Troy University
SACS Reaffirmation of Accreditation
3.11.1 The institution exercises appropriate control over all its physical resources. (Control of physical resources)
 
X Compliance   Partial Compliance   Non-Compliance

Narrative:  

Troy University is in compliance with this Comprehensive Standard.

Troy University’s Purchasing and Asset Management Department is responsible for the exercise of appropriate control over all University physical resources such as vehicles, electronic equipment and furniture. This responsibility extends throughout the University and includes maintaining appropriate insurance coverage for every Troy University building. The Purchasing and Asset Management Department reports to the Senior Vice Chancellor for Finance and Business Affairs who has authorization for controls over physical resources.

Policies and procedures for control over physical resources are published to the University community and include procedures related to fixed asset accountability.

All asset acquisitions are subject to the policies and procedures of the Troy University Purchasing and Asset Management Department and must comply with the laws of the State of Alabama. The policies and procedures can be found on the purchasing Web page and include:

  1. General information
  2. Purchasing alternatives
  3. Competitive bid law and sole source documentation requirements

Disposition of assets is subject to institutional policies and procedures as well as state law.

Capital and Non-capital assets:

All fixed assets costing more than $1,000 or any asset of concern costing less than $1,000 requires identification and periodic tracking to ensure their locations. Assets are identified through object codes provided within the University's accounting process. A file is created for each asset that is tagged with the following information, as applicable:

  1. description,
  2. model number,
  3. serial number,
  4. general ledger account number paying for asset,
  5. item location (building and room),
  6. person responsible for item,
  7. invoice cost of item,
  8. purchase order number, and
  9. date of purchase.

Items costing more than $5,000 are also identified for depreciation per Governmental Accounting Standards Board (GASB) 34/35. Each asset is physically located and tagged with an identification sticker indicating the asset is property of Troy University. The current tags have an imprinted number as well as a bar code for scanning.

Sound accounting practices and compliance with accounting principles and auditing standards require a physical accounting of all tracked assets, specifically those capitalized at a cost of $5,000 and above, annually or no less than once every two fiscal years. This process requires asset management personnel to

  1. generate a report of items to be located,
  2. make appointments with departmental personnel in order to access all locations
  3. physically locate the item
  4. verify model and serial number, where applicable,
  5. update the report while in the field to reflect any changes, and
  6. update the database.

The asset database is currently maintained in Microsoft Access in Troy, Ala. for the Troy, Phenix City and Global Campus, and in Microsoft Excel in Montgomery and Dothan, Ala. The Troy/Phenix City/Global Campus asset report, the Montgomery asset report, and the Dothan asset report are provided.

When any asset within the system is moved, asset management personnel must be notified. This may be accomplished through memo, fax or email. Once notification is provided, the initiator may move the asset or request that asset management process a work order to the physical plant to move the asset. Under no condition are assets to be moved without the approval of asset management.

Building and Insurance Coverage

The purchasing department is responsible for maintaining insurance coverage on every building regardless of its physical location and its contents. Each year the policy certification renewal is revised to reflect needed changes in coverage. The State of Alabama sets standards by which all University-owned buildings are valued and covered for insurance purposes. During 2007, all building valuations for replacement and content valuations were reassessed and appropriate coverage adjustments made.

Conclusion

Troy University is in compliance with this Comprehensive Standard.

 

Supporting Documentation Location
Asset Management Policies http://sacs.troy.edu/reference/Asset_Management_Policies.pdf
Code of Alabama http://www.legislature.state.al.us/CodeofAlabama/1975/coatoc.htm
Dothan Asset Report http://sacs.troy.edu/reference/03-11-01/SACS 3_11_1 Dothan-2007.html
Montgomery Asset Report http://sacs.troy.edu/reference/03-11-01/SACS 3_11_1 Mont-2007.html
Purchasing Policies http://www.troy.edu/purchasing/policies.html
Troy/Phenix City/Global Campus Asset Report http://sacs.troy.edu/reference/03-11-01/SACS 3_11_1 Troy-2007-Excel.html

 

Last Updated: 09/03/2008