Fixed Asset Accounting
| No. 5-28 | Rev. 03-19-19 | Date 8-17-77 |
I. PURPOSE
To outline 91¶ÌÊÓƵ policy for establishing accountability for fixed assets of the University consistent with State Board of Regents' Policies R561 and R572.
II. REFERENCE
- PPM 4-27, Property Acquired Through Government Grants or Contracts
- PPM 5-27, Surplus Property
- Board of Regents - Accounting and Financial Controls
- Board of Regents - Noncapital Asset Inventory and Tracking
III. DEFINITIONS
A. Fixed Assets
Land, equipment, buildings, improvements, infrastructure, library books, works of art and construction work in progress.
B. Land
The real property or acreage owned by the University, valued at acquisition cost plus expenses incurred in preparing the land for use.
C. Equipment
Items owned by the University with an acquisition cost as shown in Schedule "A," attached, and with a life expectancy of five years or more. Acquisition cost to include full cost of purchase plus freight and handling charges. Equipment items have their own identity and are not attached permanently to any building.
D. Buildings
The physical structures housing persons or property of the University. Buildings include items of equipment permanently attached.
E. Land Improvements
Items such as sidewalks, parking lots, retaining walls, fences and landscaping, which represent substantial value.
F. Infrastructure
A set of interconnected structural elements that provide the framework supporting an entire structure and includes items such as roads, tunnels, bridges, network systems, and utilities.
G. Construction Work in Progress
Uncompleted buildings or infrastructure and building and land improvements in the process of completion.
IV. POLICY
A. Equipment
Equipment is capitalized and inventoried on the books of 91¶ÌÊÓƵ based on full acquisition cost including freight and handling (per Schedule "A" attached) if the equipment has a useful life as reflected in the State of Utah Useful Life Table (FIACCT 09-09.01).
Equipment inventoried at time of acquisition will remain on the inventory even if acquisition cost is less than current minimum value established by Schedule "A."
The following types of equipment, with acquisition cost below Schedule "A" values, will also be inventoried at zero value to reduce the risk of pilferage and comply with federal laws:
- Art objects
- Firearms
While no value will be listed for this equipment, departments have the same responsibility for controlling and maintaining these equipment items as they do regularly capitalized equipment.- Equipment items not inventoried regardless of acquisition cost include the following:
- Items made of glass, cloth, plastic and rubber products unless included above
- Consumable items materially altered by use
- Replacement parts which do not have a separate identity or utility apart from other pieces of equipment
- Items permanently attached to buildings
- Items rented or otherwise not owned (not to include equipment lease-purchased)
- Equipment of low unit value and supply items will be included in "Building Contents" for insurance purposes.
- Transfer of equipment from one campus location to another cannot be made without the approval of the department head or director, who has inventory responsibility. Property Control must also be notified of any transfer of equipment by email, written memo or Fax.
B. Land, Buildings, Infrastructure, and Improvements
Land, buildings, infrastructure, and improvements are capitalized and inventoried on the books of Weber State based on acquisition cost (per Schedule "A," attached).
C. Repair and replacement items are not capitalized as they replace existing components to maintain the function or utility of the facility, and do not change the value of the facility materially.
D. Assignment of equipment is made on a departmental basis. The chair or director of the department is the property custodian and is responsible for the care and maintenance of the equipment and to verify the equipment inventory at least annually.
University equipment shall not be removed from campus without written approval of the immediate supervisor. Department records must be maintained which record the authorization for removal and location of equipment not located on campus.
E. After the annual inventory verification and reconciliation process has been completed, a list of missing inventoried assets shall be reported to the Vice President for Administrative Services.
F. Surplus property may be contributed to other state, county, city or non-profit organizations. All requests for donation of surplus property must be directed to Property Control. Donations of surplus property must be approved in writing by the Associate Vice President for Financial Services. A written request for donation must be forwarded to Property Control when property is intended to be donated to off-campus organizations.
All fixed assets will be capitalized according to the values defined in State Board of Regents' policy R561-3.Additionally, all equipment with an acquisition cost between $1,500 and $4,999 will be inventoried for tracking purposes (State Board of Regents' ).