Fixed Assets & Property Control :: Northern Virginia Community College

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Fixed Assets & Property Control

Policy Number: 311

Categorized: Administrative Policies

Responsible Office: Finance & Administration

Subject: Administrative Policy

Related Policies:

Forms: 105-148, 105-137, 105-005, 105-121, 105-135, 105-151, 105-124

Additional Information:

Effective Date: 01/01/2020

Last Reviewed Date:


1.0 Scope

This policy applies to the management of all College property (fixed assets excluding real estate, buildings, and land) and the life cycle stages of fixed assets, including acquisition, tagging, transfer, inventory, surplus, and disposal.

2.0 Policy Statement

The policies and procedures herein apply to all Northern Virginia Community College employees, departments, offices and organizations entrusted with State controlled property, regardless of the source of funding or location. Capitalized Assets must be recorded, maintained, and inventoried in the College’s asset management system (AIS-AM). These assets must be identified, tagged, maintained, and used only for authorized purposes. The College must report on the use of equipment assets as required by accounting standards, the CAPP manual, and the APSPM.

3.0 Definitions

College Property: Property and assets that are purchased with College funds, donated to the College, or acquired for the College through any other means, are the property of Northern Virginia Community College.

Capitalized Assets: Property that meets College criteria for asset capitalization listed below:
1.     All equipment with a value of at least $5,000
2.     All ETF Assets
3.     Has a useful life of greater than one year; and
4.     Asset is titled to the College.

Note: All Capitalized Assets are entered and tracked in AIS-AM and shall have asset tags affixed by the Property Control Office. Controlled Equipment, equipment valued at less than $5,000 but deemed sensitive by the College (i.e. firearms, certain grant assets, etc.), is tagged and tracked in AIS-AM.

Equipment Trust Funds (ETF): Funds that are provided by the Commonwealth of Virginia and managed by the State Council for Higher Education of Virginia (SCHEV) for purchasing new or upgrading obsolete equipment used for instruction and research.

Inventory Liaison: Classified Staff employee, assigned at the Dean/Director level, to track and manage the department’s assigned Capitalized Assets (E.G. – Office Manager or Administrative Assistant).

Physical Inventory: Physical inventory is a college-wide reconciliation of Capitalized Assets. The College conducts an annual inventory for all Capitalized Assets and a mid-year inventory for newly purchased (from the completion date of the annual Physical Inventory) Capitalized Assets.

Surplus Property: Surplus Property includes, but is not limited to, all College Property, Capitalized Assets,  supplies, equipment, materials, and recyclable items that (a) have served their useful purpose, and/or (b) are no longer functional, and/or (c) cannot be repaired or improved in a cost-effective manner, and/or (d) are not needed for use within the agency.

4.0 Procedures

4.1 Roles and Responsibilities

The responsibilities of the campuses, departments, divisions, and individuals charged with inventory maintenance of capitalized assets are set forth below.

  1. Property Control and Warehouse Services (Property Control Office):
    • Receives, identifies and tags assets with an inventory barcode.
    • Coordinates the physical transfer of assets and updates AIS-AM with the revised location.
    • Manages property loans and updates AIS-AM to reflect the asset has been removed from College property.
    • Determines appropriate method of disposal for Surplus Property and processes disposal.
    • Oversees and assists Inventory Liaisons with annual and semi-annual Physical Inventory of assets in accordance with College policies, VCCS guidelines and State Laws.
    • Performs Physical Inventory spot checks in coordination with the Controller’s Office.
  2. Inventory Liaisons:
    • Manages department or division inventory by submitting location changes, reassignments, lost or missing reports, and surplus requests.
    • Performs annual and semi-annual Physical Inventory within their department or academic division with assistance from the Property Control Office.
  3.  Controller’s Office:
    • Enters new assets into AIS-AM.
    • Final approver for all asset updates.
    • Disposes of surplus assets in AIS-AM.
    • Performs Physical Inventory spot checks in coordination with the Property Control Office.
    • Final approver for Verification of Inventory Performed.  

 
4.2 Asset Acquisition:

  1. The Property Control Office is responsible for receiving and tagging all Capitalized Assets. Once received, items that meet the threshold for Capitalized Assets must be tagged, entered into AIS-AM, and assigned to the respective department within 30 calendar days of receipt.
  2. Delivery and receiving of all assets must be directed to, or coordinated with, the Central Warehouse (CW) or a Campus Storekeeper. If a College department or employee directly receives a Capitalized Asset, the department’s Inventory Liaison must immediately contact the Property Control Office (Campus Storekeeper or Central Warehouse) to request an asset tag.

 

Note: When procuring a Capitalized Asset, eVA Users should select “Yes” for the Asset Flag field under “Accounting - By Line Item” in the eVA Requisition creation process. This helps the College identify assets that requires tagging.

4.3 Asset Relocation:

  1. When a Capitalized Asset is moved to another College location (Inter Campus) or to another building, room, or department at the same College location (Intra Campus), the location must be updated in AIS-AM. Five (5) business days prior to, or after moving or transferring a Capitalized Asset, the responsible Inventory Liaison must submit an Asset Update Request (eform 105-137). The form is routed to the Campus Storekeeper for asset updates in AIS-AM.
  2. An Asset Loan Request (eform 105-005) is required when a Capitalized Asset is sent off campus for repair or is utilized off site by a College faculty or staff member working remotely.   Once the asset is returned to the college, the custodian of that asset must inform the Campus Storekeeper to have the asset’s location updated.

4.4 Surplus Property:

NVCC is committed to handling property in a manner that is fiscally responsible and efficient while complying with applicable Department of General Services (DGS) Office of Surplus Property Management (OPSM) regulations.

  • Effort should be made to redistribute or re-use property before classifying equipment as Surplus Property.
  • No employee, faculty or staff member may discard, give away or remove property from College grounds without approval by the Property Control Office.
  • ETF equipment is leased equipment and is not allowed to be disposed as surplus until the lease expires and title passes to the agency.
  • College property that is no longer being utilized by a responsible department for any reason must be processed as Surplus Property.
  • The method of disposal of Surplus Property will be determined by the Property Control Office within DGS OPSM guidelines.
  • Assets awaiting disposal as Surplus Property are removed from the department’s Physical Inventory list in AIS-AM.

 
To request disposal of College property, the responsible department must initiate a Surplus Request  (eform 105--121). For bulk requests, the department will attach a Property Manifest itemizing asset tag numbers, serial numbers, model numbers and condition.

Once a Surplus Request form  is submitted, the Campus Storekeeper will review and Surplus Officer will review and process accordingly. Asset listed on the form are designated as surplus in AIS-AM by the Controller’s Office. The Surplus Officer will schedule a time for the asset(s) to be removed or stored in a temporary location until disposed of per DGS OPSM procedures.  Once the asset is physically removed, the Surplus Officer submits an Inventory Disposal Request (eform 105-135) and all supporting documentation to the Controller’s Office for asset disposal in AIS-AM. 

4.5 Physical Inventory:

Physical Inventory reconciliation is conducted twice per year and requires action by the Property Control Office, Controller’s Office, and Inventory Liaisons. A full Capitalized Assets inventory is conducted between February 1 and April 30. A second inventory of new (acquired after February 1st) Capitalized Assets is conducted between October 1 and Oct 31.

  • At the beginning of each Physical Inventory process, the Inventory Liaisons are provided with their department’s list of Capitalized Assets through the Verification of Inventory Performed (eform 105-151).
  • The Inventory Liaison reconciles the inventory either independently or with the assistance of the Property Control Office/Campus Storekeepers. Reconciliation ensures Capitalized Assets are accounted for with the proper status (located, missing, lost, disposed/surplus), location, and item details (model, description, etc.).
  • Missing items not located by the close of inventory are considered lost and must be reported to the Office of Risk Management by the Inventory Liaison or Campus Storekeeper via a Report of Loss to State Owned Property. The Office of Risk Management will send the Report of Loss to the Property Control Manager, who will then submit a Property Disposal Request (eform 105-135) to the Controller’s Office. At the end of each inventory period, the Campus Police are provided a list of all lost items.
  • Once the Physical Inventory reconciliation is complete, a copy of the reconciled inventory list must be attached to the Verification of Inventory Performed (eform 105-151) and submitted for final review.
  • During the month of May, the Controller’s Office will conduct a spot check of at least 10% of inventory performed. The Property Control Office will notify the Inventory Liaison if access is needed to locked areas to conduct the spot check. If a department does not pass the spot check acceptance threshold (80% accuracy), the Verification of Inventory Performed is returned for review and resubmittal. Two spot check failures within a Physical Inventory reconciliation will result in notification to the Vice President of Finance & Administrative Services and the respective Administrative Council member.

4.6 ETF Equipment Replacement:

  1. Lost or stolen ETF items with a depreciated value of $500 or more must be replaced within 90 days of the date they were discovered missing. When replacing ETF items, identify on the requisition that this is to replace a missing ETF asset, and provide the fixed asset tag number of the missing item as a comment on the requisition request.
  2. Replacement cost will be charged to the department that most recently had custody of the item.
  3. The replacement must be a comparable item.

4.7 Stolen Property:

In the event that College Property is stolen, the Inventory Liaison, Asset Custodian, or College employee most familiar with the incident must immediately (within one business day) report the incident to the Campus Police and Office of Risk Management via a Report of Loss to State Owned Property.  The Office of Risk Management will send the Report of Loss to the Property Control Manager, who will then submit a Property Disposal Request (eform 105-135) to the Controller’s Office.

4.8 Damaged Property:

The person or department to whom the College Property is assigned is responsible for promptly (within one business day) reporting damage or loss to the Office of Risk Management via a Report of Loss to State Owned Property.

5.0 Authority

Division of Purchase and Supply (DPS) of the Department of General Services (DGS), Agency Procurement and Surplus Property Manual (APSPM)

Department of Accounts (DOA) Commonwealth Accounting Policies and Procedures (CAPP). Section 30000 Fixed Asset and Lease Accounting

 

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