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The State Administrative Manual (SAM), Section 8600, states:
"Property accounting
procedures are designed to maintain uniform accountability for
State property. These
standard procedures are used to provide accurate records for the
acquisition, maintenance,
control, and disposition of property. The combination of accurate
accounting records and
strong internal controls must be in place to protect against and
detect the unauthorized use of
State property."
A. According to SAM, Section 8602, State property is
capitalized for accounting purposes
when all three of the following
requirements are met:
1. Useful life of at least one year.
2. Unit acquisition cost
of at least $5,000. Unit cost includes the purchase price
plus all
costs to acquire, install, and prepare the property for its
intended use.
3. Used to conduct State
business.
B. Only property that meets these requirements shall be
charged to account codes for
property.
C. Property that is permanently attached or integrated
into a building will not be capitalized.
D. Property acquired with Cal State San Marcos
Foundation funds, Associated Students, Inc.
funds, and San Marcos
University Corporation funds do not meet these requirements.
E. See Section IV for a complete listing of property
definitions.
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