Property management is a legally mandated requirement. An inventory of capital equipment is one element of a total property management system. Because an accurate inventory of the College's physical assets is important for accounting and insurance purposes, for establishing equipment replacement cycles, and for preparing and justifying biennial budget requests to state agencies, it is the policy of the College to maintain a current inventory of all physical assets of the College. Effective July 1, 2004 all items which have a unit acquisition cost of $3,000 or more (with the exception of computer equipment which is inventoried at $1,000 or more), and a useful life of one year or greater are to be included in the inventory. Computer equipment valued between $1,000 and $2,999 should be posted to subcode 3325 because it is inventoried, but not capitalized. Additionally, the high theft items noted below having an acquisition cost of $100 or more and useful life of one year or greater may be included in the inventory at the discretion of the College region. However, any and all high theft items must be removed from the inventory records when lost, stolen, or otherwise disposed of. Only Fixed Assets (FFX) Class Code XX9000 should be used for the high theft items noted below:

(This is not an all inclusive list.)

It is the policy of the College in accordance with federal regulations that a complete physical inventory, including correcting entries, be completed by June 30 of each even-numbered fiscal year (i.e. 1989-90). In the odd-numbered year (i.e. fiscal 1988-89) each region may perform a verification of equipment at each site.

The College has established a threshold capitalization of assets at $3,000 or more effective July 1, 2004. Any item valued $3,000 or more should be posted to the appropriate "CAP" subcode because it should be capitalized. Consequently all capitalized equipment for the College is maintained in an inventory.

Please note, that all Carl Perkins and CHE State Equipment that was purchased when the Education Department General Administration Guidelines (EDGAR) capitalization level was $300 or more (before July 1, 1996) must still be appropriately inventoried until disposed of. This is because the guidelines/regulations in effect at the time of acquisition are still applicable.