Best Practices
➢ Departmental policies and procedures for the activity should be formally documented. This should include authorized activity, workflow, responsibilities, documentation requirements and step-by-step instructions for processing activity.
➢ Documented policies and procedures helps ensure departmental personnel understand expectations and requirements, and promote accountability and consistency in activities.
➢ Internal asset listings should be maintained. Specific information, such as serial number, model number, location, etc. should be included to help locate each item. The historical cost should be included to help determine the appropriate recording of items and depreciation calculations.
➢ Reconciliations and updates should be made as necessary so that asset lists are accurate (beginning balance + additions – retirements = ending balance).
➢ One person should be assigned the responsibility of managing the agency’s assets and maintaining the records. These responsibilities include the verification of the asset lists on at least an annual basis, and the reporting of additions / retirements as required.
➢ The asset records should be compared with physical items periodically to help ensure the completeness and accuracy of the information. This may be accomplished through spot checks of items or through a coordinated inventory of assets.
➢ Asset data records should be prepared and submitted when new items are received.
➢ Any changes in capital assets (e.g., additions, retirements, transfers) should be reported in accordance with policies and procedures.
➢ Care needs to be taken to ensure that all assets are disposed of in the proper manner. This is especially important since public funds may be involved in the purchase, so any proceeds must be properly accounted for.
➢ Documentation recording the retirement and transfer of items should be processed at the time of the action.
➢ Disposals of assets obtained with grant funds should be performed in compliance with grant requirements.
➢ To prevent an exposure for uninsured losses of property and equipment, Kentucky State University’s internal asset list must contain accurate information. Departmental personnel should verify the list on at least an annual basis.
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