Fixed Assets

• Records and tracks fixed assets from acquisition to end-of-life.
• Administers and maintains the Districts’ property accountability and control system (Fixed Assets Module).
• Provides the District’s Controller with the necessary documentation and capital assets reports.
• Evaluates loss, damages, destruction, disposals, thefts, trade-ins, sales, and/or transfers of district assets.
• Provides guidance to departments on fixed assets related matters .

Fixed Assets are defined as tangible, non-consumable items owned by the college and valued at or above $250 with life expectancy of at least a year. Capitalized Assets are defined as tangible, non-consumable items valued at or above $5000. They are acquired (purchased, constructed, or donated) for use in our operations. Capitalized assets shall not be used for investment or sale. All fixed assets shall be entered into the Fixed Assets Inventory Module for tracking and financial reporting purposes.

• Procurement, Contracts, and Logistics – Purchase Orders are issued and the fixed assets are received;
• Gifts-In-Kind – Donations are received from various organizations;
• Capital Projects – Assets purchased through capital improvement projects;
• Auxiliary/Foundation – All purchases/donations accepted through these divisions of the District. 

Asset	Method
Procurement Contract and Logistics	Purchase Orders are issued and the fixed assets are received
Gifts-In-Kind	Donations are receive for various organizations
Capital Projects	Asset purchased through capital improvement projects
Auxiliary/Foundation	All purchases/donations accepted through these divisions of the District

Asset Delivered to the SMC Warehouse/Receiving.

All assets that arrive on campus should be delivered to the Warehouse/Receiving Department with the appropriate documentation for processing/asset tagging, which includes scanning and uploading asset detailed descriptions that is specific to the asset and its current location. This will allow the District to track all of its assets that are deemed to be ‘in-use’ 

• Maintain current inventory records for all in-use fixed assets within its assigned department;
• Ensure that property is given proper care and protection and is used for official purposes only;
• Notify the Fixed Assets Manager of any changes in the index coding of an asset;
• Notify the Fixed Assets Manager whenever assets are transferred/acquired, sold, donated, destroyed, stolen, lost or otherwise disposed of by using the Asset Movement Form ;
• Identify and report to the Fixed Asset Manager any surplus property which is in use but not needed, or is beyond economic repair and therefore shall be disposed of;
• Assist in taking physical inventories.

Asset Movement Form

Asset Form

Gifts or donated equipment valued at $500 (Five Hundred dollars) and above with a useful life of at least one year shall be added to the Fixed Assets Inventory Module to ensure accurate accounting of all district owned assets. If a department directly receives a gift-in-kind, the donation form shall be completed and forwarded to the Asset Manager. The donor of the gift shall assign a value to the asset. For gifts-in-kind valued at $5,000 and above, per IRS, a third-party appraisal is required. The Asset Manager shall provide detailed information of gifts-in-kind to the Controller for accounting/reporting, and the SMC Foundation shall issue the appropriate IRS tax-deductible forms. 

 

Donated Equipment Acceptance Process:

Complete the In-Kind Donation form.  The form shall be routed to all appropriate Internal Departments to determine risk, cost of maintenance, infrastructure readiness and final approval shall be determined by the Chair/VP of the department where the equipment will be located.  

Once the donation is fully approved, the requester shall complete a Work Order through Facilities Operation to have the equipment delivered to the District. 

Once delivered, contact Asset Management to have the Fixed Asset tag affixed for donations exceeding $500 dollars.  

Movable equipment acquired as part of a Capital Project and meets the required dollar value threshold shall be tagged and recorded in the Fixed Asset System referencing the Capital Project Contract (Purchase Order) Number.

The individual purchase price shall accompany each movable inventory listing as determined by Contractor and shall be submitted to the Project Manager of the Capital Project.

The majority of Capital Projects will not have specific line items required to receive movable inventory. It shall be critical to provide the In-service Date of the Asset (Use Property Movement Replacement and New Asset Tag form). This form shall be used for Capital Project assets that have been delivered to the project site. The completed form shall be sent to the Fixed Asset Manager to coordinate the tagging of asset for the movable equipment related to the Capital Project.

Otherwise all Capital Project Inventory shall be delivered to the Receiving/Warehouse for asset tagging prior to moving the equipment to the final destination. 

To request a repair or trade-In, complete the Property Movement Form. If assistance is needed in providing the original equipment purchase order, contact Asset Management. For items that have a Fixed Asset tag affixed, forward a copy of the completed form to the Buyer of record in order to make repair or trade-in arrangements.

If the Buyer deems the asset can be repaired, after communication with the Supplier, the buyer will obtain a Return Material Authorization Number (RMA#), at which point the buyer will issue a Repair Purchase Order. In the event that the Supplier charges for the repair, a requisition form may be required to encumber the repair cost. The buyer will issue the Repair PO, provide the RMA number on the movement form and provide the requesting department a copy. A copy of the completed Property Movement form shall be affixed to the equipment. All arrangements to have item(s) picked up from the requester's location and shipped back to the Supplier should be made with the Receiving/Warehouse Department.

The above process may be followed for trade-in assets as well. Likewise, the Property Movement Form shall be completed. In the RMA No. Section, simply indicate 'Trade-in'.

All completed Property Movement Forms shall be forwarded to Asset Management to ensure tracking of all repairs and/or trade-in equipment.

Trade-ins or exchanges of assets under warranty result in the existing asset being written-off and the introduction of new assets to the Fixed Assets Module. Proper documentation and communication with the Fixed Assets Management Department about trade-ins and exchanges of assets under warranties is vital for proper control and reporting.

The Fixed Assets Manager is responsible for changing the status of records when the disposition of assets occurs. In general, surplus or obsolete equipment may be disposed of by transferring them to another department, discarding/scrapping, trading-in, donating, or selling the asset. When selling, donating, or disposing of assets, the department responsible for the asset shall complete the Property Movement Form.

For hazardous waste Contact Risk Management regarding the disposal of: batteries, biochemicals, chemicals, radioactive waste, and hazardous materials contact Risk Management.

For IT equipment contact IT department for assistance with confidentially related data destruction before disposal of IT equipment. Contact Information Technology.

Each year, the Fixed Assets Manager shall provide Department Heads with a listing of all reportable property by departmental area. Using the listing of reportable property as a basis, a joint inventory will be conducted by the Department Head or its designee, Fixed Assets Manager, and Property Clerk(s).

In addition, a physical inventory shall be conducted bi-annually with a rotation to reach each campus locations (i.e., Main Campus and all its Satellite locations) once every two years. Departments will be given advance notice regarding performing physical inventory dates. The purpose of performing a physical inventory is to verify the existence and condition of equipment, and to ensure the accuracy of the district's accounting records. Any discrepancies will be noted and investigated by the Fixed Assets Manager. The results of the physical inventory, including but not limited to unresolved discrepancies, shall be reported to the Controller.

Lost or stolen property must be reported as soon as the loss or theft is known. In the case of known or suspected theft, the Department Head or its designee, shall report the incident to Risk Management, Campus Police and copies of all reports shall be submitted to the Fixed Assets Manager. 

Currently, SMC works with two auction houses to auction its surplus equipment. SMC does not sell surplus equipment directly to its students, faculty or staff. For more information about the auction houses we work with, please visit their websites:

• General Auction Company
• TLC Auctions

Reason	Form to be Used
Disposal/Surplus no longer needed District assets	Property Movement Form
Moving Assets from one location to another	Replacement of New Assets Tag Form
Replacing Asset Tags on equipment	Replacement of New Assets Tag Form
Sending equipment for warranty exchanges or repairs	Replacement of New Assets Tag Form
Accepting Donations	Gifts-In-Kind Donations form