Fixed Asset Inventory Process

Scope

This process applies to all departments, staff, and employees responsible for equipment owned, leased, managed, or disposed of by Lane Community College.

Process Statement

Fixed assets with a value of $5,000 and greater purchased or acquired by Lane Community College will be recorded in the institution’s fixed asset system.  All items purchased with Federal education funds will be tracked regardless of asset value in the database.  The assets must be properly tagged, tracked, and periodically inventoried.  All LCC departments are responsible for the management of all assets under their control. The fixed asset tracking system should interface or exchange data with institutional systems such as Finance, Procurement, and IT Service Management tools to ensure consistent reporting, eliminate redundant entry, and support asset lifecycle management.

Responsibilities

Tagging of Assets

• Assets will be tagged by the Procurement Administrator (Greg Davies) or designee within 30 days of receipt.  Departments are required to notify the Procurement Administrator with a date of when the asset(s) are put into service as this will affect how these asset(s) are depreciated.
• Tags must include a unique asset ID number and must be affixed in a visible, secure location on the asset.  These tags are blue for regular fixed assets, black for any purchase made using grant funds. A third tag (green) is designated for other grant purchased equipment.
• Some assets such as aircraft, art, technology, or sensitive equipment, may require alternative tagging methods.
  • The Procurement and IT departments will collaborate to ensure asset tagging occurs as part of the deployment process. For technology assets, tagging may occur post-configuration to maintain chain-of-custody integrity. The asset tracking system should integrate with IT service management or configuration management databases (CMDB) to ensure accurate lifecycle tracking.

Asset Inventory Procedures

• A physical inventory of all fixed assets (including grant-purchased equipment) will be conducted annually or more frequently for grant-purchased equipment if required by the grantor.  
• The following information will be verified: asset tag number, serial number (if applicable), description (type/model, etc.), location (building/room/department), condition (working/ repair needed/ out of service), and the responsible LCC department (custodian).
• Assets purchased with grant funds must document the following: description, serial # or another identification with the source of funding (including the FAIN), the title holder, acquisition date, cost of the property, the % of the Federal agency contribution towards the original purchase, the location, use, and condition of the property, and any disposition data including the date of disposal and the sale price of the property.
• Departments will be notified in advance by the Procurement Administrator and are responsible for participating in locating and verifying assets.
• Technology assets must also be reconciled with user or department assignment records maintained by IT. High-risk or mobile assets (e.g., laptops, tablets) will be verified biannually through automated or physical audit processes.
• Missing or stolen assets must be reported immediately.  View the COPPS policy on reporting loss for more information.

Transfers/ Relocations/Disposal of Assets

• Departments must notify the Procurement Administrator prior to moving assets between locations or when disposing of an asset. This is done by completing and submitting the LCC Property Disposition Request.  This form is located on the Contract and Procurement Services page under Employee Resources.
• LCC departments will notify the Procurement Administrator when assets that are obsolete, broken, or no longer needed have been disposed of and should be removed from the inventory list. The RecyclingCoordinator will provide a list of items that have been sold (including the dollar amount) at public auction. This information will include the date of disposition and the method by which the asset was disposed. 
• Assets must be disposed of in accordance with Lane’s Equipment:  Disposal Procedure.
  • For all technology assets, disposal must comply with institutional data sanitization standards (e.g., NIST SP 800-88) and electronic waste management practices. The IT Department will certify data destruction prior to transfer, recycling, or auction. Disposal procedures must also comply with any applicable grant, funding source, or federal equipment management requirements.  The department responsible for managing the asset shall be responsible for notifying the Recycling Coordinator if the asset has any special disposal requirements and what they are.
• For federally funded equipment: EDGAR §200.313 (d) (5) If the recipient or subrecipient is authorized or required to sell the property, proper sales procedures must be in place to ensure the highest possible return.
• EDAGR § 200.313 (e) Disposition. When equipment acquired under a Federal award is no longer needed for the original project, program, or for other activities currently or previously supported by a Federal agency, the recipient or subrecipient must request disposition instructions from the Federal agency or pass-through entity if required by the terms and conditions of the Federal award. Disposition of the equipment will be made as follows, in accordance with Federal agency or pass-through entity disposition instructions:

1. Equipment with a current fair market value of $10,000 or less (per unit) may be retained, sold, or otherwise disposed of with no further responsibility to the Federal agency or pass-through entity.
2. Except as provided in § 200.312(b), or if the Federal agency or pass-through entity fails to provide requested disposition instructions within 120 days, items of equipment with a current fair market value in excess of $10,000 (per-unit) may be retained or sold by the recipient or subrecipient. However, the Federal agency is entitled to an amount calculated by multiplying the percentage of the Federal agency's contribution towards the original purchase by the current market value or proceeds from the sale. If the equipment is sold, the Federal agency or pass-through entity may permit the recipient or subrecipient to retain, from the Federal share, $1,000 of the proceeds to cover expenses associated with the selling and handling of the equipment.
3. The recipient or subrecipient may transfer title to the property to the Federal Government or to an eligible third party provided that the recipient or subrecipient must be entitled to compensation for its attributable percentage of the current fair market value of the property.   
4. Email this form to daviesgm@lanecc.edu  

Depreciation and Accounting

• Fixed assets will be depreciated using the straight-line method over their useful life, if appropriate to the funding source (ex. federal grants).
• Useful life and salvage value will be determined based on asset type and institutional guidelines.

Audit and Compliance

• College Finance may conduct spot checks and internal audits at any time.
• The fixed asset records will be subject to external audits in compliance with government and accreditation requirements. 
• The fixed asset register will be updated to reflect verified and corrected data.
• Recommendations are welcome and will be reviewed for appropriateness and feasibility.

Training and Communication

• Departmental staff involved in asset management will receive periodic training from LCC Procurement (Greg Davies).
• Training on asset management procedures will include IT and departmental staff responsible for procurement, deployment, and disposal of technology assets, with emphasis on cybersecurity, data privacy, and compliance with institutional and funding source requirements.
• Policy updates will be communicated via email and through the College Finance COPPS informational page.

Process Review

This inventory process will be reviewed every two years or as needed due to changes in regulations or institutional requirements.

Questions?

Email daviesgm@lanecc.edu or contractprocurement@lanecc.edu