To establish processes, appropriate standards, authorization requirements and internal controls to ensure that CWI’s fixed assets are acquired, safeguarded, monitored, disposed of, and accounted for in accordance with College policy, state and federal laws and generally accepted accounting principles (GAAP); and to assign roles and responsibilities for accountability.
Applies to all CWI staff, faculty, and contractors responsible for acquiring, safeguarding, and/or disposing of fixed assets for their respective departments, as well as procurement and accounting staff in the Business Office performing functions relating to fixed asset purchasing, accounting, inventory, and disposal processes.
Acquisition Cost: The complete cost of acquiring an asset, to include primary purchase or construction costs plus allowable ancillary costs. For donated assets, capitalized value to be based on appraised or fair market value.
Ancillary Cost: Costs related to placing a capital asset into its intended location and condition for use, to be included in the acquisition cost of the asset such as transportation, installation, and other auxiliary expenses as detailed in Appendix A, Acquisition/Capitalization Standards.
Asset Custodian: The staff/faculty member assigned primary responsibility to use and/or safeguard an asset.
Book Value: The acquisition cost of an asset less any accumulated depreciation or amortization.
Capital Asset: Real, personal, or intangible property with an acquisition cost or value of $5,000 or more and an estimated useful life of one year or greater, that is capitalized and depreciated. A capital asset may include land, buildings, improvements to land or buildings (owned or leased), equipment, capital leases, construction in progress, library, historical, and art collections, vehicles, and qualifying intangible assets.
Capitalization: The recording of a cost as an asset (on a balance sheet account) rather than an operating expense, to be expensed gradually over the life of the asset. CWI utilizes a standardized useful life schedule as a guideline to determine the appropriate time frame for expensing the asset, and capitalization processes are managed through the Fixed Asset Module of the ERP system.
Capital Lease: A long-term lease with contractual terms transferring substantially all benefits and risks inherent in ownership of the property. For criteria and accounting procedures relating to capital leases, refer to the Business Office procedure at (I:\Controller\Procedures\Accounting\Capital Lease Accounting).
Collection: An accumulation of one or more items that represent works of art, historical treasures, library or museum items, or similar assets. These items may be capitalized as a group where the total value/cost meets the capitalization threshold (but individual items may fall below the threshold).
Construction in Progress (CIP): A capital asset reflecting the cost of construction work undertaken, but not yet completed, that will result in a capitalized asset when the project is finished (Reference: GASB.org to Governmental Accounting Standards Board (“GASB”) Statement No. 51).
Depreciation: The systematic allocation of the cost of a depreciable capitalized asset (less salvage value) over its estimated useful life. All capitalized assets will be depreciated, with the exception of inexhaustible assets that do not lose value over time. CWI uses the straight-line depreciation method to calculate depreciation.
Donation: An asset received from an individual or a non-government entity. Donations are received and acknowledged through CWI Foundation processes before being added to College inventory, and shall be recorded at the estimated fair market value at the date of acquisition. Assets received from government entities are considered a transfer and not a donation.
Fixed Asset: An asset that is tagged, tracked, and managed in accordance with CWI’s fixed asset policy. A fixed asset may include capital and non-capital (“tracked”) assets included in inventory per policy requirements.
Fixed Asset Category: An asset category code assigned to a group of similar asset types (such as equipment, vehicles, land, etc.) for the purposes of applying standards of useful life and organizing fixed asset records for reporting, inventory, and asset management purposes.
Improvement: Costs associated with the permanent improvement of owned or leased buildings, land, or other capital assets that extend the estimated useful life, increase capacity, substantially improve the quality of output, or result in a substantial reduction in the operating cost of the asset. Ordinary repair and maintenance that restores rather than enhances an existing asset (examples: re-painting a wall, replacing carpeting or a window, etc.) are excluded.
Inexhaustible Asset: Assets that do not have a limited life and maintain value over time (including land, works of art, historical treasures, and some intangible assets such as patents and water or mineral rights).
Intangible Asset: An asset that lacks physical substance, is non-financial in nature, and has an initial useful life greater than one year and a value of $200,000 or more. Examples include: patents, Internet domain names, custom computer software, water or mineral rights, easements, or capital lease agreements. (Reference: GASB Statement No. 51).
Inventory: The periodic accounting of fixed assets to verify and attest to the existence, location, and condition of each asset.
Trade-In: Assets acquired by the exchange of other assets (usually for a similar asset category such as a vehicle or piece of equipment). The value of the traded item (and associated loss or gain) shall be properly accounted for and a corresponding adjustment made to the acquisition cost for the new asset.
Useful Life: The estimated lifespan of a depreciable fixed asset, used for the calculation of depreciation over the life of the asset and also for replacement planning. The College will utilize a Useful Life Schedule as a guideline for ensuring consistency in depreciation practices for similar asset categories and types.
It is CWI’s policy that all assets owned or assigned to the College will be acquired, safeguarded, and managed in a responsible, consistent, and ethical manner, and with the appropriate level of authorization, oversight, and accountability. Appropriate internal controls will be implemented to track and protect College-owned assets, maintain complete and accurate asset records, and account for College-owned assets in accordance with GAAP. Purchasing and acquisition activities will comply with applicable CWI policy and state and federal laws; be conducted with transparency, integrity, and competitive bidding; and demonstrate an appropriate and responsible use of all public funds. The disposal of College-owned assets shall occur only with advance authorization (per Appendix B: Roles and Responsibilities for Asset Management), as directed by CWI’s Board of Trustees. CWI will use as a guideline the disposal standards set by the Idaho Board of Examiners.
For audit purposes, purchases made prior to the latest revision of this policy are subject to that version of this policy in effect at the time the purchase process was initiated. Purchases made after the latest revision date of this policy are subject to this policy as amended.
Assets may be acquired by the College by various methods:
In order to ensure that asset records are accurate and maintained on a consistent basis, the following standards have been established:
CWI owns all property purchased with College or grant funds and all property transferred or gifted to the College, except where restricted or excluded by grant terms. No department, faculty or staff may hold a proprietary interest in any tangible or intangible property of CWI, and all assets will be put to their highest use for the overall benefit of the College. No student club shall own capital assets. Theft or misappropriation of CWI property and/or private property on College premises constitutes a violation of CWI policy and Idaho law.
Usage of property owned by CWI will comply with the following guidelines:
Proper asset management is critical to protecting CWI’s investment in property and equipment utilized to further its mission, and in demonstrating good stewardship of public resources. Each department is responsible for protecting, maintaining, and tracking the assets procured on its behalf and/or assigned to it, and for ensuring that purchasers and end users of CWI-owned property comply with established procedures regarding the acquisition, tracking, monitoring, and disposal of assets in a responsible and ethical manner. Below is a segregation of duties relating to fixed asset management.
All fixed assets will be accounted for at least once per year through a physical inventory to verify asset existence, location, and condition. Where appropriate, tracking for assets with a high value or theft risk may be done on a more frequent or perpetual basis through additional internal controls to protect the College’s investment.
Inventory activities will be planned and coordinated by the Fixed Asset Manager. Each departmental unit with assigned assets is responsible for completing the fixed asset inventory within the assigned time frame and submitting required reports and other documentation requested to update and maintain accurate asset records. Inventory records will be monitored and randomly verified through a quality assurance verification process, at the discretion of the Fixed Asset Manager.
Disposal of College-owned assets may occur only after authorization by designated departmental and executive authorities and will comply with the philosophy and policy established by the Board of Trustees, and guidelines set forth by the Idaho Board of Examiners (reference: State Board of Examiners Policy No. 442-40) and within applicable state and federal laws. Wherever possible, assets should be transferred (via sale or donation) or repurposed within the College or donated to a state or local public school or other publicly-funded organization to maximize taxpayer-funded resources. Surplus, redundant, or obsolete assets should be disposed of according to the guidelines and per a pre-approved disposal plan as detailed on the Property Disposal Pre-Authorization form.
Any sale to the public will follow the protocols outlined in State Board of Examiners Policy No. 442-40, and will follow prescribed advertising and competitive bidding requirements. The sale or donation of CWI property through any means to CWI staff, faculty, or their family members is strictly prohibited to avoid the perception or incidence of impropriety.
The following table presents the Business Office’s fixed asset form names and the purpose of each:
| Form Name | Purpose |
|---|---|
| DepartmentPropertyTransfer_Digital | To initiate the transfer a tagged asset between departments, programs, or asset custodians. |
| PropertyDisposalPre-Authorization_Digital |
To request authorization for the disposal, donation, sale or trade-in of CWI assets. Approval of this document is required PRIOR to disposal. Required for :
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| PropertyDisposal_Digital | Submitted after a disposal to document details of the disposal and request archiving of the asset record. This form will prompt deactivation and archiving of the asset record. |
| PropertyLostStolen_Digital | Form to report a lost, stolen, or missing asset. |
| PropertySale_Digital | To document cash proceeds and details of an asset sale, including cash receipt amount, disposition, purchaser, and transaction dates/details. |
| PropertyTrade-In_Digital | To document actual details of the trade-in, including a gain or loss on the asset being traded in and to adjust the value of the new asset. Required after the pre-approval trade-in occurs. |
Forms and other documentation associated with this policy can be found on the internal Business Office website for Payables and Purchasing.
The examples below should be considered a guideline and may not cover variables for every acquisition. Items not explicitly listed below will be evaluated on a case-by-case basis. The Comptroller has the ultimate authority in capitalization decisions.
| Asset category | Capitalized Costs (Primary and Ancillary) | Expensed Costs (Not Capitalized) | Comments |
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Land 8110 Expense 1810 Asset |
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Land Improvements 8115 Expense 1815 Asset |
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Buildings 8120 Expense 1820 Asset |
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Building Improvements 8122 Expense 1822 Asset |
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Leasehold Improvements 8125 Expense 1825 Asset |
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Equipment and machinery 8130 Expense 1830 Asset |
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Library Collection 8140 Expense 1840 Asset |
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Computer equipment 8155 Expense 1855 Asset |
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Vehicles 8160 Expense 1860 Asset |
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Intangible Assets 8165 Expense 1865 Asset |
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