Section: GENERAL ACCOUNTING
|Section 3000 Policies|
Policy Number: 3151.04
Policy Title: Equipment
Policy Effective Date: January 1, 2011
Last Revision Date: October 6, 2011
(see revision history)
It is the policy of the California State University (CSU) that equipment is properly recorded, maintained and safeguarded, and that appropriate disposal methods are followed. Campuses must prepare written procedures that implement this policy.
The Chief Financial Officer (CFO) of each campus of the California State University is responsible for ensuring that a documented process is followed for the recording, tracking, and disposal of equipment.
Equipment with total acquisition cost of $5,000 or greater and a useful life of at least one year must be capitalized, tagged and recorded in the campus property inventory records and included in the campus’ financial statements prepared in accordance with generally accepted accounting principles (GAAP).
Campuses must establish a threshold for tracking of equipment valued under $5,000 based on an analysis of cost versus benefit and risk of misuse or misappropriation. Computers or lab equipment are examples of the type of equipment that may be included in this category. Equipment deemed to be trackable should be tagged and recorded in the campus property inventory records but not included in the campus’ GAAP financial statements.
Campuses must adhere to additional requirements as set forth in their information security procedures for the safeguarding and disposal of information technology equipment.
Items purchased to place a structure into service, commonly referred to as “Group II Equipment”, must be evaluated for capitalization or tracking based on the criteria above.
A physical inventory of recorded property must be performed at least once every three years by a party who is not the custodian of the item, or more often as required by agreement or law and must be reconciled to campus property inventory records. The completed reconciliation should receive management review and approval. Any discrepancies must be evaluated for further investigation and escalated to the appropriate authorities based on the specific situation and value of missing items.
Campuses must establish practices to reduce risk associated with the use of equipment by maintaining such equipment in good working order. For example, campuses are required to have a Motor Vehicle Inspection Program.
Each campus is authorized to sell or exchange personal property belonging to the CSU when it is deemed that the property no longer has useful value to the CSU or upgrades are needed. Such sale or exchange shall be for consideration based on fair market value.
Disposal of equipment must follow all appropriate rules and regulations including consideration of environmental and safety issues.
Executive Vice-Chancellor/Chief Financial Officer
Date: October 31, 2011
APPLICABILITY AND AREAS OF RESPONSIBILITY
This policy supersedes Executive Order 649.
RESOURCES AND REFERENCE MATERIALS
- CSU Capital Assets Guide (included in the annual CSU GAAP Manual)
Federally funded equipment, refer to the SPA -Equipment & Property policy.
- Executive Order No. 691
- Executive Order No. 409 - Purchase and Sale or Exchange of Personal Property - Delegation of Authority
- Executive Order 649 – Safeguarding State Property
- Executive Order 731 – Designation of Chief Financial Officer
- GASB Statement No. 34: Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments
Sound Business Practices:
Laws, State Codes, Regulations and Mandates:
- Office of Management and Budget (OMB) Circular A-110
COGNIZANT OFFICE(S)CO Manager:
Ms. Thoa Le
CO Budget Director, CO Budget Department
CSU Office of the Chancellor
Ms. Kelly Cox
Associate Director, Financial Services – Accounting
CSU Office of the Chancellor