Revised January 19, 2016; October 11, 2017; July 9, 2021; August 1, 2022
Table of Contents
.010 General Information
.040 Property Numbers
.140 Table of City Codes
The Kansas Legislature has charged the director of the Division of Accounts and Reports with maintaining a fixed asset record of all fixed and moveable property of the State (K.S.A. 75-3729). The fixed asset record shall be based on a physical inventory and shall be charged with all acquisitions of fixed assets and shall be reduced by all dispositions of fixed assets. All state agencies are directed to submit a physical inventory of all fixed assets belonging to the State as of June 30 each year by August 31.
Items commonly referred to as equipment, furniture, fixtures, machinery, vehicles, livestock, books, buildings and improvements thereto, land, non-structural land improvements; with a life expectancy of more than one year are considered fixed assets. This includes expenditures coded in the E32X9, E34X9, or E4000 series of FIS objects (except E4810, E4970 and E4980 which are exempt from the fixed asset requirements).
The statewide capitalization thresholds and useful life for fixed assets are as follows:
|Description||Capitalization Threshold||Useful Life|
|Equipment and Furnishings||$5,000||8 years|
|Buildings and Improvements*||$100,000||40 years|
|Intangible - Software*||$250,000||8 years|
|Intangible - Other||$250,000||0-50 years|
|Land Improvements||$100,000||40 years|
|Leasehold Improvements||$100,000||40 years|
*See the Reporting Requirements for Real Property section for properties not meeting the threshold and Intangible Assets section for voucher account coding information in the State Policy Manual, PM 13001.
All fixed assets belonging to the university must be included in the fixed asset record and must have a unit cost shown; regardless if it was purchased, manufactured by the agency, received as a gift, purchased with KSU Foundation funds, or obtained from state or federal surplus property sources. The state fixed asset procedure is based on a unit control basis. A permanent state property number is assigned and affixed to each fixed asset.
Federal excess property shall be included in the record. Federal excess property may be obtained by submitting a federal Standard Form 122, "Transfer Order Excess Personal Property", as explained in PPM Chapter 7050. The Asset Unit Cost is the amount shown on the SF 122.
Gifts or grants of fixed assets shall be included in the record. Fixed assets purchased with KSU Foundation funds are considered a gift to the university and state. See PPM Chapter 6510.110 for requirements related to gifts.
Fixed assets manufactured, assembled or constructed by a department shall be included in the fixed asset record. The total cost of materials and labor to manufacture, assemble or construct the item shall be the Asset Unit Cost.
Capital assets are recorded at cost at the date of acquisition, or fair market value at the date of donation in the case of gifts. The depreciation of assets is computed using the straight-line method and half-year convention over the estimated useful lives of the assets. It is the department's responsibility to ensure that all fixed assets are reported to the Division of Financial Services.
The Division of Financial Services is responsible for distributing all state and university asset management policies and procedures across campus, as well as, in coordination with departments, the University's annual physical inventory. Additionally, all state employees and students have stewardship responsibilities for university assets assigned to him/her or otherwise in their control.
The department head is responsible for maintaining an accurate record of university fixed assets and promptly reporting all changes by property number to the Division of Financial Services. You must affix a permanent property number to each item, if at all possible. Permanent marker, metal etcher, or some type of self-adhesive label can be used. You are required to take a physical inventory of your fixed assets annually to satisfy the state's requirement of a complete physical annual inventory. A Fixed Asset Listing as of December 31 is sent to all departments after March 1 for their review and verification.
The Correction to Inventory Property Records form shall be used to report some changes to your fixed asset records. This may be an addition (a gift), a deletion (combine two records into one), a change (revise a description) or a transfer (to another State of Kansas agency) that due to unusual circumstances, are not covered by normal means or forms.
We recommend each department maintain a database type file of your property on a personal computer. The university's fixed asset record format should be the minimum amount of information contained, but additional fields of information may be added and could be quite beneficial. The Search and Sort abilities of computer software should help you maintain control of the department's fixed assets. A Discoverer report entitled "KSU Fixed Assets" is available providing each department a listing of their fixed assets through the end of the most recent Financial Information System (FIS) Fixed Asset month (this month will always be less current than FIS Accounts Payable month).
Books with a unit cost of $5,000 or more shall be inventoried individually with a separate university property number. Books and publications regardless of cost should be marked "Property of Kansas State University".
The Division of Facilities shall manage the fixed asset records of buildings and other non-structural improvements to land located on the main campus. Building code numbers for on and off campus structures are assigned by the Division of Financial Services in cooperation with the Facilities Planning Office.
Each department is designated to be responsible for Safeguarding State Assets and maintaining a separate departmental inventory for the items not on the University Fixed Asset Record for internal control purposes. This inventory is not to be reported to the Division of Financial Services, but maintained by the university department.
Departmental property numbers should be affixed to the property the same as with the items over $5,000. However, do not assign university property numbers to these items. We recommend each department maintain a database or spreadsheet type file of these items. This inventory is to be available for university review by internal as well as external auditors.
Use of university property (regardless of the unit cost) away from campus or an officially designated work location by an employee must be approved by the approving authority of their office or department. The employee must complete the Department Equipment Inventory Form and Agreement form, and obtain the approval signature of the approving authority, prior to such use of property. The form may be obtained electronically, and the document must remain on file with the approving authority until the property is returned in satisfactory condition. This documentation must be available for review during an audit, and is to be reviewed for renewal at least annually by the approving authority. Please reference PPM Chapter 4045 for remote work and telecommuting information. An employee using university property away from campus or an officially designated work location agrees to the following provisions, regardless of whether they sign a document specifying the provisions:
- The property is to be used for university purposes only and not for the employee's own or another's personal use or gain;
- Use of or taking property off campus shall not interfere with or inhibit the day-to-day office, instruction, laboratory or other functions being performed on campus;
- The employee will use ordinary care in handling and safekeeping of the property; will not permit any other persons to possess, obtain, or maintain the property, and the property will be returned to the university in satisfactory condition, which means in as good a condition as it was when provided to the employee, less any reasonable wear and tear;
- Any damage, loss, or liability resulting from the employee's failure to use such ordinary care is the sole responsibility of the employee, and to the extent due to such failure, the employee shall be responsible for repair and/or replacement costs of any property not returned in satisfactory condition;
- The employee shall promptly report any damage or loss of the property to the university, and will not make any repairs, restorations, or otherwise alter the property, without the prior written consent of the university;
- If the employee will not be using the property or otherwise will be or is absent or away from the property for an extended period of time, the employee shall make arrangements for the return of the property to campus prior to such time;
- The university may recall the property immediately for any reason, and upon such recall the employee must immediately return the property.
- Upon determination by the university of damage, loss, or liability to the university property, then upon notice and explanation, the university may withhold, deduct, or divert any portion of the employee's wages for the fair market value of or the cost of repair or replacement of the property, as determined by the university. This remedy is not exclusive, and the university may pursue any other remedies provided at law, equity, or otherwise.
The "Property Number" is used by the state, the university, and the department to identify each and every fixed asset. The same number should not be assigned or affixed to more than one item, and an item should not have more than one number assigned or affixed to it. Do not assign a new property number to a component that is "added to" an existing item. Do not assign a new property number each time you make a periodic "payment" on an existing item.
Property numbers should be removed or defaced from items when official authorization is received to dispose of items or to remove items from the fixed asset records.
A program named PropNum is provided on the Division of Financial Services Asset Management homepage to assign university property numbers. A Web Profile is maintained by the Division of Financial Services to limit access to PropNum. You must first have a Division of Financial Services Web Profile, in order to gain access to PROPNUM. If you do not have a Web Profile, you may obtain one by selecting Web Profile Maintenance from the PropNum menu. Instructions for PropNum are provided on-screen.
When you access PropNum, you must enter two pieces of information, how many numbers you need and a brief description of the items (limit of 25 characters). Then, you will be given the next serial number(s) available. For security reasons, you can not edit any entry after it is entered. Please do not use these numbers to identify department items that do not meet the university's fixed asset criteria.
We suggest you get a Property Number when the fixed asset is received and accepted from the vendor. Thus, the item can be tagged when it is uncrated to provide immediate positive identification and security. The Division of Financial Services will be available to assign property numbers when necessary. Please keep an accurate record of the property numbers you receive so you may fully complete the Monthly Fixed Asset Report.
About the 5th of each month the Division of Financial Services will send an electronic Monthly Fixed Asset Report form to the departments who had object E32X9, E34X9 or E4000 expenditures in the FIS accounting records during the past month. Part 1 is a list of the payments and Part 2 is provided for the department to list the fixed asset purchased along with the required information.
You may include other fixed asset additions on Part 2. If you do, please include supporting documents. This may include but not be limited to items manufactured, assembled or constructed by the department (document the unit cost), gifts from others or items purchased with KSU Foundation funds (include a Correction to Inventory Property Records form), or items transferred from other agencies (include a Correction to Inventory Property Records form).
If a payment is split between two or more departments, the owner-department shall report the item(s) in total, and include a note about the split payment. The other department(s) shall include a note only about the split payment. If a payment is split between two (2) or more accounts, the Division of Financial Services will determine if the item should have one property with suffixes for additional fund sources. The required information for Part 2 appears in italics on the sample.
- REPORTING MONTH. The month the Fixed Assets Report is for.
- PROPERTY NUMBER. The new six-digit serial number assigned to the item by the PropNum program. Or an old existing number if you wish to add this payment to another item already on inventory. Or leave it blank and we will assign it.
- DESCRIPTION. Describe the item as best you can within the limit of 80 characters. Abbreviate if necessary and do not use punctuation marks. Please arrange like this without the dashes: common name - brand name - other information. For example, COMPUTER ZENITH Z15913 20MB HD.
- OBJECT CODE. The five-digit FIS object that indicates what expenditure category the item belongs in.
- SERIAL NUMBER. Use the manufacturer's number, if possible. Please do not use punctuation marks.
- FIXED ASSET ACQUISITION CODE. The two-digit code that indicates how the item was acquired.
- ORG NAME. The three-digit FIS organization code of the department that "owns" the item. This does not have to be the same as the department that bought the item. If you wish to transfer an item to another department, enter their code and include a note to clarify the transfer.
- PROJECT NUMBER. The ten-digit project number used to purchased the item.
- PARENT PROP NUM. Leave blank.
- VENDOR/MFG. The vendor or manufacturer's name.
- MODEL NUMBER. Use the manufacturer's numbers, if possible, or the vendor's catalog number as a second choice. Please do not use punctuation marks.
- UNIT COST. It is usually the amount paid to the vendor. Add freight or postage if it is included on Part 1 of the report. If a credit (i.e. trade-in) was allowed by the vendor, add the credit amount to the payment amount and include a note of explanation. Round the value to the nearest dollar.
- ORG DESC (INTERNAL). This is an optional field of information. Each department may use it at their discretion to help maintain internal control of their property. Please do not enter data that is provided for in other fields of the inventory record.
- SOURCE. The 4 digit State Fund source code.
- ORG NUMBER. The five-digit organization number of the department that owns the fixed asset.
- CITY. The three-digit alpha code that indicates what city the item is located in or near to.
- BLDG #. The five-digit code of the building the item is located in or near to. NOTE: If the item has an object of E3409, E4400 or E4401 include a building number even though the item may not be inside a structure.
- ROOM. The 3 to 5 digit room number where the item is located. This field is limited to 4 spaces which may be alpha or numeric. (i.e. 123, A123, 123A, A1234, or 1234A). Please do not use punctuation marks.
The Division of Financial Services adds the items listed on the Monthly Fixed Asset Report to the University's Fixed Asset System. Discoverer reports will be available to departments for their review after each fixed asset month is closed. Please report any discrepancies to the Division of Financial Services.
Property transfers (regardless of the unit cost) between Kansas state agencies (Inter-Agency) shall be reported to the Division of Financial Services on the Corrections to Inventory Property Records form.
Fixed Asset property transfers (items with an original unit cost equal to or greater than $5,000 between university departments shall be reported to the Division of Financial Services on the Transfer of Fixed Asset form. The fixed asset Unit Cost shall remain unchanged. Submit the completed signed transfer form to the Division of Financial Services. A copy will be returned to the departments when the central fixed assets records are updated.
If there is a charge involved, an Interfund Voucher must accompany the transfer form, and both departments must have signed both documents before submitting them to the Division of Financial Services. The payment coding is state obj 549800 and FIS object E4980. The receipt coding is state object 420500 and FIS object R2205. The property number should be included in the description area of the IDV.
Property transfers of items with an original unit cost of less than $5,000 between university departments do not need to be reported to the Division of Financial Services, but a Transfer of Fixed Asset form should be completed and retained by each department involved. If there is a charge involved, the payment object should be the same as if purchasing the items from an outside vendor.
Vehicle transfers between university departments shall be reported to the Division of Financial Services and the Facilities Motor Pool on the Transfer of Fixed Asset form. State Surplus Property should not be involved. If you wish to buy a used vehicle from State Surplus Property and the agency listing the vehicle is Kansas State University you should:
1. Contact the owner department and reach an agreement on the terms of the transfer.
2. Ask the owner department to cancel the Disposition of Property form, and retrieve the vehicle Registration Title.
3. Submit the completed Transfer of Fixed Asset form and the Interdepartmental Voucher to the Division of Financial Services.
The Kansas Legislature has charged the Board of Regents to oversee the disposition process of state surplus property owned by a state educational institution as defined in K.S.A. 76-711 (K.S.A 1010 SUPP. 75-6606). The Board of Regents has authorized each state educational institution to develop and administer its own policy and Kansas State University's policy has been reviewed and approved by the University administration.
In order to fully utilize University property, departments should exhaust all possible uses of property within the University before declaring the property as surplus and requesting authorization for disposal. The KSU Surplus Property website has been created to to help facilitate this. University property that is still in working condition must be listed on the website for a minimum of seven days, automatically dropping off the website after 14 days.
If the item(s) is/are not claimed for use within the campus community, list the surplus property on the KSU Disposition of Property form. Submit the original form to the Division of Financial Services with the necessary signatures for review and approval. A signed copy will be returned to the department upon approval.
A Disposition of Property form is no longer required to be submitted for Division of Financial Services approval for items whose original unit cost was $1,000 or less. However, the Disposition of Property form shall be completed and approved by the department authorized person and retained by the department for audit purposes. Property with an original unit cost of $1,000 or less shall be disposed of using one of the methods listed below.
Once an approved Disposition of Property form has been returned to the department, any one of the methods listed below may be used for disposal. The KSU Surplus Property - Public Listings website has been created to facilitate the advertising of surplus property that cannot be utilized by another university department. Items listed on this website must be offered to the public for an amount equal to or greater than the amount it was listed for on the internal listings website. If the item has not sold after seven days, the prices may be adjusted or negotiated with interested parties.
Even though property that has been designated as surplus may have little or no value, it must not be given to individual employees, friends, or family, unless they meet the requirements of authorized Disposition Code 4 below. All surplus state property shall be sold or otherwise disposed of within one year after the date on which the property becomes surplus.
Departments wanting to dispose of property by trading it in towards a purchase (KSU Disposition Code 1) must contact Purchasing and Contract Services at (785) 532-6214 for purchasing procedures.
If property is lost or stolen, immediate action is required. Please refer to PPM Chapter 3030 for instructions.
When property is sold to an external party, the proceeds from the sale of the property are to be used to support the programs of the college that sold it. FIS revenue object R2260 should be used to deposit the funds received. See PPM Chapter 6110 for further instructions on depositing the receipts. The department must record on its copy of the Disposition of Property form, the revenue received, if any, the method and date of disposal, and retain the form on file for audit purposes.
Once disposition has been authorized by the Division of Financial Services, the department must use one of the methods listed below to dispose of the property:
- Disposition Code 1 - Authorizes disposal of the property by trade-in towards the purchase of a new property item.
- Disposition Code 2 - Authorizes disposal of the property by advertised fixed price. This method would include offering through the KSU Surplus Property - Public Listing website or a University department sponsored tag sale. If the item has not been sold after being offered at a fixed price on the Public Listing website for seven days, the price may be negotiated with any interested parties. If the property is specialized in nature and general public interest would be limited, the property may be disposed of by negotiating a price with specific interested parties.
- Disposition Code 3 - Authorizes disposal of the property by advertised sealed bid or advertised public auction. Questions regarding auctioneering service requirements should be directed to Purchasing and Contract Services.
- Disposition Code 4 - Authorizes the disposal of the property by donation to non-profit organizations, or to entities and individuals eligible for participation in the Federal Surplus Property Program.
- Disposition Code 5 - Authorizes disposal of the property by cannibalizing for usable parts prior to disposal, recycling, selling to a junkyard, or utilizing normal trash deliveries or landfills.
"Advertised" means distributed in a general circulation publication or some other means by which a wide range of the general public would be made aware of the fixed price, sealed bid, or auction opportunity. Posting a notice on the bulletin board or sending notification on a limited list serve is not acceptable. Exceptions for specialized equipment where the general public interest would be limited may be made.
If property gifted to KSU, either directly or through the KSU Foundation, is disposed of within three years of gifting the property, additional IRS reporting is required. In cases where the appraised value is greater than $500 and an Appraisal Summary (IRS Form 8283, Section B) was received by the university, the department disposing of the property must complete and file IRS Form 8282. A copy of the partially completed Form 8282 should accompany the Disposition of Property Form. When the disposal is finalized, a complete copy of Form 8282 should be forwarded to the Division of Financial Services referencing the Disposition Form Number.
Approval must be obtained from the Division of Financial Services prior to the disposal of all University livestock. To obtain prior approval for livestock disposition, departments will follow the same procedures identified in section .065 Disposition of Property. In the case of death of an animal, the disposition of property form is to be completed after the actual disposition of the animal has occurred.
Alternate procedures may be used when animals are part of a herd. Departments operating herds should complete a physical count and monthly inventory of animals or livestock. The monthly inventory should include purchase invoices, sales receipts and death logs, which clearly identify additions and subtractions from the inventory. The inventory should also clearly identify the physical location of animals or livestock. Departments should provide the Division of Financial Services with a copy of their year-end inventory. The definition of animal or livestock shall include cattle, sheep, horses, swine, fowl, or any other living or dead creature owned by the State of Kansas and normally required to be reported by the University for disposition.
Facilities Management Motor Pool maintains the university inventory of vehicle license tags. This is used by the Central Motor Pool in Topeka for assessing the annual registration renewal fees. To insure the accuracy of this data, the department shall follow these steps to dispose of vehicle license tags.
1. To dispose of a tagged vehicle, please forward the license tag and photocopy of the Disposition of Property form requesting authorization to dispose of the vehicle to the Facilities Management Motor Pool.
2. If a tagged vehicle is transferred between university departments, the selling/transferring department shall forward a copy of the completed Transfer of Fixed Assets form to Facilities Management Motor Pool. The existing registration title and license tag may be transferred with the vehicle. A tag must not be used on any vehicle other than the one it is assigned to.
All changes in University vehicle license tag inventory must be submitted to Facilities Management Motor Pool no later than December 1. This will provide for accurate registration invoicing by the Central Motor Pool in Topeka. The department on whose inventory the vehicle license tag is listed after December 1 will be invoiced for the annual registration fee.
It is the responsibility of the department to ensure that all sensitive information is removed from computers and other electronic storage devices before they are disposed of after local disposition has been authorized. See PPM Chapter 3436 Media Sanitization and Disposal Policy for information.
If a surplus computer or other electronic storage device is to be transferred to another entity, the license(s) for any software remaining on the surplus items(s), such as the operating system, must be transferable to the receiving entity to ensure compliance with software license agreements. The transferring department is responsible for making sure no other copies are retained unless allowed by the license agreement(s).
After March 1, the Division of Financial Services will send each department a listing of their fixed asset records with all reported changes (additions, transfers, and deletions) through and including December 31. Please correct the December 31 fixed asset records as explained in the following paragraphs. The department head shall sign the certification on the last page of the fixed asset list and return the original to the Division of Financial Services. See PPM Chapter 6510.210 for a sample form. The department should keep a copy for their files.
You may conduct your departmental physical inventory anytime during the year and update this list according to your current department records, or you may take your physical inventory upon receipt of the list and update accordingly. You may change most of the information by drawing a line through the error and entering the correction above it. You may not change the property number or the unit cost. If you feel a change is necessary in these fields, please call the Fiscal Analyst at (785) 532-6525.
Each fixed asset item must have a property number affixed to it, if at all possible. If items were tagged and the tags have fallen off or disappeared, new tags should be placed on the fixed asset. Other means of affixing the property number on the items are permanent marker or a metal etcher.
Fixed assets acquired before December 31, but not listed, should be added to the listing by typing the inventory data on the last page. Some examples are: items left off by error, items manufactured by the department and gifts to the university.
Fixed assets may not be transferred or deleted from the inventory until the appropriate forms have been submitted including "Transfer of Fixed Assets" for transfers to other university departments, "Correction to Inventory Property Records" for inter-agency transfers or "Disposition of Property" for all other disposals. If a properly approved and reported transfer or deletion has been erroneously omitted please contact the Division of Financial Services.
The final copies of the June 30 fixed asset inventory are prepared by the Division of Financial Services by combining the December 31 inventories, as verified or adjusted by the departments actual physical count, with January through June fixed asset transactions. An email notification is sent on the FASSETS-L listserv when the final June 30 fixed assets reports are available. The reports are located in Oracle- KSU FIS User- Reports under the "ZFA Fixed Assets" tab. A report of the June 30 fixed asset records is sent to the Kansas Department of Administration.
The Division of Financial Services will request the Inventory of Consumable Supplies and Commodities/Capital Outlay Items Purchased for Resale form be completed and submitted to the Division of Financial Services before the end of July. A report of the June 30 commodities inventory is sent to the Kansas Department of Administration.
Each department shall count their commodities on hand as of June 30 and report the value based on actual cost in summary form. Include only those consumable supplies stored in a warehouse or storage cabinet in full lots not yet issued for use. Include all items purchased for resale at their actual cost.
If the value of a department's consumable supplies as of June 30 is less than $5,000, the department may mark the appropriate area on the form, sign the certification, and return it to the Division of Financial Services, instead of completing the cost detail. It is the responsibility of the department to maintain and retain a record of their consumable supplies as of June 30.
Consumable supplies are items classified in the KSU expenditure object E3XXO series. They are items consumed by use, materials and parts used in maintenance and repairs, small tools, and all other items classified in the E3XX0 expenditure objects. Commodities and Capital Outlay Items Purchased for Resale are items classified in the KSU expenditure objects E3980 or E4980 purchased with the expressed intent of being resold to other user departments.
Gifts or grants of property must be approved by the appropriate department head and their dean or director, prior to the acceptance of the property. If the property gift has a fair market value equal to or greater than $5,000, it should be reported to the Division of Financial Services on the Correction to Inventory Property Records form.
If the gift will impose a significant fiscal obligation requiring the department to (1) seek additional state funding of $50,000 or more, or (2) make an internal reallocation of $100,000 or more, the gift must be reviewed by the Kansas Board of Regents prior to the acceptance of the gift pursuant to K.S.A. 76-724. Please contact Chief Financial Officer and Director of Budget Planning for more information.
Questions on this chapter should be referred to the Financial Reporting and Asset Management Fiscal Analyst at (785) 532-6525.
This is a two digit numeric code. The first digit indicates the source of funding. The second digit indicates the condition of the item when acquired or from whom the item was acquired.
|0||Acquired with State or non-federal funds|
|1||Acquired with federal funds|
|2||Acquired with local funds (Local Agency only)|
|3||Acquired with private sponsor funds (sponsored projects only)|
|4||Acquired with insurance proceeds|
|0||Acquired before July 1963|
|3||Acquired as a gift|
|4||Acquired from State or Federal surplus property|
|5||Transfer from another Kansas state agency|
|6||Acquired with federal funds before December 1972|
|7||Acquired with matching funds|
|8||Property on loan to KSU|
|9||Manufactured by the department|
NOTE: An acquisition code will appear on Part 1 of the Monthly Fixed Asset Report in the FA Src Code column if federal funds were used.
NOTE: Local funds (2X) apply to local agency departments only.
A listing of all the valid City codes can be found on page 19 of Topeka's Division of Accounts and Reports Policy and Procedures Manual, Filing Number 13,001.