Oklahoma State University Policy and Procedures


INVENTORY OF MOVABLE EQUIPMENT

3-0125
BUSINESS & FINANCE
JULY 1990
       There are attachments for this policy that can be perused in the dean's office.

INTRODUCTION AND GENERAL STATEMENT

1.01 The Inventory Section maintains the necessary records to produce a current inventory of all movable equipment for which the University is accountable. Each item is appropriately marked and coded to be readily identified and located with ease.

1.02 The Inventory Section is administered by the Property Coordinator, whose line of administrative responsibility is through the Business Manager to the Vice President for Business and Finance.

PURPOSE AND SCOPE

2.01 The purpose of the Inventory Section is to establish and maintain a current inventory of movable equipment in custody of the University, including the item nomenclature, location of each item in the inventory, the original cost of the item, and the source of funding used to purchase the item.

2.02 An item shall be classified as an equipment inventory item if it has a useful life of five years or more with an acquisition cost of at least $250 and is a complete and independent item which does not lose its identity or become a component part of another item.

2.03 Vehicles, including farm tractors and aircraft, are to be placed on the equipment inventory regardless of acquisition value.

2.04 Contractual agreements governing some grant or contract funds and acquisitions from federal or state excess property pools require equipment items not meeting the University's definition of equipment to be held as accountable property. In these instances, the agreement conditions prevail over OSU policy. By reference, Policy and Procedures Letter 3-0127, Federal Property Management Standards, is made an integral part of this policy and procedures letter.

UNIVERSITY POLICY AND STATE LAW

3.01 This policy has been established to assign the department head the responsibility and accountability for movable equipment purchased by or assigned to a department and forms the basic principle of the inventory system. It is essential that all employees recognize the concept of institutional ownership and accountability with departmental responsibility.

3.02 Transfer of movable equipment shall not be made from building to building or from department to department within the same building without reporting such activity to the Inventory Section. Transferring equipment from department to department shall require completion of a Movable Equipment Inventory Change Request form (Exhibit 1) to transfer accountability to the new responsible department. Equipment location may be updated by a memo signed by the department head.

3.03 As a state-supported institution, the University is required to conform with State Law, Title 74, Section 110, Paragraph 1 (as amended June, 1986), which is quoted as follows:

3.04 Equipment procured with OSU Foundation funds or donated to the OSU Foundation or to the University for its use and benefit is accountable property provided that the criterion set forth in Paragraph 2.02 are met. The Foundation shall establish a fair market value (acquisition value) for each item which is received as a gift. The acquisition value for gifts to the University shall be established by the administrator(s) of the receiving division(s) or unit(s), subject to review by the Business Manager's Office. Notification of gifts shall be submitted to the Inventory Section by the Foundation in a timely manner.

3.05 Department heads shall take, or cause to be taken, a biennial physical inventory of all equipment for which he/she is accountable (Exhibit 2). There is no provision for waiver of the biennial inventory requirement.

3.06 Oklahoma Session Law, 1949, Page 419, Section 3, reads in part:

3.07 Selling, trading, or deleting from inventory any item of University-owned or non-owned equipment is not within a department head's authority. This responsibility and authority has been assigned specifically to the Business Manager's Office. This policy also applies to the disposal of scrap, salvage, broken or obsolete equipment, and surplus supplies.

3.08 Policy and Procedures Letter 3-0126, Disposition of Surplus Property, explicates University policy for disposal and handling of surplus, inoperative, or obsolete equipment. This policy statement also defines the requirement for handling excess or salvage materials and supplies.

3.09 When changes occur in department heads, the outgoing department head is responsible for informing the incoming department head of his/her responsibility and accountability for equipment in custody of the department. If time permits, a physical inventory should be conducted verifying the presence of the items on the inventory listing. The outgoing department head should get a receipt from the incoming department head acknowledging transfer of equipment responsibility and accountability.

3.10 The use of University equipment by individuals or organizations for activities not directly connected with the University is prohibited. University-owned or controlled equipment shall not be removed from the University premises except in cases where such equipment is to be used in the line of official duty.

3.11 The use of University vehicles is restricted to official University business.

PROCEDURES

4.01 The department head is responsible for all equipment purchased for or assigned to the department and shall promptly report any acquisition, transfer, or loss of equipment to the Inventory Section.

4.02 Stolen equipment should be reported to the OSU Police at once. A Movable Equipment Inventory Change Request (ICR) form should be completed and submitted to the Inventory Section to update the equipment data base. A copy of the Police report detailing the theft should accompany the completed MEICR form.

4.03 Purchase of inventory items is the most common method of acquisition. When a purchase is made and the equipment is received, the item is to be reported on the ICR form (Exhibit 1.) This form originates in the Inventory Section. The Inventory Section is responsible for entering the requisition number, vendor, and acquisition code (A1-Purchase) from the payment processed by the Accounting Section.

4.04 Acquisition of inventory items may be secured by construction, gift, transfer or "other." Each department head must report such transactions to the Inventory Section by filing a ICR form. If the inventory items are acquired by construction, gift or "other," the inventory change request form is to be initiated by the acquiring department. This form is to be completed in the same manner as for acquisition of inventory equipment by purchase, with the exception being that the acquiring department is to fill in the acquisition code applicable to the acquisition in the column titled "AC." The completed form is to be submitted to the Inventory Section. The blue copy is to be retained by the department. The yellow copy will be left with the department when the equipment is tagged. The addition of equipment by transfer reporting procedure is explained in paragraph 4.06a.

4.05 Procedures for equipment acquired by donation through the OSU Foundation shall be as follows:

4.06 Removal of items from the inventory lists may be requested by notifying the Inventory Section through use of the ICR or by the Report of Surplus, Obsolete or Junk Property for Disposal form (Exhibit 5). All forms indicating removal because of loss or theft must be authorized by the department head. Inventory change requests for removal of items due to theft or loss with an aggregate acquisition value of $5,000 or more must be authorized by the college dean. If the removal request originates in a division or department that does not have a dean, removal must be author-ized by the appropriate vice president.

4.07 Other equipment removal situations are to be handled in the following manner:

4.08 Any equipment that is classed as R4-Surplus-Operative or R5-Salvage is to be moved to the surplus warehouse. The surplus warehouse manager will decide on the removal code to be used. The inventory number and the item's description are to be indicated in the removal section of the change request. Also, the condition of the item, estimated market value and reason for disposition should be listed as well as a contact person to assist in the efficient pickup of surplus items by personnel of the surplus warehouse. The Inventory Section will contact the surplus warehouse for equipment pick-up after the Board of Regents has approved the requested disposition.

4.09 Under no circumstances should any equipment be thrown away. Any excep-tion to this will be decided by the Inventory Section.

4.10 Purchases of equipment from the Oklahoma State Agency for Surplus Property require special care in reporting. The following criteria is to be used in selecting which items are to be included in the inventory system:

4.11 Inventory records on items procured from surplus property will be main-tained in the same manner as other property in the custody of the University.

4.12 A complete listing of inventory items will be sent to each department head at fiscal year-end.

4.13 All departments, without exception, are required to conduct a biennial physical count of inventory using an inventory listing as a guide. Any differences between the listing and the actual physical count must be reported to the Inventory Section. Certification of biennial inventory is required. The Inventory Verification Report is attached as Exhibit 2.

4.14 Inventory Verification Reports must be completed and returned to the Inventory Section no later than the due date stated in the letter accompanying the blank Verification Report and detail inventory listing. Departments are allowed approximately ten weeks from the time the Inventory Section distributes information to complete the Verification Report.

4.15 Departmental equipment inventory will be annually tested for compliance with state law and University policy by the Department of Internal Audits.

Revised: November 1983
September 1987
May 1989
October 1989
July 1990