Financial Services Policy 7.8 – Fixed Assets

The University’s Fixed Assets Section has procedures in place to ensure compliance with the North Carolina Office of the State Auditor, North Carolina Office of the State Controller policies, University of North Carolina Finance Improvement and Transformation Project Capital Assets Standards, Generally Accepted Accounting Principles, federal and state laws, and private granting agencies regulations. The accountability, proper care, maintenance and security to prevent misuse or loss for all UNCG personal property is delegated to vice chancellors, deans and department heads, depending on their division or area of responsibility. Non-numbered tags are available to departments for identifying additional equipment that is not recorded on the Fixed Assets System. Departments are encouraged to maintain an in-house inventory of all equipment items purchased (particularly, equipment which may be sensitive to theft or misappropriation or that is insured), regardless of whether the item is recorded on the Fixed Assets System. Department heads appoint a permanent employee as designee to assist with the daily care of property within individual departments and to assist with the annual physical inventory process.

UNCG capitalizes fixed asset purchases of vehicles, machinery, furniture, equipment, works of art and historical treasures, and all other tangible assets used in operations with a cost of $5,000 or greater and a useful life of two years or more; otherwise the expenditure is recorded as an operating expense in the fiscal year incurred. Capitalized equipment is barcode tagged and physically inventoried annually.

Purchases of land, improvements to land, buildings, building improvements, easements, infrastructure, and intangible assets are capitalized within the guidelines of the Office of the State Controller.

The sale of UNCG fixed assets is not permitted by individuals or departments. In addition, UNCG equipment cannot be thrown away or discarded. All UNCG fixed assets should be disposed through the Warehouse Services and Surplus Property office. Departments may contact the Warehouse Services and Surplus Property at 334-5927 with questions regarding disposal of an asset.

UNCG elected to use the straight-line method of depreciation with the half-year convention and assumed salvage value of zero. Land, certain land improvements, construction-in-progress, and inexhaustible works of art, historical treasures and similar assets are not depreciated.