Peralta Community College District AP 6551
A DMINISTRATIVE P ROCEDURE 6551 I NVENTORY OF P ROPERTY AND E QUIPMENT
A. District grantors, annual auditors, and insurance companies require that all property owned by the District be carefully inventoried and controlled, so that assets are properly safeguarded from loss and accurately recorded in financial and inventory records, especially for federally funded equipment which must be itemized, accounted for annual reporting and auditing purposes.
B. The Purchasing Department will maintain an inventory of all equipment items for General Fund,
Donations and Grant expenditures ($500 or more per unit), both federal and state funded. Assets will be verified by a physical inventory maintained on a room-by-room basis based on areas of responsibility for each campus and division offices in accordance to the District’s Fixed Asset Policy.
C. Physical inventory for assets purchased with General Funds, donated assets and items purchased with non-General Funds such as foundation, department councils and student club funds, will be conducted every two years by the respective division office and the inventory reports will be forwarded to Purchasing for accuracy. Assets purchased with grant funds will be conducted every year. The grant coordinator will be responsible for maintaining and verifying the physical inventory report for accuracy which shall include:
1) Description of the asset
D.
2) Proper Fund Code (Object Code and Account Code) for asset
3) Final location of the asset (campus, building, room number, etc.)
The completed physical inventory reports will be submitted to the Purchasing Department to update the master inventory report system. The Purchasing Department shall provide a yearly report to the Finance Department for audit purposes, at the beginning of each fiscal year, for the previous fiscal year’s activity reflecting the new and obsolete fixed asset items.
E. Change of Location forms must be submitted to the Purchasing Department for any item moved from the room in which it is inventoried.
E. Regardless of the purchase fund source, the District will track all assets and donations with a threshold of $500 including sales tax and other related charges, for tracking and insurance purposes.
Asset tagging will be based on the process identified in the Fixed Asset Policy located on the Purchasing web site.
F. In the event of theft, fixed asset items acquired outside of the authorized District purchasing process, may not be replaced.
G. Assets will be valued at historical/original cost, except donations which must be reported at fair
I. market value at the time of donation.
H. Classification and depreciation of assets will be the responsibility of the Finance Department and will be reported, as required, i n the District’s annual financial statements.
The Equipment is subject to periodic physical inventory audits by the District’s Internal Auditor.
J. Any missing, lost, stolen equipment must be reported immediately to District management and the Internal Auditor for investigation and internal control assessment purposes.

References:
U.S. Department of Labor, Trade Adjustment Assistance Community College and Career Training, (CFDA
#17.245)
Approved by the Chancellor: