College Property Inventory (Procedure 5.0801)

Purpose:

To define and outline a procedure to record, maintain, and inventory tangible College-owned property.

Procedure:

1. Definitions:
   
   
   1. Property: Equipment, machinery, and furnishings that are required by statute to be tagged and inventoried by the College.
   2. Identification Number: unique number assigned and affixed to each item of property to identify it as property of the college and to differentiate one item of property from another.
   3. Original Cost: invoice price plus freight. installation charges, or any other cost required to put the item into service, less any applicable discount.
   4. Value:  fair market value of donated property items as of the date of donation acceptance by the Board of Trustees.
   5. Custodian: the designated college employee who has the primary financial responsibility for the physical custody and use of all college property under their control. The custodian is also known as the department budget manager.
      
      
2. Property Acquisition
   Property can be acquired through the Seminole State College procurement process or received as a donation through the Seminole State College Foundation.
   
   
3. Threshold for Recording Property
   All property with total original cost of $5,000 or more and projected useful life of one (1) year or more shall be recorded in the college's financial system as property for inventory purposes. In addition, items with a value or acquisition cost under $5,000 may be recorded as accountable items. Accountable items are any items that the College wishes to track through the property system for any reason.
   
   
4. Marking of Property
   Each property item should be permanently marked or decaled to establish that ownership of the item rests with the college. Each marking should visually display the unique identification property number and should utilize a standard barcode system to facilitate electronic inventory procedures. In some cases, where determined by the asset accountant, a "parent-child" format of property classification and identification will be utilized.
   
   
5. Recording of Property
   Each item of property should be accounted for in a separate property record. The record should contain the following information:
   Identification number.
   1. Description of item.
   2. Physical location (building code and room number).
   3. Name of custodian.
   4. Name, make, or manufacturer.
   5. Year and/or model.
   6. Manufacturer's serial number, if any  and if an automobile, vehicle identification number (VIN) or title certificate number.
   7. Original cost or value at the date of acquisition.  Donated items must be valued at their fair market value at the date of acceptance.
   8. Date acquired.
   9. Method of acquisition, and if purchased, the voucher number.
      
      
6. Inventory of Property
   A physical inventory of all tangible college-owned property should be taken annually by the Property Specialist. Change of custodian, particularly when a large number of property items or a high value of items is recorded under the control of that custodian, may require a physical inventory to be conducted at the time of the custodial change. Custodians may not personally inventory items for which they are responsible.
   
   
7. All tagged property items will be scanned using electronic scanning equipment scanning equipment.  At a minimum, the recorded data should contain the following information concerning the property item:
   
   
   1. Identification number.
   2. Date of inventory.
   3. Physical location (building name and room number).
   4. Name of the custodian of the item.
      
      
8. The data acquired during the annual property inventory should be compared with the individual property records.  Differences such as location and custodian shall be investigated and corrected as appropriate.
   
   Any property item found during the physical inventory process, and not previously recorded, should be investigated to establish its ownership, and then added to the college's property records.
   
   Items not located during the physical inventory process should be promptly reported to the custodian and to the District Board of Trustees. An internal investigation by the College's Security Department should then be conducted. If the items are not located after the internal investigation, the property record shall be so noted, and a report should be filed with the appropriate local law enforcement agency. This report should describe the missing items and the circumstances surrounding their disappearance.
   
   
9. Property Accounting is responsible for maintaining an asset account in the Investment in Plant Fund in the College general Ledger for each of the categories of assets identified below with their capitalization thresholds in parentheses.  On an annual basis, Property Accounting will reconcile these accounts in the general ledger to their subsidiary property records.
   1. Land ($0)
   2. Buildings ($65,000)
   3. Other Structures and Improvements ($65,000)
   4. Furniture and Equipment ($5,000)
   5. Assets under Lease (If the College were to lease a quantity of items of similar nature that exceeded 5% of the prior year's non-depreciated total for the asset type, then the aggregate of the items should be disclosed as one or multiple composite leases in the financial statements.)
   6. Leasehold Improvements ($65,000)
   7. Construction in Progress (the same threshold as the asset type of the asset under construction)
   8. Intangible Assets (included Data Software) ($65,000 if purchase of perpetual license; $2,500,000 if capitalizable implementation costs)
   9. Artwork ($5,000)
      
      
10. Capitalized collections per accounting standards are to meet the rules identified below.  The College's Permanent Art Collection does not have rules that meet these criteria.  Therefore, the amount that is capitalized for artwork is just the value of the artwork that the College owns that exceeds a $5,000 threshold per item as a subset of tangible personal property.
    1. The artwork is held for public exhibition, education or research in furtherance of public service rather than financial gain.
    2. The artwork is protected, kept unencumbered, cared for and preserved, and the artwork is the subject of an organizational policy that requires the proceeds from sales of collection items to be used to acquire other items for collections.  College property should only be utilized for work associated for work associated with the operation of the College.  Employees who are negligent or disregard the proper use, prescribed care or operation and maintenance of College property may be subject to disciplinary action.
       
       
11. The College may lease any of its assets to others in either exchange or non-exchange written agreements.  Any long-term lease receivables arising from exchange transactions wherein the College is the lessor will use the same recognition thresholds as established for recognizing lease liabilities per the asset types defined in the eight (8) above.  Materiality for service concession arrangements will be based upon 5% of the prior year's total operating revenues.

Rulemaking Authority and Law(s) Implemented: Florida Statute 1001.64, 1001.65, 274.05, 274.06 and Policy 5.080

History – Adopted 01/2009, Revised 3/2024