Equipment Inventory Capital Asset Equipment Inventory Property Management

Equipment Inventory Capital Asset Equipment Inventory Property Management Office of Business Financial Department Presents: Equipment Inventory Online responsibility training and certification 1 Press the forward button at the bottom of each slide to advance

Additional Training Available q APO Certification –Head of Departments i. e. : Chairs, Directors, Controllers, or equivalent position titles q DPC Certification –CAM processors appointed as the primary Property Manager in their department q Asset Representative Certification –Any faculty, or staff with assigned assets in the CAM database q CAM Processing modules –APO, DPC and all CAM processors q Asset Edit q Asset Loan q Asset Retirement Global q Asset Management Reports Equipment Inventory Recommended for all department faculty, staff, and students working with capital equipment: q Equipment Inventory –APO, DPC, CAM processors and Asset Representatives q Asset Disposition –All employees of the department/unit 2 Press the forward button at the bottom of each slide to advance

Lifecycle of an Asset Purchase Decal Maintenance Inventory Utilization Disposition Equipment Inventory Movement 3

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. APO Certification Financial management practices 4 Press the forward button at the bottom of each slide to advance

Inventory Schedule Current Organization FY inventory schedule is as follows: Odd Fiscal Years: Even Fiscal Years: 100 1000 1400 1200 1600 1300 1800 1500 2000 1700 3000 4000 5000 6000 7000 8000 Equipment Inventory CSU 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. 5 Press the forward button at the bottom of each slide to advance

Property ID Number Tag Number 2 xxxxx-3 xxxxx 5 xxxxx 6 xxxxx 7 xxxxx 8 xxxxx 9 xxxxx Title/Owner University Sponsor or Other Federal Government University owned Artwork Lessor 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. Press the forward button at the bottom of each slide to advance Equipment Inventory 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. 6

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 Equipment Inventory Property ID Decal 7 Press the forward button at the bottom of each slide to advance

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. Equipment Inventory Kick Off 8 Press the forward button at the bottom of each slide to advance

Inventory Scanning 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. Equipment Inventory Kuali 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. 9 Press the forward button at the bottom of each slide to advance

Assets unable to be scanned 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 3 rd 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 3 rd 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 equipment Software or Virtual assets: • Product Key or License and IP address or computer serial number where software is housed Equipment Inventory Require approved method of verification to confirm the existence, location, department, project accountability, and utilization status of equipment. 10 Press the forward button at the bottom of each slide to advance

Checked out Equipment The Property Management Office will require documentation of capital assets, on loan or checked out, verifying the following: Verification of Borrower’s address The 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. Press the forward button at the bottom of each slide to advance Equipment Inventory Verification of Borrower ID Verify the Asset Representative name in the Property Record is still accurate. 11

Un-tagged Assets: 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. Equipment Inventory During the inventory process the Inventory Specialist will look for equipment that could, potentially, be capital but does not appear on the inventory list. 12 Press the forward button at the bottom of each slide to advance

Inventory Reconciliation 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. Equipment Inventory 1. 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. 13 Press the forward button at the bottom of each slide to advance

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. • 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. Equipment Inventory • 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 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. Press the forward button at the bottom of each slide to advance 14

1. 2. 3. 4. 5. 6. 7. 8. Best Practices for locating Assets: Contact Asset Representative “Lookup all Related Capital Asset Documents” for clues to the last known location. 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) Contact all known associates or lab personnel that may have worked with or around the equipment. Contact all department and/or lab managers in case equipment was relocated Contact all related departments on campus (particularly if you have research or operations in multiple buildings). 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) Check service records in the event something has been “sent out” for maintenance Press the forward button at the bottom of each slide to advance Equipment Inventory Locating Assets: 15

Inventory Reconciliation 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. Equipment Inventory 1. 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) 16 Press the forward button at the bottom of each slide to advance

Inventory Close-Out 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. Equipment Inventory If 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. 17 Press the forward button at the bottom of each slide to advance

Accountability, 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. Press the forward button at the bottom of each slide to advance Equipment Inventory Accountability 18

Property Responsibility hierarchy Dean / Department Head Principal Investigator DPC Inventory Accountability, both fiscal and actual, is at the Department Chair level, with additional stewardship responsibilities at the Asset Representative and custodian level. Asset Representative Property Management Office Asset User 19

References and tools • OMB Circulars A 110 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/a 133_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 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/collection. Cfr. action? collection. Code=CFR • FAR Federal Acquisition Regulation https: //acquisition. gov/far/current/html/Subpart%2045_1. html#wp 1025853 • 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 Heading) Press the forward button at the bottom of each slide to advance Equipment Inventory Property Management website: http: //busfin. colostate. edu/prp. aspx 20

Certification I decline I accept APO Certification I have read and understand the responsibility appointed to me for the management of Capital Asset property in my care within my department unit 21

Property Management Office of Business Financial Department Presents: Equipment Inventory Online responsibility training and certification Equipment Inventory Capital Asset Equipment Inventory 22