Policies & Procedures Manual - Elizabeth City State University

400.1.60Adopted: 06/14/05ObjectiveELIZABETH CITY STATE UNIVERSITYFixed Assets- Separation of DutiesDuties in the Fixed Assets Area are distributed among several positions. This separation isnecessary for adequate internal control of the fixed asset system.The State Controller's Recommended RequirementsThe Chief Fiscal Officer has the custodial and supervisory duties of the fixed asset system.He/She assigns both supervisory and clerical people to control the assets.a) Where possible, the Fixed Asset Officer makes the entries to the fixed assetsystem. He or She also tags the asset and records the number in the fixedasset system. If it is not possible for the Fixed Asset Officer to do these tasks,a responsible person will be designated to perform the duties needed.b) An Accountant (not the Fixed Assets Officer) records the general ledgerentries. This person also balances the fixed asset system accounts to thegeneral ledger accounts monthly.c) Another person in each office receives the assets and checks them in. This isusually an office supervisor, manager, or their designee. He or She routes thereceiving tickets to the accountant. The accountant approves them, makesentries to the statewide accounting system, and sends them to the fixed assetsofficer for appropriate Fixed Assets System entries.d) A person separate from the above mentioned positions, performs the annualinventory. The physical inventory is taken, at least once a year, to verify thatcapitalized assets physically located at the University are recorded in theFixed Assets Accounts. After inventory, this person researches any missingassets. The responsible supervisor and Chief Fiscal Officer approve theinventory sheets before the Fixed Assets Officer makes changes to the statuscode.The State recommends that, at a minimum, the above policies are in place. And, although theremay not be enough people involved at ECSU to separate all the above mentioned functions, theperson making entries to the university's books will not take the year ending inventory orbalance it.