CMP 430-25: Inventory of Capital Equipment

To list and define the policy and procedure for inventory of capital equipment      

NAU Property Control Policy

Acquisition and initial valuation 

The University's fixed assets are initially recorded at cost. "Cost" includes all normal and necessary expenses incurred to make the asset ready for its intended use. These ancillary costs include, but are not limited to: freight charges, sales/use taxes, installation, assembly and testing charges. 

Accounting for University property 

The Property Control department shall be responsible for accounting for all University assets and ensuring that all departments within the University comply with the accounting requirements. 

Identification of University capital assets 

Capital equipment items must be tagged or otherwise identified as University property. The assigned identification tag number must be recorded on the fixed asset listings. The fixed asset system records the asset, cost, funding source, date
of acquisition/disposal, and location of the asset and identification number, for all capital equipment. 

Taggable vs. Non-taggable equipment 

Sales/use tax, freight, and installation costs associated with any capital purchase are considered part of the value of the equipment. 

Items are taggable (capital assets) if they meet the following criteria:

Individual items that have a value of $5,000 or more 

All computer equipment (no matter the cost) must be physically tagged and assigned a NAU identification number and be recorded on the fixed asset inventory master table.

Items that are non-taggable (non-capital equipment):

Individual items whose value is less than $5,000

See Property Control's web site for additional information
http://www.nau.edu/purch/Property%20Administration/Property_Control.html

Physical inventory consists of the sighting, tagging, describing, recording, reporting the property concerned, and reconciling the property so recorded and reported with the fixed asset system. A physical inventory must be supervised and spot checked by the Property Control Department every year of the asset's life in each department's possession. Appropriate changes are entered on both the individual department's equipment listings and the fixed asset system. The equipment listings must be updated when changes take place (location, value, etc.) or when new assets are acquired.

Acquiring and Tagging new equipment: 

When a department acquires equipment on a Purchase Order, correct object/sub-object codes are essential for determining capital vs. non-capital equipment (to select the appropriate codes, view the ADVANTAGE
SOBJ table or the Property Control Capital Object Codes ). 

Correct commodity codes are also important to the timeliness and accuracy of reporting equipment in the property control system (ADVANTAGE COMM table). 

To have newly purchased equipment tagged, call Property Control at 523-4011 and supply the following information:

Purchase order, Bookstore or University Stores Order number building and room number where item(s) are located a contact person/phone number. 

NOTE: WE CANNOT TAG ANY ASSET THAT DOES NOT SHOW "RECEIVED" IN ADVANTAGE.

YOUR DEPARTMENT MUST COMPLETE AN 'RC' DOCUMENT ON-LINE BEFORE WE CAN TAG

YOUR NEW ASSETS. PLEASE ALLOW TWO DAYS FOR THE 'RC' TO BE PROCESSED. 

When Property Is Donated to NAU (Gift-in-Kind): 

The department acquiring the gift: 

Acquires all documentation transferring title of the equipment to the university.
Obtains any required signatures accepting the equipment on behalf of the university (Vice President, Provost). Submits a copy of the donation form to Property Control.


Property Control: 

Records the gift on the College and University Financial System using the gift report information/value Tags & inventories the item(s) using standard procedures


Individuals must immediately notify Property Control of equipment transfers from another institution or agency to NAU.

Unless otherwise stated, title of equipment vests with the university at the time of the transfer. Property Control will then tag the equipment and add it to the property control system. 

Inventory Procedures: 

Departments are responsible for completing annual inventories of all assets in their custody. Property Control shall notify the responsible person in the department of the date the physical inventory shall start and an approximate time for completion. 

Instructions will be provided to the department and two reports will be supplied listing all of the department's assets. One report will be sorted in tag number order and the other by location. 

The department will then physically inventory each piece of equipment by: checking the list, verifying the information, correcting and update missing information. The department will also record equipment which is not tagged but should be and/or note bar code tags that need to be replaced (illegible). Notes should be made regarding locations for any equipment on loan or moved to another location. 

Upon receipt of the completed inventory listing, Property Control will then:
update all assets found to show a current inventory date create a "missing list" of all items not found during the physical inventory supply the department with the "missing list" with a request to find those missing items (for equipment that cannot be located, a Property Control Authorization (PCA) form must be completed by the department with the appropriate approvals to remove the items from the fixed asset listing) update all missing assets in the fixed asset system to show a current inventory date complete a physical spot check of 15% of the department's assets within 6 months of the completion of the inventory by the department .

For additional assistance and information, please contact NAU Property Control.