CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE FIXED ASSETS MANAGEMENT GUIDELINES Campuses of the California State

University system are required to adhere to CSU policy pertaining to acquisition, use and disposition of fixed assets. CSU Executive Order 649 delegates authority to campus presidents to establish and maintain a system of internal control to safeguard university property. These procedures provide reasonable standards for compliance with CSU policy and allow for customization as may be required by individual campuses. In keeping with its mission, the University provides equipment and furniture resources to members of the University Community. The equipment and furniture made available for student, faculty and staff use are the property of the California State University, Northridge and the State of California, and is provided for the completion of academic requirements, scholarship, and University business. Use of these resources is a privilege. Use of University equipment and furniture for activities other than academic purposes or University business is not permitted, and the University reserves the right to suspend the use of these resources for the following reasons: a). Illegal activities. b). Abuse of resources which significantly reduces the ability of others to use these resources. Adherence to these procedures will facilitate accurate record keeping related to the acquisition, control, and disposition of property. The combination of accurate accounting records and strong internal controls must be in place to protect against and detect the unauthorized use of the universitys Capital and NonCapital equipment. EQUIPMENT PROPERTY CONTROL DESIGNEES Campus departments have the primary responsibility for the care, custody, maintenance, records and control of all property. It shall maintain up-to-date departmental records and initiate such forms as are necessary to fully inform Asset Management with respect to the custody, records, control and all transactions involving said equipment so that Asset Management may properly carry out its responsibilities. Property Control Designees, designated by a chair, dean or director have responsibility for the following: 1. Promptly reporting any loss, damage or misuse of property or equipment to the Asset Management Department.

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE 2. Performing a yearly inventory of Capital equipment in conjunction with the Asset Management Department. 3. In conjunction with the Asset Management department, conducting a monitoring cycle of non-capital equipment on a perpetual basis, which will have no one cycle last longer than three years. Once the cycle is complete a new cycle will begin. The department chair, dean or director will assign the department property control designee these tasks in writing. DEFINITION OF EQUIPMENT Capital Equipment Capital equipment is defined as tangible or intangible, non-consumable property with an acquisition cost of at least $5,000.00. Capital equipment has a normal useful life of at least one year, is not permanently attached to or incorporated in university buildings and grounds, and is used to conduct university business. The cost of equipment includes the purchase price plus all costs to acquire (tax, shipping and handling), install and prepare equipment for its intended use. Non-Capital Equipment Non-Capital equipment is defined as tangible, non-consumable property with an acquisition cost of at least $2,000.00. Non-Capital equipment has a normal useful life of at least one year, is not permanently attached to or incorporated in university buildings and grounds, and is used to conduct university business. The cost of equipment includes the purchase price plus all cost to acquire (tax, shipping and handling), install and prepare equipment for its intended use. ACQUISITION OF CAPITAL AND NON-CAPITAL EQUIPMENT Delivery to Central Receiving Department Capital and Non-Capital equipment acquired on a university purchase order, foundation purchase order or government grant or contract will be barcoded and recorded before delivery to accepting department. The barcoded data is uploaded to the asset tracking system. Upon completion of the Equipment Monthly Activity Summary, Asset Management will forward property records to the Property Control Designee to verify or provide current information. Direct Delivery to Department/Pick-up by Department When Capital or Non-Capital equipment is delivered directly to a department or the department picks up the equipment directly from the vendor, it is the

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE responsibility of the department to notify Receiving of the delivery. The Receiving Department will barcode the asset or notifies Asset Management to barcode the equipment in the department. Transfer of Capital and Non-Capital Equipment to the University All requests for transfers of Capital and Non-Capital equipment to the university must be in writing and received by Asset Management. Transfer of grant and contract equipment to the State: Upon completion of a grant or contract where the title to the equipment is to be vested with the State, it is the responsibility of the University Corporation to prepare a letter of transfer to notify Asset Management. A Transfer of Location Equipment Form STD 158 is prepared by Asset Management. The asset being transferred will be added to the Universitys database as an equipment item. IDENTIFICATION OF UNIVERSITY CAPITAL AND NON-CAPITAL EQUIPMENT Identification All Capital and Non-Capital equipment is barcoded with a unique identification number and recorded in property inventory records. It remains so identified as long as it is in the custody, possession or control of the university. Assigned identification numbers are recorded on all applicable receiving, shipping and disposal documents, and other records that are related to the property control system. Such markings and identification are removed or obliterated from the equipment only when sold, scrapped, or otherwise disposed of. Once an identification number has been assigned, no change is made during the life of the item regardless of inter-departmental or inter-campus transfers. Departmental Responsibilities Barcoding, tracking, and maintenance of Capital and Non-Capital equipment records are the responsibility of Asset Management. Each department is charged with the responsibility for university equipment assigned to or purchased by their department. Inventories of Capital equipment will be taken each year as required. Non-Capital equipment will be monitored on a three-year cycle. Departments are responsible for communicating with Asset Management when equipment needs barcoding, or when items are lost, stolen, destroyed or transferred. Departments, for the purpose of accountability, may request bar coding of certain types of minor (sensitive) equipment that does not meet the acquisition cost of $2,000.00 dollars. Departments are instructed to limit the bar coding of this type

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE of equipment. However, once it has been determined that minor equipment under the $2,000.00 threshold is to be bar coded, the item becomes part of their Non-Capital equipment-monitoring list and departments are held responsible and must account for and dispose of all such items on their list in accordance with established procedure regardless of cost. Warranty information and support documentation is to be maintained by the originating department. Inventoried equipment will have minimal backup information maintained in the property records, which may be helpful in pursuing a warranty. The information maintained in the property records is not the primary source of warranty information. Instructional Capital or Non-Capital equipment is that equipment purchased for use in instructional departments. Reports on instructional equipment replacement expenditures will be available from property records. BARCODING (TAGGING) The application of the barcode number to Capital and Non-Capital equipment is the responsibility of Asset Management. However, this function may be delegated to a campus department when deemed appropriate. The identification number is applied to the actual unit unless its size or nature makes it impractical. A barcode bearing the identification number should be affixed in the top left corner or next logical or conspicuous position. Additional identification required by a department should be applied in a manner that avoids confusion with the state identification number. Should the identification number be accidentally or mistakenly obliterated, defaced or removed, the equipment will be barcoded with a new number. The previous number becomes the secondary number enabling Asset Management to account for all numbers associated with that item. LOCATION OF CAPITAL AND NON-CAPITAL EQUIPMENT The location of each item of Capital and Non-Capital equipment is noted in the departmental records. Current records as to movement of equipment are maintained in such a manner that any item of equipment can be located for inspection or inventory purposes within a reasonable time. The responsible department will notify Asset Management of any changes in location. EQUIPMENT REQUIRING SPECIAL HANDLING Personally Owned Equipment If a university employee keeps personally owned equipment on campus, it should be reported to his/her department and identified as the property of the owner. The university is not responsible for loss or damage to the equipment.

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE Loan Capital and Non-Capital Equipment Loans of Capital and Non-Capital equipment must be properly documented. 1. Loans of University Capital and Non-Capital Equipment from One Department to Another: If equipment is loaned to another department for a short period, a memorandum of the transaction should be filed in the lending department. 2. Loans of University Capital and Non-Capital Equipment to External Organizations, Employees, or Other individuals. Any loan of university Capital or Non-Capital equipment to an external organization or to an individual, including employees, must have prior approval. All loaned equipment shall be listed on an Equipment Loan Agreement form, and processed via Asset Management. When the equipment is returned, the lending department must notify Asset Management. 3. Inter-Campus Loans of Capital or Non-Capital Equipment. Inter-campus loans of equipment require prior approval. Loans of one year or more are recorded on inventory records. The borrowing campus on a Transfer of Location of Equipment form records inter-campus loans. INVENTORY OF EQUIPMENT Physical Inventories of University Equipment The Capital equipment inventory will take place during January of each year. It is the responsibility of each department to complete the physical inventory within the appointed time. Inventory equipment such as scanners will be provided along with instruction of their use, if necessary. Support documentation such as inventory listings and discrepancy reports will be generated for each department, and departments will be responsible for reconciling any and all discrepancies using the format provided by Asset Management. It is the responsibility of the owner department to maintain all support documentation for lost, stolen, loaned, deleted and damaged equipment. If needed, Asset Management will assist in processing those forms. Non-Capital equipment will be monitored with a perpetual system with no one cycle taking longer than three years. It will be the responsibility of each department to review and update the minor equipment listing using the Asset Management format provided. Departments must account for all Non-Capital equipment on their listing. Asset Management will assist each department with information for completion of forms needed to bring the departments listing up to date. Each Department must update their departments list within the required time. Departments will have one month to reconcile their listing.

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE If there is a change in the chairman/director of a department during the year, the department should take a physical inventory at that time. Asset Management may verify the departmental inventory on the basis of statistical sampling. If the sample shows gross discrepancies, the department will be requested to take a complete physical inventory. Results of inventories University departments will submit to Asset Management their inventory listing that properly identifies all discrepancies disclosed by physical inventory. The listing will be signed by the department head indicating that the physical inventory of all or certain classes of property was completed on a given date, and that official property records were found to be in agreement with the physical inventory, except for reported discrepancies. The listing will be furnished with a minimum of delay at the completion of the physical inventory. REMOVAL OF EQUIPMENT FROM PROPERTY RECORDS Survey In order to remove or delete Capital or Non-Capital equipment items from property inventory records, a process known, as a Survey must be completed. The following procedures must be taken: 1. A Surplus Property Survey Request (Form 116) must be prepared and submitted to Asset Management. A complete description of the item, including the University identification number and serial number, if available, should be furnished. 2. Asset Management will review the written request, prepare a Property Survey Report and then forward the completed Property Survey Report to the Universitys Property Survey Board for review and approval. 3. Upon approval, Asset Management will remove equipment from department equipment inventory records. The proposed disposal of property or equipment by cannibalizing, junking, salvaging, selling, donating or trading-in these items, must also be recorded on a Property Survey Report Form following the above procedures. Trade-in of Capital or Non-Capital Equipment Departments must prepare and submit a written request whenever equipment is being traded in. The request should include a complete description of the equipment, the vendor, the monetary value offered for the equipment, and

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE requisition number. The department should provide a Purchase Order number to Asset Management when it becomes available.

Lost or Stolen Capital or Non-Capital Equipment When a determination has been made that Capital or Non-Capital equipment has been lost or stolen, the individual or department accountable for the equipment should immediately notify the Campus police. A theft or lost report is completed and submitted with a Surplus Property Survey Request (Form 116) and a Lost Property Statement form to Asset Management. Employees may be charged for any loss or damage to University Capital or NonCapital equipment that is attributable to their negligence or unauthorized use. TRANSFERS AND RELOCATION OF CAPITAL AND NON-CAPITAL EQUIPMENT It is the responsibility of the department to notify Asset Management of all relocations of Capital and Non-Capital equipment items as follows: Inter-Departmental Transfers When Capital and Non-Capital equipment is transferred between departments, a Equipment/Furniture Move Service Request form must be completed and signed by the appropriate dean, director or chair of the department involved in the transfer of Capital and Non-Capital equipment. This form should then be forwarded to Asset Management to update the inventory records. Relocation of Entire Department When an entire department relocates, the department should conduct a complete physical inventory of Capital and Non-Capital equipment. Transfers to State Agencies When Capital and Non-Capital equipment is transferred between state agencies, a Surplus Property Survey Request form must be completed and signed by the appropriate dean, director or chair of the department and sent to Asset Management. The request is attached to a Transfer of Equipment form prepared by Asset Management, approved by the Property Survey Board, and signed by the receiving state agency. Sale of Capital and Non-Capital Equipment

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE Asset Management, in accordance with university policy, may offer university equipment for sale. The term sold equipment applies to university-owned equipment sold to external agencies or individuals. It does not apply to equipment transferred to another department or campus. Donation of Equipment Asset Management in accordance with university policy may donate university equipment. Any non-profit organization may qualify for a donation. The organization must submit a letter, requesting donation on letterhead to Asset Management. All donations of Capital and Non-Capital equipment must be processed through Asset Management. Junked or Salvaged for Parts A Property Survey Report must be prepared whenever it is proposed to dispose of university owned Capital or Non-Capital equipment by junking or salvaging the equipment for parts. Departments should follow the procedures outlined above in the section entitled Removal of Equipment from Property Records (Survey). CSUN ASSET MANAGEMENT DEPARTMENTS PROCEDURES FOR ACCOUNTING FOR UNIVERSITY GIFT DOCUMENTS UNIVERSITY GIFT POLICY It is the policy of California State University, Northridge that all gifts received by the university or any of its colleges, departments, or units, be deposited through the University Development Office with the California State University, Northridge Foundation. Gifts to the university may be in the form of cash or non-cash items. Gifts of art must be approved for acceptance by the universitys art collection commission. Gifts that are accepted with the expectation that they will be sold require special consideration for IRS purposes. PURPOSE To account for and reconcile Capital and Non-Capital equipment that is donated to California State University, Northridge. RESPONSIBILTY Faculty and Staff: All gifts of tangible personal property are transferred to the university through a deed of gift letter. Because of the tax implications related to

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE gifts, procedures have been established through the University Foundation to assist members of the academic community and donors in properly receiving and accounting for gifts to the university. Asset Management: Upon receipt of the deed of gift letter, Asset Management is responsible for processing the gift in accordance with CSUN gift policy and procedures. REQUIREMENTS Bar-coding Assets: Donated property is bar coded for accounting purposes when certain conditions are met. Bar-coding means to affix a University bar code to the asset, and record it in the University property records. The Campus maintains this accountability until disposition of each asset occurs. Tangible property must meet the following two requirements in order to meet the barcoding requirements for state equipment: Capital Equipment: Capital Equipment shall be defined as any equipment which has: 1. 2. A useful life of one year and, Has a value of $5000.00 or more.

This equipment will be bar-coded and recorded in the asset management system in accordance with Asset Capitalization Criteria and accounted for by a yearly physical inventory in January. When the above requirements are not met, the asset will not be recorded as capitalized property. Non-Capital Equipment Non-capital equipment shall be defined as any equipment that has: 1. A useful life of one year and, 2. Has a value of $2,000.00 to $4,999.99. This equipment shall be bar-coded and recorded in the asset management system and accounted for during the cyclical monitoring cycle. When the above requirements are not met, the asset will not be recorded as noncapital property. Receiving/Bar-coding/Inventory/disposal of Gift Equipment 1. A Non-Software Gift in Kind Transmittal Form is completed by the recipient (department) with detailed information regarding the donation.

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE The Transmittal form along with the Deed of Gift letter and any other supporting documentation is then sent to Foundation to be processed. Copies of the gift documents are then sent to Asset Management. 2. 3. The recipient (department) receives the equipment donation directly from the donor for the University. Asset Management determines if the donation is equipment to be barcoded and at this time makes arrangements with the department to bar code. If the donation is not to be bar coded, the gift document is then returned to the foundation department, marked NO TAG. Upon bar coding, Asset Management enters the data into the asset tracking system with description, serial number, gift document number, location, value, sam code, source, instructional, class codes, name of donor and date donated. Copies of the gift documents, marked TAGGED are sent to Foundation. Donated equipment that is bar-coded is reconciled to the general ledger during the monthly reconciliation process. Gift equipment is inventoried in accordance with CSUN standard inventory procedures. Gift equipment is disposed of in accordance with CSUN standard disposal procedures

4. 5.

6. 7. 8.

Monthly Reconciliation The Reconciliation is designed to provide an accurate account of monthly expenditures of capitalized and non-capitalized equipment purchases, donations, lease purchases, deletions and surveys in accordance with General Accepted Accounting Principles (GAAP). The monthly Reconciliation must maintain an accurate balance between the General Ledger and the Property Master. To insure that all assets are properly accounted and valued, if the Asset Management Equipment Expenditure Report does not reflect a proper purchase order number or asset description, a listing is sent to Accounts Payable with voucher information to obtain copies of the invoices to determined whether a barcode should be affixed and that we have applied the correct payment to the asset. Reports for fixed asset additions; deletions and changes are provided monthly to the departments in which they occur. Supporting documentation for additions,

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE deletions, and changes is maintained in Asset Management and made available to the Accounting Department as needed for reconciliation and documentation purposes. Annual reporting requirements Annual reports include: Instructional Equipment Report: Asset Management maintains an instructional equipment inventory for system budget development and state reporting requirements. Capital Inventory Report: Asset Management maintains a beginning balance, ending balance and all worksheets pertaining to the annual capital inventory. The university has a vested interest for ensuring accurate property records. CSU budget allocations for Instructional Replacement equipment are based, in part, on existing equipment values. Property that is not properly accounted for, impacts negatively on the campus allocation.

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CALIFORNIA STATE UNIVERSITY, NORHTRIDGE ASSET MANAGEMENT PROCEDURE

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