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602 - Inventory Management

Responsible Office: Business and Finance Office
Responsible Officer: Chief Financial Officer
Reference: Minnesota State Board Policy 7.3.6

PURPOSE: 

To account for the capital assets of Minnesota State College Southeast in conformity with Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) pronouncements. 

PART 1.  POLICY 

A physical inventory of fixed assets - defined as a unit with a base cost equal to or greater than $10,000.00 -is completed each year. Each department within the college is accountable for its fixed assets and equipment. Movement of property or disposal of property requires approval from a department administrator and notification sent to the Business Office. 

PART 2:  PROCEDURE

Each department is responsible for equipment assigned to it to ensure its proper use and security. To help with this, a physical inventory of the college's fixed assets is completed annually. 

Physical Inventory

  • Each department receives a report of all equipment assigned to their area. Equipment location is recorded according to room number or location. Departments will locate and document equipment on the report and return to the Business Office. Upon request, inventory reports are available for ongoing monitoring of equipment. 
  • A spot check of inventory may be conducted by the Business Office annually; assistance may be necessary to locate equipment. 
  • Equipment that is unaccounted for will be documented on the Stolen, Lost, Damaged or Recovered Property Report and signed by the department administrator. The report will be kept on file in the Business Office for review by Minnesota State officials upon request. 

Asset Tag

  • For fixed assets, an asset tag is assigned and used in tracking inventory. At time of purchase, the Business Office determines whether or not a numbered asset tag is to be issued. If so, the tag number is recorded on the purchase order and on the Fixed Asset Number Assignment Record Form. 
  • The Fixed Asset Number Assignment Record form along with the asset tag will be delivered to the department ordering the equipment. Upon delivery/receipt of the equipment from the vendor, and before delivering to the recipient, the department will affix the numbered asset tag where it can easily be seen. Pertinent information is then entered on the Fixed Asset Number Assignment Record form and returned to the Business Office.

Movement and Disposal of Equipment

  • If a department decides to relocate or dispose of equipment, prior to doing so, the Fixed Asset Disposal/Movement Form must be completed and submitted to the Business Office. The form should indicate the plans for it per guidance that follows. 
  • If equipment is no longer wanted by a department and is deemed to have only scrap value, it can be moved to a central location by indicating that on the form. The exception is vehicles or large items that require special handling. 
  • Equipment deemed to have a value can: 

  1. Be moved to a central location. 
  2. Offered to another Minnesota State agency and will be done via e-mail by the Business Office. 
  3. Be sold to the general public. Sale to the general public, with the approval of the Business Office and department administrator, will be done by auction. 
  4. Used as a trade-in. Trade-in requires approval of the Business Office and Department Administrator. 

Property tags must be removed and returned to the Business Office when equipment is disposed of. 

Donated Equipment

Minnesota State College Southeast Foundation will handle the acceptance of all donations. Donated equipment may have stipulation requirements for usage and disposal imposed by the donor. Contact the Business Office to determine any conditions/stipulations. 

Other Information 

The original value of equipment may be upgraded. A "betterment" is an add-on or a replacement component with a value that is at least $10,000 more than the value of the original equipment. This information will be tracked in the inventory report. 

Approved: June 17, 1997
Reviewed: May 10, 2023
Revised: February 15, 2000; June 30, 2004; December 28, 2010; October 31, 2013; February 27, 2020; May 10, 2023