Accounting and Safeguarding of Assets

40.01         Fixed Assets Inventory                                                                       Issued: May 15, 1998
                                                                                                                  Updated: January 21, 2000

1.     Definitions

        University Property Manager - the individual assigned the responsibility for maintaining
        the official fixed asset inventory for the University. Currently this is the Manager of
        Accounting.

        Accountable Property Officer - the individual in each department assigned the
        responsibility for maintaining the department's inventory of fixed assets. This is the
        department head, unless they have formally designated a staff member.

        Annual Inventory - the physical verification of each item on the University's equipment
        inventory conducted once a year.

        Surplus Property - useful equipment no longer needed by the responsible department.

        Salvage - equipment that is no longer useful.

        Inventoriable Equipment - generally, equipment with a purchase price or donated value of
        $1,000 or more. Exceptions are those items classified as controlled assets by the State
        Comptroller's Office.

        Non-Inventoriable Equipment - generally, equipment with a purchase price or donated
        value of less than $1,000 and not classified as a controlled asset.

2.    Equipment Management Manual

        The Texas A&M University System Equipment Management Manual establishes the overall
        guidance and procedures for managing equipment within the System.

3.     Procedures

        3.1     Additions

                  All inventoriable equipment or furnishings purchased by the University is tagged and
                  added to the University's inventory by the Fixed Assets Staff in the Fiscal Office
                  within 10 days after delivery.

        3.2     Missing or Stolen Equipment

                  All equipment (inventoriable or non-inventoriable) that is identified as missing or stolen by 
                  a department must be reported to the University Police Department and the and the Fixed
                  Assets Office using a Missing or Stolen Report (Attachment 1).

        3.3      Transfers

                   Departments desiring to transfer inventoriable equipment to another department must 
                   complete a Property Transfer form (Attachment 2) to document the transfer of 
                   responsibility and to provide proper information for updating the fixed asset inventories
                   of the respective departments.  When transferring computer equipment, departments
                   must also complete the transfer of  Computer Equipment form (Attachment 3).  The
                   completed and approved Property Transfer form must be filed with the Fixed Asset 
                   Office.

        3.4     Annual Inventory

                  Departments are provided with a listing of their equipment inventory annually.
                  Departments should verify that each item exists and that the information on the listing
                  is correct. Any items not on the list should be added. For missing or stolen items,
                  departments should attach copies of the the applicable Missing or Stolen Reports.
                  Department Heads are required to sign the Certification of Physical Inventory form
                  and to return it to the Fixed Assets Office.

        3.5     Non-Inventoriable Equipment

                  Although there is no requirement to keep an official inventory of these items, they
                  should be marked "Property of PVAMU" with indelible ink and departments should
                  ensure that they are properly secured. Additionally, departments are encouraged to
                  maintain pertinent information (e.g. serial number) to aid in an investigation should an
                  item turn up missing or stolen.

        3.6     Random Inventory

                   The University Property Manager is responsible for conducting random inventory checks
                   on a test basis.  During the course of a year, all departments should be tested at least
                   once.

       3.7     Surplus/Salvage Property

                Departments are responsible for identifying surplus and salvage property.  Proper
                disposal of surplus property requires the department to transfer (See Section 3.3
                above for transfer procedures) the equipment to the Central Stores/Central Receiving
                operation, which administers the surplus property disposal program for the University.
                Proper disposal of salvage requires written approval of the applicable department head
                using the Property Destruction Record Form (Attachment 4).  Upon approval, the salvage
                equipment should be discarded in the appropriate trash receptacle, unless special disposal
                requirements exist due to size or nature of equipment.  A copy of the approved Property
                Destruction Record form must be filed with the Fixed Assets Office.

    3.8        Trade-Ins

                Departments desiring to trade older equipment in on a new piece of equipment must
                properly identify the equipment on the purchase requisition for the new item.  Proper
                identification includes description, inventory number and/or serial number.  A copy
                of the requisition should be filed with the Fixed Assets Office.

    3.9        Leased Equipment

                Depending on the lease arrangement the University may be required to include leased
                equipment on its inventory.  To ensure proper accounting, the requesting department
                should contact the Manager of Accounting.

3.10        Gift Equipment

                Gift equipment is subject to the same inventory rules as purchased equipment, with
                the exception that the fair market value is used when placing the assets on the inventory.
                Departments receiving gift equipment must notify the Fixed Assets office so that  they
                can tag the equipment and update the inventory records.

3.11        Temporary Property Transfers

                When employees use University equipment outside of their department or off-campus,
                custody of the equipment must be signed for by completing a Custody Card (Attachment 5).
                the Custody Card must be approved by the department head or their designee and a copy
                must be filed with the Fixed Assets Office.  Proper notation should be made by the
                department head on the card when the property is returned.

Contact:     Manager of Accounting