Definition of Fixed Assets
An item is considered a fixed or capital asset if it meets all three (3) of the following criteria:
- The asset is owned or considered to be owned by the university
- The asset is held for operations for more than one year
- The asset’s acquisition value is $5,000 or more for equipment (including installation, training, etc.) or $50,000 or more in aggregate project costs for buildings and building improvements.
All land is considered a fixed asset.
Fixed assets are recorded at cost on the date placed in service. Donated items are recorded at fair market value on the date received.
Depreciation is calculated on a straight-line basis over the estimated useful life of each class of depreciable asset. Estimated lives range from 3 to 40 years. Since land does not have an estimated useful life, it is not depreciated.
The information contained within this page will guide you to the necessary forms, policies and procedures, training, and tools necessary to maintain your fixed assets properly.
Fixed Asset questions should be directed to Kathryn Hackworth at firstname.lastname@example.org or 336.758.4096.
Departmental Property Administrator (DPA) definition
DPA’s are representatives across campus that assist Financial and Accounting Services (FAS) with the safeguarding of university assets by ensuring that their department adheres to the university’s Fixed Asset Policy and accompanying Inventory Procedures.
The DPA is responsible for all fixed assets in their area, including renovations. The DPA partners with the Fixed Asset Accountant to ensure a successful inventory by informing the Fixed Asset Accountant of any movement of fixed assets and by assisting in the physical inventory process.
Frequently Asked Questions
|Why do we inventory fixed assets?||A physical inventory is the best way to ensure that the information in the financial records are as accurate as possible. The resulting inventory listings are designed to assist departments in carrying out their responsibilities regarding the accountability for University equipment including:|
• Reporting of changes in asset status
• Relocation of equipment
• Tracking assets
|What assets will be inventoried?||Any movable asset valued over $5,000 individually or as an operating unit and has a useful life of more than one year.||Asset Management|
|Do assets purchased with grant funds need to be tagged?||Yes, if the item has a value over $5,000 individually or as an operating unit and a useful life of more than one year. Even though the asset was purchased with grant funds, the University is responsible for the item.||Asset Management|
|What should I do if it is necessary to take a tagged asset to an off campus location?||An Equipment Loan Authorization form should be filled out with approval from the Dean or Department Chair. The DPA will keep this form on file and record the borrowed asset on the Equipment Location Record form. Both forms are updated when the item is returned.||Asset Management|
|Can we trade-in an asset on a new item?||Yes. A replacement asset may be acquired when an existing asset is traded in to the vendor as partial payment on the new asset. The DPA must submit a Fixed Asset Update Form for the traded in asset to the Fixed Asset Accountant, as well as copies of all information concerning the purchase of the new asset.||Asset Management|
|How should we handle assets that our department no longer needs or uses?||When a department determines that an asset is no longer useful, the DPA should fill out a Fixed Asset Update Form and contact Procurement to handle the removal of the asset. Procurement will determine if the item will be scrapped or placed into surplus, note their decision on the form and the send the form to the Fixed Asset Accountant, who will make the needed adjustments in the Fixed Asset module. (Departments should be aware that a fee may be charged for this service).||Asset Management|
|When will my department’s assets be inventoried?||A portion of the University’s assets to be inventoried will be counted each year so that a complete physical inventory will be taken, at a minimum, every two years. An annual schedule of inventory will be posted on the Fixed Assets website. Each DPA should check the inventory schedule periodically so that they will be prepared for the inventory of their department.||Asset Management|
|Can I discard an asset that is now worthless and basically junk?||No, Procurement must make the decision as to how the asset will be disposed of, as parts may be able to be salvaged for surplus or for use in other pieces of equipment.||Asset Management|
|How should we prepare for physical inventory?||Preparation for inventory should be an ongoing routine. Identifying assets, ensuring assets are located in their proper place (or have documentation explaining why they are not), keeping the Fixed Asset Accountant up to date on the movement of the department’s assets year round will help the inventory process run smoothly. For more detailed preparation steps, see the Fixed Asset Inventory Procedures document located on the Asset Management web page under the Policies & Procedures tab.||Asset Management|
|Can we give an asset to another department on campus?||This needs to be handled through Procurement, as they are informed of who needs certain equipment. A Fixed Asset Update Form must be filled out for the transfer and Procurement will handle the movement of the item. Procurement will forward the form to the Fixed Asset Accountant, who will make the needed adjustments to the Fixed Asset records.||Asset Management|
|Who is responsible for locating assets?||The DPA is ultimately responsible for locating all assets in his/her department.||Asset Management|
|What happens if we cannot find an asset?||The DPA will make every attempt to locate missing equipment. If an asset is not located within 45 days, it will be retired from the Banner Fixed Asset and Sage FAS inventory tracking modules||Asset Management|
|What should we do when an asset is stolen?||If any University property is missing and presumed stolen, the employee discovering the suspected theft must report the theft to the DPA immediately. The DPA should then notify the Dean or Department Chair who, will in turn, notify Campus Police.|
The DPA should attach a copy of the police report to the Fixed Asset Update form, noting the asset tag number and serial number and send them to the Fixed Asset Accountant.
The Fixed Asset Accountant will notify the Insurance Administrator, if asset value is over $25,000. If the item is still missing after 90 days, it will be disposed of and removed from the Fixed Asset module.
|Where can I find the Fixed Asset forms?||All Fixed Asset forms are located on the Asset Management web page under the Forms tab.||Asset Management|
|What is my role as a Department Property Administrator?||As a DPA, you will be responsible for ensuring your department adheres to the Fixed Asset policies and procedures. You will be expected to partner with the Fixed Asset Accountant to ensure a successful inventory by informing him/her of any movement of capital assets throughout the year and assisting in the physical inventory process and count.||Asset Management|
|What is an asset tag?||An asset tag is a bar code decal that identifies Wake Forest University owned fixed assets that are inventoried.||Asset Management|
Departmental Property Administrator Authority Form
Fixed Asset Update Form
Bill of Sale
Fixed Asset Addition Checklist
Fixed Asset Replacement Form
Equipment Loan Authorization Form
Equipment Location Record
Off-Campus Equipment Verification Worksheet
Non-Taggable Asset Form