The University is required to conduct a physical asset inventory on an annual basis. New legislation, which became effective September 1, 2001, requires that if more than 2% of the University’s inventory is reported missing, 50% of the value of missing assets will be deducted from UTB state appropriation. With this in mind, it is our goal to obtain an accurate and verifiable inventory count.
What must be inventoried?
There are three types of assets that must be inventoried: capitalized, controlled and inventoried. A Capitalized Asset is an item that costs $5,000 or more and has a useful life of more than a year. A Controlled Asset is an item that costs less than $5,000 and falls under a special category designated by the State (i.e., computers, non-portable printers, televisions). An Inventoried Asset is an item that costs more than $500, has a useful life of more than a year and is not capitalized or controlled.
Although, Account Managers may designate a Department Inventory Coordinator to assure that equipment in their areas is properly maintained and controlled; Account Managers are ultimately responsible for safeguarding University assets.
The Accounting and Finance Office notifies Accounts Managers of the time and date the inventory for their area is to be conducted. Department Inventory Coordinators are required to assist the Accounting and Finance Office in locating the assets assigned to their area.
Upon completion of the physical inventory by either the Accounting and Finance Office Inventory Team or the Departmental Inventory Coordinator, the Account Manager must complete and sign the Results of Annual Inventory Certification Report and submit the necessary inventory-related forms. Failure to complete this report will result in noncompliance and notification will be made to the appropriate division head. See the Physical Inventory Checklist for detailed information on conducting the annual physical inventory.
- Inventory Transfer Form – to change location, disposition or account manager.
- Property Removal Request – to remove assets from the Property Accounting System (proper justification is required).
- Request to Cannibalize Equipment – to identify assets that were dismantled and parts were used on other assets.
- Request to Remove Property from Campus – to request permission to take assets off campus.
- Tracking of Non-Capital Items and Documentation for Disposal of Non-Inventoried Items – to keep track of Equipment that does not meet the threshold to be inventoried.
For more information, contact the Accounting and Finance Office at 956-882-5926.