Provided by
Financial Services – Capital Equipment Inventory,
Procurement Services – Surplus Property,
and Management Advisory Services
November 2011
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Importance of Equipment Inventory
Management
Definitions
Policies and Forms
Procedures
◦ Capital Equipment
◦ Non-Capital/Sensitive Equipment
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Surplus Property
◦ Policies and Procedures
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Where to Get Help
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It is part of your job.
Lack of control over it negatively impacts our
F&A rate.
OMB A-110 requires us to maintain accurate
equipment records, safeguard assets, and
conduct physical inventories.
Auditors test it and we have been written up
for not doing it properly.
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Listings of non-capital/sensitive equipment
were not always maintained or did not
contain complete information.
Timely physical inventories were not always
conducted and discrepancies investigated.
Equipment additions, disposals, and
movements were not always documented.
Proper separation of duties were not
established.
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Equipment inventory management duties must
be adequately separated so no one employee
has control over the entire process.
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The following duties should be separated:
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Initiate a requisition to purchase equipment
Approve invoice for payment
Maintain equipment records
Perform physical inventory
Dispose of equipment
Reconcile purchases to eUMB
Use Control Self Assessment and Separation of
Duties Forms (attachment 7 & 8).
Contact MAS if you need help figuring this out.
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Real Property
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Personal Property
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Capital Equipment
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Non-Capital Equipment
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Sensitive Equipment
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Physical Inventory
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UMB will maintain a perpetual capital asset
inventory.
UMB will perform a biennial capital equipment
physical inventory.
Capital Equipment Policy
http://www.fincsvc.umaryland.edu/images/capitalassetmanagement.pdf
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UMB will maintain a perpetual inventory of all noncapital and sensitive equipment. This responsibility
is delegated to each School, Department or Division.
Each School, Department or Division must maintain
physical control of all non-capital and sensitive
equipment assigned to that unit and must complete
a physical inventory once every two years.
All non-capital and sensitive equipment must be
tagged.
Non-Capital/Sensitive Equipment Policy
http://www.fincsvc.umaryland.edu/images/Non-CapitalEquipment.pdf
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Copies of these forms are in your handout:
◦ Excess Property Declaration/Capital Asset Deletion Form
(attachment 2)
◦ Tag Certification Form (attachment 3)
(Note: This is a system generated form and is not available on the Financial
Services forms website)
◦ Capital Equipment Transfer Form (attachment 4)
◦ Non-Capital and Sensitive Equipment Inventory Sheet
(attachment 5)
◦ Non-Capital and Sensitive Equipment Certification Letter
(attachment 6)
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Financial Services Forms
http://www.fincsvc.umaryland.edu/forms.cfm
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Capital Equipment
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Additions to Inventory - On Campus
Dept purchases
equipment
>/=$5,000 coded
to Capital Equip
account
Capital Equip
accounts =
42xx & 43xx
Financial Services –
Capital Equipment
Inventory (FSCEI)
runs query after
month end to
capture all
purchases coded to
Cap Equip account
Donations, revolving
loan and bond fund
purchases – FSCEI adds
to dept records
FSCEI contacts
dept to set up
time to tag item.
FSCEI will be
tagging items
Note: FSCEI will
now be tagging
items on campus
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Additions to Inventory – On Campus (cont’d)
Dept personnel will
sign and keep a
copy of Tag
Certification Form
once FSCEI affixes
tag
New asset will be on
next inventory
listing for the dept
(sent every 6
months)
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Additions to Inventory – Off Campus
Dept purchases
equipment
>/=$5,000
coded to Capital
Equip account
Capital equip
accounts =
42xx & 43xx
FSCEI runs query
after month end
to capture all
purchases coded
to Cap Equip
account
Donations, revolving
loan and bond fund
purchases – FSCEI adds
to dept records
FSCEI contacts
dept to notify
that item needs
to be tagged.
Tag is sent with
Tag Certification
form to Dept
inventory contact
Off campus depts
will continue to tag
items
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Additions to Inventory – Off Campus (cont’d)
Dept personnel will
tag item, sign the
Tag Certification
Form, fax or email a
copy to FSCEI, and
keep a copy for
dept records
New asset will be
on next inventory
listing for the dept
(sent every 6
months)
Fax # 410-706-2939 or email to
ga-inventory@af.umaryland.edu
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Changes to Inventory – includes:
◦ Transfers between departments
 Requires signatures of both sending and receiving
administrators
◦ Movement within a department
 Building, floor or room changes
◦ Form – Capital Equipment Transfer Form (attachment 4)
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Why Is a Location Change for a piece of
Equipment Important?
1. Each room is assigned a function (research,
teaching, etc).
2. The equipment that is in a room with a research function
increases the total expenses for the base used to
calculate the F&A rate.
3. If an auditor finds a piece of equipment in a hallway, for
instance, that is supposed to be in a “research” room, our
base will be lowered, thus lowering our F&A rate.
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Deletions from Inventory
◦ Each School, Department or Division must provide
FSCEI with notification of all deletions.
◦ Form – Excess Property Declaration/Capital Asset
Deletion Form (attachment 2)
 Describes the acceptable reasons for deletions and
supporting documentation required for each.
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Physical Inventory
◦ Each School, Department or Division must complete a
physical count of all their capital equipment once every 2
years. FSCEI will coordinate the schedule.
◦ FSCEI will provide packet of information to assist in
completing the physical count. Packet includes:
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Inventory Receipt Form
Inventory Certification of Completion
Inventory Report in Room Sequence Order
Inventory Report in Tag Sequence Order
Excess Property Declaration/Capital Asset Deletion Form
Capital Equipment Transfer Form
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Physical Inventory (continued)
◦ Upon receipt of the packet, Departments must sign
the Inventory Receipt Form and return to FSCEI.
◦ Departments can utilize either Inventory Report to
perform the physical count. This will involve:
 Checking off items that are on the report and are
found during the count
 Noting items that are found during the count but are
not on the report. They will need to be added.
 Noting items that are on the report but are not found
during the count. Departments must further
investigate and resolve.
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Physical Inventory (continued)
◦ Departments must provide updated inventory report to
FSCEI within 60 days. The Inventory Certification of
Completion Form signed by Department
Head/Administrator must accompany the updated
inventory report.
◦ FSCEI will review information provided and will update
the Capital Asset Management System.
◦ FSCEI will independently verify the existence of select
items within 45 days after receiving updated inventory
report.
 FSCEI will notify departments of location selected, look for
items, provide results and determine if further investigation
is necessary.
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Physical Inventory - Delinquencies
◦ When an inventory report is not returned within 60
days, a notice of delinquency will be sent to the
Department Administrator.
◦ When the inventory report is not received 2 weeks
after the initial notice, a follow-up notice will be
sent to the Administrator with a copy to the
Department Chair and Associate Director of
Financial Services.
◦ When the inventory report is not received 2 weeks
after the second notice, a follow-up notice will be
sent to the applicable Dean with a copy to the Dept
Chair.
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Non-Capital/Sensitive Equipment
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Additions to Inventory
◦ Each School, Department and Division must maintain a
listing of all non-capital and sensitive equipment.
◦ Listing must at least include:
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Description of asset
Original cost
Date acquired
Physical location
Asset tag number
◦ Standard form under Forms on Financial Services
website. http://www.fincsvc.umaryland.edu/forms.cfm
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Attachment 5
University of Maryland, Baltimore
NON-CAPITAL AND SENSITIVE EQUIPMENT INVENTORY
DEPARTMENT
QUANTITY
DESCRIPTION
DATE ACQUIRED
REFERENCE NO.
COST
LOCATION
ASSET TAG NO.
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Additions to Inventory (continued)
◦ Custodial departments must affix an asset tag to
the equipment upon receipt. Asset tags are issued
to departments in blocks by FSCEI.
◦ Ensure that all methods of equipment purchases are
accounted for:
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PUR01
PUR02
Pcard
Academic Revenue Bonds
General Obligations Bonds
Revolving Loans
Donations
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Changes to Inventory
◦ Includes movement within a department or
transfers between departments.
◦ Schools, departments and divisions must update
their listing of non-capital and sensitive equipment
as changes occur.
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Deletions from Inventory
◦ Disposal of non-capital and sensitive equipment
must be done in accordance with UMB Policy on
Disposal of Surplus Property.
UMB Policy VIII-1.20(A) UMB Policy on Disposal of
Surplus Personal Property
http://cf.umaryland.edu/hrpolicies/section8/t80120Asa.html
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Physical Inventory
◦ Must be completed once every two years.
◦ Start with your list of Non-Capital and Sensitive
Equipment Inventory and follow same inventorying
process as for Capital Equipment:
 Check off items on the list and found during the count.
 Note items found during the count but not on the list.
Add them to your list.
 Note items on the list but not found during the count.
Investigate and resolve.
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Physical Inventory (continued)
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Must notify FSCEI of completion by sending:
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Non-Capital and Sensitive Equipment Certification Letter
(attachment 6), and
Copy of up-to-date Non-Capital and Sensitive Equipment
Inventory List (attachment 5)
◦ Delinquencies – same procedure as Capital
Equipment Inventory. (see slide # 21)
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Procurement Services Surplus Property Office
http://www.procurement.umaryland.edu/Gen
Proc/mail/surplusprop/index.cfm
Surplus Property = UMB owned property that
is no longer needed or utilized.
Dept must complete Excess Property
Declaration/Capital Asset Deletion Form
(attachment 2), attach appropriate
documentation, and forward to FSCEI.
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FSCEI reviews and determines if item should
be removed from Capital Asset records or
referred to Procurement Services - Surplus
Property Office to schedule removal of
equipment from dept.
If item needs to be removed from dept FSCEI
will refer to Surplus Property Office (e.g.,
Discard as Unserviceable, Sell, Donate)
Item will be removed in 3 – 5 business days.
After removal, FSCEI will remove from records.
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Departments should first consider if they can take
advantage of a trade-in when purchasing new
equipment. Contact the buyer in Procurement
Services responsible for that commodity. Buyers
and commodities purchased are listed at
www.procurement.umaryland.edu.
The Surplus Property Office will offer property for
sale or trade to other UMB departments via the UMB
Surplus Property Trade List at
http://www.procurement.umaryland.edu/GenProc/
mail/surplusprop/index.cfm
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When possible, surplus property may be:
◦ Offered for sale or trade within USM or to another
State agency.
◦ Offered for sale to the public via public auction
(www.govdeals.com)
◦ Donated to qualified non-profit charitable org (NonProfit Certification Statement required)
 If equipment was grant funded – contact ORD SPA first.
Donation may not be allowed.
◦ Dismantled for recovery of useable parts.
◦ Disposed of as scrap and recycled. (UMB recycles
hundreds of tons of PC and related equipment
annually)
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Financial Services – Capital Equipment Inventory
Sheri Myers smyers@af.umaryland.edu x6-6025
Vicki Dodson-Lake vdlake@af.umaryland.edu x6-7392
Avis Suber asuber@af.umaryland.edu x6-7762
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Procurement Services – Surplus Property
Larry Butler lbutler@af.umaryland.edu x6-6619
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Management Advisory Services
Marc Wasserman mwasserman@af.umaryland.edu
x6-6848
Michele Evans mevans@af.umaryland.edu x6-5584
Ola Lawal olawal@af.umaryland.edu x6-5996
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