Capital Asset Equipment Inventory Property Management Office of Business Financial Department...

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Property Management Office of Business Financial Department Presents:Equipment Inventory

Online responsibility training and certification

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Press the forward button at the bottom of each slide to advance

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Additional Training Available

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Recommended for all department faculty, staff, and students working with capital equipment:

APO Certification –Head of Departments i.e.: Chairs, Directors, Controllers, or equivalent position titles

DPC Certification –CAM processors appointed as the primary Property Manager in their department

Asset Representative Certification –Any faculty, or staff with assigned assets in the CAM database

CAM Processing modules –APO, DPC and all CAM processors

Asset Edit Asset Loan Asset Retirement Global Asset Management Reports

Equipment Inventory –APO, DPC, CAM processors and Asset Representatives

Asset Disposition –All employees of the department/unit


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Lifecycle of an Asset

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PurchaseDecal

Movement

MaintenanceInventory

Utilization Disposition

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Financial management practices

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University operations are organized into Organizational Units that develop and execute strategic and tactical plans to carry out the University's mission and achieve its objectives. These units obtain and utilize resources, the financial impact of which is accumulated and summarized in the University's financial records. Financial records are an important management tool, used to both measure and monitor the acquisition and use of resources.Sound financial management practices, the State of Colorado statutes, fiscal rules, and federal regulations require the University to implement fiscal policies and procedures that:• Reasonably ensure the fiscal impact of University operations are planned, controlled,

and accurately accounted for in the University's financial records;• Reasonably ensure Fiscal Transactions comply with applicable policies, laws, regulations

and rules, contracts, grants, donor restrictions, and generally accepted accounting principles;

• Require an Internal Control environment to accomplish the above two objectives.


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Inventory ScheduleCSU has two Inventory Specialists and each organization/department has been assigned one of two Inventory Specialists, responsible for conducting a physical inventory of all assets capitalized under each organization code in CAM.

Current Organization FY inventory schedule is as follows:Odd Fiscal Years: Even Fiscal Years: 100 11001000 14001200 16001300 18001500 20001700 30004000 5000600070008000

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Property ID Number The Property Management Office uses a smart coding decal system and is responsible for tagging all equipment for which the University is accountable. Ownership can be identified by the first digit of the number on the tag and the barcode is used by the Inventory Specialist to verify equipment. Tag Number Title/Owner2xxxxx-3xxxxx University5xxxxx Sponsor or Other6xxxxx Federal Government7xxxxx University owned Artwork8xxxxx Lessor9xxxxx Non-Capital – Internally tracked by department

If an asset is missing the CSU decal number, a new decal sticker will need to be printed and affixed to the equipment.

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Property ID Decal It is incredibly important to maintain the decal throughout the lifecycle.• In some cases it is the only

unique identifiable marking on the equipment • Easily distinguishes Capital

equipment from non-capital• Initial decal on new equipment

establishes the property record for audit and insurance• It is also much easier to verify

during an equipment inventory or audit

Often equipment that is not decaled or the decal has been removed is: • not tracked or dispositioned

correctly leading to: • unnecessary loss to the

University and could result in: • cancellation of funding for

ongoing and future research projects• Fiscal recompense• Legal prosecution 7


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Inventory Kick Off

To ensure separation of duties, the primary inventory verification is performed by the Property Management Office with reconciliation of exceptions done by departments. The Property Management Office is responsible for the development and implementation of the biennial inventory schedule. The department will be contacted in advance by an Inventory Specialist in order to start the inventory and to determine the need for an initial meeting or review of asset records.

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Inventory ScanningKuali Capital Asset Management (CAM) is the Property Management database used as the data source and system of record for equipment from physical inventory activity. The inventory is completed using a handheld computer, with a barcode scanner to electronically verify the CSU tag number affixed to capital movable equipment. The Inventory Specialist will start the inventory by scanning all the capital equipment that is visible to the eye. If there is equipment in a drawer or cabinet or locked up, the Specialist will not look there and the asset representative will be contacted to show the Specialist the equipment.

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Assets unable to be scannedRequire approved method of verification to confirm the existence, location, department, project accountability, and utilization status of equipment.

For asset locations more than 70 miles from main campus: 1 of the following bullets

• A dated photograph and statement from the Asset Representative• Maintenance or certification record by a 3rd party (TSS, Oil and Lube, etc.. )For assets behind a “barrier”: 1 of the following bullets

• A dated photograph and statement from the asset representative. • Maintenance service or certification record by a 3rd party Sensitive items or Artwork: 1 of the following bullets

• Readily identifiable characteristics in property record in order to correctly validate asset• Decal and or serial number of associated equipmentSoftware or Virtual assets:• Product Key or License and IP address or computer serial number where software is housed

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Checked out EquipmentThe Property Management Office will require documentation of capital assets, on loan or

checked out, verifying the following: Verification of Borrower IDVerify the Asset Representative name in the Property Record is still accurate. Verification of Borrower’s addressThe physical address for the primary home location of the asset. If it lives in a home or office off campus more than 6 of 12 months this would be the physical address of the home or office. Verification of Stored at address:The address at which the property is currently being utilized. Documentation:A statement of accountability including current project status and functionality, by the custodian along with dated photographic verification of the asset in place.

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Un-tagged Assets: During the inventory process the Inventory Specialist will look for equipment that could, potentially, be capital but does not appear on the inventory list.

If an untagged asset having a value of $5,000 or more is found, and is not on the departmental asset list, the DPC will need to provide documentation on how the equipment was acquired.

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Inventory Reconciliation1. The DPC will be provided a report listing the asset(s) that the Specialist was

unable to find, as well as any equipment not appearing in the CAM database.

2. The DPC will contact the responsible party listed on the report or any other pertinent party to identify the location of the equipment. Once the location is determined and verified, the DPC will contact the Specialist.

3. The DPC will research and provide documentation for all assets identified as unrecorded in the CAM database.

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Researching un-tagged Assets:Best Practices for researching un-tagged Assets:

• If a gift or donated asset is not currently on the departmental inventory it must be determined whether the gift or direct donation has been correctly reported to Advancement.

• Transferred-in capital assets are received by the Department directly from an external organization or government surplus must be reported to Advancement An “Add Equipment to the Kuali Financial System” will help you capture the pertinent details (find the form here http://busfin.colostate.edu/prp.aspx)

• If the equipment was purchased through the CSU procurement system the purchase order number should be researched. It is possible that the equipment was “expensed” rather than “capitalized”.

• If the asset was retired in error, or the asset has since been found, the retired asset will be added to the reinstate list for upload into CAM.

• If the equipment was acquired as part of a construction project it must be determined whether the equipment should be capitalized as movable or fixed. You will be asked to provide the itemized construction contract with the possibility of having the equipment appraised for depreciation value.

• Check P-Card purchases (and purchase orders) in case it was bought in pieces and assembled later.

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http://busfin.colostate.edu/prp.aspx

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Locating Assets:Best Practices for locating Assets:

1. Contact Asset Representative 2. “Lookup all Related Capital Asset Documents” for clues to the last known location.3. Search through all EACR forms submitted since the last inventory cycle( it makes it

easier if you have a central location for them and all lines are filled out completely)

4. Contact all known associates or lab personnel that may have worked with or around the equipment.

5. Contact all department and/or lab managers in case equipment was relocated6. Contact all related departments on campus (particularly if you have research or

operations in multiple buildings).7. Search store rooms, holding areas or warehousing locations. (this is easier if you

have a utilization program in place and are not holding on to unused or under utilized equipment)

8. Check service records in the event something has been “sent out” for maintenance

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Inventory Reconciliation1. Assets that are un-found will be carried over for two inventory cycles and all

efforts made by the Department and the Inventory Specialist to locate them will be documented on the Action Plan. (see also Accountability)

2. Assets that have been improperly dispositioned or have been missing for 2 inventory cycles will require a separate Action Plan and documentation of accountability before being retired as lost.

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Inventory Close-OutIf a department successfully accounts for 100% of their assets, the Specialist will deliver an inventory certificate to be signed by the Dean or Department Head and returned to the Property Management Office within two weeks. If a department has any improper disposal retirements or assets that are determined to be left as unfound until the next inventory cycle, the Specialist will schedule an Inventory Close-Out meeting where the results of the inventory will be discussed with the Property Management Office Administrator, the Dean or Department Head and DPC. The Campus Services Representative and Department Business Officer will be invited to the meeting and all parties involved in the reconciliation are encouraged to attend.

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AccountabilityAccountability, both fiscal and actual, is at the Department Chair level, with additional stewardship responsibilities at the Asset Representative or custodian level. Departments are required to meet an inventory performance goal of 98% (100% for Sponsor or Agency owned) which conforms to the current property management industry standard for the percentage of assets located during an inventory cycle. Departments that do not reach 100% found assets will be required to submit an Action Plan to the Property Management Office outlining in detail the investigation of the missing assets as well as the process revisions the department will implement to improve performance in subsequent cycles going forward. In addition to the Action Plan, the Property Management Office will conduct a formal meeting with the DPC and APO where recommendations and implementations are discussed and a timetable is established for the department to correct any deficiencies. The results of all physical inventories will be sent to the Associate Vice President of Finance at the end of each Fiscal Year. 18


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Property Responsibility hierarchy

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Dean / Department Head

Principal Investigator

Property Management Office

Accountability, both fiscal and actual, is at the Department Chair level, with additional stewardship responsibilities at the Asset Representative and custodian level.

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References and toolsProperty Management website: http://busfin.colostate.edu/prp.aspx • OMB Circulars A110 and A-21 relocated to 2 CFR Part 220 are located at: http://www.whitehouse.gov/omb/circulars_default/ (a)

Recipients and sub-recipients that are institutions of higher education or other non-profit organizations (including hospitals) shall be subject to the audit requirements contained in the Single Audit Act Amendments of 1996 (31 U.S.C. 7501–7507) and revised OMB Circular A–133, http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2013 ‘‘Audits of States, Local Governments, and Non-Profit Organizations.’’215.30 Purpose of property standards. Sections 215.31 through 215.37 set forth uniform standards governing management and disposition of property furnished by the Federal Government whose cost was charged to a project supported by a Federal award. Federal awarding agencies shall require recipients to observe these standards under awards and shall not impose additional requirements, unless specifically required by Federal statute. The recipient may use its own property management standards and procedures provided it observes the provisions of § 215.31 through § 215.37.

• CFR 220 http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR

• FAR Federal Acquisition Regulation https://acquisition.gov/far/current/html/Subpart%2045_1.html#wp1025853

• To apply for the CAM Processor Role please fill out the Application for Kuali Financial System located at http://busfin.colostate.edu/forms.aspx

• Risk Management Property Insurance Topics and Insurance Forms are located at http://www.ehs.colostate.edu/WInsurance/home.aspx • Capital Equipment Inventory Reports and Report instructions are located at http://busfin.colostate.edu/prp.aspx (Under the Reports

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http://www.whitehouse.gov/omb/circulars_default/

http://www.whitehouse.gov/omb/circulars/a133_compliance_supplement_2013

http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR

https://acquisition.gov/far/current/html/Subpart%2045_1.html#wp1025853

http://busfin.colostate.edu/forms.aspx

http://www.ehs.colostate.edu/WInsurance/home.aspx


APO

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Certification

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I have read and understand the responsibility appointed to me for the management of Capital Asset property in my care

within my department unit

I acceptI decline

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Capital Asset Equipment Inventory

Property Management Office of Business Financial Department Presents:Equipment Inventory

Online responsibility training and certification

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Capital Asset Equipment Inventory Property Management Office of Business Financial Department...

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