Fixed Asset Equipment Inventory Procedures Capitalized Fixed Assets

Identification of Fixed Assets and Addition to Inventory Records Capitalizable assets will be identified upon purchase, marked with a state inventory tag in Central Receiving, by the Delegated Inventory Officer and recorded in the FAE/Direct Line by the Accounting Assistant in Business Services Department. A copy of the inventory form will be given to the Capital Accountant who will verify the equipment costs based on PO, actual costs, installations costs, and capitalization rules. The Capital Accountant will verify the inventory database on a quarterly basis, reconciling for all changes along with running the quarterly SARS reports.

Disposal of Fixed Assets and Deletion from Inventory Records When a capitalizable asset is disposed, a disposal form will be sent to Business services. The item will be identified by tag number and removed from the FAE/Direct Line by the Accounting Department once the form has been received. A copy of the disposal form will be given to the Capital Accountant, while the original will be maintained by the Accounting Assistant responsible for inventory entry.

Small and Attractive Assets

Identification of Small and Attractive Assets and Addition to Inventory Records Small and attractive assets will be identified upon purchase, marked with a state inventory tag, and recorded in the FAE/Direct Line. Small and Attractive Assets will be identified based on the college’s small and attractive policy (10/2014).

Disposal of Small and Attractive Assets and Deletion from Inventory Records When a small and attractive asset is disposed, it will be identified by tag number and removed from the FAE/Direct Line by the Accounting Department.

Trade-ins/Rebates When an asset is traded in in exchange for a new asset, the trade in, along with inventory tag number is noted on the PO to purchase the new asset. The new asset is booked into FAE/Direct Line at the asset cost, before trade in. The asset that was traded in is then disposed of in FAE/Direct Line. The Accounting Assistant will give the Capital Accountant a copy of the PO once the new asset has been entered and the old asset disposed of. A copy will also be needed for yearend reconciliation for financial statements.

Similarly if an asset is purchased with rebates or credits this information will be noted on the PO and the new asset will be booked into FAE/Direct Line at the asset cost before any rebates or credits were applied. Consideration will need to be made when balancing the J* Sub objects for the amount of the rebate.

Donated Items According to College Policy 416.005, all donations to the college must be handled through the Clark College Foundation. The Foundation will fill out an in-kind donation form for any asset that has been donated. This form may declare the value of the asset at the time of donation. This form is forwarded to the Capital Accountant in Business Services. The Capital Accountant will determine if the value listed on the donation form is accurate for capitalization purposes, or if a different value is more appropriate. Once this has been determined, a copy form will be shared with the Accounting Assistant. If the item is small and attractive, or value at $5,000 or above, the college will assign a tag number and the Accounting Assistant will physically tag the item and enter the item into FAE/Direct Line.

Physical Inventory, Reconciliation, and Adjustments to Inventory Records Physical inventory verification will be completed on a rolling monthly basis, with the college divided into areas, with each area’s inventory being reconciled at least once every two years. The Accounting Assistant in Business Services is responsible for the monthly reconciliation. Upon completion of the physical inventory counts, the assets counted will be compared with the FMS-FAIS. Any discrepancies between the count and the list will be resolved by the Accounting Assistant working collaboratively with the appropriate department responsible for the equipment. The Accounting Assistant will update FAE/Direct Line with any location or room changes and provide the Capital Accountant with a copy of the verification sheets, signed by the Accounting Assistant. The capital accountant will verify all changes were made appropriately in FAE/Direct Line. The Accounting Assistant will also prepare a list of items that appear to have been lost or stolen. A second attempt to verify the location of the missing items on the list will be made in July of each year, following the first attempt to locate. If the items are still determined to be lost or stolen, a list will be created for disposal detailing the reasons and both dates of attempted verification. This list will be provided to the Director of Business Services for review and approval. Upon approval, the Director will submit the list to Accounting Assistant to remove the items from FAE/Direct Line. A signed copy of the approved disposal list will be given to the Capital Accountant. The Capital Accountant will verify all changes were made appropriately in FAE/Direct Line. In addition, the SAO will be notified and provided a list of the items that were deemed lost or stolen, provided by the Director of Business Services. In preparation for year end, the Capital Accountant reviews all expenditures paid from potentially capitalizable sub-objects. This list is compared to all expenditures actually capitalized as fixed assets. Any expenditures not capitalized are changed through an accounting entry to be coded to the appropriate non-capitalized sub-object.

Overview of Responsibilities by position

Purchasing/Central Receiving  Capitalizable assets will be identified upon purchase  Marked with a state inventory tag in Central Receiving  A Blue inventory form will be completed and sent to Business Services for entry into FAE/Direct Line

Accounting Assistant  Upon receiving the blue inventory form, enter the asset in FAE/Direct Line  Forward a copy of the inventory form to the Capital Accountant  Upon receiving a disposal form identify as an asset by tag number, remove it from the FAE/Direct Line inventory system  Forward a copy of the disposal form to the Capital Accountant, maintain the original copy with inventory files  Complete physical inventory verification on a rolling monthly basis, with the college divided into areas, with each area’s inventory being reconciled at least once every two years-comparing assets to listing from FAE/Direct Line  Update FAE/Direct Line with any location or room changes  Provide the Capital Accountant with a copy of the verification sheets, signed by the Accounting Assistant  Prepare a list of items that appear to have been lost or stolen. o A second attempt to verify the location of the missing items will be made no later than 6 months following the first attempt to locate. o If the items are still determined to be lost or stolen, a list will be created for disposal detailing the reasons and dates of attempted verification. o This list will be provided to the Director of Business Services for review and approval. Upon approval, the Director will remit the list to Accounting Assistant to remove the items from FAE/Direct Line. o A signed copy of the approved disposal list will be given to the Capital Accountant o Upon Receiving a donated asset form (in-kind form), the Accounting Assistant will determine if If the item is small and attractive, or value at $5,000 or above, the college will assign a tag number and the Accounting Assistant will physically tag the item and enter the item into FAE/Direct Line.

Capital Accountant  Upon receiving a copy of the inventory form, will verify the equipment costs based on PO, actual costs, installations costs, and capitalization rules  Verify the inventory database on a quarterly basis, reconciling for all changes along with running the quarterly SARS reports.  Upon receiving a disposal form, verify the asset has been properly disposed of in FAE/Direct Line  Upon receiving verification sheets, ensure changes have been made appropriately for reporting  Upon receiving the list of items that were lost or missing and then disposed of, the Capital Accountant will verify all changes were made appropriately in FAE/Direct Line  In preparation for year end, the Capital Accountant reviews all expenditures paid from potentially capitalizable sub-objects. o This list is compared to all expenditures actually capitalized as fixed assets. o Any expenditures not capitalized are reclassified through an accounting entry to be coded to the appropriate non-capitalized sub-object  When a donated asset form (in-kind donation) has been received from the Foundation, determine if the value listed on the donation form is accurate for capitalization purposes, or if a different value is more appropriate. o Once this has been determined, a copy form will be shared with the Accounting Assistant.

updated 01/14/16 Inventory Verification Schedule 2016 cm

Month Department Location Month Department Location JANUARY CDEV CCF JULY Verify missing items IBGC TBG ISC TBG AUGUST ESURP SHL KMRAD TBG INST CCW KNAC CCW/CTC FEBRUARY NCCC CFS KNURS CCW CTECH CTC MELEC CTC SEPTEMBER PART FAC MMECH CTC PTHEA FAC MPUT CTC PMUS BMH SCI CTC GATHL OSC LOFF OSC MARCH EBSTR GHL LPE OSC ESEC GHL GDSS GHL OCTOBER MAUTO AA1 GST GHL MOFF4 AA2 GVP GHL MWELD AA3 IELRN GHL MCTEC AA4 MBAK GHL MDNET AA5 MGRCP AA6 APRIL GASCC PUB MET AA5 ILIB LIB MMACH AA6 KDH HSC NOVEMBER MDIES DSL MAY ECNTS FST ECUST FST DECEMBER BCMPT BRD EEHS FST EPRT BRD EGRND FST COMM BHL EMNT FST EPLTS FST WHENEVER IMED ALL OVER JUNE OENGR APH BCSUG ALL OVER OPHYS APH OBIOL SCI ✓ Done

OCHEM SCI ✘ No Inventory