Fixed Assets Administrative Procedure
FIXED ASSETS ADMINISTRATIVE PROCEDURE
GENERAL TOPIC:
Fixed Asset Administrative Procedure
POLICIES RELATED TO:
RESOURCE CONTACT:
AUTHORITY:
DATE ISSUED:
01/04/2010
REVISED:
Inventory Officer, VP of Admin. & Purchasing
Joann Wiszmann, VP Administrative Services
DEPARTMENT:
Admin. Serv.
01/04/2010
PURPOSE
The Office of Financial Management (OFM) requires agencies to develop definitions and policies governing fixed
assets, including assets considered to be small and attractive. It is not the purpose of this administrative
procedure to recreate the detailed policies and procedures set by state accounting regulations. It is the purpose of
this procedure to fulfill OFM’s fixed asset requirements.
DEFINITIONS
These definitions and procedures apply to all assets purchased by Pierce College. They do not apply to assets
purchased by subcontractors unless specifically stated in the subcontract. This administrative procedure should
be used in conjunction with detailed policies and procedures set by state accounting regulations.
Capitalized Fixed Assets: Assets with a unit cost at or over the capitalization level set by the Office of Financial
Management (OFM) are defined as capitalizable fixed assets.
Small and Attractive Assets: SAAM 30.40.20 requires agencies to define non-capitalized assets they consider
particularly vulnerable to loss as "small and attractive".
The state requires agencies to develop policies to protect and control the use of assets. The College defines its
greatest risk to be assets that are readily portable and easily converted to personal use, such as laptop computers
and digital cameras with a value greater than $999 and less than $4,999.
Pierce College considered several factors when determining which assets should be included in the Small and
Attractive assets category. The first was whether or not tracking the item would provide a disincentive for theft. It
was determined that, in most cases, tagging an item would not necessarily by itself prevent it from being stolen.
Secondly, would tagging allow any lost or stolen items to be more readily identified? It was determined that items
that are assigned to an individual, mounted or connected to a cart would be noticed quickly, while more mobile
equipment would not be and should be tagged. The College also determined the cost to track any item with an
original purchase cost of $999 or less exceeds the benefit.
As a result of this consideration, Pierce College has defined the following categories of items as "small and
attractive" if their original purchase price exceeds $999:

6720 - Cameras Still, Digital Cameras

7013 - Laptop computers, Notebook computers, Tablet computers

7730 – Camcorders
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As a part of this process, Pierce College also determined computer software met the definition of portable and
easily converted to personal use. However, the usual method of converting software to personal use is to make a
copy of it and would not result in Pierce College losing its asset. Also, the great majority of computer software is
only licensed to the college and not owned. Therefore, computer software is not defined as small and attractive.
Designation of Agency Inventory Officer
With this administrative procedure, the Vice President of Administrative Services designates the Receiving and
Mailroom Supervisor as the Agency Inventory Officer. If that position is vacant, the Procurement Officer is
automatically delegated the responsibility of Acting Inventory Officer.
PROCEDURE
Capitalized Fixed Assets
Identification of Fixed Assets and Addition to Inventory Records
Capitalizable assets will be identified upon purchase, marked with a state inventory tag, by the Delegated
Inventory Officer and recorded in the FMS-FAIS by the Purchasing Department.
Disposal of Fixed Assets and Deletion from Inventory Records
When a capitalizable asset is disposed, lost, or stolen, it will be identified by tag number and removed from the
FMS-FAIS by the Accounting Department.
Physical Inventory, Reconciliation, and Adjustments to Inventory Records
Upon completion of the physical inventory counts, the assets counted will be compared with the FMS-FAIS. Any
discrepancies between the count and the list will be resolved by the Inventory Officer. The Inventory Officer will
provide the Purchasing Department with a list of the items to be updated or corrected. Purchasing will then update
the FMS-FAIS. The Inventory Officer will also prepare a list of items that appear to have been lost or stolen. This
list will be provided to the Vice President of Administrative Services for review and approval. Upon approval, the
VP will submit the list to Accounting Department to remove the items from FMS-FAIS.
Small and Attractive Assets
Identification Of Small And Attractive Assets And Addition To Inventory Records
Small and attractive assets will be identified upon purchase, marked with a state inventory tag, and recorded in the
FMS-FAIS by the Purchasing Department.
Disposal Of Small And Attractive Assets And Deletion From Inventory Records
When a small and attractive asset is disposed, lost, or stolen, it will be identified by tag number and removed from
the FMS-FAIS by the Accounting Department.
Physical Inventory, Reconciliation, And Adjustments To Inventory Records
Upon completion of the physical inventory counts, the assets counted will be compared with the FMS-FAIS data.
Any discrepancies between the count and the list will be resolved by the Inventory Officer. The Inventory Officer
will provide the Purchasing Department with a list of the items to be updated or corrected. Purchasing will then
update the FMS-FAIS. The Inventory Officer will also prepare a list of items that appear to have been lost or stolen.
This list will be provided to the Vice President of Administrative Services for review and approval. Upon approval,
the VP will submit the list to the Accounting Department to remove the items from FMS-FAIS.
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Responsibilities of Agency Delegated Inventory Officer






Tag all capitalizable and small and attractive assets
Schedule physical inventory counts and ensure they are completed at least once every two years.
Develop detailed instructions for each physical inventory count and ensure appropriate staff are assigned
and trained
Report items that are determined to be lost or stolen to Campus Safety
Maintain control of inventory tags
Provide a completed inventory report to the Vice President of Administrative Services
Responsibilities of the Vice President of Administrative Services

Approve all adjustments to the inventory records to be made based on the results of the physical
inventory count and submit to Accounting.
Responsibilities of Purchasing Staff

Identify items at time of purchase as Capitalizable and Small And Attractive Assets using appropriate Sub
Object coding. Record all capitalizable and Small And Attractive assets into the FMS-FAIS after the asset
has been tagged. Make corrections and updates as requested by the Inventory Officer in FMS-FAIS
Responsibilities of Accounting Staff

Remove Capitalizable and Small And Attractive Assets from FMS-FAIS when sold to another agency,
surplused, lost or stolen
Responsibilities of Information Technology Staff

To assist the Inventory Officer with the physical inventory of all capitalizable and Small And Attractive
computer related assets.
Responsibilities of Media Department Staff

To assist the Inventory Officer with the physical inventory of all capitalizable and Small And Attractive
Media related assets.
Responsibilities of All Employees

Report any lost, stolen, or missing assets to campus safety
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