Fixed Asset Custodian Training

What is a Fixed Asset? A fixed asset is defined as an item with: A purchase price of $5,000 or more A useful life of two or more years. Renovation in excess of $100,000 to buildings, infrastructure and land improvements that significantly increase the value or extend the useful life of the structure are capitalized. The cost of normal maintenance and repairs that does not add to the value of the asset or materiality extend an asset’s life are charged as an operating expense in the year in which the expense is incurred. Policy V-Q Asset… item with useful value Fixed Asset… cannot be easily converted into cash- cost is expensed over time through depreciation rather than immediately expensed.

Cont… Depreciation is assigned thorough straight line method (equal amounts expensed on monthly basis for most assets, while Library completed yearly) Buildings: 50yrs Land Improvements: 20yrs Library Books: 15Yrs Furniture-Equipment-Vehicles: 10Yrs Telecom & Peripherals: 5Yrs The District Budget Control Office is responsible for the coordination, development and implementation of procedures that comprise the College-wide fixed asset system through the Fixed Asset Coordinator. 11/27/201811/27/2018 www.sanjac.edu

What is a Fixed Asset Custodian? Department heads are delegated the responsibility of maintaining proper accountability and control of equipment within their jurisdiction. Fulfillment of these responsibilities on behalf of the department head may be delegated, but the ultimate responsibility remains with the department head. Custodians will receive a list yearly, the list must be signed and returned for acknowledgment of fixed assets. Created by ORG- updated list given yearly Also created by approval queue- first approver Inventory can be performed by someone else, dc needs to sign paperwork

Roles and Responsibilities Specific responsibilities regarding college equipment are as follows: Know the location of all equipment in their inventory and ensure that equipment is adequately safeguarded and secured from possible theft and other hazards Report all changes in equipment location to the Fixed Asset Coordinator. Reporting changes is critical for proper stewardship and accurate inventory control practices. Assure that assigned equipment is utilized for college business purposes only and is located within college property. If the equipment is in your area, it is important to know where it is located, if it’s in working order, that it is not in a hazardous place

Cont.… Inventory Update Form for Fixed Assets Prepare appropriate forms requesting the transfer and disposal of all equipment Inventory Update Form for Fixed Assets Provide assistance to the Fixed Asset Coordinator during the scheduled physical inventory count/reconciliation by providing access to locked or normally inaccessible department areas and/or by helping to locate all equipment assigned to the department Exercise reasonable custodial care over the safeguarding of equipment to prevent the theft and loss of college property Inventory Update Form for Fixed Assets

How are fixed assets accounted for? Fixed assets are initially accounted for through the use of 74XXX accounts in the requisition process During the requisition process any fixed asset purchase requires a quote to be sent to the fixed asset custodian, prior to approval The use of LOCN code is also required to better track the location of the asset This system facilitates good business practices and internal controls over the acquisition, disposal and inventory information of the College’s fixed assets. Responsibility for maintaining the integrity of the asset lies with the departmental Fixed Asset Custodian, who works with the Fixed Asset Coordinator. Department Chairs responsible for communicating any changes to BC Currently 1,179 Fixed Assets in Banner

Cont.… The Banner fixed asset module is College’s official system of record for fixed assets. The system contains all demographic information about fixed assets, their acquisition, disposal, and date of physical inventory. The fixed asset system enables the College to comply with regulations and to meet both regulatory and audit reporting requirements. Updating the fixed asset system on a timely basis to record changes in the operational status, location, or demographic information about fixed assets is the responsibility of the Fixed Asset Coordinator through information submitted by the Fixed Asset Custodian. Fixed Asset Coordinator creates the fixed assets through a process ran monthly. Once item Invoiced shows on report as a Temporary Tag, them turns into Permanent Tag Have been working with end-users as the reqs are created If FA a quote is necessary- send to BC Perm tag in most cases YYYYXXXXX year then sequential order of purchase Initial inventory is completed to tag, photograph, and obtain information- such as model & serial numbers, manufacturer- items not listed on the actual invoice Yearly Custodian Letters- must be reviewed, signed and returned Any updates will need a Inventory Update Form for Fixed Assets

What is the Inventory Process? A physical inventory of capital equipment is performed on an ongoing biennial cycle. The inventory is conducted by the Fixed Asset Coordinator with the assistance of the departments. Departments will be notified to coordinate an appropriate date and time for conduction of the inventory. Departmental inventories shall not be conducted during a scheduled lecture or lab class. Every Two Years Previously as purchased for each individual asset Moving toward Department by Department Send e-mail with three dates to choose from Will work with different date Give enough notice Show where photos located in Banner BDMS FOIDOCH TYPE FAS

What is the Disposal Process? Once the decision to liquidate an asset is made, the requesting departments should complete an Itemized List for Auction Form, obtain authorization, and forward to their respective Dean of Administration. Grant funded equipment may only be disposed after permission has been provided by the granting agency and following the awarding agency disposition instruction.  Grant equipment provided through Federal or State funds must be disposed in compliance with Grant Uniform Guidance or OMB Circular A-110/2 CFR 200.313. Show where forms located on Intranet

Cont.… The Dean of Administration will forward approved documents to the Fixed Asset Coordinator for review Once reviewed, the Fixed Asset Coordinator forwards the document to the Auxiliary Surplus Property Department The Auxiliary Surplus Property Department will coordinate the removal of equipment with the Facilities Maintenance Department and will also coordinate the Online Auction process Questions directly related to the relocation and facilities work ticket are directed toward the Property Surplus Department Online Auction for all disposals

What is the Donation Process? Donated equipment shall be accepted only if it has a valid use to a department. Any equipment that is donated must be in working order and be of immediate use to a department. Thus, equipment that is obsolete or non-working should not be accepted. The college needs to protect itself from becoming a tax deduction depository for individuals or companies. If there is any question as to the legal ownership of the donated equipment, proof of ownership may be required.

Cont.... A Report of Gift Form must be completed. Forms may still be requested electronically from Budget Control. The form requests information, such as: donor information, gift information, recipient/department information, and authorization. Once the form has been completed, it must be approved by the appropriate approving authorities. Completed and approved forms should be submitted to Budget Control attn: Fixed Assets Coordinator. The Fixed Assets Coordinator will ensure that the form is completed in its entirety. Forms that have not been completed or approved will be rejected and returned to department initiating donation. Continuously looking at this process Any changes will be notified Conclusion: Fixed Asset Cheat Sheet PowerPoint Handout in folder My information is listed Always willing to help Any questions?