4-OP-D-2-F Property

Responsible Executive: Finance and Administration

Approving Official: Vice President for Finance and Administration

Effective Date: September 20, 2019

Last Revision Date: 09/04/2026

  1. INTRODUCTION
    1. OBJECTIVE
      1. This policy establishes the applicability and governance requirements for university property.
      2. DEFINITIONS
        1. Capital Asset means all real, personal, or intangible property that has an acquisition cost or donated value equal to or greater than an established capitalization threshold and has a useful life extending beyond one year.
        2. Expendable Property means items that would otherwise be capital assets except they either have an acquisition cost or donated value less than an established capitalization threshold, or a useful life not extending beyond one year.
        3. Attractive / Sensitive Property means expendable property that is prone to theft because it is either portable, contains new technology, or is easily adaptable for personal use.
  2. POLICY
    1. Scope
      1. Applicability - this policy applies to all university property, including capital assets as well as expendable and attractive/sensitive property, regardless of funding source, method of acquisition, or custodial assignment.
      2. Governance - this policy governs ownership and stewardship; use and safeguarding; acquisition and recording; inventory and accountability; and the transfer, disposal, surplus, and removal of university property from campus.
    2. Ownership and Stewardship
      1. University property includes assets owned by the university as well as those under its custody or control through sponsor agreements, donor restrictions, leases, or other contractual arrangements. Property acquired with sponsored funds or subject to contractual limitations must be managed, used, and disposed of in accordance with all applicable laws, regulations, and the terms of the governing agreements.
      2. The university is responsible for the stewardship, control, and accountability of all university property. The President serves as the official custodian of all university property and may delegate related responsibilities to departmental leadership and designated personnel. These individuals are charged with safeguarding the property under their supervision and ensuring its proper use, maintenance, and accountability.
    3. Use and Safeguarding
      1. University property shall be used only for official university purposes and in accordance with all applicable policies, procedures, and contractual agreements.
      2. Departments are responsible for establishing and maintaining effective internal controls to safeguard property and prevent loss, damage, or misuse.
      3. Property acquired with sponsored funds must be administered in accordance with all applicable sponsor requirements and governing regulations.
      4. The designation of attractive or sensitive property varies by department and should reflect each unit’s operational risks. When evaluating such items, departments should consider factors such as  portability, potential personal use, technological features, resale value, and location security. Departments should also perform a risk assessment of both the financial and operational risks to identify vulnerable property as well as conduct a cost‑benefit analysis before establishing internal controls, including periodic inventory procedures.
    4. Acquisition and Recording
      1. All property acquisitions must comply with applicable procurement, financial, and grant requirements.
      2. Property that meets established capitalization thresholds must be recorded in the university’s official accounting records in accordance with applicable accounting and asset‑management requirements.
      3. Capitalization of Assets
        1. University capital assets are recorded at historical cost at the time of acquisition, estimated fair value at the time of donation, or present value of expected payments over the term of the contract and are classified as depreciable, amortizable, or non-depreciable in accordance with applicable accounting standards.
          • Depreciable and amortizable capital assets generally consist of buildings, infrastructure and other improvements, furniture and equipment, library resources, right-to-use leases and subscription-based technology arrangements, public-private partnerships, and computer software.
          • Non-depreciable capital assets generally consist of land, works of art and historical treasures, and construction in progress.
        2. Additions, improvements, and other outlays that exceed the applicable capitalization threshold and extend an asset’s useful life by more than one year are also capitalized.
        3. The university’s capitalization thresholds are $250,000 for buildings, infrastructure, and other improvements; $10,000 for furniture, equipment, and other tangible personal property; $4,000,000 for computer software and other intangible assets; and $250 for library resources.
        4. Depreciation and amortization are calculated on university-owned capital assets using the straight-line method over the estimated useful lives of the related capital assets in accordance with applicable accounting standards as follows:
          • Buildings, Infrastructure, and Other Improvements – 10 to 50 years
          • Furniture and Equipment – 3 to 20 years
          • Computer Software – 5 years
          • Library Resources – 10 years
        5. Amortization is calculated on university right-to-use leases and subscription-based technology arrangements using the straight-line method over the shorter of the contract term or useful life of the underlying asset in accordance with applicable accounting standards.
    5. Inventory and Accountability
      1. BOG Regulation 9.003 requires an annual inventory of property. A physical inventory is not required for library resources; the catalog and inventory control records maintained by the libraries serve as the official property records.
      2. Departments are required to participate in periodic inventory verification and reconciliation processes as guided by the University Controller’s Office, helping ensure accurate records and effective stewardship of university property.
      3. Departments are required to immediately notify the FSU Police Department when university property is stolen, lost, or destroyed.
    6. Transfer, Disposal, Surplus, and Removal from Campus
      1. Transfers, disposals, and surplus declarations must comply with university procedures and applicable laws, regulations, and sponsor requirements.
      2. Disposal methods must be conducted in accordance with ethical, environmental, and regulatory standards, including applicable federal, state, and local laws; university policies and procedures; and any sponsor-specific compliance requirements.

      3. University‑owned property may be removed from campus locations only when required by a contract or grant, or when its use at an off‑campus location supports the mission and objectives of the university. For the purposes of this policy, campus locations include all buildings and areas owned or leased by the university.

         

  3. LEGAL SUPPORT, JUSTIFICATION, AND REVIEW OF THIS POLICY