III.F. Fixed Assets
III.F.1. Fixed Asset Objectives
III.F.1.01 Fixed Asset Management System
The System shall design and maintain a fixed asset management system to meet the following objectives:
- Comply with generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board;
- Comply with federal and state grant regulations;
- Maintain appropriate stewardship of the location and value of fixed assets;
- Maintain preventive maintenance records and warranty information;
- Maintain records for risk management concerns;
- Plan for asset replacement or enhancement in the capital budgeting process;
- Avoid unnecessary purchases by identifying assets that can be shared or utilized by other departments; and
- Coordinate the disposal of fixed assets which are obsolete, depleted, or no longer meet the needs and requirements of the System.
The Vice Chancellor for Business Affairs/Chief Financial Officer, or designee, shall serve as the fixed asset coordinator for the System. He/she shall be responsible for designing and maintaining the fixed asset management system, establishing a capitalization policy and performing a periodic inventory of fixed assets.
II.F.2.01 Use of System-owned Property Other Than Facilities
System-owned equipment may be released to an employee occasionally to be used away from the primary work area. Procedures and guidelines shall be developed and implemented by the Vice Chancellor for Business Affairs/Chief Financial Officer, or his/her designee, and must be followed to ensure that use of System equipment is authorized.
- Equipment shall be used for designated and authorized System purposes only;
- Equipment may not be removed from the premises on a permanent basis, but may be used for specific designated project purposes;
- Individuals shall be responsible for the safe and proper care of any equipment, taking the same level of professional care as expected on the job site; and
- Supervisors’ permission must be obtained for each separate removal of equipment from the job site, and the approving supervisor shall be responsible for maintaining and verifying that any off-site equipment has been inventoried, and is being properly used.
III.F.3.01 Retirement, Sale, or Disposal of Property
The System may dispose of surplus property by sale or trade-in providing that such goods are disposed in accordance with applicable federal, state and local laws
III.F.4. Maintenance of Vehicles
III.F.4.01 Maintenance of Vehicles
Each System location shall maintain records evidencing the annual inspection of its vehicle fleet according to the standards as set forth by the uniform act regulating traffic on the highways. These records shall be maintained at each location, as well as with the risk management department of the System.
LSCS Policy Manual Section adopted by the Board of Trustees on August 7, 2008