Comprehensive Standard
3.11.1
The institution exercises appropriate control over all its
physical resources. (Control of physical resources)
Narrative:
Lawson State
Community College exercises appropriate control over all of its physical
resources. The Facilities Department is responsible for the maintenance and
upkeep of the properties, and the vehicle fleet. The Business Affairs office is
responsible for maintaining insurance on all buildings and properties, vehicles,
and control over capital assets.
The
responsibility for the general oversight of physical resources that is
associated with the Facilities Department lies with Vice President of
Administrative and Student Services. In
the organizational structure,
the Director of Facilities, located on the Birmingham Campus, reports to the
divisional Vice President; the Assistant Director of Facilities is located on
the Bessemer Campus and reports directly to the Director. Together, the Director and Assistant Director
manage the day-to-day operations of facilities and the vehicle fleet, with the
President playing a key role in decision making and prioritization of facility
upgrades, renewals and replacements.
The responsibility for the general oversight of physical
resources that is associated with the control over building, and property
insurance also lies with the Vice President for Administrative and Student
Services. As
mandated by the Alabama State Board of Education policy 310.02, all colleges
in the Alabama Community College System are required to secure property and
plant insurance through the Department of Risk Management in the State Finance
Department. The college provides a property schedule
for replacement coverage insurance for all buildings, boilers, equipment and
structures in the plant. The Department
of Risk Management performs periodic reviews to insure that the schedules are
up-to-date and insurance coverage is adequate.
Premiums are paid by the college annually.
The responsibility for the general oversight
of physical resources that is associated with the control over vehicle insurance lies too with the Vice
President for Administrative and Student Services. The College maintains
required insurance coverage on all vehicles in accordance with State of Alabama
Board Policy 310.02. Vehicle insurance
is purchased from a local vendor through the State of Alabama Bid Law
process. Insurance coverage is reviewed
annually for appropriate coverage, limits verification on all active vehicles.
The
responsibility for the general oversight of physical resources that is
associated with the control over capital assets also comes through the Vice
President for Administrative and Student Services. The division exercises
appropriate control over all its physical resources and makes every effort to
safeguard all property and equipment.
The College has instituted a series of internal controls designed to
safeguard capital assets and properly record values in the general ledger. The procurement of materials, supplies, goods
and services assures the College that the acquisition of assets will be
captured during the inventory of assets process. The College adheres to Alabama State Board
policy 324.01 on Physical Property Inventory. State
Board Policy requires the capitalization of assets valued at $5,000.00 or
greater and GASB requires that these assets are depreciated. Capitalized
assets, computers and highly sensitive assets are issued an identification
number indicating the year the asset is acquired in the numbering
sequence. A physical inventory is taken
annually. The College employs a position
of Inventory Clerk who reports
to the Director of Accounting in the Business Affairs Office. The Inventory Clerk ensures that equipment
purchases are captured when the check is issued to the vendor and verifies the
location of the equipment. All items
that are inventoried are recorded in the Plant funds and reconciled each year
during the financial statement preparation.
Disposals and transfers of equipment are recorded in the equipment
inventory detail in the accounting software.
The
Annual Institutional Audit
includes an audit of fixed assets. The
College was found in compliance with its internal controls and has received no
findings on fixed assets in its financial audits in recent years.
Documentation:
|
Documentation |
Location |
|
Facilities Organizational Chart |
|
|
State of Alabama Board of
Education Policy on Insurance 310.02 |
|
|
Property Schedule |
|
|
State of Alabama Board of
Education Policy on Insurance 310.02 |
|
|
Vehicle Insurance |
|
|
State
of Alabama Board of Education Policy on
Physical Inventory 324.01 |
|
|
Job
Description for Inventory Clerk |
|
|
2007/2008
Annual Audit Report |