Regulations

FR 3610 Capital Assets and Inventory

Section: 3000 Financial
Sub Section: 3600 Property
Title: FR 3610 Capital Assets and Inventory
Associated Policy: FP 3601 College Property 
References: GASB Codification 1400, 1600, and 2200; IRS Publication 225 Chapters 4 and 7; CFR 2 Section 200.439
Supersedes: NA
Responsible Administrator: Chief Financial Officer 
 Initial Approval: 04-19-2017

Last Revision: 10-15-2025 

Three Rivers College defines and establishes rules for the oversight of capital assets and inventory. Records of capital assets and inventory are maintained by the Chief Financial Officer. The College President provides oversight to all proceedings regarding this regulation. The authority for oversight may be granted upon approval by the College President or his/her designee. The records regarding college property and inventory, as well as the disposal of said property, shall be made available to the public through the Chief Financial Officer.

For financial reporting purposes, the college is considered a special purpose government engaged in business-type activities. Accordingly, the college’s financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Under this measurement basis and focus of accounting, costs that benefit more than one year are capitalized and depreciated or amortized over their useful lives.

Capital Assets

Capital assets are defined by the college as assets with an initial cost of $10,000 or more and an estimated useful life of more than one year. Such assets are recorded at cost at the date of acquisition, or fair value at the date of donation if acquired by gift.

Capital assets may include property, plant, equipment, and infrastructure assets such as roads and sidewalks. Livestock shall be considered a capital asset if it meets the criteria defined in IRS Publication 225 Chapter 4. Generally, livestock shall be capitalized if it is acquired for draft, breeding, sport, or dairy.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. The college considers construction projects and improvements with a cost of $100,000 or more to be major outlays.

Property, plant and equipment of the college are depreciated using the straight-line method over the following useful lives:

  • Buildings and improvements 20-40 years
  • Infrastructure 15-20 years
  • Land improvements 20 years
  • Library materials 10 years
  • Furniture, fixtures and equipment 5 years
  • Livestock 12 years

Inventory

Inventory includes property, plant, equipment, and infrastructure with an initial cost between $5,000 and $9,999 and an estimated useful life more than one year. Such assets are monitored by the college inventory system to ensure investments are safeguarded. However, the cost of purchasing these items is treated as expenses for financial reporting purposes.

Inventory for Resale

Inventory for resale consists of bookstore merchandise and is valued at the lower of cost or market, determined on the first-in, first-out basis for financial reporting purposes.

Livestock acquired for sale or slaughter will be recorded as inventory for resale in the financial records at the end of the fiscal year.

All capital assets, inventory, and inventory for resale shall be verified at least annually through a physical examination and comparison to College records.

DOCUMENT HISTORY:

04-19-2017:    Initial approval of regulation FR 3610 Capital Assets and Inventory.
03-27-2019:   Inclusion of livestock clause per IRS Publication 225, Chapters 4 and 7.
10-15-2025:    Updated capital thresholds.

FR 3620 Disposal of Surplus Property

Section: 3000 Financial
Sub Section: 3600 Property
Title: FR 3620 Disposal of Surplus Property 
Primary Policy: FP 3601 College Property
Associated Regulation: FR 3610 Capital Assets and Inventory
References:
Supersedes: NA
Responsible Administrator: Chief Financial Officer
Initial Approval: 07-14-2010
 Last Revision: 04-19-2017 

Three Rivers College reserves the right to define and establish said guidelines for the disposal of surplus property. The College President provides oversight to all proceedings regarding this regulation. The authority may be granted only upon the written approval by the College President or his/her designee.  The records regarding college property as well as the disposal of said property shall be made available to the public through the Chief Financial Officer.

Definition of Surplus Personal Property

"Surplus personal property" is defined as personal property which has been determined to be obsolete, outmoded, unusable or no longer usable by the institution, or property for which future needs do not justify the cost of maintenance and/or storage. Such property must be declared "surplus personal property" by the College President or his/her designee; provided however, property need not be declared surplus when disposition is through the trade-in method.

General Rules

A. Surplus personal property is either usable property, which shall be transferred or sold, or unusable property, which may be destroyed, as hereinafter provided: 

a. Surplus personal property which is perishable food may be destroyed without delay or notification. 
b. Surplus personal property which is determined to be not usable by the college and of little or no salvage or other economic value may be destroyed by an appropriate method. 
c. The college shall follow the procedures described in the general disposal procedures section of this regulation, prior to disposal of all other surplus personal property. 

B. Surplus personal property in which the Federal Government or other entity has a legal interest should be transferred to such entity when no longer needed. 

C. All employees of the college and their immediate families shall be ineligible to bid for or purchase surplus personal property except by bid at public auction during the tenure of his/her employment, or for six (6) months thereafter.

D. Possession of surplus personal property sold to the general public under any method prescribed herein shall not pass until payment is made by cash, cashier’s check, or certified check, possession shall not pass until the check is honored by the drawee bank.

E. Possession shall pass to other institutions, political subdivisions of the state, and other governmental entities upon receipt, by the college, of purchase vouchers of such institutions, political subdivisions, or other governmental entities. Title to motor vehicles sold as surplus property to political subdivisions and other governmental entities shall be closed as to transferee when title is passed. 

General Disposal Procedures

A. The Three Rivers College President or his/her designee shall declare personal property to be surplus personal property prior to disposition as such; provided however, property need not be declared surplus when disposition is through use of the trade-in method.

B. The purchasing department is responsible for the disposal of surplus personal property, and the communications and procedures concerning the disposal of surplus personal property. 

C. No article of personal property may be disposed of as surplus except by one of the following methods:

a. Trade-in, when such is permitted due to the nature of the property or equipment and subject to the provisions of this regulation 
b. Transfer to other institutions; 
c. Transfer to other state agencies; 
d. Sale to eligible political subdivisions of the state and other governmental entities; 
e. Public auction, publicly advertised and held; 
f. Sale under sealed bids, publicly advertised, opened and recorded;
g. Negotiated contract for sale, at arm’s length; but only in those instances in which the availability of the property is recurring or repetitive in character, such as marketable waste products; 
h. Donations to a public school or public school system. 
i. Sale by Internet auction.

D. If the College President or his/her designee declares the property to be surplus personal property, the method of disposal shall be determined by the Director of Purchasing from the alternatives set forth herein. Written documentation for the selection of method of disposal shall be maintained. The trade-in method, when property is of the nature appropriate for trade-in shall be the first and second priority methods for disposal of surplus personal property, except for waste products which shall be disposed of as further provided in this regulation. In the selection of other methods of disposal, the following criteria shall be considered:

a. The character, utility and functionality of the property; 
b. The economics of disposal in light of all relevant circumstances attendant the proposed disposal, including the condition and climate of the potential market and present estimated market value of the property, transportation costs, and other cost factors associated with disposal; and 
c. Sound fiscal and budgetary policy and practices. 
d. The method of disposal selected in the preceding section shall be implemented pursuant to the specific procedures set forth in this regulation for such disposition. 
e. The purchasing department shall be responsible for the maintenance of accountability documentation on all items of surplus personal property, and shall ensure that adequate audit and inventory trails on all items of surplus personal property are maintained. Such authority shall make the final determination of the fair market value of surplus personal property.

Trade-In on Replacement

A. Items that must be replaced may, subject to the requirements of this section, be traded in on replacement property.

B. The Director of Purchasing shall perform the following functions in connection with the trade-in method of disposal: 

a. Issue invitations to bid asking for bids with trade-in and without trade-in and receive and review bids; 
b. Make an evaluation of the condition and fair market value of the property to be disposed of; through comparisons of bids and the evaluation prepared, make a determination whether it is in the best interest of the institution to dispose of the property by trade-in or by one of the other methods of disposal.

Transfer to Other Public Entities

A. Except when the trade-in method is utilized or when the property is to be disposed of as a waste product, preference shall be given to other public entities that notify the college of their desire and/or need for the property to be disposed of. Final authority may be granted only upon the written approval by the College President or his/her designee. 

Public Auctions and Sales under Sealed Bids

A. Public auctions and sales under sealed bids, as provided in this regulation, shall be publicly advertised and publicly held. Notice of intended disposal by public auction or sale under sealed bid shall be posted to the college website reasonably describing the property and specifying the date, time, place, manner, and conditions of the disposal. An advertisement shall be entered in the public notice or equivalent section of the newspaper and shall run not less than three (3) days in the case of a daily paper and not less than twice in the case of a weekly. The disposal shall not be held sooner than seven (7) days after the last day of publication nor later than fifteen (15) days after the last day of publication of the required notice, excluding Saturdays, Sundays and holidays.

B. A mailing list shall be developed for mailing to eligible governmental entities and potential buyers of surplus items. 

C. No person, firm or corporation shall be notified of any public auction or sale except as provided by this policy.

D. As many items as is practical and feasible shall be included in each sale.

E. All notices of sales of such property shall provide that the property is to be sold "as is" with transportation costs assumed by the purchaser. The notice shall state that the only warranty provided, expressed or implied, is the seller's right, title and interest in the property sold.

F. All sales by bid or auction shall be with reserve, and when bids received are unreasonably below the fair market value as determined by the responsible authority of the college, all bids shall be rejected and the property shall be thereafter disposed of pursuant to other acceptable methods of disposal. 

Disposal of Waste Products

A. Marketable waste products such as paper and paper products, used lumber, bottles and glass, rags, and similar materials of nominal value classified as scrap may be sold directly to dealers at the going market rate without soliciting bids. A record of the volume and unit price of such materials sold on the scrap market shall be kept by the Director of Purchasing.

B. Waste products which are subject to storage and are normally accumulated until such quantities are available to make a sale economically feasible shall be sold under sealed bids as follows:

a. Invitations to bid shall be mailed to known buyers of the particular item;
b. Three firm bids shall be secured when possible; 
c. Sealed bids shall be publicly opened and recorded ten (10) days, excluding Saturdays, Sundays, and holidays, after the invitations to bid are mailed; 
d. The highest bidder shall be awarded the contract and shall be notified of the date for removal of the property and the method of payment which will be acceptable; 
e. A file shall be maintained for each disposal for the purpose documenting the sale and should include all documents and information pertinent to the disposal. 
f. Anything to the contrary notwithstanding, surplus personal property which is determined to be unusable and of little or no salvage or other economic value may be destroyed. 

Sale by Internet

Notice of intended disposal by Internet auction shall be posted on the Internet. Such notice shall specify and reasonably describe the property to be disposed of, the date, time, manner and conditions of disposal, all as previously determined by the responsible authority. Final authorization resides upon the written approval by the College President or his/her designee.

Exceptions

Surplus personal property may be disposed of by a method other than those listed herein only upon the written approval by the College President or his/her designee.

DOCUMENT HISTORY:

07-14-2010:    Initial approval of regulation FR 3820 Disposal of Surplus Property.
09-21-2016:   The College Board of Trustees approved the name change of the college from Three Rivers Community College to Three Rivers College.
04-19-2017:   Revision of numbering FR 3820 to FR 3620, due to addition of section number 3600 Property and minor language edits.

FR 3650 Receiving

Three Rivers College Mail Services is the collection, processing, and distribution center for inter-office mail and the college’s incoming and outgoing U.S. Postal Service mail. Mail services also functions as the central receiving place for goods ordered by the college’s purchasing department.

College mail services provides routes to designated areas in each building on campus daily. Special handling situations, such as bulk mailings, must be prearranged with mail services.

No employee of Three Rivers College has the authority to purchase or commit funds toward the procurement of goods or services without first going through authorized requesting and purchasing procedures. Such actions will be considered an attempt to defraud the college, and are subject to disciplinary action up to and including termination.
Inter-Office Mail

All inter-office college mail should be clearly labeled with the date, recipient’s name and department, building name, and sender’s name. Previous recipient names should be marked out. Please do not use markers or pens that smear or are heavily scented. Interoffice envelopes should be discarded after all lines have been used. Do not use labels to cover prior delivery names.

Outgoing Mail and Packages

All outgoing mail should contain the sender’s name and the -five-digit department code to which shipping is to be charged. If the department code is missing, mail services reserves the right to open and inspect the contents to determine the appropriate department budget to be charged. When using window envelopes, make sure the address is clearly viewable. When using envelopes with a clasp on the back tape over the clasp to prevent postage machine jams. Please do not use markers or pens that smear or red markers not readable on the machines at the US Post Office. All envelopes other than #10 envelopes should be sealed by the sender. Outgoing mail will be picked up from designated areas in each building on campus daily prior to 2:30 pm. Pick up hours are posted at the Mail Room. Mail Services can prearrange for delivery using U.S. Mail overnight delivery, UPS, or Federal Express, when necessary. Departments should clearly label any items with special instructions. These carrier costs are charged to the sending department through the business office.

Incoming U.S. Mail, Federal Express, UPS and Private Carriers

Incoming mail is picked up from the U.S. Post Office and delivered to designated areas in each building on campus daily based on the schedule posted at the Mail Room.

Any mail or package delivery that is attempted other than to Mail Services should be directed to Mail Services for receiving. Any exceptions to this require preapproval of the Chief Financial Officer.

The removal of mail from the college mailroom is a violation of 18 U.S.C.C. 1708 and is subject to criminal action.

All incoming mail shall be received by Mail Services and is sorted using the following guidelines. Mail that does not fit into the following categories will be marked “return to sender” and returned to the USPS.

Mail addressed to a current employee of the college:

This mail will be delivered to that employee using the normal delivery process. All efforts are made to ensure that mail is correctly delivered to the intended recipient in a timely manner. However, it is possible that mail will be inadvertently delivered to someone other than the addressee. It is imperative that employees examine any and all deliveries to ensure they are the correct recipient. In the event an employee receives mail addressed to another individual, this mail shall not be opened and shall be immediately returned to the Mail Services department for correct delivery.

Mail addressed to a Department, Office, or Division within the College:

This mail will be delivered to that department using the normal delivery process. All efforts are made to ensure that mail is correctly delivered to the intended recipient in a timely manner. However, it is possible that mail will inadvertently be delivered to someone other than the addressee. It is imperative that employees examine any and all deliveries to ensure they are the correct recipient. In the event an employee receives mail addressed to another individual, this mail shall not be opened and shall be immediately returned to the Mail Services department for correct delivery.

Mail addressed to the College with no attention name:

This mail will be delivered to the Financial Services Department. The mail will be opened to determine the appropriate resolution and delivery.

Mail addressed to an employee no longer with the college:

This mail will be delivered to the Financial Services Department. The mail will be opened to determine appropriate resolution and delivery.

Mail delivered with the addressee unclear:

At times, there will be mail that is delivered to the college address and the individual/organization is not clear. This mail will be delivered to the Financial Services Department and will be opened to determine the appropriate resolution and delivery.

Mail addressed to an organization housed on campus other than the College:

This mail will be held in the mail room for pickup by persons designated by that organization. The organization shall provide Mail Services a list of the authorized individuals for pickup of mail and packages. Photo ID will be required for pick up and a signature log acknowledging receipt of mail.

Packages

Financial services approval through the purchase order process is required for all college merchandise and shall be sought prior to initiating any order. Be aware that the packing slips are compared to purchase orders for accuracy and completeness. Any packages that appear to be damaged in shipment will be opened by Mail Services personnel for inspection. All other packages will be delivered to the requesting party. If items are damaged, bring these items to the Mail Services department for return/replacement.

The purchase order (PO) is the legal document authorizing the purchase of and subsequent payment for materials ordered by the college. The PO Number is the control and reference number for all college purchases and is to be entered on all receiving documents, invoices, and inquiries pertaining to items ordered.

Mail Services will not accept delivery of any item with postage or shipping due upon delivery.

Personal Mail Packages

Mail Services will collect small amounts of outgoing, stamped, personal mail. Mail Services will not be responsible for verifying that appropriate postage is affixed. Under no circumstances will the college incur costs related to personal mail.

Mail services will accept delivery of small amounts of personal packages. Mail services will deliver notification that a personal package is waiting for pick up in the mailroom. If the personal mail package is not retrieved within 3 working days, it will be returned to the sender. In order for someone other than the addressee to retrieve the package, signed, written permission from the addressee must be provided. Mail services reserves the right to open and inspect any and all packages and mail.

College mail services is not responsible for the loss or damage of personal mail.

DOCUMENT HISTORY:

12-16-2009:    Initial approval of regulation FR 3850 College Mail Services. 
05-18-2012:   Reference to U.S.C.A. 1708 added; Information to be included on interoffice mail added; Specific time references for delivery removed and users directed to see posting of hours at mail room; Specific language added to ensure recipients verify correctness of delivery prior to the opening of delivered mail; Procedures defined for mail delivered to the college addressed to non-college entities housed at the college
09-21-2016:   The College Board of Trustees approved the name change of the college from Three Rivers Community College to Three Rivers College.
04-19-2017:   Minor revision to numbering and title FR 3850 College Mail Services to FR 3650 Receiving, due to addition of section number 3600 Property for proper alignment.