Documents

Fixed Assets

Fixed Assets are defined as tangible, non-consumable items owned by the college and valued at or above $250. They have a normal useful life expectancy of at least a year. Capitalized Assets are defined as tangible, non-consumable items valued at or above $5000. They are acquired (purchased, constructed, or donated) for use in operations. Capitalized assets may not be used for investment or sale. All fixed assets shall be entered into the Fixed Assets Inventory Module for tracking and financial reporting purposes.

Fixed Assets may be acquired by the District in various ways:

  • Procurement, Contracts, and Logistics – Purchase Orders are issued and the fixed assets are received
  • Gifts-In-Kind – Donations are received from various organizations
  • Capital Projects – Asset purchased through capital improvement projects.
  • Auxiliary/Foundation – All purchases/donations accepted through these divisions of the District.

All assets that arrive on campus should be delivered to the Warehouse/Receiving Department with the appropriate documentation for processing/asset tagging, which includes scanning and databasing information that is specific to the asset and its current location. This will allow the District to track assets that are deemed to be ‘in-use’

Internal Department Responsibility

Understanding the Fixed Assets Policy

  • current inventory records for all in-use fixed assets within its assigned department
  • Ensure that property is given proper care and protection and is used for official purposes only
  • District property is used only in the conduct of official business
  • Use District property only to conduct official SMC District business
  • Notify the Fixed Assets Manager of any changes in the index coding of an asset
  • Notify the Fixed Assets Manager whenever assets are transferred/acquired, sold, donated, destroyed, stolen, lost or otherwise disposed of by using the PDF FileProperty Movement Form found in the forms section of this website
  • Identify and report to the Assets Manager any surplus property which is useable but not needed in his/her area, or is beyond economic repair and therefore shall be disposed of
  • Assist in taking physical inventories.

Gifts-in-Kind

Gifts or donated equipment valued at $500 (Five Hundred dollars) and above with a useful life of at least one year shall be added to the Fixed Assets Inventory Module to ensure accurate accounting of all district-owned assets. If a department directly receives a gift-in-kind, the donation form shall be completed and forwarded to the Assets Manager. The donner of the gift shall assign a value to the asset. For Gifts-in-kind valued at $5,000 and above, a third party appraisal is required. The Assets Manager shall provide detailed information of gifts-in-kind to the Controller for accounting/reporting, and the SMC Foundation shall issue the appropriate IRS tax-deductible forms.

It is the policy of the District that gifts-in-kind of collectibles such as works of art, historical treasures, and similar assets, with the intention of being added to collections held for public exhibition, education, or research in furtherance of public service rather than financial gain, will be entered into the Fixed Assets Inventory Module with a nominal value of one dollar for tracking purposes.

Capital Projects - Movable Inventory

Moveable equipment acquired as part of a Capital Project and that meets the required dollar value threshold shall be tagged and recorded in the Fixed Assets System referencing the Capital Project Contract (Purchase Order) Number.

The individual purchase price shall accompany each movable inventory listing as determined by the Contractor and shall be submitted to the Project Manager of the Capital Project.

The majority of Capital Projects will not have specific line items required to receive movable inventory. It shall be critical to providing the In-service Date of the Asset (Use PDF FileProperty Movement Replacement or New Asset Tag Form). This form shall be used for Capital Project assets that have been delivered to the project site. The completed form shall be sent to the Fixed Assets Manager to coordinate the tagging of an asset for the movable equipment related to the Capital Project.

Otherwise, all Capital Project Inventory shall be delivered to the Receiving/Warehouse for asset tagging prior to moving the equipment to the final destination.

Repair or Trade-In of Fixed Assets

To request a repair or Trade-In, complete the PDF FileProperty Movement Form. If assistance is needed in providing the original equipment purchase order, contact Asset Management. For items that have a Fixed Assets tag affixed, forward a copy of the completed form to the Buyer of record in order to make repair or trade-in arrangements.

If the Buyer deems the asset to be repairable, after communication with the Supplier, the Buyer will obtain a Return Material Authorization Number (RMA#), at which point the buyer will issue a Repair Purchase Order. In the event that the Supplier charges for the repair, a requisition form may be required to encumber the repair cost. The buyer will issue the Repair PO, provide the RMA number on the movement form and provide the requesting department a copy. A copy of the completed PDF FileProperty Movement Form shall be affixed to the equipment. All arrangements to have the item(s) picked up from the requester's location and shipped back to the Supplier should be made with the Receiving/Warehouse Department.

The above process may be followed for Trade-In Assets as well. Likewise, the PDF FileProperty Movement Form should be completed. In the RMA No. Section, simply indicate 'Trade-in'.

All completed Property Movement Forms shall be forwarded to Asset Management to ensure tracking of all repairs and/or Trade-In equipment.

Disposition of Assets – Movable Equipment

The Fixed Assets Manager is responsible for changing the status of records when the disposition of assets occurs. In general, surplus or obsolete equipment may be disposed of by transferring them to another department, discarding/scrapping, trading-in, donating, or selling the asset. When selling, donating or disposing of assets, the department responsible for the asset must complete the PDF FileProperty Movement Form.

This form shall be sent to the Fixed Assets Manager to request disposition of the asset. The Fixed Assets Manager shall be provided with the approvals necessary to proceed with the disposition of the asset. The disposal methods shall include a number of methods that have been deemed acceptable by the District. 

Physical Inventory of Equipment

Each year, the Fixed Assets Manager shall provide Department Heads with a listing of all reportable property by departmental area. Using the listing of reportable property as a basis, a joint inventory will be conducted by the Department Head or its designee, Fixed Assets Manager, and Property Clerk(s).

In addition, a physical inventory shall be conducted bi-annually with a rotation to reach each campus locations (i.e., Main Campus and all its Satellite locations) once every two years. Departments will be given advance notice regarding performing physical inventory dates. The purpose of performing a physical inventory is to verify the existence and condition of equipment and to ensure the accuracy of the district's accounting records.  Any discrepancies will be noted and investigated by the Fixed Assets Manager. The results of the physical inventory, including but not limited to unresolved discrepancies, shall be reported to the Controller.

Lost or stolen property must be reported as soon as the loss or theft is known. In the case of known or suspected theft, the Department Head or its designee shall report the incident to Risk Management, Campus Police and copies of all reports shall be submitted to the Fixed Assets Manager.