Internal Control For Fixed Assets Essay

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Procedures and Policies Accounting and Title Fixed assets purchased for STCU administration and supplemental budgets are charged to expense in the year of purchase, without regard to useful lives. This accounting practice best matches the administrative and supplemental revenues contributed by the donor parties with related expenses in the accounting period. Fixed assets purchased for projects funded by the STCU are charged to project expense in the year of the purchase, without regard to useful lives. Title to fixed assets purchased for projects funded by the STCU. Title to fixed assets with a per unit acquisition cost of less than $2,500 US vests with the participating institution (i.e. the institution in which the fixed assets will be used on the project) at the time of delivery to the participating institution. Title to fixed assets with a per unit acquisition cost of $2,500 US or more vests with the STCU until termination, cessation, or completion of the project, at which time title will vest with the participating institution unless prior to or on that date the Center informs the participating institution of its intention to retain title to the fixed assets. If the Center retains title to the equipment, the Center will provide instructions to the participating institution for disposition of the equipment. The Center will pay the cost of disposing of such equipment. It is the intention of the STCU to vest title to fixed assets with a per unit acquisition cost of $2,500 US or more in the participating institution where the fixed assets were first delivered. However, the STCU reserves the right to transfer such fixed assets to another participating institution upon termination, cessation or completion of the project in order to satisfy an urgent requirement. At the present time, the STCU does not anticipate receiving any future economic benefit from

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