Fixed Assets Policy & Procedures

Home Asset Management Fixed Assets Policy & Procedures

An important capacity of the college and university business operation is the equipment inventory or Fixed Assets. At Oklahoma Panhandle State University, Fixed Assets is primarily an accounting function, administered by the Director of Purchasing/Asset Manager. The goal of Fixed Assets management is to assist university departments in effective management and accountability for their property, establish administrative control over fixed asset inventories, help establish a climate of responsibility for preserving the institution’s assets and interact with auditors, government officials and other cognizant reporting agencies. As employees of Oklahoma Panhandle State University, each person is responsible for the equipment he or she works with and is accountable for the use of equipment purchased from all moneys with which we are entrusted. With accountability and departmental needs being utmost in our actions, the importance of maintaining an accurate inventory of fixed assets becomes imperative.

Additions

Addition of equipment and gifts or donations of equipment valued at $5,000.00 or greater with a useful life of at least 1 year or more should be added to fixed assets.  Addition of IT Equipment valued at $500.00 or greater with a useful life of at least 1 year or more should be added to fixed assets.  Timely reporting and tagging of equipment is vital in keeping inventory records as current as possible and provides a greater amount of security for all institutional property.  Therefore, a joint effort between Asset Management and University departments is necessary for the Fixed Assets to operate in the most efficient manner possible.  High profile items will not be capitalized, but will be tagged and included in the bi-annual inventory in order to safeguard against theft.  The following list includes, but is not limited to, the items that are considered high profile items:

  • Digital cameras
  • Televisions
  • GPS Units
  • Laptop computers
  • Portable media devices (iPads, Notebooks, etc.)

Stolen/Damaged/Destroyed

The University is responsible for replacing or repairing equipment that is stolen, damaged or destroyed.  Any loss or theft must be reported to the Goodwell Police Department and to Asset Management. 

Biennial Campus Wide Inventory Verification

Also required is the responsibility and accountability of a physical count at least bi-annually of equipment items, reconciling results with Inventory records.  Any differences in physical count and inventory records are to be reported to Asset Management.  An inventory verification may be required in a compliance test conducted by Internal Audits.  These audits do not occur annually, but may happen at any time.  Departments are encouraged to work closely with Asset Management to keep new equipment tagged and inventory records as current as possible.  If there is indication that a department is failing to maintain inventory surprise outside verification visits from Asset Management or other auditors may occur. 

Transfer of Equipment

Department head responsibility for fixed assets encompasses the transfer of equipment within or between departments. The transfer is made by completion of a Fixed Asset Transfer Request form and is initiated by the releasing department.  To maintain inventory integrity and for insurance purposes, it is very important to keep Asset Management informed of changes in location of equipment.  Not only does this provide up-to-date information on equipment for inventory and insurance purposes, but also allows Asset Management to provide the most accurate information for all departments.

Surplus Equipment and Disposals

Asset Management provides departmental assistance in the removal and disposal of surplus property from the Fixed Assets system.  A department head does not have the authority to sell, trade or delete (including donations) from inventory any item of University-owed or non-owned equipment.  A department head may request such an action through Asset Management, who prepares all disposition requests for presentation to the Board of Regents, who have final approval or disapproval of property disposal.  Previous to seeking Board approval for disposal, all OPSU departments and then schools under the governance of the A & M Board of Regents will be notified of surplus items and given preference over the general public.  A department declaring equipment scrap, salvage, and/or surplus completes the Fixed Asset Disposal Request form. 

The OSU/A&M Board of Regents solely has final approval or disapproval of property disposal.  Department heads only have the power to request disposition.  Any action taken by departmental employees to sell or give away University property places the employee at risk.  Once board approval is granted, and no other department or college (under the Board of Regents) has requested transfer of the surplus property to their department or institution, Asset Management shall approve the Report of Surplus and notify the Physical Plant Surplus Warehouse manager by this report of all items to be transferred to the surplus property warehouse.  At no time prior to Board approval and prior to receipt of an approved Report of Surplus should the Warehouse Manager pick up or receive surplus equipment from a releasing department.

Means of Disposal

Asset Management is delegated the authority and is responsible for making all arrangements for the sale of property through various means discussed below. 

Sealed Bid

Sealed bids are another method used to dispose of surplus equipment. Departments choose this option many times since they will receive the sale proceeds, less advertising and copying costs.  Department representatives are not authorized to sell items by sealed bid.  All sealed bids will be received by Asset Management and held for public opening as announced in the sale advertisement.  The Asset Manager will publicly disseminate notice of the sealed bid through an extant mailing list and newspaper advertising.

Equipment Reutilization

The University may make excess surplus property available to a public school district without compensation or to other Oklahoma governmental agencies in lieu of disposal by public auction or sealed bid. Reutilization may occur at the conclusion of the prescribed time that surplus equipment is available to University departments and other A&M institutions is accomplished according to state statute. To make this distribution as equitable as possible, any public school or governmental agency interested in available surplus should submit a letter detailing their equipment needs to the Asset Management office.

Trade-Ins

If an item is used as a “trade-in” on new equipment, the inventory tag is to be removed and attached to a Disposal form. The R6 removal code should be used in requesting removal of the item from inventory. A note should be made on the form providing the requisition or purchase order number of the new equipment on which the old item was used as a trade-in. Place the inventory number and item description in the appropriate columns for item traded in on the Disposal form. The department head is to sign the form indicating request of responsibility and accountability. The department keeps a completed copy of the Disposal form and transmits the remaining completed copies to Asset Management. The new item will be tagged after notification of payment for the new equipment has been received by Asset Management. The invoice for the new equipment should provide the inventory number of the equipment that was traded-in as a cross reference.

Lost and Stolen Equipment

The department head is responsible for all equipment purchased for and assigned to the department and shall promptly report any lost or stolen equipment. 

Stolen equipment should be reported to the Goodwell Police at once.  A Disposal form should be completed and submitted to Asset Management to update the equipment data base.  A copy of the police report detailing the theft should accompany the completed Disposal form.

All Disposal forms indicating removal because of loss or theft must be authorized by the department head and appropriate college dean or vice president.