40-000-5 Revised 5-05, 11-30-10 PROPERTY AND EQUIPMENT (PROCEDURE) PROCUREMENT: Property and equipment shall be classified as expendable and non-expendable. Expendable property and equipment shall be described as items with an estimated useful life of less than one year or an acquisition cost of less than $5,000 per unit. These items will be treated as current year operating expenses. Property and equipment with an estimated useful life of more than one year and an acquisition cost of more that $5,000 shall be classified as non-expendable and presented on the Government-Wide Statement of Net Assets as Capital Assets. Purchases of equipment may be initiated by the department or program personnel in accordance with the approved department budgets and be approved by the budget manager and/or division head. Any equipment purchases of $5,000 or more must also have the approval of the President. Purchase of equipment (including vehicles) of $10,000 or more shall also be approved by the Board of Trustees. Three or more formal bids or quotes shall be obtained through written advertisements for purchases of $100,000 or more. All purchases require the authorization of the Vice President of Business or designee. No unnecessary items are to be purchased. Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement for the recipient and the Federal Government. Solicitations for goods and services cover the following: a. A clear and accurate description of the technical requirements for the material, product or service to be purchased. In competitive procurements, such a description shall not contain features which unduly restrict competition. b. Requirements which the bidder/offer or must fulfill and all other factors to be used in evaluating bids or proposals. c. A description, whenever practicable, of technical requirements in terms of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards. d. The specific features of “brand name or equal” descriptions that bidders are required to meet when such items are included in the solicitation. e. The acceptance, to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement. f. Preference, to the extent practicable and economically feasible, for products and services that conserve natural resources and protect the environment and are energy efficient. Negotiated purchases may be made when: a. an unexpected need will not permit the delay due to advertising; b. the equipment needed is available from only one vendor; c. no acceptable bids have been received after formal advertising; or d. otherwise authorized by laws, rules, or regulations; In furtherance of the Indian Self-determination and Educational Assistance Act, the Oglala Lakota College shall maintain a positive effort to utilize Indian organizations and economic enterprises in the awarding of any contracts and subcontracts. Formal governing board approval shall be required for disposal of property and equipment which has an estimated market value of $5,000 or higher. Items which increase the useful life or substantially increase the efficiency of an asset shall be accounted for as capital purchases. Items which do not accomplish either of the above criteria and are ordinary in nature shall be accounted for as repairs and maintenance. Items below $5,000 shall be expensed unless otherwise indicated by the President or Vice President of Business. RECORDKEEPING: Detailed property and equipment records shall be maintained that include description, date purchased or received by donation, cost or fair value at donation, donor or funding source including percent provided by federal funds with the federal funding number, where title vests, location of equipment, and condition. For Headstart/Early Headstart equipment, records must be maintained so from the information one can calculate the percentage of HHS’s share in the cost of the equipment. Detailed property and equipment records shall be reconciled to the control account. At least semi-annually, a physical inventory of property and equipment shall be taken and compared with asset records. a. Reconciliations shall be prepared and any discrepancies immediately followed up and explained. b. Reconciliations shall be reviewed by a responsible person. The accounting department shall be informed of any material changes in the status of items of property and equipment (such as moves, sales, scrapping, obsolescence, etc.). SAFEGUARDING: Equipment shall be properly identified by numbered metal tags or other means of identification. Items shall be adequately safeguarded from loss due to fire, theft, or misplacement. Periodic reviews and appraisals shall be made relative to insurance considerations.
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