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POLICIES & PROCEDURES

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Annual Physical Equipment InventoryAccountability for University Equipment Buildings

Depreciation | Disposition of Fixed Assets | Donations & GiftsFabricated Equipment | Grant Equipment | Impairments | Infrastructure 

Land & Site Improvements | Machinery & Equipment | Modular Furniture | Real Property Demolition 

Removal of University Assets | Separation of Duties | Tagging & Tracking | Transfer of Equipment

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Annual Physical Equipment Inventory

The Fixed Asset System is a control over the dynamic environment where locations, conditions, and certain other data elements in the system are constantly changing. State regulation mandates that current and accurate records of all University equipment be maintained for State and Federal Audit purposes.

A Worksheet for Physical inventory of Assets will be printed and sent to the university departments each year by the second week in March which will be due 3 weeks later. The inventory printout will be sorted by building numbers, room numbers and asset numbers. The inventory listings will include asset number, description, manufacturing name, model number, serial number, acquisition date and cost. The departmental inventory representative will be responsible for locating each fixed asset listed on the inventory worksheet.

The majority of fixed assets listed on the inventory printouts will have a six digit bar coding tag number, which corresponds to the item number on the inventory worksheet. There are several fixed assets which may have a notation in the system that the paperwork has been tagged. The Property Management staff will make this designation when it is not possible to tag an asset properly. Examples of paperwork tagged assets include: stadium lighting, computer hardware, telephone systems and capital improvements.

Please make corrections in blue or red ink on the inventory printout to be returned to Fixed Assets. When the departmental representative locates each fixed asset, he/she will check off the located asset and record the following corrections on the inventory worksheet:

1.) Additions 

Assets that do not have a tag number attached to it and appear to meet the dollar threshold but are not listed on the printout or items that have been transferred to another department.  For items that do not have a tag number attached to it, attach a copy of the purchase order and vendor’s invoice.   If the item is untagged and has been transferred then a copy of the completed transfer form 602 PM will need to be attached along with the purchase order and vendor’s invoice.    Untagged items can occur if the department purchased items costing $1200 using object code 5200.    The Property Management Office will research these items to determine whether they should be added to the Fixed Assets S

2.) Change of Location within the responsible department
In the comments section on the Physical Inventory Worksheet, record the building and/or room changes on the printout. If you do not have the building numbers, please write the name of the building beneath the former building number. The Property Management Office will update the changes accordingly to facilitate locating these items in the future.

3.) Missing Barcode Tag
If an asset appears on the inventory printout and does not have a barcode tag, please make a note out to the side of the asset number on the inventory worksheet and the Property Management Office will tag/retag the asset.

4.) Equipment Transferred to another department
Attach a completed and signed copy of the form 602 PM Equipment Transfer Form. The 601 PM form must be signed by the releasing and receiving department heads. Include the tag number, description, and serial number so that the Property Management Office will know which item has been transferred. Please keep a copy of form 602 PM for your records.

5.) Surplus Equipment
Attach a signed and completed copy of 601 PM Surplus Equipment Form. The 601 PM form must be signed by the department head. Include your department number, description, tag number, and serial number so that the Property Management Office can update the fixed assets system accordingly.

6.) Lost or Stolen Equipment
Fill out form 601 PM and attach a copy of the university police report pertaining to the theft, which should include the asset number. Include on the report the departmental number, tag number, and serial number so that the Property Management Office knows which item to record as lost/stolen.

7.) Items located off campus
Attach a signed and completed copy of the 603 PM Permission to Remove University Assets. The 603 PM form should include the department from which the item was removed, the tag number, and the location to where the item will be located. The 603 PM form should be signed by the department head before removing from campus.

8.) Missing Asset
A missing asset is an asset which is not found during the physical inventory process and for which documents have not been forwarded to the Property Management Office for transfer, surplus, or disposal. If an asset is missing please document it with “missing” in the comments status.

*Please note that if the department has filled out any of these forms prior the physical inventory and sent them to the Property Management Office prior to the receipt of these inventory printouts, the Property Management Office will have already updated the Fixed Assets System. If you have sent them before and we do not have these forms then send us a copy so that we can handle it accordingly.

Send the inventory printout to the Property Management Office at the DeHuguley Building.  

9.) Physical Inventory Spot Audits
The Property Management Office selects a different school (ex: School of Technology) for spot audits after the physical inventory is reconciled in Banner Fixed Assets. All of the departments within that school are spot audited and we may randomly pick other departments outside the chosen school that we deem necessary for a spot audit. The inventory representative from each department and a Property Management Staff member performs the spot audits.

10.) Significant Change Events
The University Property Management Office will perform a physical inventory of capitalized assets and inventoried items each time there is a change at the management level (Managers/Supervisors). A signature is required on the Physical Inventory Worksheet by the outgoing manager supervisory level that has responsibility

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 Accountability for University Equipment

The individual charged with the budget and expenditure authority is responsible for the safeguarding and tracking of all university equipment assigned to his/her respective department whether or not the equipment meets the fixed asset threshold.

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Buildings 

Buildings are valued at the purchase price or construction cost. Cost should include all charges necessary to put the building or structure in its intended state of operation (i.e. brokers fees, attorneys, architects, appraisers etc.). Permanently attached fixtures to the building (i.e. heating and ventilation systems, roofs, plumbing, carpet, and electrical systems) should be included in the cost of the building.

Donated buildings should be inventoried at the appraised fair market value at the time the building was donated.

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Depreciation 

The University has adopted the straight-line method for depreciation with a salvage value of zero.  Effective 01 July 2012, a half year of depreciation will be taken for the year of acquisition. (Note: for periods prior to 01 July 2012, University policy was to take a full year of depreciation in the year of acquisition.) Useful lives are assigned based on the asset classification and are consistent with the recommended useful life ranges established by the Office of State Controller. 

Useful lives of new asset classes are established by the Financial Reporting office based on the expected life of the assets in that class.  Financial Reporting staff considers experience with similar types of assets as well as the asset ranges set by the Office of State Controller when establishing the life for new assets classes.

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Disposition of Fixed Assets

University equipment that is no longer needed by a department cannot be thrown away or discarded. If a department is going to dispose of a Fixed Asset it must complete form 601PM, Surplus Disposition Property Form. The department has to complete the form whenever the custody of the fixed asset changes status due to the equipment being surplused, junked, traded or returned to vendor.

The department completes disposition form 601PM which includes the departmental name, number, asset bar code number, description, disposal code and signature by the department head.

Surplus Assets
When a department has decided that an asset has no useful value to any department at the University, it may be surplused by the department. The department should fill out form 601PM Disposition/Equipment Transfer Form and send it to the Property Management Office. The Property Management Office has a two week turn around for equipment removal.

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Donations/Gifts

The Office of the Vice Chancellor for Development and University Relations has the primary responsibility for collection of donor information and coordination of review of gifts to the University. The Chancellor in collaboration with the Vice Chancellor for Business and Finance has the primary responsibility for the acceptance of gifts to the University.

Since the Vice Chancellor for Development and University Relations is given the primary responsibility for coordinating gifts to the University, all gifts to the University or its Endowment must be channeled through the Office of the Vice Chancellor for Development and University Relations.

The Office of the Vice Chancellor for Development and University Relations (VCDUR) will forward the information to the Property Management Office.

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Fabricated Equipment 

Fabricated equipment is defined as tangible property that is built or assembled from individual parts that have a cumulative aggregate cost of $5,000 or more.  As soon as the fabricated equipment project is started a fabricated equipment form must be filled out and sent to the Property Management Office.

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Grant Equipment

Grant equipment is governed by the office of Contracts and Grants located in Business & Finance. All grant equipment meeting the fixed asset threshold will be tagged with a university bar code tag and added to the fixed asset system unless the grant states otherwise. If the grants states that the equipment will not be retained by the university the office of Contracts and Grants should forward the stipulation of the grant to the Property Management Office.

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Impairments 

Capital Assets are considered impaired when an event occurs to considerably reduce the usage and quality.  Indicators of impairments, but not limited to, are evidence of physical damage, changes in environmental regulations, or major improvements in technology.  One of example of an impairment is a natural disaster that damages a building and it can no longer be occupied until renovated or repaired.  The Financial Reporting office checks annually for impairments.  

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Infrastructure

Infrastructure assets are long lived assets capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples of infrastructure assets include roads, bridges, tunnels, drainage systems, water and sewer systems, dams and lighting systems.

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Land and Land/Site Improvements

Purchased land is entered at its cost. The cost includes its purchase price, preparations fees, legal and recording fees, surveying fees, damage payments, and land/site improvements that ready the land for its intended use and produce permanent benefits. 

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Machinery and Equipment

This subgroup includes machinery and equipment with a normal life expectancy of more than two years. Examples of these assets are: furniture, equipment, and motor vehicles and motorized equipment.

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Modular Furniture 

The University does not capitalize modular furniture unless their costs are part of the total cost associated with a building improvement project or construction of a new building.   When the cost is separate and identifiable, the modular furniture is not capitalized if the cost of each is under $5000.  

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Real Property Demolition

Real property demolitions will be forwarded from the Real Estate Property Office located in the department of Facilities. Upon demolition a list of buildings demolished will be sent to the Property Management Office for removal from the system. 

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Removal of University Assets

When an employee is required to use a university asset away from the university campus, he/she must first obtain written permission from the responsible department head.

Removing a university asset without prior approval may result in the individual being prosecuted for misappropriation of State Property.

WHEN PERMISSION IS GIVEN TO TAKE A UNIVERSITY ASSET FROM THE CAMPUS, THAT ASSET BECOMES THE PERSONAL RESPONSIBILITY OF THE INDIVIDUAL WHO REMOVES THE ASSET. HE/SHE WILL BE HELD ACCOUNTABLE TO THE UNIVERSITY FOR THE SAFEGUARDING OF THE ASSET UNTIL IT IS RETURNED TO THE CAMPUS.

When an employee needs to use a university asset(s) at a location away from the university campus, he/she must first obtain approval in writing from the appropriate Department Head. The approval must include at a minimum the following information: The name and signature of the person removing the asset. A full description of the asset to be moved. The NC A & T SU Inventory Identification Number. The location from which the asset is being taken. The location of the asset while away from campus. The period (dates, time) the asset will be in use away from campus. A narrative of the NC A & T SU business purpose for which the asset is to be used. The name and signature of the approving Department Head.

The fixed asset system will be updated upon return of the equipment to the university.

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Separation Of Duties 

There are a few departments involved in the fixed assets process.  The Property Management Department assigns tags, physically tags, records, spot audits and maintains accurate accounting records for all fixed assets meeting the fixed asset threshold.  University departments assign a departmental inventory representative to conduct annual physical inventory and make sure that all changes made has been forwarded to the Property Management Office.  NC A&T Central Receiving office receives equipment for University departments unless otherwise noted on the purchase order or invoice.  

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Tagging and Tracking of Fixed and Inventoried Assets

Fixed Assets Threshold

·         Equipment with a purchase price (or donation/gift) of $5000 or more and a useful life of 2 or more Years is capitalized equipment and must be tagged.

·         EDP equipment with a purchase price of $1200 or more but less than $5000 is considered inventor able. 

An interface extract program is run by the Property Management staff which identifies potential assets.  This extract program gathers information such as cost and description through the purchasing and accounts payable module and creates a pending asset.  The Property Management staff reviews the extract program and decides which assets should be capitalized or inventoried based on the asset cost meeting the threshold.

The Property Management staff uses an asset control sheet which contains the description, purchase order number, vendor number, invoice, fund, account, amount and check date to identify equipment.   The staff then tags the equipment with the number that is assigned to the asset control sheet.  In addition, the serial number, model, manufacturer name, date tagged and signature is recorded on the asset control sheet once we locate the equipment.   After the asset is tagged the assigned bar code tagged and the information recorded on the control sheet is entered into Banner Fixed Assets for approval by the Property Management Manager. 

Equipment that does not meet the fixed asset threshold when purchased is not tracked in the university’s computerized fixed assets system by the Property Management Office and a fixed asset tag is not assigned to the equipment. 

Departments should have an internal protocol for tracking equipment that does meet our threshold requirements.

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Transfer of Equipment

When a department has equipment for which it no longer has it use, it may be transferred to another department using transfer form 601PM Disposition/Equipment Transfer Form. The form is filled out by the person initiating the transfer with the appropriate tag number, description, date, telephone number, organization number, building and room location. The department head for the new location and the department head of the current location must both sign the form. The completed form is sent to the Property Management Office for updates and changes in the Banner Fixed Assets System.

The movement an asset from its current building or room location to a new location, is considered a location change. Form 601PM Disposition/Equipment Transfer Form can used to notify the Fixed Assets staff to update the Fixed Assets System. The department would enter their department name as both the current location and the new location, along with the new building and/or room numbers.

The transfer of an asset between agencies on a temporary basis is considered a loan and must be returned.

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Points of Pride