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Capital Assets

COASTAL ALABAMA COMMUNITY COLLEGE
Policies and Procedures Manual

06.05 Capital Assets

Original Approval: 04/01/2022
Last Updated:  06/01/2023
Last Reviewed: 06/03/2024

Policy/Purpose:

It is the policy of Coastal Alabama Community College to ensure compliance with Alabama Community College System (ACCS) Board Policy 324.01 and Chancellor’s Procedures 324.01, Capital Assets.

Scope:

This policy applies to all Coastal Alabama Community College students and employees during any activity involving the College, including the workday. In addition, visitors, vendors, contractors, and all other non-employees are expected to recognize and comply with College policies.

Definitions:

There are no definitions applicable to this policy.

Details:

  1. Coastal Alabama Community College will capitalize all property acquired by the institution in accordance with the amount prescribed by current federal government regulations for capitalization.

  2. Coastal Alabama Community College will conduct an annual physical inventory of capitalized items and reconcile to the financial statement for the corresponding fiscal year.

Procedures(s):

  1. A physical property inventory will be established to include all non-consumable institutional personal property except all livestock, animals, farm and agricultural products under the control of a System institution. Each institution will capitalize all property acquired by the institution in accordance with the amount prescribed by current federal government regulations for capitalization. The inventoried amount is computed as the cost of the asset plus any and all costs associated with taking physical control of the asset. The inventory will show the complete description, manufacturer’s serial number, acquisition cost, date of purchase, location, responsible officer or employee, and the college property control number.

  2. An employee must be designated as property manager. Except for books, the property manager will make an annual physical inventory of all applicable personal property. A copy of the inventory will be submitted to the Chief Financial Officer by September 30 of each year for reconciliation to the financial statement for the fiscal year. Each inventory will include all property acquired since the date of the last inventory. When a physical inventory fails to locate property, items listed on the previous inventory, then a complete explanation accounting for the property or the disposition thereof will be attached to the inventory and submitted to the Chief Financial Officer. All property managers will maintain a copy of all inventories submitted to the Chief Financial Officer and the copies will be subject to examination by all state auditors, employees of the Department of Examiners of Public Accounts, or the Chancellor or Alabama Community College System Office staff.

  3. Each property manager will be the custodian of, and responsible for, all physical property of the institution. When any property is entrusted to other employees or officers, the property manager will require a written receipt of the property so entrusted, which receipt will be executed by the person receiving the property. The employee or officer receiving the property will then be held responsible for that item of inventory.

  4. No property will be disposed of, transferred, assigned, or entrusted to any other department, division, or employee thereof without the written permission of the property manager.

  5. Whenever any property manager ceases for any reason to be the property manager, the Chief Financial Officer will immediately notify the President in writing. College officials will immediately check the inventories of all property for which the property manager was responsible and the successor to the property will execute a written receipt for all property received by him or her or coming into his or her custody or control. The last payment of salary due the property manager will be withheld until a complete reconciliation of the property inventory has been made and approved. In the event of any shortages, the property manager will not be held accountable for property entrusted to any other employee or officer and for which he or she holds a valid written receipt of the employee or officer. These guidelines do not negate any inventory requirements under Federal Regulations.

Additional Provisions / Information:

Code of Alabama 16-60-111.4.

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