6.10 - Fixed Assets

Last updated on April 10, 2023

POLICY:  It is the policy of Spoon River College to assure control and accountability over the College’s assets and to satisfy the mandates of the Governmental Accounting Standards Board (GASB) Statement No. 34 to ensure compliance with Generally Accepted Accounting Principles (GAAP).  This policy is designed to provide a guideline for the financial management of Spoon River College’s capital assets.


This policy applies to all Spoon River College employees.


Asset Value:  the acquisition cost of an asset calculated 1) without regard for trade in allowance 2) including taxes, installation and/or calibration charges, 3) including freight and 4) including educational and other discounts.

Capital Asset:  an item or equipment with: 1) asset value over five thousand dollars ($5,000) for equipment and one hundred thousand ($100,000) or more for building remodeling, 2) with a useful life greater than two years, and 3) legally considered either real or personal property. Such items must be purchased, transferred, coded, recorded, tagged and inventoried within the fixed assets system as described in these procedures. Capital assets are purchased using capital outlay accounts 58XXXXX.

Small and attractive assets:  items or equipment with: 1) asset value cost between three hundred dollars ($300) and five thousand dollars ($5,000), 2) a useful life of one or more years and 3) considered sensitive and requiring property control. Such items must be purchased, transferred, coded, recorded, tagged and inventoried within the fixed assets system as described in these procedures. Small and attractive assets include:

Non-inventoried assets:  item or equipment with: 1) asset value between three hundred ($300) and five thousand ($5,000) dollars, 2) a useful life of more than one year 3) does not meet the definition of a capital or small and attractive asset. Such items must be purchased, transferred, coded, recorded, tagged and inventoried according to the internal procedures of each unit.  A “Property of Spoon River College” tag will be affixed.

Fixed assets system:  Jenzabar CX - Fixed Assets Module will be used to record and account for all capital and small and attractive assets.

Accessories or attachments to assets:  Units or equipment with: 1) asset value over five thousand dollars ($5,000), 2) adds useful life to an existing capital asset and 3) does not replace the original asset. Such items must be purchased, transferred, coded, recorded, tagged and inventoried within the fixed assets system as described in these procedures.

Fabricated asset:  An item or equipment constructed by a college shop or lab. Such items should be coded as equipment when the fabrication charges are made and treated as a capital, small and attractive or non-inventoried asset as described above. All labor, supplies, and materials used in the construction should be considered the asset value. The fabricator must notify Business Office to transfer, code, record, tag and inventory the item as soon as it is completed.

Transferred asset:  Item or equipment received from another government (federal, state or local) agency (often with freight the only cash expenditure), treated as a capital, small and attractive or non-inventoried asset as described above. The original cost shown on the transfer document shall be considered the asset value.

Gift:  A capital, small and attractive or non-inventoried asset received without any college expense incurred. The Spoon River College Foundation must officially accept all donations on behalf of the College, including gifts designated for a particular area or purpose. They shall notify Business Office in writing of the donation to include a description of the item, the receiving unit, location, value of gift, donor's name, and date received. The asset shall be treated as a capital, small and attractive or non-inventoried asset as described above. The value of the gift shall be considered the estimated fair market value.

Property:  Any asset, material, equipment or supplies belonging to the College.

Property custodian:  Person assigned by a department manager to maintain the department’s property list and conduct the biannual physical inventory.

Surplus property:  Any unserviceable, obsolete or excess college assets, materials, equipment or supplies, tagged and untagged regardless of whether or not the item is part of the College’s fixed assets system.


  1. Responsibilities.
    1. Director of Business Services:
      1. Develops and administers property management processes and ensures the data integrity of the fixed assets system.
      2. Annually reviews and updates these policies and procedures to determine if changes in technology or theft experience warrant inclusion of any additional items in the asset inventory.
    2. Business Office:
      1. Maintains inventory records;
      2. Tags assets;
      3. Prepares asset inventory reports;
      4. Coordinates the bi-annual physical inventory;
      5. Reconciles property inventory and fiscal records.
    3. Property Custodians (Department Managers, Budget Managers, etc.):
      1. Maintain physical control and maintenance over all assets (inventoried and non-inventoried) purchased and assigned to their area.
      2. Develop internal procedures to control the use and distribution of all assets assigned to the unit.Responsibilities.
  2. Receiving, Tagging and Delivery of Property.
    1. The College becomes responsible for all property upon delivery.
    2. The campus receiving/mailing operation delivers non-computer property to the ordering department or delegate delivery to someone else.
    3. Information Technology (IT) delivers all computer property.
    4. Business Office tags all capital and small and attractive assets upon notification that they are delivered. Business Office assigns and permanently affixes college inventory tags and other identification markings on these assets as appropriate.
    5. Information Technology (IT) affixes college inventory tags to technology-related property as directed by Business Office.
  3. Disposal, Transfers, Trades and Trade-Ins of Surplus Property.
    1. All personnel must notify the Vice President in writing prior to the disposal of surplus property.
      1. Notification should include description, fixed asset tag number (if tagged), serial number and condition, and any other pertinent information.
      2. If the surplus property was a capital or small and attractive asset, Business Office records disposition of the asset in the fixed assets system.
      3. If the decision is made to directly sell college property, the Purchasing Office follows a formal request for proposal (RFP) process consistent with state and college purchasing regulations to obtain competitive proposals.
      4. Business Office deposits revenue received from the sale of surplus property into the fund and division that originally purchased the surplus property unless otherwise directed.
      5. Departments requesting to transfer surplus property or assets to another department must send a written notification to Business Office. The receiving department must submit a written acknowledgement of receipt of the surplus property or asset. Business Office updates the fixed assets system to reflect the transfer.
      6. For all assets transferred between auxiliary enterprise and general funds, the receiving department must reimburse the department from which surplus property or assets originated. The original and receiving departments and Business Office determine the amount of reimbursement based upon the agreed fair market value.
      7. The College encourages the use of trade-in opportunities where the trade-in produces the best value for the College. Trade-in must be on an equal or higher valued purchase and must be documented.Documentation must be attached to the purchase order issued for the new item and a copy placed in the asset file. The Chief Information Officer must approve technology-related trade-ins prior to generating a purchase requisition. The purchase requisition should include the tag number of the property traded in.
    2. All personnel must notify the Technology Services Director in writing prior to the disposal of surplus computers and printers.
      1. Computer and printer surplus property may be cannibalized for parts, recycled, or sold as surplus upon approval of the Vice President and Chief Information Officer.
  4. Loan of College Assets.
    1. No one shall remove any item of college property (regardless of original funding source) from its assigned location without proper written authority.
    2. EXCEPTIONS: This does not include portable equipment used by students, staff and faculty in the normal course of College business such as equipment check out by Technology Services. It also does not include equipment like laptop computers or digital cameras when used for College business.
      1. The borrower must seek approval from either department manager or the divisional administrator prior to the loan or temporary removal of any asset.
      2. The borrower must notify the department manager or supervising administrator in writing of the asset loan, detailing where the asset is going to be. The responsible department will retain a copy of the written notification in its permanent files.
      3. The borrower must notify the department manager or supervising administrator when the asset is returned.
      4. College assets may only be used for official college activities. Assets may not be loaned to other organizations nor be used by college staff for personal use.
  5. Lost or Stolen Property.
    1. If property is missing, the department manager must file an incident report with Vice President identifying the item missing and the circumstances under which the item was lost or stolen.
    2. If evidence clearly indicates the item has been stolen, the Vice President shall prepare a report, including all back-up material and shall provide copies to the Business Office so that the fixed asset system can be updated.
    3. If it appears that the item may still be on campus but has just been misplaced, it will remain on inventory until the next full physical inventory. If it is not found in the next inventory, the Property Custodian will initiate the process described above for stolen property.
  6. Physical Inventory (Odd Years).
    1. Each department is required to complete a physical inventory of all capital assets every two years. Small and attractive assets are subject to physical inventory on an annual basis, if deemed necessary.
    2. The Business Office sends the appropriate supervising administrator a physical inventory request (in writing), instructions on how to conduct the inventory, and an asset list for the area.
      1. Each supervising administrator assigns someone to be the property custodian for the department.
      2. The Business Office assists the property custodians in locating assets and provides general support of the physical inventory as necessary.
      3. Property custodians are expected to note exceptions on the property list such as:
        • Asset on inventory list but not found;
        • Asset found but not on inventory list;
        • Incorrect description or other information.
      4. Property custodians must sign each page of the asset listing to indicate completion.
      5. The supervising administrator is responsible for returning the completed and signed asset listing within 45 days from the date of the physical inventory request.
      6. A report of the results of the campus-wide physical inventory will be filed with the Director of Business Services at the end of each biannual physical inventory.