Purpose: This policy establishes the standards and procedures for identifying, acquiring, recording, safeguarding, transferring, and disposing of fixed assets at Pittsburg State University (PSU). It ensures compliance with State of Kansas capital asset rules and supports accurate financial reporting and asset stewardship.
Applies to: All Pittsburg State University departments.
Fixed assets include tangible assets such as property, plant, equipment, and intangible assets such as easements, water rights, and software. A tangible asset is an item, or items to be assembled into a single asset. Tangible assets with a useful life greater than one year and total cost greater than or equal to $5,000 per item will receive an asset tag sticker and be maintained in the inventory database. An asset cost can include shipping, assembly fees, tax, freight costs, installation, and more. All costs necessary to bring an asset to its location and operating condition should be capitalized. An intangible asset is a non-physical resource that holds value but is not something that can be touched or seen.
The fixed asset record shall be based on a physical inventory and shall be charged with all acquisitions of fixed assets and shall be reduced by all dispositions of fixed assets. All state agencies are directed to submit a physical inventory of all fixed assets belonging to the State as of June 30 each year by August 31.
Assets depreciation rate and capitalization threshold are listed below. Assets will remain in inventory and will be accounted for annually even if fully depreciated.
It is considered best practice to purchase fixed assets using a requisition/purchase order. Assets should generally not be purchased by procurement card. To speed up processing times, it is also considered best practice to obtain a W-9 from the selected vendor and begin the supplier setup process as soon as possible. Having the vendor set up an ACH payment option will provide the fastest payment processing time.
To ensure proper accounting and tracking of an asset, the account code on the purchase order should always end with the letter A. These account codes have been designated as fixed asset clearing accounts in GUS Cloud. Anything that should be capitalized with the asset such as shipping, installation fees, etc. should be coded to the same ‘A’ account code as the asset. Once the asset has been capitalized, the clearing account code will be zeroed out, and the capital expense account code will be charged. If unsure, the Business Office will assist.
After an asset is purchased, someone from the business office will reach out to set up a time to put inventory stickers on the equipment as well as record the location of the asset. Information such as manufacturer, serial number, invoice number, PO number, location, contact person, and department will be recorded for each asset.
Every department is responsible for protecting assets from theft, misuse, or loss. This includes items under $5,000 that are not included in the fixed asset inventory in GUS Cloud. In the event of theft, it must be reported immediately to Campus Police and Public Safety and the Business Office. Pittsburg State University assets shall only be used in the conduct of official state business. Property may not be rented or loaned to any person or group for personal use.
Active projects such as building improvements, land improvements, and new buildings will be categorized as Construction in Progress. These will not be depreciated until the project is completed, in which case it will be moved to building improvements, land improvements, or buildings to be depreciated. Transactions related to Construction in Progress will utilize an asset clearing account code ending in ‘C’. All transactions related to the project should be coded to either Buildings CIP or Building Improvements CIP. The cost center for all CIP projects should begin with the number 9 and include ‘Capital’ in the name.
Prior to disposing of or selling an asset, a department should consult with the Business Office to determine the current book value of the asset. To record the disposition of the asset, submit the Microsoft Form for asset disposals located on the Business Office website. Regardless of the method of disposal (auction, private sale, e-waste, trade-in, or recycled), back up documentation and receipts need to be provided with the disposition submission. Documentation should show date sold, amount sold/traded in for, and who it was sold or given to. The department is responsible for disposing of their assets. The Purchasing Department can assist when listing items for auction and the Physical Plant can assist in the physical removal of large assets. If the department does not have all the required information for this form, please email fixedassetinventory@pittstate.edu for details. Ensure the disposal has been approved by all necessary parties. This includes the employee responsible for the asset, their supervisor, the department head, and the Office of Research and Sponsored Projects if the asset was purchased using grant or contract funding. Once the Business Office receives and processes the form, the asset will be removed from the GUS Cloud inventory records.
If an asset needs to be transferred to another department, room location, or responsible employee on campus, fill out the Microsoft Form for asset transfers located on the Business Office website. Make sure the department, tag number, asset description, department leaving, department going to, information regarding new building and room number, and the new person responsible for the asset is filled out. This form should also be filled out in the event of personnel change or room change, even if it is within the same department.
Assets that are donated (with individual fair market value of $5,000 or more per item) will be tracked the same and disposed of the same as assets purchased by the University. These assets will have “GIK” in the asset description and a red GIK written on the asset tag on the equipment.
The Business Office will conduct an annual in-person inventory for fixed assets recorded in GUS Cloud. Department heads are encouraged to have one individual in their department to help walk through and ensure all assets are accounted for. A signature will be required for every department certifying the inventory has been completed.
All departments and organizations are responsible for complying with this policy. Failure to comply with this policy may result in:
Business Office
110 Russ Hall
1701 South Broadway, Pittsburg, KS 66762
Phone: (620) 235-4157
e-mail: busof@pittstate.edu
Business Office website