Fixed Assets

Assets - Assets purchased with grant funding require special handling

• They must be identified in the system with a tag number that ties to the grant account number.
• These assets must be used primarily for the grant’s purpose. The grant contract must be consulted should another area or group want to use an asset that was purchased with grant funds.
• Budget Authorities of grant assets must take reasonable precautions to ensure that equipment is properly maintained, accounted for, and protected from damage, loss, unreasonable deterioration, and theft.
• Adequate maintenance procedures are to be followed to ensure the equipment stays in good condition as the manufacturer recommends.
• Assets are classified in different subcodes by dollar amount. Below are the primary object codes.
  • 6701 (Furn/Equip/Computers <$500) – these items are not tagged as fixed assets (with the exception of highly "walkable" items, ei. ipads, cell phones, cameras, etc)
    • Perkins assets that have a useful life of more than one year must also be tagged.
  • 6801 (Furn/Equip/Computers > $500) – items over $500 (but less than $5,000) are tagged as fixed assets, but are not depreciated.
  • 7701 (Furn/Equip/Computers >$5,000) – items over $5,000 are tagged as fixed assets AND depreciated.
• When the department no longer needs the assets, ACC cannot just dispose of the grant‐funded asset. We must follow the grantor’s guidelines with respect to asset disposition.
• Steps that the program department must follow to dispose of a restricted asset:
  • The department should notify Fixed Assets that they would like to dispose of an item.
  • Fixed Assets will note that the item was purchased with grant funds, and contact Grant Accounting, who will then determine if and how we can dispose of the asset, and contact the original grantor as needed.
  • Grant Accounting will inform Fixed Assets of how we are allowed to dispose of the items in question. Fixed Assets will document this information, and dispose of the asset accordingly.
  • These items should not be sent to the warehouse until Fixed Assets has notified the department that it is acceptable to do so. The warehouse is unable to store these items indefinitely while we wait to receive disposal guidance.
  • Departments should not make their own arrangements to trade in an item or dispose of it by some other means. In most cases, the grantor has an ownership interest that outweighs ACC’s claim on the items. If we dispose of an item that the grantor would prefer to reclaim, for example, ACC may be liable to the grantor for the cost of the item.
  • Sometimes it can take a while to get appropriate guidance from the original grantor. If instructions have not been received within 120 days after our request, ACC can sell the equipment and reimburse the Federal awarding agency an amount computed by applying to the proceeds the percentage of Federal participation in the cost of the original project.
• Asset disposition information for various grantors
  • Telecommunications Infrastructure Fund Board (TIFB): Per Gov. Perry’s Executive Order RP27 (Aug. 11, 2003), the TIFB was dissolved, and administrative responsibilities for all TIFB grants was handed over to the Texas Workforce Commission. Refer to Texas Workforce Commission guidelines. http://www.governor.state.tx.us/divisions/press/exorders/rp27
  • Texas Education Agency (TEA): TEA guidelines are based on the Education Department General Administration Regs (EDGAR), but we must still contact the agency for specific instructions and approval. http://www.ed.gov/policy/fund/reg/edgarReg/edlite‐part80c.html
  • Texas Higher Education Coordinating Board (THECB): THECB guidelines are based on the Education Department General Administration Regs (EDGAR), but we must still contact the agency for specific instructions and approval.
    • http://www.ed.gov/policy/fund/reg/edgarReg/edlite‐part80c.html
• Texas Workforce Commission (TWC): For all assets purchased with TWC or TIFB funds, TWC maintains first right of refusal. This means that when we want to dispose of the asset, we must first contact TWC and see if they have a use for the asset. If they do, we must transfer the asset to them at no cost. If they do not have a use for the asset, they will allow us to dispose of it following our normal procedures.
• US Department of Education (ED): ED guidelines are based on the Education Department General Administration Regs (EDGAR), but we must still contact the agency for specific instructions and approval. http://www.ed.gov/policy/fund/reg/edgarReg/edlite‐part80c.html