University Accounting Office Procedures Manual

Section 7.1, Capital Assets - General

A. Purpose

The following statement provides general information regarding the function and responsibilities of the Capital Assets Management System (CAMS) Office.

B. General Guidelines/Applicable Policies

North Carolina General Statutes require the University to be accountable for all property under its control. The University must also comply with the provisions of Office of Management and Budget Circulars A-21, Revised, and A-110 to assure proper reimbursement of federally funded research and training projects.

Threshold Requirements

In accordance with state and federal guidelines, the current threshold for which an inventory of fixed assets is maintained is $5,000 unless conditions of a grant require a lower threshold or assets of less value are subject to a high rate of theft.

Colleges/departments may need to maintain inventory records for certain assets below the $5,000 threshold. Please contact the CAMS office for any such special requirements.

CAMS Responsibilities

1. To be accountable for all property under its control as mandated by state and federal regulations.
2. To provide internal control of capital assets, including proof of existence, ownership, location, and proper valuation.
3. To provide uniform procedures for furnishing information needed for effective analysis and control of capital expenditures.
4. To provide a data base of inventory information to meet equipment management/reporting needs of the University.

Campus Responsibilities

Colleges/departments have an important role in the maintenance of an accurate, up-to-date inventory system. Adherence to the following guidelines helps to ensure that departmental inventory records are as accurate and complete as possible.

1. Entering correct information on purchases through the Accounts Payable (AP) system, Small Purchases payments (SP)
   (formerly Payment Authorizations), and service unit billings (SUBs). Most of the data recorded on CAMS is taken
   directly from POs, SPs, and SUBs. Correct coding by departments avoids the need for later corrections.
2. Proper coding of capital asset expenditures. Equipment purchases must be coded with a 55XXX expenditure object.
   Use of an object code outside the 55XXX range increases the possibility that the asset will be omitted from the CAMS
   system.
3. Entering correct asset location when receiving purchase on AP. Because of the requirements to physically "tag" each
   addition and record data such as building, floor, and room number, much time can be saved if each department enters
   correct asset location information in the receiving section of the AP delivery location screen. During the decision-making
   process, the ultimate destination of the asset is often known; therefore, the inclusion of this information creates no
   additional work for the department, but saves considerable time and effort in asset identification by the CAMS staff.

Benefits of Inventory System

The CAMS system provides University colleges/departments with the following key benefits:

1. Property control and accountability through a comprehensive campus-wide inventory system.
2. Improved equipment utilization through control and identification of capital assets.
3. Data base to meet University, state, and federal grant requirements.
4. Data base to meet requirements of proper risk management and provide basis for identifying equipment for the State's Self-Insurance Program.
5. Basis for management to project and budget future capital replacement requirements.

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