Role of the Fixed Asset Custodian
The fixed asset custodian plays a critical role in maintaining the accuracy of the University’s fixed asset records. The Office of the Comptroller relies on custodians to ensure that asset information—such as location, condition, and ownership—is complete and accurate, as it directly impacts the University’s financial statements.
The custodian’s responsibilities span the full life cycle of an asset:
- Acquisition
- Maintenance
- Disposal
Acquisition
Use of Proper Capital Expense Account Codes
Fixed assets are defined as items with a per unit cost of $5,000 or more and a useful life greater than one year.
| Account Code | Description |
|---|---|
| 6305 | Office Furniture and Equipment > $5,000 |
| 6310 | Software/Computer Equipment > $5,000 |
| 6315 | Maintenance Equipment > $5,000 |
| 6320 | Transportation Equipment > $5,000 |
| 6325 | Building Equipment > $5,000 |
| 6330 | Other Equipment > $5,000 |
| 6380–6399 | Capital and plant-related expenditures |
Using the correct account codes allows General Accounting to identify and capitalize assets efficiently. If incorrect account codes are used, General Accounting will reclassify the transaction during the capitalization process.
Receipt and Invoicing of Fixed Assets
Assets cannot be capitalized until they are both:
- Received
- Invoiced
The University utilizes the Ariba procurement system, which requires a three-way match (purchase order, receipt, and invoice) before payment can be issued. Purchasers are required to enter a receipt in Ariba once the asset is delivered.
In some cases:
- The invoice may be received prior to the asset
- A deposit may be required prior to delivery, with final invoicing upon receipt
Using the requisition process ensures that all transactions related to an asset are properly linked, allowing General Accounting to determine when an asset has been fully invoiced and received so that it can be capitalized in the appropriate period or placed in construction in process, if applicable.
Use of confirming orders or inconsistent purchasing methods may result in delays or errors in capitalization.
P-Card Purchases
In limited circumstances, fixed assets may be purchased using a P-Card. These transactions are reviewed by General Accounting.
General Accounting reviews purchases over $5,000 to determine whether they meet capitalization criteria. If needed, supporting documentation will be requested.
Capitalization Process
When an asset is identified as capital, General Accounting will gather supporting documentation and send a Pre-Confirmation email to validate key asset details.
Custodians should respond promptly and confirm or update:
- Custodian
- Location
- Serial number
- Model number
If no response is received within five business days, the asset will be capitalized based on available information.
Tagging of Assets
Once capitalized, a Permanent Tag (PTAG) is assigned in Banner. A barcode tag is applied when applicable, and the last six digits of the PTAG correspond to the barcode number.
Some assets cannot be physically tagged due to size or nature (e.g., buildings or software).
Permanent Tag Prefixes
| Prefix | Description |
|---|---|
| F | Drexel-funded assets |
| FA | Academy-funded assets |
| FM | PHEC/DUCOM assets |
| R / RA / RM | Capital project assets |
| ANS | Pre-acquisition Academy assets |
| None | Legacy system assets |
Maintenance
Custodians are responsible for maintaining accurate asset records throughout the year.
Annual Confirmation
- Review assigned assets
- Update inaccurate information
- Confirm asset status in the Fixed Asset Confirmation Tool
Key responsibilities include:
- Verifying location and custodian
- Updating asset condition
- Marking disposed assets as "DS - Disposed/Junked"
Only assets marked with this condition code will be written off.
Ongoing Responsibilities
Custodians should report changes throughout the year, including:
- Disposals
- Transfers
- Location updates
Use the Capital Asset Disposition/Transfer Form and submit to genaccting@drexel.edu.
Disposal
Assets must be reported when they are disposed, sold, or stolen. Disposals should be reported throughout the year using the Capital Asset Disposition/Transfer Form.
General Accounting will process the write-off and update the University’s financial records accordingly.
Important Considerations
- A fully depreciated asset should not be marked as disposed if it is still in use
- Assets in use must remain in the fixed asset system
- If you are unsure whether an asset should be disposed, contact General Accounting
Sale proceeds may be recorded as other income at the department level.
If you are unsure whether an asset is in the system, contact genaccting@drexel.edu.
Disposals processed through the Surplus Property program are reported automatically; however, when in doubt, submit the form.