PROPERTY INVENTORY General Accountability and Responsibility Definitions Property Accounting Procedures Disposition Other Exceptions

General The Property Inventory Section of the Department of Financial Services is responsible for maintaining a permanent and detailed centralized inventory system for recording all moveable tangible capitalized property (items costing $5000 or more) purchased with University funds, acquired by private gifts, or transferred from an outside source as required by the Federal Government, the State of Oklahoma Department of Central Services and the University of Oklahoma Board of Regents. The Property Inventory Section is also responsible for tracking non-capitalized, highly portable and/or theft prone property as deemed necessary by the University administration and departments. Additionally, the Property Inventory Section coordinates physical inventories of University and sponsor owned moveable tangible capitalized property and selected tangible non-capitalized property on an annual basis. Return to Top Accountability and Responsibility Accountability - Accountability for all moveable tangible property in use rests with department chairs, directors, and budget unit heads and is required in order to minimize risks of misuse, damage, theft, or loss of assets. Accountability is the requirement imposed on those individuals empowered with the authority to decide as to the acquisition, employment, and disposition of assets. Accountability cannot be delegated, but can only be transferred to other accountable individuals, or discharged through the proper execution of this procedure. If a breach of accountability results in significant loss (either instantly or cumulatively over time) to the University, appropriate administrative action may be taken. Unless separate documentation has been issued to assign or delegate accountability for an asset to a specific individual (e.g., principal investigator of a sponsored program), such accountability shall rest with the department chair, director, or budget unit head whose org/project paid for the asset. For assets that are funded from more than one org/project, accountability will rest with the respective department chair, director, or budget unit head that paid for the majority of the cost of the asset. Responsibilities - Each department chair, director and/or budget unit head is responsible for all property purchased or transferred to his/her area as reflected on the official inventory records of the University. Specific responsibilities are as follows:   1. Accepting and signing the official inventory report upon each physical      count attesting to the proper reconciliation of the current inventory report      to the prior inventory report including additions, disposals, thefts,      adjustments, etc.   2. Notification of the proper office(s) of any change in physical location       of property.   3. Notification of the proper office(s) of any property that is lost, damaged       or stolen.   4. Making available to the Property Inventory Section personnel all items       of acquired property for the purpose of tagging and/or making periodic       physical inspection, regardless as to the source of funds utilized to       purchase the property.   5. Ensuring all tangible capitalized property is reviewed through physical       observation by someone other than the property custodian at the time of       the annual inventory.   6. Approving personal use and resulting removal from locations in       University buildings of property for which he/she has responsibility for       control of such items. A Property Inventory Personal Usage Authorization       form must be filled out completely and forwarded to the Property Inventory       Section in these situations.   7. Approving transfers of items of property to other departments as the need       arises. A Request for Moving Services form must be completed by the       relinquishing department and forwarded to the Property Inventory Section. The Office of Internal Auditing has the responsibility for determining the effectiveness of the property control procedures, as well as, departmental compliance. During the annual inventory, the Property Inventory Section shall provide each department with instructions for completing the inventory and a computer printout listing all property items currently under their responsibility. The completed, signed inventory report and any change of status forms must be returned to the Property Inventory Section by the date indicated. The Property Inventory Section will validate that the inventory report is properly completed, review all items added for appropriateness of such action, review all items to be removed and the reasons thereof prior to removal, update the Asset Management System, and compile an updated inventory report to be forwarded to the department for verification of the changes made. The Property Inventory Section is responsible for submitting an annual report of current inventory of tangible assets owned by the Health Sciences Center as of June 30 of the preceding fiscal year to the Department of Central Services by August 15 of the current fiscal year. Definitions Tangible Capital Asset - A tangible capital asset is one that is moveable (i.e., not permanently attached to a building), has a useful life extending beyond one year, and whose cost (i.e., invoice price plus freight, installation, etc.) is $5000 or more. Examples of tangible capital assets are: office equipment, lab equipment, shop equipment, motor vehicles, furniture, tools, etc. A tangible capital asset cost is "capitalized" or reported as an asset on an organization's balance sheet rather than "expensing" the cost of the item against the current fiscal year's operations. Tangible Non-Capital Asset - A tangible non-capital asset is one that has a useful life of one year or less and/or whose cost is less than $5000. The cost of a tangible non-capital asset is "expensed" on an organization's income statement against the current fiscal year's operations. Return to Top Property Accounting Procedures Acquisition - Tangible Capitalized Property All assets with a cost of $5000 or more and a useful life extending beyond one year shall not be expensed in the current period, but shall be carried as assets of the University and posted to the detailed, centralized property records maintained by the Property Inventory Section. When an asset is purchased through the Accounts Payable Section the invoice is forwarded to the Property Inventory Section once processed for payment. The Property Inventory Section then reviews the invoice to ensure the item was appropriately classified as a capital asset prior to assigning an inventory number and entering into the Asset Management System. The asset is then physically tagged (labeled) by the Property Inventory Section personnel or tagged by the acquiring department if authorized by the Property Inventory Section. When an asset is purchased on a University issued procurement card the department forwards the invoice to the Property Inventory Section for review to ensure the item was appropriately classified as a capital asset prior to assigning an inventory number and entering into the Asset Management System. The asset is then physically tagged (labeled) by the Property Inventory Section personnel or tagged by the acquiring department if authorized by the Property Inventory Section. Affixing tags to certain items is impractical or undesirable (e.g., inaccessible property, works of art, etc.). In these instances, an inventory record is still created, maintained and inventory accomplished on these items. Inventory tags for these items shall be maintained in a central location readily accessible to the inventory control officer. Inventory tags must not be removed from property except by authorized Property Inventory Section personnel. Items of property costing $5,000 or more on federally sponsored research grants and contracts must be screened against existing University property in order to ensure that there is no like property already available to meet the needs for which the property is being purchased. The Grants Accounting Section forwards a Property Inventory Screening form to the Property Inventory Section to determine if like property exists. If like property is found to exist, the Grants Accounting Section contacts the department(s) to determine if the property is available to be shared. If like property is available to share, the Grants Accounting Section informs the requesting department of the property availability. If no like property is available, the Grants Accounting Section approves the purchase request. Property transferred to the University under a sponsored program agreement should be coordinated through the Office of Research Administration. The property must be in useable condition, physically inventoried, assigned an inventory number, and entered into the Asset Management System according to its book value. Property on loan from the Federal Government must be accounted for and inventoried in the same manner as other University property. Acquisition - Tangible Non-Capitalized Property Items that are highly portable and theft prone are candidates for tracking within the University's centralized inventory system. Other than those items specifically identified by University administration, tracking items costing less than $5000 in the University's centralized inventory system is at each department's discretion; however, departments continue to be responsible for properly accounting for all tangible non-capitalized property. Tracked items will be assigned an inventory number but not capitalized in the University accounting records, therefore not depreciated. Departments are responsible for physically tagging non-capitalized items with Property Inventory Section assigned tags. Other than items required to be tracked by University administration, the Property Inventory Section does not require formal physical inventories on non-capitalized items. However, when periodic physical inventories are performed for departmental purposes the Property Inventory Section will compile or assist in compiling a tracked property inventory report to be used in the physical inventory. Departments are responsible for notifying the Property Inventory Section when items no longer need to be tracked and should be removed from the Asset Management System. Return to Top Disposition University assets are to be disposed of in a manner that will accrue maximum benefit to the University. Before any action can be taken to dispose of property, the excess property must be made available for screening against University requirements. Items may remain in place during the screening period or may be moved to a centralized storage location, space permitting. A Request for Moving Services form and a Removal of Equipment from Inventory Records form must be filled out completely indicating the inventory number, serial number, and nomenclature of the property being surplused. The Department of General Services will communicate campus-wide the listing of surplus property specifying the screening period. If a department wishes to acquire any of the surplus property, a Request for Moving Services form must be filled out completely by the department and forwarded to the Property Invenntory Section. If no University departments wish to acquire the surplus item(s), then an attempt to dispose of the surplus assets is made through public auction. Prior to a public auction, State of Oklahoma public schools can each acquire a designated number of items by petitioning the Vice President for Administrative Affairs in writing. Items remaining after the auction can be discarded as worthless assets.   1. Trade-In - Whenever an asset is traded-in on a like-asset with additional       payment involved, the inventory number, serial number, model and       description of asset traded in must appear on the related purchasing       document(s). A copy of the purchasing document(s) and credit invoice       must be attached to the Removal of Equipment from Inventory Records       form signed by the department chair, director, or budget unit head and       forwarded to the Property Inventory Section.   2. Asset One-For-One Exchange - A one for one exchange for a like asset       with no additional payment involved will be supported by a memorandum       from the Department Chair. The memorandum will include a description of       the item to be traded in, such as brand, serial number, model and       inventory number. The same information must be provided for the new item       received. The memorandum must be signed by the department chair,       director, or budget unit head and forwarded to the Property Inventory       Section.   3. Return an Asset for Credit - A copy of the credit invoice with the Removal       of Equipment from Inventory Records form signed by the department       chair, director, or budget unit head must be sent to Property Inventory       Section for removal of an asset from the inventory records.   4. Cannibalized Assets - If an asset has been cannibalized due to not       warranting reutilization, a Removal of Equipment from Inventory Records       form must be filled out completely, signed by the department chair,       director, or budget unit head and forwarded to the Property Inventory       Section for removal of the asset from the property records. Return to Top Other   1. Cash Sales - Departments are not authorized to make cash sales of       University property. University property may be sold for cash only after       every attempt has been made to redistribute the items to meet other       valid University requirements. Cash sales will be conducted only by       Purchasing using public bid procedures with the proceeds deposited into       the University's revolving fund unless otherwise authorized by the Vice       President for Administrative Affairs to be deposited elsewhere.   2. Missing Items/Unable to Locate - If a department is reasonably sure a       missing item was not stolen but removed from one area to another and       cannot be located, a Removal of Equipment from Inventory Records form       must be filled out in its entirety with the notation "missing unable to locate       at this time" and submitted to the Property Inventory Section within thirty       (30) days of discovery. This form must be signed by the department chair,       director, or budget unit head. Campus Police should also be notified by       the department chair, director, or budget unit head of the missing/unable       to locate items. Missing/unable to locate items will remain on the Asset       Management System through the next inventory cycle. After two       consecutive inventory cycles, the Removal of Equipment from Inventory       Records form shall be forwarded to the supervisor of the Property Inventory       Section and/or Controller for approval to purge from the Asset Mgmt       System. The Property Inventory Section shall report the loss to the state       inventory control officer within thirty (30) days of discovery.   3. Stolen Assets - The disposition of assets lost through theft must be       documented by a report from the Campus Police and a Removal of       Equipment from Inventory Records form signed by the department chair,       director, or budget unit head. These documents shall be submitted to the       Property Inventory Section within thirty (30) days of discovery. In turn, the       Property Inventory Section shall report the loss to the state inventory       control officer within thirty (30) days of discovery.   4. Transfers of Assets - At no time will title to property vested in the       University be transferred directly to a terminating faculty member.       Transfer of property may be considered when:       a) It is or was the specific intent of the donor that the property is or was       to support the work of the terminating faculty member rather than a       program of the University and that the property ownership should be       transferred to the institution to which the faculty is moving.       b) The property was purchased from funds supporting an on going       program which the donor or granting agency will continue at the new       employing institution.       c) Transfers of property will be pre-authorized by the appropriate       contracting official and approved by the appropriate dean/department       chair and designated executive/administrative officer.       5. Property Inventory Adjustments - Whenever possible, the property       inventory system should be updated as soon as a change of status       occurs. This helps insure property inventory system remains in close       agreement with the property actually on hand and facilitates the       progress of scheduled physical inventories. The Property Inventory       Section will conduct spot inventories of items in order to test the       validity of the inventory records. However, these spot inventories do       not relieve the department of the responsibility for conducting their own       spot inventories. Return to Top Exceptions Exceptions to specific provisions of this policy must be submitted in writing and approved by the Vice President of Administrative Affairs. Return to Top