The purpose of property accounting is to:
Individual items that are valued at $5,000 or greater are generally tagged. Exceptions include University vehicles, grounds equipment, cleaning equipment, furniture, etc.
Systems that have a total value of $5,000 or greater are tagged. For example, a computer includes the CPU, monitor, keyboard, and mouse. Printers are considered separate units.
Individual items valued under $5,000 are not generally tagged. Exceptions include any item that is on the University Maintenance Pool.
Assets are normally tagged on a quarterly basis after invoices have been paid and processed in Banner. This allows the Manager of Fixed Assets to confirm there are not canceled invoices, the University has received the asset and that it has not been damaged in transit, as well as catch any other issues. The Manager of Fixed Assets compiles these assets via an exported report and contacts relevant parties & Financial Managers to organize scheduled meetups so that the assets can be verified and tagged (if feasible).
All assets placed into service in a given fiscal year must be verified and tagged (if feasible) before the year-end audit finalizes. Items placed into service in the last three months of the fiscal year (April-June) will most likely be tagged in September. If you are a Financial Manager who is not present on campus over the summer, please be aware the Manager of Fixed Assets may need to verify assets under your name and therefore coordinate the verification of assets with someone else in your department or college.
The University inventory is conducted annually and consists of the Manager of Fixed Assets producing reports of capital items. These reports are used to conduct a physical inventory of fixed assets.
Capital assets are separated into three sections: Items valued (1) $5,000 to $7,500, (2) $7,500 to $10,000 and (3) $10,000 and greater.
Once the physical inventory is completed, necessary changes are made. The changes normally consist of new locations, added items, disposed items, sold items, or items in storage. The Manager of Fixed Assets makes necessary changes on the Fixed Asset Control System.
Results of the inventory are kept for auditors to review.
This policy is described here in detail to provide a method of properly redistributing or disposing of obsolete or unusable assets owned by the University. When an item is no longer wanted or needed by a user department, the department should visit the Surplus USI webpage (run by the Procurement Department) to fill out the proper form that will help schedule physical removal of the item and notify accounting at the same time.
Whether to to utilize Facility Operations and Planning or Information Technology will depend on the nature of the item needing redistributed or disposed. If Information Technology is the appropriate contact, please visit the Service Desk Portal. Including model and/or serial numbers of the items in question will aid in this process. The following is a general list of items that will be handled by IT:
Most assets owned by the University that need redistributed or disposed of will likely be handled by Facility Operations and Planning, organized with Procurement and the work order system. Redistribution can be a pre-determined transfer agreement with another department or can be delegated to Procurement, and an attempt will be made to find new use for the asset under a different department. If assets cannot be used at the University, it is possible they may be sold or donated to charity. You can access and complete the necessary Equipment Transfer/Disposal request forms online on the new Procurement – Surplus USI webpage.
If an item needs to be moved, stored, or disposed of, the Manager of Fixed Assets must be contacted. The web form above is available for this purpose. The new Surplus USI initiative by Procurement in fiscal year 2026 now combines the relevant Facilities Work Order & Accounting Qualtrics surveys into one form. You can also reach the Information Technology Service Desk portal via Surplus USI as well. If you have any questions, please contact the Manager of Fixed Assets or the Procurement Department.
The University will maintain fixed assets in accordance with GASB 34/35, which requires that not-for-profit organizations depreciate their fixed assets. Fixed assets are defined as items of both real property (land, buildings and improvements) and personal property (equipment) which will be recorded as assets within the plant fund section of accounts. Property having historical significance will not be depreciated.
The Business Office uses administrative software developed by SCT to track individual capital items.
To be capitalized, personal property, here after referred to as equipment, will have a useful life of more than two years and an acquisition cost of more than five thousand dollars ($5,000). See the attached schedule for equipment types and useful life. Other items, which do not meet these two tests, may be tracked but will not be capitalized. Repairs to a capital asset may also be capitalized if they extend the life of the item beyond that originally established.
Real property will be capitalized during year-end closing of the fiscal year of acquisition. Real property assets, which are classified, as buildings will be divided into four functional units each with a unique useful life. Those units are:
| CATEGORY | USEFUL LIFE |
| Shell | 50 years |
| Roof | 8 years |
| Utilities | 25 years |
| Internal | 20 years |
Improvements to real property (sidewalks, roadways, etc.) will also be capitalized and will have a fifteen (15) year useful life.
The construction of real property will be recorded in unexpended plant funds and will not be capitalized until the project is completed. These accounts will be maintained by project year rather than by fiscal year. During year-end closing, construction expenditures made during that year will be recorded as 'construction in progress.' Each construction in progress project will be capitalized when the project is completed.
The employee using property away from campus or an officially designated work location by an employee must be approved by the college dean or department's financial manager. This off campus use and approval thereof must be in writing or maintained electronically, and the document must remain on file with the approving authority until the property is returned in satisfactory condition.
This documentation must be available for review during an audit, and is to be reviewed for renewal at least annually by the approving authority. The Equipment Transfer/Disposal Request form is required for this purpose. The form can be completed online.
The user will be required to send an update of the status of use per 6 month period. This will help identify if the equipment should be returned to campus.
The employee using property away from campus or an officially designated work location agrees to the following provisions, regardless whether the document they sign specifies the provisions or not: