Asset Management

A capital asset (also known as a fixed asset/capital equipment) is any individual item that:

1. Has a per-unit acquisition or fabrication/construction cost of $5,000 or more;

2. Is movable (not permanently affixed to a building or infrastructure);

3. Has a useful life of at least one (1) year;

4. Is an inanimate object, typically used to perform tasks (e.g., research, grounds-keeping, farming, transportation, etc.).

The life cycle of an asset, steps for budgeting for the expenditure, and process for purchasing capital assets can be found in the Capital Asset Business Process Guide

1. Capitalized equipment - non-consumable items with a net cost of $5,000 or greater and a useful life of more than one year.

2. Fabricated/constructed capital equipment expected to cost $5,000 or greater and with a useful life of at least one year or more must be declared in advanced to the Asset Management Office through a fabrication request so that an Asset ID number is established and referenced for all future qualified expenditures.  Upon putting the fabricated/constructed asset into service, the asset's responsible person must notify their Department Property Administrator and the Asset Management Office so that the asset can be tagged, and the accumulated value moved from the Constructions in Progress - Equipment (CIP-Equip) account into a Capital Equipment account and begin depreciation.

All capitalized equipment, purchased by, constructed by or transferred to the department with an original cost over $5,000. Assets that are lost, stolen, sold or junked will be taken off the inventory as soon as the Asset Management Office receives a signed Property Disposal Request Form. Note that additional signatures may be required depending on the original cost of the asset.

A Sensitive Asset Inventory List is an optional list created and maintained manually by each department for the purpose of tracking smaller, “sensitive” equipment that does not qualify as a capital asset. This includes items like small printers, laptops, tablets, etc. and is most useful for risk management purposes such as employee-assigned equipment, hazardous events such as flood, fire, etc. Maintaining a list of these items is essential in successfully managing your department’s expenses.

The Inventory Report on the Reporting Table of Contents shows asset information that is stored in the Asset Management system to help end-users view assets assigned to their department and where they are located. This report is used by Asset Management during the two-year rolling inventory review process. If a department needs to dispose of an asset, the information in this report can aid in completing the Property Disposal Request (PDR) form.

The equipment with an X number on a departmental inventory was not physically tagged by the Asset Management Office, therefore it does not have an inventory sticker on it. Nevertheless, an inventory number was assigned to the equipment and it was entered into asset management system with the assigned number.

Catalog requisitions do not have the functionality to edit requisition categories or natural accounts; therefore, you must complete a change order after the purchase order (PO) has been approved to change the natural account. If a change order is not completed before the PO has been closed, you must complete an expenditure correction.