To provide adequate internal control over non-capital equipment and help ensure the safeguarding of University assets.
To meet the requirements for USM institutions to document their inventory policy in accordance with USM Policy 240.0 VIII-1.10 – Policy for Capitalization and Inventory Control (issued by the Chancellor, June 19, 1989, revised by the Board of Regents, June 9, 1995 and July 7, 2000).
The University generally defines sensitive equipment as a non-capital item that has a unit value greater than $1,000 but less than $5,000, is desirable, easily susceptible to theft, easily converted to personal use and has a useful life greater than one year. Examples of such items include but are not limited to:
All computers and personal electronic devices are considered sensitive regardless of the value up to $5,000.
Asset Management Group Responsibility
Although the University does not capitalize sensitive equipment for financial reporting purposes, control for sensitive equipment is the same as capital equipment, with the exception of the physical inventory verification.
The asset management group, consisting of staff from both the Department of Finance and Information Technology ("IT"), will maintain central records of all sensitive equipment assigned to each department. The asset management group will be responsible for the coordination of tagging the sensitive equipment when it is acquired, recording its manufacturer's serial number, and determining its disposition when it becomes obsolete, surplus or inoperable. Sensitive equipment controlled by the IT department will be an exception. The IT department will be responsible for tagging items and forwarding the information to the asset management group for posting to the fixed asset management system.
The Board of Regents requires that a complete physical inventory be taken every three years for sensitive equipment. Each department, through the department's IT Liaison, and in coordination with IT, will be responsible for taking its inventory. The asset management group will coordinate the scheduling of this inventory and provide each department with a list of its sensitive equipment as well as detailed instruction for performing this task. At the conclusion of the physical inventory, a final list of all missing equipment will be reviewed and approved by the Chief Financial Officer, or his/her designee, before any adjustments are made to the inventory database.
Responsibility of Departments, Consultants and Contractors
Departments (with the exception of IT), consultants and contractors will be responsible for notifying IT of any changes in the physical location or ownership, which includes all asset issuances, moves and returns, of any sensitive equipment. Notification will be received in the form of a service request ticket via the University's request tracking system, "ITWorks". Departments should not redistribute sensitive assets when recovered. Assets must be returned to IT for proper tracking, assessment, reissuance or disposal.
The submission of a service request triggers the assignment, recording and collection of the appropriate asset tracking form(s) to include, but may not be limited to, the Asset Management Form. As appropriate, one or more additional forms may need to be completed to account for other circumstances. A brief description of each form is listed below:
This form must be used whenever equipment is transferred between business units or reported missing, stolen, scrapped, or traded. It is also used to record non-IT equipment being transferred between departments. If equipment is being transferred, the transferring and receiving department heads must both sign the form. If equipment is stolen, a copy of the police/security report must be attached. This form is also to be used to add equipment that has been identified but has not been recorded on the computerized inventory system.
This form must be used for any disposal, except for equipment transferred to Terrapin Trader. The asset management group coordinates all disposals. Departments cannot dispose of or sell any equipment without the approval of the Controller or his designee.