Integrated CSU Administrative Manual

CSU POLICY

--DRAFT POLICY--

Section:  GENERAL ACCOUNTING

Section 3000 Policies

Policy Number:  3150.01

Policy Title: Administration of University Property

Policy Effective Date: January 1, 2011

Last Revision Date: December 1, 2013
(see revision history)

POLICY OBJECTIVE

It is the policy of the California State University (CSU) that university property is properly valued, maintained and safeguarded; that all university property transactions (acquisitions, disposals, etc.) are recorded in an accurate and timely manner; and that all university property transaction methods are followed. Each campus must prepare written procedures that implement this policy.


POLICY STATEMENT

100  For the purpose of this policy and procedures (see section 305), property may include but is not limited to the following:

  • Equipment
  • Intangible Assets
  • Land and land improvements
  • Works of art and historical treasures
  • Library books and materials
  • Construction work in progress (CWIP)
  • Buildings and building improvements
  • Improvements, other than buildings
  • Infrastructure
  • Leasehold improvements

200  The Chief Financial Officer (CFO) of each campus of the CSU must ensure the following:

  • Appropriate resources are allocated and responsibility assigned for proper receipting, recording, securing, tracking, and disposal of property.
  • Procedures are implemented for the timely recording of all property based on normal entry cycles. For example, equipment additions may be required to be recorded each month due to the high volume of transactions, whereas major capital improvements may be recorded annually.
  • Procedures are implemented for the timely disposal of all property.
  • Procedures are implemented that require appropriate approval for the disposal of property and that all rules and regulations are followed in the disposal of property (e.g., hazardous materials, sanitization, etc.).
  • All regulations for property obtained from a federal or state grant are adhered to in accordance with the respective requirements such as Office of Management and Budget (OMB) Circular A-110 or related state regulations.
  • Campuses utilize the CSU Capital Assets Guide as guidance for all property as it relates to capitalized costs, depreciation methods, impairment, and other such issues. The CSU Capital Assets Guide is updated annually to reflect evolving accounting and reporting requirements and is included the CSU Generally Accepted Accounting Principles (GAAP) Manual.

300    Equipment

Administration of University Property - Equipment Procedures:

CSU Administration of Property - Equipment Procedures

400   Intangible Assets

400 Definition of Intangible Assets
         
Intangible assets are property which lack physical substance and are nonfinancial in nature but give valuable rights to the owner. They are primarily used for operation but not for directly obtaining income or profit, nor intent to resell. 

Intangible assets include but are not limited to:

  • Copyrights
  • Easements
  • Patents
  • Software (internally and externally-developed)
  • Trademarks
  • Websites

401    Recording of Intangible Assets:  Campuses must evaluate and record all intangible assets in accordance with applicable Governmental Accounting Standards Board (GASB) statement requirements to ensure compliance with GAAP.

402    Sale or Licensing of Intangible Assets:  The sale or licensing of tangible intellectual property must be done in accordance with pertinent CSU policies. 

500 Gifts of Property

500    Responsibly for the acceptance of gifts:  The CFO of each campus of the CSU is responsible for ensuring that a documented process is followed for the evaluation, acceptance, and recording of gifts of property to their respective campus.  Executive Order No. 676 sets forth the responsibilities of the campus in accepting property gifts.

501    Title:  Title to the property gift to be held by the campus or an auxiliary organization must be reported according to the rules promulgated by the GASB or by the Financial Accounting Standards Board (FASB) depending on which standards are used by the organization.  

502    Recording gifts: Generally, FASB and GASB accounting rules require gifts of property to be recorded at fair market value. As such, campus are required to record such gifts in their property records (or those of the auxiliary organization) using objective criteria.

When property gifts are made between the campus and one of its auxiliaries or vice versa, the transaction must be recorded at historical cost as discussed in the CSU Capital Assets Guide.

600   Capital (Fixed) Assets Reporting to the State Controller's Office

601    Legal Basis Fixed Asset Accounting:  All campus legal basis fixed asset accounting entries will be recorded in and reported from State Controller Office (SCO) fund 0997, CSU fund 501 – General Fixed Assets Memo Fund.  Campuses are not required to record by separate funding type. 

602  External Reporting:  Any external reporting that requires an alternative display of the capital assets information will be accommodated by the Chancellor’s Office Systemwide Reporting group. Supporting schedules will be retained on file per the CSU Records Retention policy to support reconciliation back to the campus’ book of records.  

Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer

Approved:

 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

April 1, 2011

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

Related Principles:

  • GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions
  • ASB Statement No. 34: Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments
  • GASB Statement No. 35: Basic Financial Statements – and Management’s Discussion and Analysis – for Public Colleges and Universities – an Amendment of GASB Statement No. 34
  • GASB Statement No. 42: Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries
  • GASB Statement No. 49: Accounting and Financial Reporting for Pollution Remediation Obligations
  • GASB Statement No. 51: Accounting and Financial Reporting for Intangible Assets
  • GASB Statement No. 52: Land and Other Real Estate Held As Investments by Endowments
  • FASB Statement No. 13: Accounting for Leases
  • Chapter 5 of the American Institute of Certified Public Accountants’ Audit and Accounting Guide: Not-for-Profit Organizations

Sound Business Practices:

 

Laws, State Codes, Regulations and Mandates:

  • OMB Circular A-110,
  • California Ed. Code Sections 89048(g) and 89720 et seq.;
  • CaliforniaGovernment Code Sections 15850 and 11011 et seq.

COGNIZANT OFFICE(S)

CO Manager:

Ms. Thoa Le
CO Budget Director, CO Budget Department
CSU Office of the Chancellor
tle@calstate.edu

Ms. Kelly Cox
Associate Director, Financial Services, Accounting
CSU Office of the Chancellor
kcox@calstate.edu

Ms. Roberta McNiel (Section 700 Capital (Fixed) Assets Reporting to the State Controller's Office - only)
Internal Control & Compliance Manager, Financial Systems
CSU Office of the Chancellor
rmcniel@calstate.edu


Subject Expert:

Mr. Chris Bronsdon
cbronsdo@mail.sdsu.edu

Mr. Stephen Scalley
scalleys@skymail.csus.edu


Affinity Group:

FOA http://foa.calstate.edu

Feedback/Questions/Comments