Asset Management is the part of UM Procurement responsible for the coordination of a physical inventory of all capital equipment, and for the campus reporting of such. Asset Management adds equipment to the capital inventory database by reviewing purchase orders and equipment gift documents.
The Asset Management Specialists support all four campuses in identifying, creating and assisting in tagging capital equipment purchased by the University, while also overseeing the annual Physical Inventory process that all department fiscal officers perform every year.
Frequently Asked Questions
Frequently Asked Questions
A Capital Equipment Assets is a moveable, self-contained piece of equipment that has a lifespan of at least one year.
When a department purchases a piece of equipment using a Capital Equipment account (77XXXX) and valued over $10,000.00, an employee from the Asset Management department will contact the requestor and/or the custodian listed on the requestion to verify and tag the equipment as a Capital Asset.
A purchase order may total over $10,000.00 but if the line item or items are not a single piece of capital equipment, or if they do not work together indefinitely as one piece of Capital equipment, the items are not considered Capital. If you have questions about whether equipment is Capital or not consult with your supervisor or fiscal officer.
Equipment purchase orders are created using an Equipment Account (77XXXX is Capital) and a Deptid from your department. The Capital Equipment Asset will be added to the department whose Deptid was used on the purchase order. The LOCATION does not determine the owner. A department may own equipment located anywhere at any campus.
If the item purchased was split funded, the Deptid funding with the majority of the purchase will own the asset. If split funded 50%/50% the first line of funding will own the asset. If you have questions about split funding or Deptid funding consult with your supervisor or fiscal officer BEFORE placing a purchase order.
Inventory records must be maintained on all non-expendable, moveable property and equipmentwhich has a single item cost of over $10,000, or is a gift with equal value, and:
- Has an expected useful life of one year or more
- Is self-contained for its primary function (not a component part of another piece of equipment)
- Has sufficient individuality and size to make control feasible by means of identification tags, numbers and/or manufacturer's serial numbers marked thereon.
Capital Assets are depreciated using a straight-line method over the expected Useful Life of the asset with depreciation expense being recognized in plant funds.
A copy of Advice of Gift Received (UM 9A) must be submitted to report the addition of any property or equipment which meets inventory record requirements.
Verifying Inventory Records
Verifying Inventory Records
Inventory verifications are distributed by the Accounting Office once a year. They are sent to fiscal officers by UM Asset Management for distribution to campus departments. During the verification process, the following changes can be made:
- Change location
- Change Custodian (name of person who should know about the asset)
- Change Custodial Deptid (department whose inventory the asset prints on)
Changes that CANNOT be made:
- Purchase order number
- Cost
- Date of receiving
- Quantity
- Description
- Serial number
Departments are required to:
- Verify the accuracy/completeness of the respective property and equipment listed therein.
- Clearly note changes or additions to any property and equipment of the list.
- Sign and date the online form for each department.
- Send an email to verify the inventory is completed.
It is the department's responsibility to ensure that submitted changes are true and accurate. This responsibility includes informing all persons and departments associated with the use of the asset so they understand that changes are being requested. Changes to a department's inventory should be compiled and returned to the division fiscal officer. A complete, detailed record of all inventory changes requests must be retained at the department level for at least three years. If you have any questions about changes to your department's inventory consult with your supervisor or fiscal officer.
Departments with capital assets that cannot be located must be reported IMMEDIATELY to the University Police by telephone and on form UM 155 Disappearance of Assets & Money . The completed form must be forwarded to the Campus Business Office WITHIN 24 HOURS AFTER DISCOVERY OF THE LOSS, and to UM Risk and Insurance Management and UM Internal Audit WITHIN 48 HOURS AFTER DISCOVERY OF THE LOSS.
Responsibilities
Responsibilities
The Asset Management/Inventory Control section of Procurement Services is responsible for:
- Establishing and maintaining the records and procedures necessary for the accountability of the University property and equipment inventory.
- Determining the items to be inventoried and the numbers to be assigned.
Sending the inventory bar code to the custodian or department contact.
NOTE: Bar codes should be placed visibly on equipment. If an item costs more than $10,000 and is impossible to tag with a bar code, a log book may be used by the department to keep track of the item.
Each department chairperson or administrative official is responsible for:
- All property and equipment purchased or constructed for and assigned to the department.
- Verifying inventory records.
- Reporting changes to inventoried property or equipment.
- Establishing and maintaining records and controls for sensitive equipment such as guns, cameras, stop watches, computers, etc, which are not inventoried under the provisions of this policy.
- Authorizing the removal of University equipment from their departments for use on University business off campus and maintain written authorization in departmental file.
Staff Contacts
Staff Contacts