RSCC Policies & Guidelines
Roane State Community College
Policy Number: BA-03-01
Subject: Equipment Capitalization, Physical Inventory, and Use of College Equipment
Department heads and other designated staff are responsible for the purchase, custody, proper use, and maintenance of all equipment assigned to the respective offices.
Physical plant staff has the responsibility for moving large pieces of equipment on and off campus. College equipment can only be used for college business. An employee may use college equipment and/or property for job-related activities, but not for personal activities.
For the purposes of this policy, equipment generally is categorized into two categories:
- Capitalized Equipment
- Sensitive Items
Property records for assets acquired with federal funds should conform to OMB Circular A-110, Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations.
- Capitalized Equipment (Items Costing $5,000 or More)
Capital equipment shall be defined as “any tangible personal property having a useful life of more than one year and a cost of $5,000 or more.” The following includes some of the cost that should be capitalized as part of the cost of the asset:
- The original bargained acquisition price.
- Freight, insurance, handling, storage, and other costs related to acquiring the asset.
- Cost of installation, including site preparation, assembling, and installing.
- Cost of trial runs and other tests required before the asset can be put into full operation.
- Cost of reconditioning equipment acquired in a used state.
- The Business Office has responsibility for maintaining an accurate inventory of capital equipment items costing $5,000 or more. All equipment meeting the above definition shall be capitalized and retained on the permanent inventory records maintained by the Business Office.
- Annually, the Business Office will provide each department/asset custodian with a listing of all capitalized equipment assigned to that department and appropriate instructions for conducting a physical inventory. Each department/asset custodian is responsible for ensuring that the physical inventory is conducted in a prudent manner and for returning the physical inventory listing to the Business Office by the date specified in the instructions accompanying the listing of capitalized equipment.
- College capital equipment may be checked out for use at home or an alternate worksite, but only in pursuit of job-related activities. To check out college capitalized equipment, the employee must complete a Capital Equipment and Sensitive Items Checkout/Transfer Authorization form, Form EQ-1 (Appendix A) and follow the procedures outlined on the form.
- Department heads and other designated staff are responsible for reporting transfers or checkout of capital equipment to the Business Office by completing a Capital Equipment and Sensitive Items Transfer/Checkout Authorization Form EQ-1.
- Sensitive Minor Equipment Items
Sensitive minor equipment items are of a movable nature which are particularly vulnerable to theft and have a cost or fair value (for donated items only) between $1,500.00 and $4,999.99, regardless of funding source. Sensitive items shall be specifically defined as those items on the list below if the cost is between $1,500 and $4,999.00.
- Cameras – 35MM, Digital Still, and Video
- Camera Lens
- Network Switches and Routers
- Computer Monitors
- Computer peripherals (any device other than a printer that is connected to a computer; i.e., scanners, etc.)
- DVD Players/Recorders
- CD Player/Recorders
- Weapons (regardless of cost)
The asset custodian/owning department is responsible for maintaining an accurate inventory and control of sensitive items. All computer equipment will be inventoried by the Office of Information Technology. However, if a department (i.e., CTAT) checks out select pieces of computer equipment, that department should record and track those items as well, as described below. Inventories will be conducted annually on sensitive items. Sampling is an acceptable method of conducting the physical inventory of sensitive minor equipment.
The useful life of sensitive minor equipment is estimated at 3 years, after which the fair value will be considered nominal. Since the fair value will be considered nominal after 3 years, annual inventory of the item will no longer be required.
Each sensitive item will be assigned a unique pre-numbered asset tag. Sensitive items will be recorded by the asset custodian/owning department in the college’s fixed asset management system for sensitive items. It is the owning department/asset custodian’s responsibility to ensure the data is updated as changes occur.
These items may also be checked out for use but only in pursuit of job-related activities. Sensitive items may also be checked out for use at home or an alternate worksite, but only in pursuit of job-related activities. To check out sensitive items, the employee must complete a Capital Equipment and Sensitive Items Checkout/Transfer Authorization form, Form EQ-1 (Appendix A) and follow the procedures outlined on the form. For departments that allow the checkout of these items, the fixed asset management system will be used to track the assignment of the item to the individual employee. In addition to recording the checkout in the fixed asset management system, check-in/check-out instructions on Form EQ-1 must be followed and approved copies of Form EQ-1 must be retained to document the check-in/check-out of the item. While it is generally expected that items are checked out for a relatively short period of time, items must be returned to the owning department/asset custodian within one year from the time of checkout. If the item is still needed, the employee may check the item out again subject to the owning department/asset custodian approval. The owning department/asset custodian may establish a shorter check out period.
- Transfer of asset
Should permanent control of an asset be transferred to another department/asset custodian, a Capital Equipment and Sensitive Items Checkout/Transfer Authorization form, Form EQ-1 must be completed and the fixed asset management system updated by both the transferring department and the receiving department to reflect this transfer. The Form EQ-1 will be signed by the employee receiving the transferred asset as well as the person authorizing the transfer.
The owning department/asset custodian may establish additional procedures deemed necessary for control of assets for which they are responsible.
Exceptions to this policy may be approved by the president of the college.
(3/9/09--RSCC policies BA-03-01 and BA-03-02 were combined to create revised policy BA-03-01. Policy BA-03-02 was deleted.)
Appendix A: Capital Equipment and Sensitive Items Checkout/Transfer Authorization
Revision History: 06/10/1996, 03/13/2000, 11/10/2008, 03/09/2009, 10/11/2010, 07/01/2013
TBR Guideline Reference: B-110
Revision Date Effective: 07/01/2013
Revision Approval By: Christopher L. Whaley, President
Original Date Effective: 02/11/1982
Original Approval By: Cuyler A. Dunbar, President
Office Responsible: Vice President for Business & Finance
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