Staff Policy D-504.03
Institutional Effectiveness Criterion: Operations

Fixed Assets

  1. The objectives of Northwestern Michigan College’s fixed asset policy and procedures shall be:
    1. To ensure that the College’s fixed assets are acquired, safeguarded, inventoried, disposed of, and accounted for in accordance with state and federal guidelines, audit requirements, and generally  accepted accounting principles as prescribed by the Governmental Accounting Standards Board.
    2. To define what will be classified as a fixed asset
    3. To outline procedures to identify and safeguard College fixed assets in regards to acquisitions, transfers, disposals, and donated assets.
    4. To provide for centralized documentation for insurance, inventory, and management reporting purposes.
    5. To demonstrate accountability and effective management of all tangible fixed assets for which the College has stewardship responsibility.
  2. The Vice President of Finance and Administration shall develop and publish specific fixed asset procedures within the following limitations:  
    1. Expenditures shall be made within the budgeted funds annually adopted by the Board.
    2. Assets with a purchase price of $5,000 per unit or more and a useful life of more than 1 year are to be defined as a fixed asset.  The purchase price includes all parts, shipping, and other expenses to prepare the item for its intended use. Examples of capitalized assets include buildings, building improvements and renovations, equipment, furniture, vehicles, data technology, infrastructure, and art. Routine repairs and maintenance are not capitalized.
    3. The Straight-line method of depreciation will be used for all depreciable fixed assets, with a half-year of depreciation expense recognized in the year of acquisition.
    4. Items identified as a fixed asset will be assigned a unique identification number by the receiving office, which will follow the asset throughout its life in the College’s fixed asset system.

If any provision(s) of this policy or set of bylaws conflicts with laws applicable to Northwestern Michigan College, including the Community College Act of 1966, the Freedom of Information Act, or the Open Meetings Act, as each may be amended from time to time, such laws shall control and supersede such provision(s).

Authorized October 4, 2007
Revised December 20, 2013
Revised November 16, 2018