Staff Policy D-504.03
Institutional Effectiveness Criterion: Operations
- The objectives of Northwestern Michigan College’s fixed asset policy and procedures shall be:
- 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.
- To define what will be classified as a fixed asset
- To outline procedures to identify and safeguard College fixed assets in regards to acquisitions, 3transfers, disposals, and donated assets.
- To provide for centralized documentation for insurance, inventory, and management reporting purposes.
- To demonstrate accountability and effective management of all tangible fixed assets for which the College has stewardship responsibility.
- The Vice President of Finance and Administration shall develop and publish specific fixed asset procedures within the following limitations: (Procedures are located on the S drive at S:\AdministrativeServices\Public\PROCEDURES\Capital\Fixed Asset Procedures)
- Expenditures shall be made within the budgeted funds annually adopted by the Board.
- Items, other than library books, with a purchase price of $5,000 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 or other expenses to prepare the item for its intended use. All library items regardless of amount are capitalized.
- The Straight-line method of depreciation will be used for all depreciable fixed assets with a half year of deprecation recognized in the year of acquisition.
- Items identified as a fixed asset will be assigned a unique identification number by the receiving office and will follow the asset throughout its life in the College’s fixed asset system.