CDB(LOCAL) - ACCOUNTING: INVENTORIES
The capitalization threshold for purposes of classifying capital assets shall be $5,000. Major building repairs and maintenance of at least $100,000, or that significantly extend the building's useful life, also are capitalized.
The vice president of financial and administrative affairs shall develop a system for monitoring inventories and establishing accountability for all fixed assets.
Regulations for implementing this policy shall provide for assigning responsibilities appropriately and for holding such property custodians accountable.
The purposes of the College District's fixed asset policy shall be to:
- Comply with generally accepted accounting principles as promulgated by the Governmental Standards Board;
- Comply with federal regulations pertaining to grant application requirements;
- Maintain appropriate stewardship of the location and value of fixed assets;
- Provide data necessary for maintaining preventive maintenance records and warranty information;
- Furnish records for risk management concerns;
- Plan for asset replacement or enhancement in the capital budgeting process; and
- Avoid unnecessary purchases by identifying assets that can be shared or utilized by other departments.
Authorized Fixed Asset Officer
The vice president of financial and administrative affairs or designee shall serve as the fixed asset coordinator of the College District. The fixed asset coordinator shall be responsible for reallocating or disposing of surplus equipment. All fixed asset transactions shall be recorded and maintained.