Fixed assets represent a significant investment of resources of the college. The college policy on fixed assets needs to ensure that fixed assets are inventoried, safeguarded, maintained, and controlled. The college follows generally accepted accounting principles in the capitalization of expenditures. Property and equipment donated to the college and property and equipment purchased with college funds, including grants and gifts awarded to the college, are college property. All college representatives making purchases using college funds are governed by this policy.
Fixed assets are defined as tangible, non-consumable items owned by the college valued at or above $5,000. Fixed assets have a normal useful life expectancy of at least three years. The value of fixed assets includes the purchase price, as well as costs to acquire (shipping and handling), install (excluding site preparation costs), secure and prepare the item for its intended use.
In certain cases, individual items acquired with a unit cost of less than $5,000 but an aggregate cost of $5,000 or more are aggregated for the purpose of capitalization. Examples would include furniture acquired for an entire office refurbishment or construction, computers purchased as part of the college purchase plan, other equipment such as monitors, printers, servers, other infrastructure, etc.
Fixed assets are recorded in the college’s fixed asset system and depreciated over the expected life of the asset.
Disposal of Fixed Assets
When equipment needs to be removed from departments or disposed of entirely, the fixed asset records need to be updated in a timely manner. The Director of Purchasing Services is responsible for disposing of assets no longer of use to the college. Assets include items such as office furniture, computers, tools, equipment and vehicles.
Details of the disposal procedures can be found at the Purchasing Services website.