Inventory, Fixed Assets and Disposition – Federal Awards

 

Policy Number:

OPER_0016

Policy Statement:

It is the policy of the College in accordance with Federal regulations that a complete physical inventory, including correcting entries, be completed by June 30 of each even-numbered fiscal year (i.e. 2015-16). The following inventory procedures must be followed.

Procedures:

 Fixed Assets

Fixed assets are any assets over $10,000 in value and with a useful life of at least two years; donations with an estimated or appraised market value of $10,000 or more and a useful life of two years or more are included. All fixed assets must be maintained in an inventory.

Inventory

1. Equipment Records Maintained by the Business Office.

All equipment/property with a value of $10,000 or more must be added to the College inventory. The equipment will be assigned a GCCC inventory tag, to be attached to the item, and the information will be entered into the inventory file.

• The inventory record will include:
• Description
• Serial Number or other ID
• Title information
• Acquisition date
• Cost
• Percent of federal participation,
• Location
• Use and condition
• Ultimate disposition

2. A physical inventory must be taken and the results reconciled with the property records at least once every two years.
3. A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of property. Any loss, damage, or theft must be investigated, and a report should be maintained with the equipment inventory.
4. Contact the Comptroller in the event that any equipment/property needs to be transferred, stolen, scrapped, traded in, disposed of, etc. Status changes are to be reported as they occur.
5. When original or replacement equipment acquired under a Federal award is no longer needed for the original project, program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the College must request disposition instructions from the Federal awarding agency or pass-through entity if required by the terms and conditions of the Federal award. Disposition of the equipment will be made in accordance with agency disposition instructions. See: § 200.313 Equipment (30158, Federal Register / Vol. 89, No. 78 / Monday, April 22, 2024 / Rules and Regulations).

Disposition of Equipment Purchased with External Funds

The College has delegated the oversight of equipment control to the Chief Financial Officer. Disposition of equipment must be coordinated through this office. Prior to disposing of any equipment, it must be determined if the College has any obligations to a third-party sponsor with respect to the equipment. If equipment was purchased under sponsored funding, it must be determined whether the equipment is:

• sponsor-owned: equipment purchases made with contract funding are generally sponsor-owned; however, in rare situations this condition may also apply to grants;
• College-owned: Most equipment purchased under grants or gifts is College-owned.

After determining who has title to equipment, it must be ascertained whether the project that the equipment was purchased for is still on-going. If the project is still on-going, the College normally has an obligation to utilize the equipment for the purposes of the project, or perhaps to make the equipment available to other federally-assisted projects. If it is determined that the sponsored project has ended and the College retains title to the surplus property, the College may still have obligations with respect to the equipment.

Items of equipment with a current per unit fair market value of $10,000 or less, may be retained, sold or otherwise disposed of with no further obligation to the federal awarding agency. Contact the Chief Financial Officer for disposal of equipment.

 

Disposing of Federally Owned Equipment

See § 200.313. Equipment

 

Contacts:

Chief Financial Officer

Policy History:

June 25, 2026: Revised to include policy number

July 15, 2025: Revised for accessibility format

June 25, 2025: Revised 

July 1, 2015: Reviewed