information into the Colleague Fixed Asset Module in a timely fashion.
7.4.4 Facilities and Security Assure that proper security and protection exists for all College equipment. 7.4.5 Audit The Internal Auditor will observe the taking of physical inventories each year. The Auditor should help select the locations to be counted. Random sampling techniques should be used at each location with the intent of determining an exception percentage for items appearing in the inventory listing that are not found in the facilities. Untagged items found should be compared against the number of tagged items in the facility examined in order to determine the percent of error for untagged items. A formal report should be issued and corrections made. Donations An item is donated when it is given to the College without any expectation of reimbursement. Prior to the acceptance of an item(s), the Provost or the appropriate divisional Vice President should review the donation for its feasibility for College use and the costs associated with acquisition and for modifications, if any, to the facilities required by the item. The value of the item(s) is considered to be its fair market value at the date of acquisition. If the items(s) are of significant value, a professional appraisal may be in order. Physical Inventories Campus and Office of College Services department personnel in conjunction with the Senior Staff Accountant in the Controller’s Office and/or Internal Auditor will conduct physical inventories. The recommended schedules and detailed procedures can be found in the "Fixed Asset Policy" manual. The purpose of the physical inventories is to determine whether fixed assets carried on the books do in fact exist, where they are located, and whether all existing assets are recorded. After the physical inventories the inventory files must be updated and the general ledger accounts brought into balance with the inventory files. Removal from Inventory An item is retired when the College no longer has possession. Retirements may occur through the trade-in, theft/loss or surplus sale of an asset. All removals from inventory
7.5
7.6
7.7
19
Made with FlippingBook Learn more on our blog