Financial Management
Policy Number 30940:
Inventory of Equipment
1.0 Purpose
This policy describes the general guidelines for maintaining the
equipment inventory of
2.0 Policy
The Purchasing Section of the Business Office of Germanna
Community College is responsible for maintaining an accurate record of all
equipment that is considered a Fixed Asset which is in the possession of the
College.
Controllable equipment is identified through review of the
ACTR0462 Potential Fixed Asset Report. This report prints each Monday as part of the
CARS weekly reports. When any invoices
involving the purchase of equipment greater than $2,000 have been processed
during the previous week, the invoice will be listed on the Potential Fixed
Asset Report by voucher number. Vouchers listed on the reports are pulled and
reviewed. Notations are made on the
report to identify controllable equipment or to describe the reason the items
are not controllable. The Potential Fixed Asset Reports are filed in a binder
by date.
2.2 Receiving Equipment
IT Equipment
When equipment is ordered, a copy of the Purchase Order will be placed
on the S:\public\technical services\purchase orders folder.
If an item was purchased from the Equipment Trust Funds (ETF) account,
then in the header of the order it will be entered as ETF 110070. These purchases must be kept in working order
for five years.
When a shipment of equipment arrives for IT, pull the packing slip
upon receipt. If no
packing slips are included with the equipment, then print out a copy of the
Purchase Order (DO) or (PCO) from the S:\public\technical services\purchase
orders folder.
The following information must be on each packing slip or Purchase
Order:
·
Model
and Serial Numbers for each piece of equipment
·
Signature
and Date of the person receiving the shipment in IT
·
Room
Location (if you plan to place the equipment in a particular room then the room
number needs to be on the slip. If not
it will be entered at Warehouse).
Make a copy of this form for IT records and send the original to the
Fixed Asset Coordinator within three days after receipt of the equipment.
The Fixed Asset Coordinator will send IT asset tags for the equipment
within five days. If the item is above
$2,000 a burgundy tag will be assigned.
If the item is under $2,000 a blue tag will be assigned.
If the item is an ETF purchase, a burgundy tag will be assigned
regardless of the cost of the item. This
will also be recorded in the IT database as an ETF item.
For all ETF items, a tag listing the year that the item can be
considered surplus will be affixed in addition to the asset tag.
2.3 Other Fixed
Assets
Other items that meet the $2,000 threshold for fixed assets will be
handled in a similar manner. When a
shipment of equipment arrives, pull the packing slip upon receipt. If no packing slips are
included with the purchase then print out a copy of the Purchase Order (DO) or
(PCO) from the eVA website.
The following information must be on each packing slip or Purchase
Order:
·
Model
and Serial Numbers for each piece of equipment
·
Signature
and Date of the person receiving the shipment
·
Room
Location
The Fixed Asset Coordinator will tag the asset within five days of
receipt of the item. If the item is above $2,000 a burgundy tag will be
assigned. If the item is under $2,000 a
blue tag will be assigned.
Equipment that has been identified as controllable equipment is
recorded on FAIS. The Fixed Asset
Coordinator enters this information into FAIS.
Detailed procedures for input can be found in Section IV of the
All equipment purchased with Equipment Trust Funds (ETF) must be recorded
on FAIS regardless of the cost. All ETF
acquisitions must have a value of at least $500. FAIS (Fixed Asset Inventory System) requires
completion of certain data elements to record ETF equipment. These data elements are: manufacturer, model
number, serial number, lease ID number and requisition reference number. Detailed information on Equipment Trust Funds
Procedures can be found in Section V of the Virginia Community College
System Fixed Asset Inventory System Manual.
Equipment Move Forms must be completed and submitted to
the Fixed Asset Coordinator at the time the equipment is being moved from one
location to another or from one responsible area to another. The form must be signed by the person
performing the move. Once the move is
done, the form is sent to the Fixed Asset Coordinator to enter into FAIS if
needed. Once entered the Fixed Asset
Coordinator will date and initial form.
The Equipment Move Form
can be found at S:\Public\Business Office\Bus Ofce
Forms.
Once the employee returns the
equipment to college premises, the “RETURN” section of the form must be
completed and the original form forwarded to the Fixed Asset Coordinator. The Removal
of VCCS Equipment from State Premises form can be found at:
S:\Public\Business Office\Bus Ofce Forms.
A physical inventory of fixed
assets is required at least once every 2 years in order to properly
safeguard assets and maintain appropriate fiscal accountability. GCC does inventory every quarter – 25% of
assets each time.
The Fixed Asset Coordinator
requests a report from FAIS listing equipment by responsible area and room
number.
The Fixed Asset coordinator will be
permitted access to each room/department controlled by the college.
The equipment will be checked for a
tag number as it appears on the FAIS listing.
Any discrepancies between the
physical inventory and the FAIS printout will be researched and resolved in a
timely manner. There are several
discrepancies that may occur:
·
Item
is not in the correct room. If this is
the case an Equipment Move Form
should be filled out. See procedure
under the section of Movement and Relocation.
·
Item
cannot be found. An extensive and
thorough search will be conducted to locate the item in question. If necessary, other departments such as IT or
Security may be brought in to assist in the investigation. If the item is found, then it should be
returned to the location specified in FAIS or an Equipment Move Form should be filled out. See procedure under the section of Movement
and Relocation.
If the item is not found, then a
Security report shall be filed and appropriate outside authorities
notified. A brief report shall be
written identifying the item, model, serial number, description of property and
any other items of information that would assist in identification. This report shall be used by the Fixed Asset
Coordinator to make changes in FAIS for the loss of the item.
Upon completion of the inventory,
all forms and other documentation shall be retained as backup for the audit
file. A brief, one page cover shall be
placed on the documentation regarding the outcome of the physical inventory and
any additional procedures that had to be followed. This cover page shall be signed by the Fixed
Asset Coordinator and the Business Manager or the Vice President of
Administrative Services.
The most common method of disposal for equipment items is to surplus
the asset through the State's Surplus Property Management section of the
Division of General Services. When a
department desires to surplus an asset, they must submit a Surplus Identification Form to the
Fixed Asset Coordinator. The Surplus Identification Form can be
found at S:\Public\Business Office\Bus Ofce Forms.
2.91 IT Equipment
Once IT equipment has been deemed surplus, IT will purge laptops and
desktops per the VITA Policy “Purging Data from PC and Hard Drives”. IT will place a “Notice of Computer Equipment
Device Cleaning” sticker on the desktop or laptop. Once this is done, IT will complete the
surplus identification form with proper signatures and forward the completed
form to Fixed Asset Coordinator. The
Fixed Asset Coordinator will examine the item to determine if it should go to
surplus or be disposed of, and place a signed copy of the form on the item
listing its disposition. The Fixed Asset
Coordinator will coordinate with Building and Grounds for removal and storage
of equipment. After disposition has
occurred, Building and Grounds will complete their portion of the form,
including initials of the person actually moving the equipment, and return it
to the Fixed Asset Coordinator
When equipment is ready to be taken to the State Surplus Warehouse, pallets
are made up with like items on each pallet.
The Fixed Asset Coordinator completes a 4-part Surplus Property Tag,
(DGS-44-014) for each pallet. The driver
takes the tags to the State Surplus Warehouse, where an employee of warehouse
signs the tag, takes their copy, and the driver returns with our signed
copy. The signed copy is given to the
Fixed Asset Coordinator.
2.92 Furniture and Other Items
Before declaring an item as surplus, the department will send an email
to all campuses describing the item that is available and giving a two day time
frame in which to respond. If item is
wanted by another department, an Equipment
Move Form should be completed per instructions in the section on
Movement and Relocation.
If item is to be become surplus, the Surplus Identification Form must be submitted to the Fixed
Asset Coordinator. The Fixed Asset
Coordinator will examine the item, determine whether it is to go to surplus or
be disposed of, and place a signed copy of the form on the item. Fixed Asset Coordinator will coordinate with
Building and Grounds for removal and storage of equipment. After disposition has occurred, Building and
Grounds will complete their portion of the form, including initials of person
actually moving the equipment, and return it to the Fixed Asset Coordinator
After the signed tag is returned,
the Fixed Asset Coordinator will change the status of those items in FAIS per
the Section IV of the FAIS Manual. The
surplus forms will then be grouped and a spreadsheet attached listing the items
changed in FAIS. The Business Manager or
the Vice President of Administrative Services will review the packet and sign
the spreadsheet, acknowledging agreement with the changes made.
Fixed Asset Inventory System Manual, revised
Fixed Asset Accounting and Control System, 1991, Office of
the
Comptroller, Department of
Accounts.
Jane D. Krakowsky,
Business Manager
Reviewed and Approved by: Jane
D. Krakowsky
Reviewed and Approved by: President’s Council
March
7, 2005