FIXED ASSET ACCOUNTING	No. 5-28	Rev. 9-3-92
		Date 8-17-77

I. PURPOSE

To outline Weber State University policy for establishing accountability for the fixed assets of the University.

II. REFERENCE

PPM 4-27, Property Acquired Through Government Grants or Contracts

PPM 5-27, Utilization and Disposal of Surplus Property

III. DEFINITIONS

A. Fixed Assets

Land, equipment, buildings, improvements and construction work in progress.

B. Land

The real property or acreage owned by the University, valued at acquisition cost plus expenses incurred in preparing the land for use.

C. Equipment

Items owned by the University with an acquisition cost as shown in Schedule "A," attached, and with a life expectancy of five years or more. Acquisition cost to include full cost of purchase plus freight and handling charges. Equipment items have their own identity and are not attached permanently to any building.

D. Buildings

The physical structures housing persons or property of the University. Buildings include items of equipment permanently attached.

E. Improvements

Items such as sidewalks, streets, tunnels, fences and bridges, which represent substantial value.

F. Construction Work in Progress

Uncompleted buildings or improvements in the process of completion.

IV. POLICY

A. Equipment

Equipment is capitalized and inventoried on the books of Weber State University based on full acquisition cost including freight and handling (per Schedule "A" attached) if the equipment has a useful life expectancy of five years or more.

Schedule "A" equipment values will be established by the vice president for Administrative Services.

Equipment inventoried at time of acquisition will remain on the inventory even if acquisition cost is less than current minimum value established by Schedule "A."

The following types of equipment, with acquisition cost below Schedule "A" values, will also be inventoried at zero value to reduce the risk of pilferage:

Calculators, office and dictation equipment

Computer equipment

Microscopes, telescopes, binoculars

Cameras, video equipment, projectors and related equipment

Recording equipment

Meters and other measuring devices

Art objects

Band instruments

Firearms

While no value will be listed for this equipment, departments have the same responsibility for controlling and maintaining these equipment items as they do regularly capitalized equipment.

Equipment items not inventoriable regardless of acquisition cost include the following:

Items made of glass, cloth, plastic and rubber products unless included above

Consumable items materially altered by use

Replacement parts which do not have a separate identity or utility apart from other pieces of equipment

Items permanently attached to buildings

Items rented or otherwise not owned (not to include equipment lease-purchased)

Equipment of low unit value and supply items will be included in "Building Contents" for insurance purposes.

Transfer of equipment from one campus location to another cannot be made without the approval of the department head or director, who has inventory responsibility. Property Control must also be notified of any transfer of equipment by the transfer or properly filling out a "Weber State Inventory Change Card" and forwarding it to Property Control.

B. Land, Buildings, Additions and Improvements

Land, buildings, additions, and improvements are capitalized and inventoried on the books of Weber State based on acquisition cost (per Schedule "A," attached).

Schedule "A" values will be determined by the vice president for Administration Services.

Additions and/or improvements to buildings must be permanently attached and/or add value to the building and may include the following examples:

Actual building expansions

Utilities

Central air conditioning

Hot water heaters and water pumps

Fire detection and sprinkling systems

Improvements may include the following examples:

Grounds irrigation systems

Fences, walls, sidewalks

C. Repair and replacement items are not capitalized because they replace existing components to maintain the function or utility of the facility, and do not change the value of the facility materially.

D. Assignment of equipment is made on a departmental basis. The chair or director of the department is the property custodian and is responsible for the care and maintenance of the equipment and to verify the equipment inventory at least annually.

University equipment shall not be removed from campus without written approval of the immediate supervisor. Department records should be maintained which record the authorization for removal and location of equipment not located on campus.

E. Surplus property may be contributed to other state, county, city or non-profit organizations. Donations of surplus property must be approved by President's Council. Prior to initiating any gift of surplus property, Property Control must be contacted to determine if other campus departments have need for the equipment. An Inventory Change Card must be forwarded to Property Control when property is donated to off-campus organizations.

Equipment:

Assets will be capitalized if acquisition cost is $500 or more, including freight and handling.

Land, Buildings, Additions, and Improvements:

Assets will be capitalized at acquisition cost, including expenses incurred in preparing the land for use.