Policies & Procedures


 

 

Section: ACT
Part: POL
Statement No.: 10.0
Date: 04/17/2012
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Fixed Assets 

 

UNC General Administration defines a capitalized fixed asset as tangible property, such as land, buildings or equipment, with a cost of $5,000.00 or more and a useful life of greater than one year. Capitalized fixed assets are acquired for use in normal operations and are not for resale. These assets are long-term in nature and may be subject to depreciation.

 

UNC-General Administration maintains two separate fixed asset inventories. The first is for UNC-General Administration and all sub-agencies (i.e. NC Center for School Leadership Development, NC Center for International Understanding, National Paideia Center, State Education Assistance Authority, and other affiliated operations).  The second is for the UNC Center for Public Television. The data from both UNC-GA and UNC-TV inventories are combined into UNC-General Administration’s Annual Comprehensive Financial Report (CAFR) at year end. 


  Note: The State Education Assistance Authority (SEAA) asset balances are excluded from  

  UNC-GA’s CAFR Statement of Net Assets.  Therefore, SEAA’s capital assets accumulated

  depreciation, and depreciation expense are reporting annually in SEAA’s CAFR, which is

  prepared and submitted to the Office of the State Controller by SEAA’s Business Office. 

 

In accordance with the guidelines established by the Office of the State Controller, both fixed asset officers at UNC-General Administration and UNC-TV will inventory all Land, all IT equipment and all other fixed assets valued greater than $5,000.00.  Inventoried cost of land and equipment includes all costs associated with bringing the asset into its intended useful service. All equipment, including IT equipment, valued greater than $5,000.00 will be capitalized and deprecated.  In accordance with GAAP, fixed assets will be recorded at historical cost or estimated historical cost. If the asset is donated, the fair market value on the date donated is recorded as cost.

                Note: UNC-TV maintains a separate IT equipment database for assets under $5,000.  UNC-TV’s IT

                equipment database (<$5,000) is used to monitor asset replacement,

establish insurance schedules, conduct IT asset inventories under $5,000, account for asset values, to track IP addresses for computers, to track desktop support licenses 

on equipment, etc. 

 

Lost or Stolen Assets:

 

Fixed assets that have been lost or stolen must be immediately reported by the discovering party to the Fixed 

Asset Officer for UNC General Administration. If the asset is believed to have been stolen the  reporting party    must also report the theft to the appropriate law enforcement authority and submit the authority’s subsequent 

report to the Fixed Asset Officer. It is the responsibility of the Fixed Asset Officer  to file an official report   with the State Bureau of Investigation (SBI) and coordinate any necessary

investigation.

 

 

Replacement of Asset (Insurance Coverage):

 

If an asset that has been lost or stolen must be replaced, UNC General Administration requires the requesting party provide the Official Police and SBI report, the associated invoice/purchase order of the

asset to be replaced and the new like-kind asset purchase order/invoice. If the department requests

replacement with a non like-kind asset the department must provide a justification for the replacement with a non like-kind asset. 

 

Disposals:

 

 

The asset custodian is responsible for determining if an asset is no longer needed by UNC-General Administration or any of its sub-agencies. When the custodian determines an asset is no longer needed he or she notifies the Fixed Asset Officer of the pending disposal. The custodian then prepares, completes and submits to the Fixed Asset Officer a Fixed Asset Record Adjustment Form, State Surplus Property Transmittal, or completed inventory worksheet detailing the transfer. The custodian is then responsible for coordinating the transfer to State Surplus Property for sale or transfer.

 

Reporting:

 

The Fixed Asset Officer performs periodic year to date reconciliations of active and disposed items from the Fixed Asset System to the General Ledger. The Fixed Asset Officer is also responsible for producing an annual Physical Inventory listing by location and Asset Control Account.