ADMIN 110 - Fixed Asset Acquisition & Management

Policy

It is CWI’s policy that all assets owned or assigned to the College will be acquired, safeguarded, and managed in a responsible, consistent, and ethical manner, and with the appropriate level of authorization, oversight, and accountability. Appropriate internal controls will be implemented to track and protect College-owned assets, maintain complete and accurate asset records, and account for College-owned assets in accordance with GAAP. Purchasing and acquisition activities will comply with applicable CWI policy and state and federal laws; be conducted with transparency, integrity, and competitive bidding; and demonstrate an appropriate and responsible use of all public funds. The disposal of College-owned assets shall occur only with advance authorization (per Appendix B: Roles and Responsibilities for Asset Management), as directed by CWI’s Board of Trustees. CWI will use as a guideline the disposal standards set by the Idaho Board of Examiners.

Guidelines

For audit purposes, purchases made prior to the latest revision of this policy are subject to that version of this policy in effect at the time the purchase process was initiated. Purchases made after the latest revision date of this policy are subject to this policy as amended.

Acquisition Methods

Assets may be acquired by the College by various methods:

1. By purchase, in accordance with ADM 100 - Procurement Policy and state law.
2. By donation or gift, in accordance with CWI Foundation policies and procedures. An independent appraisal or valuation will be required for assets with an estimated value of $5,000 or more to determine the appropriate valuation and insurance amounts; any appraisal costs incurred will be the responsibility of the department accepting the donated asset.
3. Via transfer from another college, state or local agency, Division of Public Works, or other publicly funded organization.
4. Via self-construction or fabrication. Self-constructed asset costs shall be tracked with a project ID number as construction-in-progress and capitalized upon completion.
5. Via trade-in. Asset trade-ins require pre-authorization by the Vice President of Finance. Employees should consult the Fixed Asset Manager prior to committing to a trade-in.

Asset Identification, Tracking And Record Keeping Standards

In order to ensure that asset records are accurate and maintained on a consistent basis, the following standards have been established:

1. All fixed assets will be assigned a unique property ID number, tagged and tracked in the Fixed Asset Module of the system of record. Acquisition and disposal records will be entered a minimum of once per quarter; additional interim entries may be made as deemed necessary for large acquisition or disposal events.
2. Asset general ledger accounts will be reconciled, at a minimum, on a quarterly basis.
3. Asset records (paper and/or electronic) will be tracked and retained as long as CWI owns or holds possession of the asset, after which time they may be archived. Record retention and destruction practices should follow as a guideline current Idaho Records Center Retention Schedules, Appendix 9, State Board of Education-Higher Education Records . Current standards should be consulted prior to destroying any records.

Ownership

CWI owns all property purchased with College or grant funds and all property transferred or gifted to the College, except where restricted or excluded by grant terms. No department, faculty or staff may hold a proprietary interest in any tangible or intangible property of CWI, and all assets will be put to their highest use for the overall benefit of the College. No student club shall own capital assets. Theft or misappropriation of CWI property and/or private property on College premises constitutes a violation of CWI policy and Idaho law.

Asset Usage

Usage of property owned by CWI will comply with the following guidelines:

1. College-owned assets/property will be utilized only in the performance of CWI functions and may not be used for personal benefit.
2. Property may not be rented or loaned to any person or group for non-CWI uses without prior authorization from the appropriate administrator and the Vice President of Finance.
3. College buildings or grounds may not be used for the permanent or continuous storage of personal property that is not used for official purposes.
4. Property purchased with funds from grants and/or contracts may have additional restrictions on usage or disposal.
5. Usage of bond-financed property will be monitored in accordance with CWI tax-exempt bond compliance policy.

Roles And Responsibilities 

Proper asset management is critical to protecting CWI’s investment in property and equipment utilized to further its mission, and in demonstrating good stewardship of public resources. Each department is responsible for protecting, maintaining, and tracking the assets procured on its behalf and/or assigned to it, and for ensuring that purchasers and end users of CWI-owned property comply with established procedures regarding the acquisition, tracking, monitoring, and disposal of assets in a responsible and ethical manner. Below is a segregation of duties relating to fixed asset management.

Roles:

1. Fixed Asset Manager - The Comptroller will assign responsibilities for oversight and coordination of fixed asset processes to a staff member within the Business Office. The designated Fixed Asset Manager will be responsible for the development, coordination and implementation of asset management and inventory processes and procedures, and for supporting departmental units in the discharge of their property management responsibilities. Duties will include ensuring the tagging and capitalization of all qualifying assets, coordinating inventory and quality assurance activities, maintaining current fixed asset records and reports (including acquisition, disposal, and transfer activity), posting capitalization and depreciation entries in the system of record, reconciling asset records on a quarterly and annual basis, and providing training and guidance on fixed asset policies and procedures. Capitalization and depreciation will occur on at least a quarterly basis, with interim activity as warranted at the discretion of the Fixed Asset Manager and/or Accounting Manager.
2. Department/Unit - Each department is responsible for safeguarding, maintaining, and monitoring property assigned to, used by, or under its control. At its discretion, a department may assign one or more fixed asset coordinators to work with the Fixed Asset Manager on acquisition, disposal, and inventory-related activities. Further, each department head is responsible for ensuring that a physical inventory of all tagged and tracked assets is conducted a minimum of once per fiscal year, and attesting to the findings. When a change in administrators occurs, the new administrator assumes responsibility for all property assigned to his/her department and should promptly verify the accuracy of the assigned property and report any discrepancies. If a department receives or acquires a fixed asset by means other than a capital outlay expenditure, the department will notify the Fixed Asset Manager within 15 business days of receipt.
3. CWI staff and asset end users - Each CWI employee, faculty member, and contractor has a general obligation to safeguard and make appropriate use of property owned by or assigned to the College (such as a grant-funded item that will be returned to the grantor at the end of the grant period). This includes property either assigned for individual use or as part of a common area. This obligation includes but is not limited to:
   1. 1. Notifying the Fixed Asset Manager of the acquisition of assets through non-procurement methods (such as donations), disposal, or a change in status or location of fixed assets within 15 business days;
      2. Exercising reasonable care in the use of assets to prevent damage and maintain good condition, and accounting for reasonable wear and tear resulting from proper use; and
      3. Reporting instances of loss, damage, or abuse of CWI-owned property within 24 hours of detection.

Inventory

All fixed assets will be accounted for at least once per year through a physical inventory to verify asset existence, location, and condition. Where appropriate, tracking for assets with a high value or theft risk may be done on a more frequent or perpetual basis through additional internal controls to protect the College’s investment.

Inventory activities will be planned and coordinated by the Fixed Asset Manager. Each departmental unit with assigned assets is responsible for completing the fixed asset inventory within the assigned time frame and submitting required reports and other documentation requested to update and maintain accurate asset records. Inventory records will be monitored and randomly verified through a quality assurance verification process, at the discretion of the Fixed Asset Manager.

Disposal

Disposal of College-owned assets may occur only after authorization by designated departmental and executive authorities and will comply with the philosophy and policy established by the Board of Trustees, and guidelines set forth by the Idaho Board of Examiners (reference: State Board of Examiners Policy No. 442-40) and within applicable state and federal laws. Wherever possible, assets should be transferred (via sale or donation) or repurposed within the College or donated to a state or local public school or other publicly-funded organization to maximize taxpayer-funded resources. Surplus, redundant, or obsolete assets should be disposed of according to the guidelines and per a pre-approved disposal plan as detailed on the Property Disposal Pre-Authorization form.

Any sale to the public will follow the protocols outlined in State Board of Examiners Policy No. 442-40, and will follow prescribed advertising and competitive bidding requirements. The sale or donation of CWI property through any means to CWI staff, faculty, or their family members is strictly prohibited to avoid the perception or incidence of impropriety.

The following table presents the Business Office’s fixed asset form names and the purpose of each:

Forms

Forms and other documentation associated with this policy can be found on the internal Business Office website for Payables and Purchasing.

Property Disposal Form

Appendix A: Acquisition/Capitalization Standards

The examples below should be considered a guideline and may not cover variables for every acquisition. Items not explicitly listed below will be evaluated on a case-by-case basis. The Comptroller has the ultimate authority in capitalization decisions.