Fixed Assets Policy

Fixed Assets Policy

Purpose

The purpose of this policy is to ensure that the University’s fixed assets are acquired, safeguarded, controlled, disposed of, and accounted for in accordance with federal regulations, audit requirements, and generally accepted accounting principles.

Scope

This policy pertains to the capitalization, depreciation and disposal of fixed assets in all departments/units at the University of Dayton. 

Policy History

Effective Date:  June 28, 2016

Approval:  July 28, 2026

Policy History: 

• Approved in original form: June 28, 2016
• Approved as amended: July 28, 2026

Maintenance of Policy: Assistant Vice President and Controller, Finance and Administrative Services

Definitions

Fixed Asset: any tangible infrastructure, property, or equipment purchased by the University to support its long-term operational, academic, and research missions. Rather than being consumed in day-to-day operations (like office supplies) or held for resale, these assets provide continuous operational utility and benefits to the campus community across multiple fiscal years.

Repairs and Maintenance: Expenses incurred to maintain an asset in its normal, ordinary operating condition. These expenditures do not add value or prolong the asset's life beyond its original design. Examples include routine service, cleaning and testing of equipment, minor parts replacement, cosmetic updates (painting, carpet), janitorial and landscaping services.

Policy

The University’s fixed assets are comprised of land, building, land and building improvements and equipment and other items capitalizable according to accounting principles generally accepted in the United States of America (GAAP). This policy is also in compliance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Acquisition and Capitalization:  All fixed asset purchases are to be made in accordance within the policies and procedures of the University and Research Institute procurement offices.  Approval of capital projects relating to the purchase or construction of fixed assets should be in accordance with the Capital Project Initiation and Approval Process. Gifts of fixed assets are managed by the advancement office and coordinated with central finance and property records.  All fixed assets should be owned by the University, held for operations, have a useful life of more than one year and meet the capitalization thresholds.  The current capitalization thresholds and useful life schedule are found in Appendix A of this policy. This schedule cannot be changed without first receiving approval from the Office of Naval Research (“ONR”) as it is disclosed on the University Cost Accounting Disclosure statement reviewed and approved by ONR.

Depreciation:  Fixed assets are depreciated over the useful lives detailed in Appendix A using the straight line method. Unless otherwise determined by the property records office at the time of acquisition, salvage value is assumed to be zero. Depreciation is calculated on a yearly basis beginning in the year of acquisition, with a full year taken in the year of purchase. 

Inventory and Safeguarding: All capitalized equipment must be assigned a unique University property tag upon receipt. The property records office will conduct regular physical inventory of capitalized equipment to verify asset existence, location and condition.

Disposal: Fixed assets will be removed from records when they become obsolete, are sold, donated, scrapped, or traded in. A gain or loss will be recorded based on the remaining book value (original value recorded less accumulated depreciation). Before selling or disposing of an asset, regardless of the unit (UD or UDRI) the property records office within UDRI should be consulted. In addition, the Controller’s Office should be consulted to understand the financial impact of the disposal that may be attributable to the unit. Disposals of federally owned and/or purchased equipment must be made in compliance with Uniform Guidance.

Impairment: If a major event (e.g., fire, flood, structural failure) permanently compromises an asset's utility, the department must notify the Controller's Office immediately to evaluate a potential asset impairment write-down under FASB guidelines.

Reference Documents

1. Capital Project Initiation and Approval Process
2. Policy for Capital Equipment Accountability
3. Purchasing Policy for Sponsored Research
4. Maintenance, Renovation, Refurbishment and Design of University Facilities and Grounds Policy
5. Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR 200