Controllers Office Department Asset Custodian Training Controllers Office

Controller’s Office Department Asset Custodian Training Controller’s Office Capitalized Asset Management

Introduction q“The head of a custodial department and the Principal Investigator have primary responsibility for the care, maintenance, records, physical inventory, control, and disposition of inventorial equipment and other University or extramurally-funded property. ” UCOP – BUS-29, Section C Controller’s Office

Introduction The purpose of this workshop is to acquaint YOU as asset custodians with policies and procedures, tools and resources that are available to you in caring for the University’s capitalized assets. You can thus fulfill the goal of safeguarding the high-value assets of the University in the best manner possible. Controller’s Office

Who Are Those Guys? CAM is a part of UCSF Controller’s Office Capital Accounting. It is responsible for: § Maintaining a database of asset information in the People. Soft Enterprise Online Financial System, § Capitalizing assets purchased, leased, donated or transferred to UCSF, § Monitoring campus-wide adherence to University policies and guidelines, § Maintaining inventory controls and accountability systems, § Organizing and implementing the campus-wide biennial physical inventory Controller’s Office

Who Are Those Guys? (continued) - Reviewing and approving asset transfers to other UCSF departments, UC campuses or non -UC entities, - Reviewing and approving the disposal of excess property in accordance with applicable policy and regulations and - Providing consolidated reporting to UCOP and other funding agencies. Controller’s Office

A couple of definitions… § Capital Asset - Any purchase of physical equipment with a cost greater than or equal to $5000 - (including sales tax, start-up supplies, delivery, and installation) with a useful life greater than one year. § For example, if you purchase a piece of equipment for $4800 - it will most likely be considered a Capital Asset after taxes, etc. § Custody Code – The custody code is a 4 -digit code issued by CAM at the behest of the department. Each custody code requires a custodian who is responsible for tracking the equipment. Departments are required to supply a custody code number to Procurement Services when a requisition is created. Controller’s Office

Steps in the purchase of Inventorial equipment 1. Purchase order initiated in Bearbuy 2. Equipment identified, coded, and assigned a tag# 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 4. Biennial inventory and/or changes to equipment status are updated with CAM.

Steps in the purchase of Inventorial equipment 1. Purchase order initiated in Bearbuy 2. Equipment identified, coded, and assigned a tag# 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 4. Biennial inventory and/or changes to equipment status are updated with CAM.

Steps in the Purchase of Inventorial Equipment Purchase Order generated in Bear. Buy ◦ At this time the Capital Equipment form should be used and your custody code should be assigned by the requestor/purchaser. Controller’s Office

Purchase Order in Bear. Buy

q Use this form for any Capital Equipment Purchase or Capital software purchase Controller’s Office

q Be sure to fill in the custody code under the “Asset Management” tab on Purchase Order Controller’s Office

Purchase Order generated in Bear. Buy ◦ At this time the Capital Equipment form should be used and your custody code should be assigned by the requestor/purchaser. § Get to know/contact the purchasers for your department. § If you do not know who they are, get in touch and I’ll send you a list. § Familiarize them with your code & when to use it. Controller’s Office

Steps in the purchase of Inventorial equipment 1. Purchase order initiated in Bearbuy 2. Equipment identified, coded, and assigned a tag# 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 4. Biennial inventory and/or changes to equipment status are updated with CAM.

CAM (Capital Asset Management)reviews the PO: ◦ Assigns an EQ code (this is a code used to establish useful life of equipment) ◦ Assigns a tag# (You will receive the tag with tag form shortly after to fill out). Controller’s Office

Property Tag

Steps in the purchase of Inventorial equipment 1. Purchase order initiated in Bearbuy 2. Equipment identified, coded, and assigned a tag# 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 4. Biennial inventory and/or changes to equipment status are updated with CAM.

Custodian Receives Tag: ◦ Affix tag to associated equipment ◦ Review description and send back the model number, serial number, and location

Role of the Custodian q Liaison between CAM and the Department q Primary contact point for Department q Provide current information to CAM to assure accurate records q Insures University and Federal requirements are met (i. e. donations, transfers, disposals, etc. ). Controller’s Office

Definitions q. For discussion purposes today the only definitions that will be included are those required to create an asset file in People. Soft and for reporting to UCOP. However, the manual lists many others and the custodians should be familiar with all of them. Controller’s Office

Definitions (continued) q - CAAN/Location – An up to 8 -digit code representing building AND room. Federal Regulations require both building and room number. q - Custody Code – The custody code is a 4 -digit code issued by CAM at the behest of the department. Each custody code requires a custodian who is responsible for tracking the equipment. Departments are required to supply a custody code number to Procurement Services when a requisition is created. Controller’s Office

Definitions (continued) q ü ü Inventorial Equipment – A single unit, freestanding, non-expendable, with a cost (including sales tax, delivery, and start up accessories and supplies) equal to or greater than $5, 000. q Property Number – A nine-digit number printed onto a barcode tag that is affixed to the equipment as a unique identifier. Controller’s Office

Definitions (continued) q. Groupings within the 9 digits – nn+nn+n+nnnn q. First two digits –year asset was added to the asset inventory (last 2 digits) q. Second two digits – UC Campus that originally acquired asset (e. g. 10=Berkeley; 20=S. F. ) q. Fifth digit (under UCSF) - 0 for Campus, 3 for Gallo Clinic, 5 for Medical Center, and 9 for Vehicles. q. Last four numbers - issued sequentially to uniquely identify each asset. Controller’s Office

Definitions (continued) q Manufacturer – The company that produces or OEMs the equipment q Model Number – The number assigned by the company to identify specific versions of equipment. q Description – This is a simple one or two-word field to help the custodian locate equipment. q EQ Code – A 5 -digit (one alpha and 4 numeric number) code that is based on the type of equipment and is used by UCOP to calculate depreciation. Controller’s Office

Primary Responsibilities q 1) Change of Custodian § Custodian Maintenance Form q 2) Property Tag q 3) EIMR form § All additions to inventory § All removals of equipment q 4) Biennial Physical Inventory q 5) Physical Inventory Audit Controller’s Office

Change of Custodian q. Fill out Custodian Maintenance form. q. Include all custody codes the change is applicable to. q. Obtain approval (sign off) from the Financial Administrator or Business Officer. q. Send or email the form with Section 2 completed to CAM. Controller’s Office

Primary Responsibilities q 1) Change of Custodian § Custodian Maintenance Form q 2) Property Tag q 3) EIMR form § All additions to inventory § All removals of equipment q 4) Biennial Physical Inventory q 5) Physical Inventory Audit Controller’s Office

Property Tag Controller’s Office

Primary Responsibilities q 1) Change of Custodian § Custodian Maintenance Form q 2) Property Tag q 3) EIMR form § All additions to inventory § All removals of equipment q 4) Biennial Physical Inventory q 5) Physical Inventory Audit Controller’s Office

Provided by CAM Let’s us know what you want to do. Item Description 1) Surplus 2) Transfer to another department 3) Sale 4) Remarks, always include Signatures Controller’s Office

New Assets q Equipment may be added to a department’s inventory in the following ways: - A Purchase Order is processed through Procurement Services. - A Lease Agreement > $100, 000 total value - A department receives a gift (cleared by Development Office) - Equipment is transferred from another institution or UC Campus - Equipment is borrowed from an outside institution Controller’s Office

Principles of Equipment Disposals q. A department may dispose of equipment ONLY IF the University holds title. q. An EIMR must be submitted whenever equipment is to be removed from a department’s inventory. Controller’s Office

Retiring Assets 1) Send to Surplus Sales for public sale or disposal. 2) Destroyed or cannibalized for parts 3) Stolen. EIMRs reporting stolen equipment MUST include a police report number. 4) Intercampus Transfer - letter from department head - Other campus EIMR with signature of recipient campus equipment manager - EIMR from department 5) Lost Controller’s Office

Retiring Assets (continued) 6) Donate to a non-profit or educational institution. The following procedure must be followed per BUS -38: - Requesting agency submits request on letterhead - Dept Head verifies in writing that equipment is no longer useful in dept - Department submits request, letter, and EIMR to CAM. 7) Sold to another non-UC non-profit entity in conjunction with faculty move. Controller’s Office

Primary Responsibilities q 1) Change of Custodian § Custodian Maintenance Form q 2) Property Tag q 3) EIMR form § All additions to inventory § All removals of equipment q 4) Biennial Physical Inventory q 5) Physical Inventory Audit Controller’s Office

Physical Inventory - Purpose q. The reason for the physical inventory is to produce an accurate inventory through: q. Physically locating equipment that is in use, q. Removing from the database equipment not found, and q. Adding high value equipment which is being used but is not included in the asset list. q. Updating existing equipment attributes (Description, Mfg. , Model, Ser. ID, etc. ) Controller’s Office

What Is At Stake? § Federal funding requires system-wide compliance with their asset management policy and procedures § Certification as a Federally compliant research facility is contingent on adherence to established guidelines § UC Office of the President financial reporting requires up-to-date inventory information § Campus Facility and Administration (F&A) rate is affected and § Insurance payments in case of loss, theft, or disaster hinges on substantiation of location recorded in the system. Controller’s Office

Physical Inventory – Process q. Per State and Federal regulations complete inventory of campus and medical center required every 2 years. q. CAM will provide custodian with a list of equipment by custody code. q. Custodian embarks on search or organizes search party to locate and verify each piece of equipment listed. Controller’s Office

PROCESSES Physical Inventory Process (Continued) The notification email will include the following attachments: ØList of Assets List is arranged first by building code/room number, then by property tag number and furnished in both PDF and Excel file formats. ØInstruction Sheet ØLink to online tools Tools include schedules, forms, building code lists, comprehensive information and instructions and other resources helpful toward a successful completion. 10/4/2013

Process (continued) q. During the inventory process the custodian should verify the following attributes which can be changed if necessary: q. Location - Building (CAAN) and room number q. Description q. Manufacturer/Model Number q. Serial Number (should be provided if not listed) Controller’s Office

Process (continued) q. Attributes that cannot be changed by the department are: - Property Tag Number - Cost - Original Dept ID/Fund Controller’s Office

Primary Responsibilities q 1) Change of Custodian § Custodian Maintenance Form q 2) Property Tag q 3) EIMR form § All additions to inventory § All removals of equipment q 4) Biennial Physical Inventory q 5) Physical Inventory Audit Controller’s Office

PROCESSES Physical Inventory – Field Audit v All submittals for a particular month are subject to a random sampling audit. § CAM randomly selects 10% of the asset population sent in during the targeted month. § CAM emails custodian with assets to be verified clearly identified. § A CAM team member and the department asset custodian travels to the location specified in the physical inventory findings by appointment to confirm accuracy of reported data. v An error rate of 10% or less of sample population constitutes a successfullycompleted physical inventory. v An error rate of greater than 10% requires a second random sampling audit. v If the second audit is unsuccessful, all custodial departments submitting physical inventories for the target month will need to re-take their physical inventories. Controller’s Office

PROCESSES Physical Inventory – Summary The departmental physical inventory is considered complete when: ðCustodian returns listing with corrections; ÄCAM enters corrections and sends the updated inventory report to custodian; ÄCustodian and department head signs off that the inventory report is accurate; ÄStatistical sampling audit produces 10% or fewer errors. Controller’s Office

EPILOGUE Where’s the Help? q Asset Custodian Training Workshops held periodically q Controller’s Office Website at: http: //controller. ucsf. edu/capital/ Capital Accounting & Equipment § § § FAQs Policies Procedures & Job Aids Training Forms Contacts q Department Asset Custodian Manual handed out at the workshops and available for viewing or printing from Controller’s Office website q Web. Links Asset Management Report (AM) module accessed for historic equipment information q Desktop Training Program, one-on-one training for asset custodians. CAM sends a team member at department’s invitation to discuss the responsibilities of the position, how to access online resources and any unique challenges the custodian faces. q Controller’s Office Monthly Electronic Newsletter Controller’s Office

• http: //controller. ucsf. edu/

• http: //controller. ucsf. edu/

• http: //controller. ucsf. edu/ Controller’s Office

http: //cpbc. ucsf. edu/

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EPILOGUE Who Can I Call? • Physical Inventory Contact – Terence Hurley terence. hurley@ucsf. edu 415 -502 -2657 • Equipment Accounting - Angela Farren angela. farren@ucsf. edu 415 -502 -5642 • Equipment Invoices - Jim Antuk jim. antuk@ucsf. edu 415 -476 -2885 • Capital Accounting Supervisor – Renee Boyd renee. boyd@ucsf. edu 415 -502 -3042 • General Accounting Manager – Amy Nichelini amy. nichelini@ucsf. edu 415 -476 -2997

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