Fixed Assets / Surplus Sales Angie Evans
Objective Provide useful information to increase your understanding in the guidelines and policies concerning fixed assets and surplus sales
Topics to Discuss Define fixed asset Discuss frequency of surplus sales Emphasize the importance of using the correct account number when purchasing equipment Explain the responsibilities of the property manager Explain the responsibilities of a property custodian Discuss types of surplus sales Explain an overview of the process Define what items can be sold in the sales Questions Describe the process for the disposal of fixed assets Discuss applicable forms
What is a Fixed Asset? Assets with an initial unit cost of $5,000 or more Estimated useful life of one year or more Donated equipment with a fair market value > $5,000 on the donation date Other Common Names: Capital Assets Inventory Items Tagged Items
Capitalized Accounts ($5,000 or more) (XXXX-XXXX- XX) 8000 object codes (accounts) Fixed Asset Account Numbers: 8710 Furniture & Equipment $25,000 or Less 8711 Furniture & Equipment Exceeding $25,000 8713 Capitalized Software ($5,000 or More) 8740 Transportation Equipment $25,000 or Less 8746 Transportation Equipment Exceeding $25,000 8782 Technology $25,000 or Less 8783 Technology Exceeding $25,000
Scenario You have been asked to enter a requisition to Dell Computer Corporation for 20 - Dell Precision Tower 7910 computers. The total amount for this request is $120,000. There are no other items included on this requisition. Which account number (object code) should be used? 8782 Technology $25,000 or Less Solution: $120,000 divided by 20 = $6,000 each
Responsibilities of the Property Manager Maintain updated records on the college s fixed assets Tag & take pictures of all fixed assets o o o Blue Tag purchased with general funds Red Tag purchased with restricted funds Green Tag purchased with restricted funds and has unit cost < $5,000 (Vanessa Byars is responsible for the green tags.) Reconcile fixed asset inventory twice a year Send out an annual inventory count to property custodians (April/May) Ensure that disposals of all fixed assets are handled properly
Property Custodian A full-time employee that has been assigned as the responsible party for one or more fixed assets Should be an employee that works with or in the vicinity of the fixed asset(s) and would know immediately if the item(s) went missing Who determines the property custodian of a fixed asset? Division Dean
Responsibilities of the Property Custodians Accountable for all assigned fixed assets Responsible for contacting Campus Police immediately when an item goes missing o o File a report with Calhoun Police Complete a Missing Equipment Form Responsible for completing the Annual Inventory Count (April/May) Responsible for completing the applicable forms for transfer or disposal of an inventory item Responsible for following the proper process in disposing of a fixed asset
Disposal of Fixed Assets Step 1: Property Custodian completes an Inventory Request for Disposal Form and sends it to the Property Manager with all signatures and applicable back up documentation Step 2: The Property Manager will contact the appropriate office for approval. Contact the awarding agency if restricted funds were used (Red Tagged items), requesting approval to dispose of the item(s) Must allow 120 days for a response from the awarding agency! If general funds purchased the item(s) (Blue Tagged items), the Property Manager will complete a DPE-22 form and email it to the Chancellor requesting approval to dispose of the item(s) Step 3: Once final approval for disposal has been granted from the Chancellor, the Property Manager will email the property custodian & Dean stating that the item(s) can be properly disposed of at that time Step 4: The Property Manager will remove the item(s) from inventory at that time
Fixed Asset Forms All fixed asset forms are posted online: Go to calhoun.edu/personnel Click on Employee Forms Under Miscellaneous Business Office Forms Inventory Request for Disposal Form Missing Equipment Form Inventory Interdepartmental Transfer Form
Questions
Surplus Sale Information Frequency: Usually held once a year Contents: Inventory Items and Non-Inventory Items Types of Surplus Sales: Sealed Bids Auction Govdeals.com
April 2015 Surplus Sale Results Status # Items $ Value Closed No Bids 15 $75.00 Reserve Not Met 2 $6,000.00 Sold on Auction 71 $46,320.02 Totals: 88 $52,395.02
Overview of a Surplus Sale Business Office sends out an email campus wide announcing that we are preparing to have a surplus sale Departments contact the business office if they have items to include in the sale. Property Custodians must complete an Inventory Request for Disposal Form for each inventoried (blue, red, or green tagged) item that they wish to include in the sale Property Manager contacts the appropriate office requesting approval to dispose of the item(s) Property Manager completes a DPE-22 form and emails it to the Chancellor s office prior to the sale Surplus sale must be advertised at least two weeks in advance
Questions
Question #1 A fixed asset has an initial unit cost of at least $. Answer: $5,000
Question #2 True or False: All donated items to the college can be disposed of without an approval. Answer: False If the item had a fair market value of $5,000 or more at the time of the donation, then the item should be recorded as a fixed asset, and we MUST follow the proper process to receive approval BEFORE disposing of the item!
Question #3 True or False: The Inventory Request for Disposal form can be found on Calhoun s personnel website at calhoun.edu/personnel. Answer: True All of the forms needed when dealing with fixed assets can be found here.
Question #4 True or False: Only Non-Inventory items can be sold in a surplus sale. Answer: False As long as we have received the proper approval, we are able to list inventory items in our surplus sales.