FINAL

Concord University Board of Governors

Operational Policy and Procedure

Policy No. 12

Fixed Asset Inventory

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SECTION 1. GENERAL

1.1 Scope:

This policy provides direction for establishing and maintaining fixed assets

including protocols for receipt, control and disposal. The University is required

to maintain a list of all fixed assets as noted below, and the University must

include the depreciated value of these assets in its audited financial statements each year.

1.2 Effective Date: May 4, 2005

SECTION 2. POLICY

2.1 It is the policy of the University that the records and accounts of all fixed assets

including disposal will adhere to GAAP (Generally Accepted Accounting

Principles), as prescribed by the American Institute of Certified Public

Accountants, (AICPA), the directives issued by the Concord University Board of

Governors, the Higher Education Policy Commission, the West Virginia

Legislature, and other State policy and procedures as applicable.

2.2 This Operational Policy and Procedure is in compliance with

WV Code §18B-5-7, Disposition of Obsolete and Unusable Equipment, Surplus

Supplies and Other Unneeded Materials, and WV Surplus Property Disposition

Policy & Guidelines, April 1996.

SECTION 3. DEFINITIONS AND PROCEDURES

3.1 Fixed Assets are capital acquisitions with a useful life of more than one year and

a dollar value exceeding $5,000. Fixed Assets with a value of $5,000 or more

will be depreciated and tagged. In addition, computers and computer related

equipment with a value of $500 to $4,999, and all other equipment with a value

of $1,000 and $4,999, will be tagged for identification but not included in the list

of capitalized assets.

3.2 The Inventory Control Clerk is a person designated by the Vice President of

Business & Finance to be responsible for tagging and maintaining the records of

fixed assets.

SECTION 4. RECEIPT OF ASSETS

4.1 The Inventory Control Clerk will maintain the computerized Fixed Asset

Inventory Control Management System as needed with the University’s Banner

Accounting Software Module.

4.2 All fixed assets must be received through the receiving department located in the

Physical Plant Building-Receiving Department, telephone number 304-348-5166.

4.3 The receiving department will be provided a photocopy of the purchase order or

invoice issued by the Procurement Officer and processed by the Accounts

Payable department to aid in tracking asset acquisitions. The Controller will

review purchase orders and invoices for new assets and forward to the Inventory

Control Clerk on a monthly basis.

4.4 The Inventory Control Clerk will complete the State of West Virginia “Added

Property Form” (Exhibit A), assign an asset number and tag the asset.

4.5 The end user of the asset will sign the receiving form indicating receipt of the

asset.

4.6 All asset receiving forms will be maintained by the Inventory Control Clerk.

4.7 The Inventory Control Clerk will enter the data in the Fixed Asset Management

System.

SECTION 5. MOVEMENT OF INVENTORY AND DEPARTMENT GUIDELINES

5.1 The Inventory Control Clerk is ultimately responsible for tracking the movement

of all fixed assets.

5.2 These guidelines apply to fixed assets as defined in 3.1.

5.3 A Request for Approval to Move Form (exhibit B) must be completed and

approved by the manager before inventory is moved.

5.4 The form will be forwarded to the Physical Plant, (for large items), who will

arrange the movement. The form will also be copied to the Inventory Control

Clerk.

5.5 Transfer/movement of inventory between departments will require the approval

of both managers.

5.6 The temporary movement of inventory, for a period less than one month,

between classroom/shops/labs on the same campus will not require the form.

SECTION 6. MOVEMENT FOR SERVICE OR REPAIR

6.1 All assets leaving Campus premises for service must have a Loan Note/Service

Removal Form (Exhibit C) attached to the asset if the service period is longer

than five working days.

6.2 A copy of the form will be forwarded immediately to the Inventory Control

Clerk.

6.3 The Inventory Control Clerk will regularly follow up on all forms to ensure that

assets have been returned.

6.4 The authorized signing person shall be the Department or Area Manager. A

Manager may delegate this authority to another staff member upon written

notification to the Inventory Control Clerk.

SECTION 7. LOAN OF ASSETS

7.1 University fixed assets will not be loaned to staff or others for personal use.

7.2 University fixed assets within each department may be loaned with the approval

of the Department Manager under the following conditions:

- to staff for work related activities.

- to staff for participation in work related training programs.

- to Government funded agencies or organizations for business and/or

emergency use.

7.3 Any request for loan of assets not covered in (7.2) above will require executive

approval.

7.4 The loan of fixed assets will be permitted only when such assets are not required

by the University and will be subject to immediate return if University activities

require their use.

7.5 The loan of fixed assets will be recorded on the Loan Note/Service Removal

Form (Exhibit C) which will be approved by the manager or designate.

SECTION 8. TEMPORARY WORK SITES

8.1 University assets assigned to a temporary training work site of two months or

less will be recorded on the Loan Note/Service Removal Form (Exhibit C) and

signed out to the staff member in charge of that training work site.

8.2 University assets assigned to a temporary training work site for more than two

months will be recorded on the Loan Note/Service Removal Form (Exhibit C).

8.3 The manager, in consultation with the Director of Physical Plant, will

ensure the availability of proper insurance for the asset at the temporary work

site.

SECTION 9. DISPOSAL OF SURPLUS/OBSOLETE ASSETS

9.1 On an annual basis, a list of requests for disposal will be compiled by the

Inventory Control Clerk who will provide the Controller with the composite list.

9.2 The Inventory Control Clerk will make a recommendation for disposal through

transfer, dumping, public tendering, or auction as outlined below:

9.2.1 The fixed assets to be returned to Dunbar/Surplus Property.

a. Declarations of unusable surplus that is no longer of use to the University, and not in the automotive category, will be submitted to the Inventory Control Clerk.

b. The University’s Fleet Manager will be responsible for the disposal of surplus automotive items. Contact with the Dunbar office will provide instructions as to the disposition of the asset dependent upon the condition of the asset.

9.2.2 The fixed assets to be temporarily stored (for re-use.)

9.2.3 The fixed assets that are no longer usable due to breakage, obsolesce, or other causes may be disposed of in the manner that is most efficient and cost effective.

9.3 The Procurement Officer will plan and conduct all off-campus dispositions of

fixed assets.

9.3.1 Disposition of obsolete/unusable materials shall be accomplished by one

of the following:

a.