computers
  • fax machines
  • microscopes
  • printers
  • telescopes
  • two-way raidios
  • video cameras/recorders
  • video monitors
  • video projectors
  • other individual communication devices

Depreciation

Computers, and peripherals will be depreciated over a useful life of five years.  Furniture, fixtures and equipment are generally depreciated over a five to ten-year life.  Building improvements are depreciated over their estimated useful life. All assets are depreciated using the straight-line method.  Depreciation shall be calculated and recorded to the general ledger based on the year placed in service.

Useful Life Schedule:

Computer equipment and peripherals: 5 years

Furniture, fixtures, and equipment: 5 - 10 year

Leasehold improvements: Remaining life of lease agreement

Building improvements: Remaining life of building 

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Tagging and Periodic Inspections

Tagging of Fixed Assets Including Movable Items

Upon approval and acquisition, all fixed assets and sensitive equipment must be shipped to and received through the campus receiving. ABS staff will assign the tag for the asset and entry into the fixed assets inventory lists which shall include the serial number, model number, and the Corporations inventory number.  Only sensitive equipment with a value of $1,000 and less than $5000 will be tagged.  The Project/Office staff is responsible for affixing the tag sent to them by ABS to all new fixed assets including moveable items.  The Corporation Director’s/Manager’s administrative duties include acting as the authorized custodian for the fixed assets located in their area and are responsible for ensuring that all new and moveable fixed assets are tagged within their area upon receipt.

Periodic Inspection of Fixed Assets

 A physical inventory will be conducted every two years by the University property office as appointed by the Chief Operating Officer/Chief Financial Officer (COO/CFO) of the Corporation.  A detailed list of the Corporation assets will be sent to the University property office in which to perform the physical inventory. It is the fiduciary responsibility of the Project Director/Manager to notify the Corporation of any substantive changes in an asset or its location.  It is the responsibility of the COO/CFO to ensure the integrity of the recorded value of fixed assets.  

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Procedure for Disposal or Transfer of Fixed Assets

Fixed Asset Dispositions

Fixed Assets can be disposed of because the equipment or furniture is broken or no longer useful.  Before any fixed asset can be disposed of, the Corporation project Director/Manager must complete a Fixed Asset Disposition Form and submit it to the Corporation Business Office managed by Auxiliary Business Services (ABS) to ensure the integrity of the fixed asset details.  The Fixed Asset Disposition Form requires the approval of the Corporations Project Director/Manager and the COO/CFO.  ABS will ensure a copy of the Fixed Asset Disposition Form is filed and the corresponding asset removed from the Corporations books.

Fixed Asset Transfers

Fixed asset transfers between the Corporations Projects or Offices must be reported by the Corporations Project/Office transferring the fixed asset as a disposition and by the Corporations Project/Office receiving the fixed asset as an acquisition. Both the transferring and receiving Project/Office must submit a Fixed Asset Relocation Form in order to verify the transfer process.

Fixed Asset Transfers to the University

Annually, the Corporation shall transfer to the University ownership of fixed assets belonging to closed projects where appropriate.

A corporation project can also request that ownership of an asset to the University.  

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Lost or Stolen Equipment

When equipment in the Corporations office or equipment loaned to the Corporation officers and employees are discovered to be missing or lost, the Project Director/Manager or the individual responsible shall take the following actions:

  1. Immediately report the missing or lost equipment to the Corporation Business Office by completing the Fixed Asset Disposition Form
     
  2. The Corporation Business Office shall notify the University Department of Public Safety and assist the Corporations Project Director/Manager or the individual responsible by completing the University Department of Public Safety Equipment Loss Report and provide all available information.
     
  3. The Corporations Business Office shall within one week of the reporting to the University Department of Public Safety determine if negligence is involved.  The Corporations Business Office shall be responsible for collection of applicable costs from the personnel when the loss is due to negligence.

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Inventory Reconciliations to Financial Records

For the purpose of inventory reconciliations to the financial records, the University property office will submit the fixed asset inventory list to ABS after a fixed asset inventory check has been performed and ABS will reconcile and make the necessary adjustments.

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