A fixed asset is tangible personal property of a non-consumable nature. Fixed assets include land, buildings, improvements, machinery, books, furniture and other equipment exceeding $100. Shipping and installation are part of the cost of the equipment.
Land, buildings, and/or equipment received as a gift or donation can only be accepted by the Board of Trustees. If accepted, fixed assets received as a gift/donation must be recorded on the University's records at their fair market value at time of donation. The fair market value is generally established by an appraisal performed by a qualified appraiser.
Leased property must be capitalized and recorded as an asset on the university records. It is recorded at the full cost of the property, but does not include the interest portion of the lease payment.
In Illinois, the agency primarily responsible for capital construction is the Capital Development Board (CDB). When CDB projects are completed, title is relinquished to the University at which time the assets are recognized on the books of the University.
Property Control will be notified through the Comptroller's Office whenever a fixed asset is purchased. Only those items of equipment with an acquisition value of $500 or more are normally entered into the University Property Control System. However, some items of equipment considered “high theft” will be added to the Property Control System regardless of acquisition value.
Property Control must be notified any time there is a change in a fixed asset. This would include moving the asset to another location, trade-in, etc. Refer to the Property Control policy for more information.
All fixed assets must be recorded on the University's records and reported to the State of Illinois quarterly.
Policy Owner: Vice President for Finance and Planning
Contact: Comptroller's Office (309-438-5667)
Revised on: 04/2004
