FIXED ASSETS Natasha Jackson Controller s Office Tuskegee University
What Are Fixed Assets? Assets that are not consumed or sold during the normal course of the University s business. Fixed Assets include land, buildings, equipment, machinery, vehicles, building/land improvements, and other such items.
Fixed Assets Capitalization Policy Equipment purchased by the university that: has a unit cost of $1,500 or more the University holds title to the equipment has a unit life greater than one year is a stand alone unit or is an integral component of a larger unit or system
Exceptions Assets purchased by a Federal or Sponsored Program; that are the property of the respective rewarding agency. The University is the custodian of the equipment and the user department is responsible for proper control and accountability for the asset. Bulk purchases where individual items are less than $1,500 are capitalized. Like items where total purchase is $25,000 or more.
How are Capital Purchases Coded? Basic Budget Grants and Contracts 55100- Equipment 75100- Equipment 55110- Furniture and Office Equip 75110- Furniture and Office Equip 55120- Educational Equip 75120- Educational Equip 55130- Scientific Equip 75130- Scientific Equip 55140- Computer Equip 75140- Computer Equip 55150- Machinery Equip 75150- Machinery Equip 55160- Fixtures 75160- Fixtures 55180- Vehicles 75180- Vehicles 55190- Network Costs 75190- Network Costs 55200- Livestock 75200- Livestock 55510- Renov and Alteration 75510- Renov and Alteration 55555- Non Capital Equip 75555- Non Capital Equip 16900- Construction in Progress 16900- Construction in Progress Account String: XX-XXXXXXXX-55100 Fund- Function/Dept/- Proj Code Expense Account
Departmental Responsibility Code assets to the appropriate Grants & Contracts or Basic Budget object code. Each university department is responsible for the use and security of all property or equipment in it s custody. Notify Accounting and appropriate authority of the disposition or transfer of fixed assets and completion of the appropriate form. Maintain documentation for non-capitalized assets where controls deem that it is necessary to do so. ***Accounting is responsible for tagging capitalized assets and updating accounting records***
Equipment Disposals/Transfers A list of equipment to be disposed of or transferred should be provided to the Accounting Department: Asset Number Asset Location (Current or New) New Custodian (Transfers) Method of Disposal (Sale, Scrapping, Donation, etc.) Accounting will coordinate removal of the equipment with Sodexho.
Fixed Assets Reporting Accounting maintains the following asset information: Asset Description Asset Purchase Date Voucher Number Custodian GL Expense Account Vendor Name Department PO Number Estimate Life Location Room Number
Why Is This Information Important? F&A Cost Pools and Rate Calculation; asset detail helps us determine indirect cost rate for facilities in compliance with Federal regulations, e.g. OMB Circular A-122, closeout purposes, and for audit documentation. Internal Accountability; net land, building and equipment account for 55% of the University s assets. Improper accountability poses a huge financial risk to the university.
Construction In Progress Construction In progress, ongoing construction of buildings and other structures, infrastructure, additions, and land improvements. Projects that are substantially incomplete but which are anticipated to be capitalized upon completion. Building improvements, capital expenditures that materially extend the useful life of a building or increase the value of the building, or both Examples of building improvements include additions, energy conservation projects, installation of fixed equipment such as elevators, switches, sprinklers or fume hoods in a building that previously did not contain that equipment, and major renovation of space to change or improve functionality.
Non-Capital Purchases Assets purchased that are less than $1,500 Expenditures that do not extend the unit s original estimated useful life or significantly enhance its net value Services and parts that keep assets in working condition: Painting Carpeting New parts Plumbing repairs Service Contracts Services and parts are charged as a repair or maintenance expense and are not considered fixed assets.
CONTACTS: Natasha Jackson 334-727-8609 jacksonn@mytu.tuskegee.edu Marco Lorenzo 334-724-4387 mlorenzo@mytu.tuskegee.edu Glenn Dickerson 334-724-4515 gdickerson@mytu.tuskegee.edu QUESTIONS???